Inclusive Growth and Indices of Social Development:

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Inclusive Growth and Indices of Social Development: conceptual explorations with country narratives Arjan de Haan IDRC, formerly ISS

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Inclusive Growth and Indices of Social Development: conceptual explorations with country narratives Arjan de Haan IDRC, formerly ISS . contents. Background to this paper Concept inclusive growth – some genealogy GDP, inequality, HDI Inclusive growth as process Production - PowerPoint PPT Presentation

Transcript of Inclusive Growth and Indices of Social Development:

Page 1: Inclusive Growth  and  Indices of Social  Development:

Inclusive Growth and Indices of Social Development:

conceptual explorations with country narratives

Arjan de HaanIDRC, formerly ISS

Page 2: Inclusive Growth  and  Indices of Social  Development:

contents

• Background to this paper • Concept inclusive growth – some genealogy • GDP, inequality, HDI • Inclusive growth as process– Production– Accountability, participation, governance

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Page 3: Inclusive Growth  and  Indices of Social  Development:

background

• IDRC program ‘supporting inclusive growth’• A fairly broad working definition

“growth that improves the access of the poor to expanding economic opportunities and reduces inequality”

• While it’s right to have broad working definition, we decided to review different country narratives

• And: how is the concept different from earlier ones?– process and outcomes – governance and beyond

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Page 4: Inclusive Growth  and  Indices of Social  Development:

Country narratives:10 emerging (more or less) economies

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Zambia

Brazil

Ghana

Egypt

Tunisia

Bangla

desh

Mozambique

Thaila

ndIndia

Vietnam

China

-40

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60

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GDP/capita annual growth 1990-2010Poverty headcount ChangeGini ImprovementInfant Mortality Improvement

Page 5: Inclusive Growth  and  Indices of Social  Development:

a little of genealogy

• concept inclusive growth led by emerging economies, notably India 2004

• similar but in different language China, Brazil, South Africa

• international agencies: AsDB, UNDP, now AfDB• After:– 1997 crisis turnaround pro-growth emphasis – period ‘inclusive neo-liberalism’

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Page 6: Inclusive Growth  and  Indices of Social  Development:

growth-is-not-enough concepts

• growth with redistribution(1980s Washington Consensus style)• growth and poverty reduction• poverty elasticities • inequality ‘back on the agenda’• pro-poor growth (growth rate bottom 10%)• growth incidence curves

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Growth and …

• Inequality– while diverse now well explored , WDR 2006– Growth Commission ‘toxic inequalities’

• HDI: remains contested but also well-known debate• Gender – instrumental case

(no link with growth in dozen countries – see below)

• Governance, institutions and growth (below)

Now: growth as process ……………

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Inclusive growth (see ADB paper Klasen)

Inclusive growth as outcome– Growth with declining

income inequality – Growth with growing social

opportunities IA-HDI?

-> HD and social protection policies

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Inclusive growth as process

• Expanding equal opportunities and access– Social (as above)– Infrastructure – Etc

Measurement not clear, possibly at project level

-> can / should we include governance and social development indicators ?

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Inclusive growth as improving governance-> no story / not-so-good-story

GDP and rule of law (WGI) GDP and voice and accountability (WGI)

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Intermezzo: Governance and ISD comparison

Voice & accountability – civic activism

Voice & accountability – clubs & associations

110 10 20 30 40 50 60 70

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Growth &ISD – with governance

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voice and countabilitycivic activismclubs and associationsintergroup cohesionsafety and trust

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Conclusions

• Growth paradigm is shifting, increasingly broad understanding well-being

• All good things do not go together • ISD (some) show links with other development

outcomes (Robert, Yi Lerh and John) • Can we link this to and ‘inclusive growth’

indicator ?• Will strength of explanation increase if we

include governance ? 13