Publication: Inclusive Growth Analytics : Framework and Application
Loading...
Date
2009-03-01
ISSN
Published
2009-03-01
Editor(s)
Abstract
This paper argues that inclusive growth analytics has a distinct character focusing on both the pace and pattern of growth. Traditionally, applied country-specific poverty and growth analyses have been done separately. This paper describes the conceptual elements for an analytical strategy aimed to integrate these two strands of analyses, and to identify and prioritize country-specific constraints to sustained and inclusive growth. The authors apply the framework to the case of Zambia. The analysis suggests that income growth in Zambia is constrained by poor access to domestic and international markets, inputs, extension services, and information. High indirect costs - mostly attributable to infrastructure service-related inputs in production including energy, transport, telecom, water, but also insurance, marketing, and professional services - undermine Zambia's competitiveness, limit job creation, and therefore serve as a major constraint to inclusive growth. Improving the quality and access to secondary and tertiary education is essential if the poor are to benefit from future growth of the non-farm economy. Weak governance and, in particular, poor government effectiveness are factors behind the market coordination failures and the identified government failures, and are as such major obstacles to inclusive growth in Zambia.
Link to Data Set
Citation
“Ianchovichina, Elena; Lundstrom, Susanna. 2009. Inclusive Growth Analytics : Framework and Application. Policy Research working paper ; no. WPS 4851. © World Bank. http://hdl.handle.net/10986/4047 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Publication The Macroeconomic Implications of Climate Change Impacts and Adaptation Options(Washington, DC: World Bank, 2025-05-29)Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.Publication Global Poverty Revisited Using 2021 PPPs and New Data on Consumption(Washington, DC: World Bank, 2025-06-05)Recent improvements in survey methodologies have increased measured consumption in many low- and lower-middle-income countries that now collect a more comprehensive measure of household consumption. Faced with such methodological changes, countries have frequently revised upward their national poverty lines to make them appropriate for the new measures of consumption. This in turn affects the World Bank’s global poverty lines when they are periodically revised. The international poverty line, which is based on the typical poverty line in low-income countries, increases by around 40 percent to $3.00 when the more recent national poverty lines as well as the 2021 purchasing power parities are incorporated. The net impact of the changes in international prices, the poverty line, and new survey data (including new data for India) is an increase in global extreme poverty by some 125 million people in 2022, and a significant shift of poverty away from South Asia and toward Sub-Saharan Africa. The changes at higher poverty lines, which are more relevant to middle-income countries, are mixed.Publication Geopolitical Fragmentation and Friendshoring(Washington, DC: World Bank, 2025-06-26)This paper examines the relationship between geopolitical fragmentation and friendshoring of foreign investments over time, countries, and sectors. The analysis uses comprehensive data on foreign direct investments covering greenfield projects, mergers and acquisitions, and stocks of affiliates, as well as data on four alternative measures of geopolitical distance between countries. The gravity estimations suggest that, first, geopolitical differences have a negative effect on foreign investments and the magnitude has heightened in the post-pandemic period compared to a decade ago. Second, it is primarily the companies from advanced Western economies whose foreign investment decisions are increasingly shaped by friendshoring forces. Finally, the paper shows that friendshoring is not only confined to strategic industries, implying that allocations of foreign direct investments may not solely reflect national security or resilience considerations.Publication Soaring Food Prices Threaten Recent Economic Gains in the EU(Washington, DC: World Bank, 2025-07-02)The surge in food prices following the 2021 economic rebound has become a significant concern for households, particularly low-income ones, in Bulgaria, Croatia, Poland, and Romania. Food price inflation, which surpasses general inflation rates, risks worsening poverty and food insecurity in these countries. This paper explores the distributional impacts of rising food prices and the effectiveness of government response measures. Low-income households, who allocate a larger share of their income to food, are disproportionately affected and are struggling to cope with unexpected expenses, leading to increased difficulties in accessing proper nutrition. Simulations indicate that rising food prices contribute to higher poverty rates and greater income inequality, especially among vulnerable populations. They also suggest that the main poverty-targeted social assistance schemes offer critical support for the extreme poor, but expanding both coverage and benefits is vital to shield all at-risk individuals. Targeted policies that balance immediate relief with long-term resilience-building are essential to addressing the challenges posed by escalating food prices.Publication Disentangling the Key Economic Channels through Which Infrastructure Affects Jobs(Washington, DC: World Bank, 2025-04-03)This paper takes stock of the literature on infrastructure and jobs published since the early 2000s, using a conceptual framework to identify the key channels through which different types of infrastructure impact jobs. Where relevant, it highlights the different approaches and findings in the cases of energy, digital, and transport infrastructure. Overall, the literature review provides strong evidence of infrastructure’s positive impact on employment, particularly for women. In the case of electricity, this impact arises from freeing time that would otherwise be spent on household tasks. Similarly, digital infrastructure, particularly mobile phone coverage, has demonstrated positive labor market effects, often driven by private sector investments rather than large public expenditures, which are typically required for other large-scale infrastructure projects. The evidence on structural transformation is also positive, with some notable exceptions, such as studies that find no significant impact on structural transformation in rural India in the cases of electricity and roads. Even with better market connections, remote areas may continue to lack economic opportunities, due to the absence of agglomeration economies and complementary inputs such as human capital. Accordingly, reducing transport costs alone may not be sufficient to drive economic transformation in rural areas. The spatial dimension of transformation is particularly relevant for transport, both internationally—by enhancing trade integration—and within countries, where economic development tends to drive firms and jobs toward urban centers, benefitting from economies scale and network effects. Turning to organizational transformation, evidence on skill bias in developing countries is more mixed than in developed countries and may vary considerably by context. Further research, especially on the possible reasons explaining the differences between developed and developing economies, is needed.
