The World Economic Forum on 7 September 2015 released its maiden Inclusive Growth and Development Report.
The report seeks to improve our understanding of how policy incentives and institutional mechanisms can be used to make economic growth more socially inclusive without dampening incentives to work, save and invest.
Highlights of the report
• There is considerable diversity in the achievement of inclusive growth not only across but also within countries.
• There is no inherent trade-off in economic policymaking between the promotion of social inclusion and that of economic growth and competitiveness and it is possible to be pro-equity and pro-growth at the same time.
• Larger fiscal transfers are not necessarily incompatible with growth and competitiveness, but nor are they always the primary or most effective available option for broadening socioeconomic inclusion.
• Policies and institutions supporting social inclusion are not solely a luxury of high-income countries.
• The current debate on inequality and social inclusion is unduly narrow and unnecessarily polemicized. It is possible, indeed essential, to be pro-labor and pro-business, to advocate a strengthening of both social inclusion and the efficiency of markets.
Report with respect to India
• Sustained strong growth has lifted many out of absolute poverty but improvements in living standards have not kept pace with GDP growth or been evenly distributed.
• Among the lower middle income countries it ranked in the bottom half of the 38 countries in terms of overall inclusive growth.
• In terms of fiscal transfers it ranked 37th out of 38, 32nd for Tax Code and 36th for social protection.
• In the small business ownership category India was placed at the bottom (38th position).
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What: Released by the WEF
When: 7 September 2015