What are major components and dimensions of Inclusive Growth?
Various factors as inter-related components of the Inclusive Growth were first discussed in Eleventh Plan document. These broad and inter-related components are Poverty Reduction; Employment Generation; Access to essential services; Equality of opportunity; Skill building; Good governance and women empowerment.
Inclusive Growth as a Multi-dimensional Concept
Inclusive growth is understood as a multi-dimensional concept that facilitates inclusion from a variety of fronts that include:
- Increase of employment;
- Elimination of poverty;
- Elimination of discrimination
- Elimination of horizontal and vertical inequalities
- Promotion of access to a variety of public resources and institutions.
- Increase participation of all in the growth process
- Include the excluded and empower them
Basic idea is that the fruits of rapid economic growth should be widely shared, particularly by the poor and marginalised segments of society. Even if the rates of economic growth are high, that is, even if the cake is growing rapidly in size, nothing will trickle down to those who are not involved in the growth process either as entrepreneurs or employees, because of lack of appropriate capabilities. This is why the state has to intervene and orchestrate an inclusive growth path.
Inclusive Growth as a Utopia
Many consider the concept of inclusive growth as a utopian concept. This is because inclusive growth is based on the assumption of equitable allocation of resources and benefits accruing to every section of society, but perfect equality cannot be found anywhere.
However, the practical idea is to keep inequality into tolerable limits. Even bringing inequality within tolerable limits cannot be achieved overnight. Thus, the goal of inclusive growth needs to be a medium-long-term goal, as it takes time to include the excluded. However, the processes of such growth should start in the short run, as the medium-term goals have implications for short-term processes and activities.
Inclusive growth should be reflected in better opportunities for both wage employment and livelihood and in improved provision of basic amenities such as water, electricity, roads, sanitation and housing.