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Yale Center for the Study of Globalization<br />

Sometime around 2000, the pace of growth accelerated, and for the last 14 years<br />

or so the annual growth rate of per capita GDP in SSA has been close to 3 percent.<br />

This quantum jump in the pace of growth appears to have been accompanied by a<br />

change in the pattern (structure) of growth.<br />

The main objective of this paper is to explore whether, and the extent to which, the<br />

growth pattern has changed from being extractive and exclusive to becoming more<br />

widely shared among the population.<br />

5.2 What is inclusive growth?<br />

Inclusive growth is the new paradigm and strategic recipe embraced by the development<br />

community. It recognizes, first, that wellbeing consists of multiple dimensions<br />

including income, assets, education, health, relative freedom from oppression, and<br />

some fundamental human rights such as the right to vote. True development requires<br />

progress in these various dimensions. Second, inclusive growth calls for the fruits<br />

of economic growth to be spread relatively widely among the different segments of<br />

the population. The poor, the middle class, and the rich should reap the benefits of<br />

growth in all of its many dimensions. In this sense the concept of inclusive growth<br />

emphasizes that the human development of all individuals and households should<br />

be the primary objective.<br />

There are many definitions of inclusive growth. A comprehensive one, capturing well<br />

the essence of the concept, is that of the Indian Planning Commission: “…growth<br />

that reduces poverty and creates employment opportunities, access to essential<br />

services in health and education, especially for the poor, equality of opportunity,<br />

empowerment through education and skill development, environmental sustainability,<br />

recognition of women’s agency, and good governance” (IPC, 2011: 2).<br />

Since the initial conditions differ in different regions of the developing world, it follows<br />

that the appropriate form and content of inclusive growth should match, as much as<br />

possible, the prevailing initial conditions. Thus, focusing on the context of SSA, the<br />

African Development Bank (AfDB, 2012: 2) defines inclusive growth as “economic<br />

growth that results in a wider access to sustainable socio-economic opportunities for<br />

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