As illustrated by the Brexit vote in the UK, the election of Donald Trump in the US or the yellow vest movement in France, populism and popular discontent have been on the rise in advanced economies over recent years. Amongst the various factors regularly put forward to explain these developments is the worsening of income and wealth distribution. While inequality at global level has tended to decline over the last few decades, inequality within countries has actually widened overall, with the well-off seeing their income rising much faster than the rest of the population. Higher inequality has fuelled renewed debate about the pace, the pattern and the distribution of economic growth. Against this background, the late 2000s saw the emergence of the concept of “inclusive growth”, which broadly refers to the ideal that everyone should be given the opportunity to contribute to and benefit from increased prosperity. This is precisely the focus of this article.
SOURCE: Cordemans, N. “Inclusive growth: a new societal paradigm?.” NBB Economic Review, June 2019.
Produced by the librarians at the Brotherhood of St Laurence in Melbourne, Australia