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Dimensions of inclusiveness-I

December 31, 2007

Abstract: The recent emphasis on inclusive growth suggests looking at the attributes of inclusiveness, namely:

  • Opportunity: Is the economy generating more and varied ways for people to earn a living and increase their incomes over time?
  • Capability: Is the economy providing the means for people to create or enhance their capabilities in order to exploit available opportunities?
  • Access: Is the economy providing the means to bring opportunities and capabilities together?
  • Security: Is the economy providing the means for people to protect themselves against a temporary or permanent loss of livelihood?

“Inclusive growth” can be defined as sustained economic growth (measured by expansion in GDP) resulting in an enlargement of the scale and scope of all four attributes. Evaluating inclusiveness by income inequality indices alone is not appropriate.  Rather, there is a need to measure whether or not the process gives an increasing number of people legitimate opportunities to earn higher incomes.

Keywords: inclusive growth; opportunity; capability; access; security; NREGS

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