Indeed, in the absence of substantial modifications to the growth strategy, it
may be politically and socially difficult to sustain rapid growth. The reason is
that political and social discontent due to widening inequality may undermine the
bedrock of sociopolitical stability, which facilitated the region’s growth for the
past few decades. An annual GDP growth rate of 8% rather than 10%, but which
is more inclusive, is likely to be more politically and socially sustainable. In the
context of a more inclusive growth strategy, two sets of policies are especially