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication A Comparative Perspective on Poverty Reduction in Brazil, China and India(2009-10-01)Brazil, China and India have seen falling poverty in their reform periods, but to varying degrees and for different reasons. History left China with favorable initial conditions for rapid poverty reduction through market-led economic growth; at the outset of the reform process there were ample distortions to remove and relatively low inequality in access to the opportunities so created, though inequality has risen markedly since. By concentrating such opportunities in the hands of the better off, prior inequalities in various dimensions handicapped poverty reduction in both Brazil and India. Brazil's recent success in complementing market-oriented reforms with progressive social policies has helped it achieve more rapid poverty reduction than India, although Brazil has been less successful in terms of economic growth. In the wake of its steep rise in inequality, China might learn from Brazil's success with such policies. India needs to do more to assure that poor people are able to participate in both the country's growth process and its social policies; here there are lessons from both China and Brazil. All three countries have learned how important macroeconomic stability is to poverty reduction.Publication Bhutan Poverty Assessment 2014(World Bank, Washington, DC, 2014)This report identifies the key drivers of rapid poverty reduction in Bhutan over the recent years, explaining why some dzongkhags are stuck in poverty or reducing poverty is not significant while others prospered, and whether female headed households have a harder time reducing poverty. The exercise draws mainly on data from the two rounds of Bhutan Living Standards Survey (2007 and 2012) supplemented with focus group discussions carried out for the report in select dzongkhags. Bhutan's poverty reduction has been rapid, broad-based, and inclusive. Between 2007 and 2012, the percentage of consumption poor halved to 12 percent. Bhutan has nearly ended extreme poverty within the living memory of a generation extreme poverty touched a low of two percent in 2012. Broader multidimensional poverty indices, that include education and health outcomes besides standards of living, also indicate a steep decline in the percentage of deprived population by two-thirds, from about 25 percent to 12.7 percent. Growth in Bhutan helped the previously landless to escape poverty. Education appears to be the most important route by far to escape poverty. This report is a complement to the earlier Poverty Analysis Report 2012 which was prepared with the World Bank's technical support.Publication Turkey : Poverty and Coping after Crises, Volume 2. Background Papers(Washington, DC, 2003-07-28)Turkey experienced severe losses of life and infrastructure in 1999 caused by the August earthquake. The earthquake was followed by a period of economic and financial crisis, culminating in a major currency devaluation in February 2001. What has been the social impact of these crises? In order to answer that question, the World Bank and the Government of Japan co-financed a household survey during the summer of 2001, which consisted of surveying 4200 households on their consumption and income, and interviewing 120 respondents in depth for case studies. This study seeks to answer three main questions: how many are poor in Turkey in 2001; who are the poor and why are they poor?; and how do the poor cope with risk and poverty?. The major effect of the crises has been an increase in poverty in urban areas of Turkey from 1994 to 2001. Extreme poverty in all of Turkey has not changed, and remains at low levels, but inequality is also unchanged at quite high levels. A relatively large share (nearly one-fifth) of the urban population has consumption below a food standard, and qualitative evidence indicates that poverty has worsened in rural areas as well. The report concludes with the following policy recommendations:1) Macroeconomic management to resume broad-based growth, which should reverse the poverty trend since the vast majority of the newly poor are not extremely poor 2) Counter negative coping strategies of the poor by providing conditional cash transfers 3) Expand job opportunities for the newly poor through micro-projects and community development 4) Improve targeting and coverage of the extreme poor and outreach to them through institutional strengthening 5) Institute regular poverty monitoring through household surveys and the development of a poverty map.Publication Repbulic of Chad Poverty Notes : Dynamics of Poverty and Inequality following the Rise of the Oil Sector(Washington, DC, 2013-09)Chad's chronically unstable security situation has long undermined broad-based economic growth and sustainable poverty reduction. Since independence in 1960 Chad has suffered from sporadic political violence and ongoing tensions between different factions. The country's fragile security has been further compromised by interference from neighboring states and spillover effects from regional conflicts. However, after rebel attacks in 2008 and 2009, and following the recent conclusion of a peace agreement between Chad and Sudan, the security situation in the country has remained relatively calm, presenting a valuable window of opportunity for development efforts to take root. The objective of this Poverty Note is to examine changes in poverty and inequality in Chad since the emergence of the oil sector. It will focus on the evolution of poverty indicators from the 2003 