The purpose of this note is to define the meaning of the term ‘inclusive’ growth. It is often used interchangeably with a suite of other terms, including ‘broad-based growth’, ‘shared growth’, and ‘pro-poor growth’. The paper clarifies the distinctions between these terms as well as highlights similarities.
The paper argues that inclusive growth analytics has a distinct character focusing on both the pace and pattern of growth. Traditionally, poverty and growth analyses have been done separately. This paper describes the conceptual elements for an analytical strategy aimed to integrate these two strands of analyses, and to identify and prioritize the country-specific constraints to sustained and inclusive growth.
Defining Inclusive Growth Rapid and sustained poverty reduction requires inclusive growth that allows people to contribute to and benefit from economic growth.1 Rapid pace of growth is unquestionably necessary for substantial poverty reduction, but for this growth to be sustainable in the long run, it should be broad-based across sectors,2 and inclusive of the large part of the country’s labor force.3 This definition of inclusive growth implies a direct link between the macro and micro determinants of growth. The micro dimension