Making Growth Inclusive: Some lessons from countries and the literature

Growth is back on the development agenda, promoted by bilateral and multilateral donors, and the G20, as the most effective way to lift people out of poverty. Economic growth has reduced poverty in developing countries in the past, but by ignoring the issue of equality, donors and poor country governments have failed to maximise the benefits of that growth – and in some cases, people have become worse off. This paper extracts lessons from case studies of Brazil, Viet Nam, and Ghana to suggest three key areas where action by governments is likely to deliver: a proper redistributive agenda; appropriate macroeconomic prudence; and a policy environment that fosters a pro-poor private sector.