Problemi Ekonomiki (Sep 2018)

The Principle of Inclusion in Modern Concepts of Economic Growth

  • Tsapko-Piddubna Olga I.

Journal volume & issue
Vol. 3, no. 37
pp. 29 – 36

Abstract

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In the scientific literature and in creating development policies, inclusive economic growth is considered the basis for sustainable social and economic development of a country, since in this concept of economic growth the attention is shifted from the GDP growth rate to the distribution of wealth among the people as well as their economic opportunities. Given the scientific relevance of the topic and the practical need for the transition of countries to sustainable social and economic development, the article considers the evolution of scientific thought in the interaction of such economic categories as growth, poverty, and inequality; systematizes and highlights the key aspects that form the essence of the concept of inclusive growth; identifies the features that differentiate it from other modern concepts of economic growth (in particular, sustainable growth and ending poverty); suggests the ways to promote inclusive economic growth. It is determined that economic growth is inclusive if it focuses on the widespread improvement in the welfare of the people and the expansion of their economic opportunities. With inclusive growth, an increase in the welfare of all segments of the population is achieved by stimulating full and productive employment, when each member of the society is involved both in the process of creating GDP (in accordance with the principle of equality of economic opportunities) and in fair distribution of economic results. In order to promote sustainable inclusive growth, government economic policies should be directed at reducing economic inequality, using the tools of social, fiscal, monetary, and labor market policies.

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