We tend to assume that a growing economy is the norm. With consistent growth since the turn of the last century up to the global crash of 2008, many people have come to expect that each generation will be better off than the last. In recent decades, we have faced a more turbulent situation.
To address widening inequality, and to find new paths to sustainable economic growth, there has been growing interest in the idea of ‘inclusive growth’.
The OECD defines this as “economic growth that is distributed fairly across society and creates opportunities for all”. It is regarded as inclusive if poor people benefit, or even that poor people benefit more than others so that inequalities narrow. Inclusion goes beyond income, as inequalities of health, gender and ethnicity mean that people and places are not reaching their full potential and cannot take advantage of opportunities.
Aspirations for inclusive growth can generate new ways of intervening in the economy so that disadvantaged regions can stimulate innovation, increase productivity and growth for the benefit of all citizens.
