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The Concept of Inclusive Growth

and its Policy Relevance


for Asia and the Pacific
Ursula Schaefer-Preuss
Vice President, Knowledge Management
and Sustainable Development
Asian Development Bank

International Food Policy Research Institute


28 September 2010
Washington, DC

Outline
Why more and more countries are
embracing inclusive growth
What is inclusive growth
What does inclusive growth imply
for policy making
Inclusive growth and the MDGs

How ADB supports inclusive growth


and MDGs in Asia and the Pacific
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Figure 1
Headcount index, $1.25/day (2005 PPP)
70
60
50
40
30
20
10
0
Central and
West Asia

East Asia

South Asia

1990

South East
Asia

Pacific

Asia and the


Pacific

2005

Note: Pacific includes Papua New Guinea and Timor-Leste only.


Source: Calculated from World Banks PovcalNet database and
World Development Indicators database.

Figure 2
Headcount index, $2/day (2005 PPP)
90
80
70
60
50
40
30
20
10
0
Central and
West Asia

East Asia

South Asia

1990

South East
Asia

Pacific

Asia and the


Pacific

2005

Note: Pacific includes Papua New Guinea and Timor-Leste only.


Source: Calculated from World Banks PovcalNet database and
World Development Indicators database.

Figure 3
% of population with access to improved sanitation facilities, 2006
Singapore
Kazakhstan
Uzbekistan
Thailand
Malaysia
Georgia
Kyrgyz
Tajikistan
Armenia
Sri Lanka
Myanmar
Azerbaijan
Philippines
China
Vietnam
Maldives
Pakistan
Bhutan
Indonesia
Mongolia
Lao PDR
Bangladesh
Afghanista
India
Cambodia
Nepal

20

30

40

50

60

Source: World Development Indicators database.

70

80

90

100

Figure 4
Electrification rate (%), 2008
Singapore
Brunei
PRC
Malaysia
Thailand
Taipei,China
Viet Nam
Philippines
Sri Lanka
Mongolia
India
Indonesia
Pakistan
Lao PDR
Nepal
Bangladesh
Cambodia
East Timor
Afghanistan
Myanmar
0

10

20

30

40

50

60

Source: World Energy Outlook Electricity Access database.

70

80

90

100

Figure 5

Source: ADB/ESCAP/UNDP 2010 Regional MDG Report.

Recent trend in inequality (change in Gini coefficients, %)

Figure 6
Nepal
PRC
Cambodia
Sri Lanka
Bangladesh
Lao PDR
India
Korea, Rep. of
Viet Nam
Turkmenistan
Azerbaijan
Tajikistan
Philippines
Pakistan
Indonesia
Mongolia
Malaysia
Kazakhstan
Armenia
Thailand
-6

-4

-2

10

12

Source: Key Indicators 2007 Inequality in Asia.

Figure 7

Inclusive growth

Social inclusion to ensure equal


access to economic opportunity
High, sustained,
and efficient growth
to create productive
jobs and economic
opportunity

Investing in education, health,


and other social services to expand
human capacity, especially of the
disadvantaged
Eliminating market and institutional
failures and social exclusion to
level the playing field

Social safety nets


to mitigate the
effects of transitory
livelihood shocks
and to prevent
extreme poverty

Good governance and institutions


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Highlights of 2010 Asia-Pacific MDG Report


Progress on MDGs is mixed:
Region likely to achieve targets on poverty, primary
enrolment, gender parity in education, access to
safe drinking water, and reversing spread of TB and
HIV

Region lagging in primary school completion, child


and maternal health, basic sanitation, forest cover,
and CO2 emissions
Priority areas of focus identified:

Hunger and food security


Health and other basic services
Basic infrastructure

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Highlights of 2010 Asia-Pacific MDG Report


Seven drivers necessary to accelerate MDG
achievement:

Strengthening growth by stimulating domestic


demand and intra-regional trade
Making growth more inclusive and sustainable

Strengthening social protection


Reducing gender gaps
Ensuring financial inclusion
Supporting least developed and structurally
disadvantaged countries
Exploiting potential of regional economic
integration

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