Inequality and the Imperative for Inclusive Growth in Asia

Ifzal Ali

Asian Development Review (ADR), 2007, vol. 24, issue 02, 1-16

Abstract: Developing Asia’s rapid growth rates that have contributed to a remarkable decline in the incidence of poverty have also been accompanied by rising income and expenditure inequalities and persistence of high levels of nonincome inequalities. These inequalities could be traced to various dimensions of unevenness in the growth process. In turn, the unevenness arises from policy factors as well as from structural transformation associated with growth. Further, unevenness arises from constraints to access to public services and inputs like land and credit. To address these causes of inequalities, the paper advocates a strategy of inclusive growth. This strategy rests on three anchors, i.e., expanding opportunities, broadening access to opportunities, and social protection that acts as a safety net and a springboard. These anchors reinforce each other to facilitate a process of allowing all members of society to participate in, and contribute to, the growth process on an equal footing regardless of their individual circumstances. Public policy to address the disadvantages of circumstances and thereby ensure an even playing field for all is the bedrock of inclusiveness

Date: 2007
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DOI: 10.1142/S0116110507500060

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