INCLUSIVE DEVELOPMENT

DEFINITION
• Inclusive development is a pro-poor approach that equally values and
incorporates the contributions of all stakeholders - including
marginalized groups - in addressing development issues. It promotes
transparency and accountability, and enhances development
cooperation outcomes through collaboration between civil society,
governments and private sector actors.
 Emergence of the Concept
• As per traditional theories- economic growth is most significant factor
to promote economic development
• But over time the conceptual and practical gap between economic
growth and social welfare is being candid
• Development needs the proper coordination among social, political,
economic and environmental factors
• Two major issues arise here
I. Realizing the difference between growth and development
II. Introducing the concept of Inclusive development
 Conceptualization of Inclusive Development
• Unlike economic growth inclusive development can’t be measured
quantitatively
• Framing the concept of inclusive development is rather a complex
matter
• There arise conceptual and analytical complexities regarding the
quantification
• Another problem arises regarding the country specific nature of
inclusive development
 Main Concerns of Conceptualization
• Synchronizing it with the concept of economic development and the
long celebrated debates on appropriate policies
• Framing the concept of inclusive development in the perspective of
the following matters
I. Difference between economic growth and economic development
II. Difference between inclusive growth and inclusive development
• To throw light on the key dimensions of inclusive development in
order to analyze it
 Development Debate and Inclusive
Development
• Dominance of economic perspectives in development theories
• That stressed on the growth of business through modernization by
neglecting culture, tradition and social values
• Concept of inclusive development emerged with the recognitions of
i. Universal Human Rights
ii. Investigation about backwardness of LDCs in the development path
iii. Human rights to protect political, economic and social rights
Continued
• Shift in the focus of economic development towards human
development, poverty alleviation and entitlement in 1990s
• Increasing focus on participatory development, freedom and capability
• Inclusion of the matter of gender inequality and third world woman’s
survival
• The role of equity has gained significance in the recent ages
• All these are reflected in introduction of the concepts of inclusive
growth and inclusive development
• Inclusive development emphasizes on marginalized and poorest section
of the society considering the factors that keep them away from the
process of development
 DIFFERENCES
• Growth and Development
Growth focusses on increase in real per capita income
Development needs-
1. Economic growth
2. Strange in sectoral distribution and occupational structure
3. Reduction in regional disparities and abolition of dualism
4. Distribution
5. Improvement in social indicators
6. Freedom and capability
 Differences
• Inclusive growth and Inclusive Development
Inclusive growth emphasizes of the economic indicators
Inclusive development integrates economic indicators with equity
and rights
Achievement of social justice
Distribution of social and material benefits
Abolishing factors creating marginalization and exclusion of poor
class
Growing the capability among them to participate in development
Dimensions of Inclusive Development
 Social Inclusion
• Process of including people in society by improving ability,
opportunity and dignity of less privileged class
• To ensure social respect and recognition
• Finally the recognition of rights, responsibilities, accountabilities and
judgment
• Removal of the system of exclusion and marginalization of people.
• Idea and process of social inclusion can vary from the country to
country on the basis of history, culture, institutions and social
structures
 Poverty and Distribution
• This dimension has gained significance in recent years
• In post reform period, growth is being associated with growing
inequality in many nations (an evidence against “percolation effect)
• Huge increase in inequality in last few decades (poorest 2/3rd of the
world population- 13.5% of world income & richest 1% own 15%)
• Income inequality is a threat social cohesion, social mobility causing
social tension and social unrest and political instability.
• Modern policies have aggravated the inequality problem
 Poverty and Distribution
• Redistribution polies might reduce inequality but can’t ensure participation from all
sections

• Such policies aren’t designed to address the root causes of inequality

• This neglects the target of inclusive development

• Economic development should include the process of equitable distribution of social

and material benefits across social groups and categories

• Inclusive development needs equal distribution of income and wealth, providing

education and skill formation opportunities for less privileged class to enable them
for participating in development process
 Political Dimension
• Politics refers to a process of conflict, cooperation and negotiation in decision
making on ownership, utilization and distribution of resources
• Inclusive development is a process that is related not only to technical and
economic aspect but also the political and environmental aspects
• The politics include the interaction and conflict of the various kinds of group
with different targets
• Political dynamics may have negative impacts on the prospect of inclusive
development through structural factors and dominance of the elites in both
individual and collective level
• Political settlement is a major player in the perspective of inclusive
development
Continued
• Balance of distribution of power and political leadership highly recommended.
• Fair distribution of power creates a better chance for successful
implementation of inclusive development
• The transmission of the gains of benefit of development is determined the elite
commitment
• Usage of power and influence by elite to distribute the benefits of progress to
the broader group of society can accelerate inclusive development
• The effort of elites to entrench their privileged position hampers the pace of
inclusive development.
• In general, the elite commitment and political leadership are highly relevant in
the implementation of inclusive development.
Environmental dimension
• Inclusive development has a strong ecological component
• Extreme poor are always dependent upon and vulnerable to local resources
• Large group of vulnerable people are more exposed to the risk of falling into
poverty,
• The well being of common people is related to continuous investment on
maintaining ecosystem
• Global recession has worsen the global environment through
development/environment trade off
• A new debate has emerged that introduces the concept of green growth and green
economy- growth within environmental limit
• Inclusive growth is a strategy to counter the theory of environment/development
trade off