pre-oil baseline captured in the Chadian Household Consumption and Informal Sector Survey, or ECOSIT2 to the more recent findings of the 2011 ECOSIT3 and compare current monetary and nonmonetary poverty conditions in Chad with those of comparable countries. It will go on to assess the impact of oil production on the non-oil sectors of the Chadian economy. Finally, it will evaluate the extent to which public expenditures in the social sectors benefit the poor by analyzing the progressivity of social spending.Publication Delivering on the Promise of Pro-Poor Growth : Insights and Lessons from Country Experiences(Washington, DC: World Bank and Palgrave Macmillan, 2007)Delivering on the Promise of Pro-Poor Growth contributes to the debate on how to accelerate poverty reduction by providing insights from eight countries that have been relatively successful in delivering pro-poor growth: Bangladesh, Brazil, Ghana, India, Indonesia, Tunisia, Uganda, and Vietnam. It integrates growth analytics with the microanalysis of household data to determine how country policies and conditions interact to reduce poverty and to spread the benefits of growth across different income groups. This title is a useful resource for policy makers, donor agencies, academics, think tanks, and government officials seeking a practical framework to improve country level diagnostics of growth-poverty linkages.
Users also downloaded
Showing related downloaded files
Publication Climate Change and Migration : Evidence from the Middle East and North Africa(Washington, DC: World Bank, 2014-07-15)Climate change is a major source of concern in the Middle East and North Africa (MENA) region, and migration is often understood as one of several strategies used by households to respond to changes in climate and environmental conditions, including extreme weather events. This study focuses on the link between climate change and migration. Most micro-level studies measure climate change either by the incidences of extreme weather events or by variation in temperature or rainfall. A few studies have found that formal and informal institutions as well as policies also affect migration. Institutions that make government more responsive to households (for example through public spending) discourage both international and domestic migration in the aftermath of extreme weather events. Migration is often an option of last resort after vulnerable rural populations attempting to cope with new and challenging circumstances have exhausted other options such as eating less, selling assets, or removing children from school. This study is based in large part on new data collected in 2011 in Algeria, Egypt, Morocco, Syria, and the Republic of Yemen. The surveys were administered by in-country partners to a randomly selected set of 800 households per country. It is also important to emphasize that neither the household survey results nor the findings from the qualitative focus groups are meant to be representative of the five countries in which the work was carried, since only a few areas were surveyed in each country. This report is organized as follows: section one gives synthesis. Section two discusses household perceptions about climate change and extreme weather events. Section three focuses on migration as a coping mechanisms and income diversification strategy. Section four examines other coping and adaptation strategies. Section five discusses perceptions about government and community programs.Publication Early Child Development, From Measurement to Action : A priority for Growth and Equity(Washington, DC: World Bank, 2007)The World Bank recently hosted a symposium on the priority of early child development (ECD) for economic growth and equity. The participants urged application of population-based tools and measures to assess the outcomes of children's early years and children's readiness for school. This study is derived from the symposium and is a valuable resource for policy makers, economists, donors, and investors, as well as researchers and practitioners in early child development. It summarizes the current neuroscience on early child development and major longitudinal studies, the rationale and urgency for greater investment, and countries' innovative funding strategies. The report consists of 15 chapters authored by ECD experts and leaders in the field. The chapters are grouped into five main parts relating to the: business imperative and societal benefits of ECD investments; lessons from evaluation of longitudinal ECD interventions; countries' experiences in monitoring ECD interventions; innovative approaches to countries' financing of ECD initiatives; and next steps on the ECD agenda for the next 5 years. A theme highlighted at the symposium and enlarged upon here is the urgent need for evidence- and population-based instruments and measures to monitor, evaluate, and compare ECD interventions over time and across settings.Publication Disease Control Priorities, Third Edition(Washington, DC: World Bank, 2016-04-06)This book focuses on maternal conditions, childhood illness, and malnutrition. Specifically, the chapters address acute illness and undernutrition in children, principally under age 5. It also covers maternal mortality, morbidity, stillbirth, and influences to pregnancy and pre-pregnancy. It also includes the transition to older childhood, in particular, the overlap and commonality with the child development volume.Publication Changing the Face of the Waters : The Promise and Challenge of Sustainable Aquaculture(Washington, DC: World Bank, 2007)This study provides strategic orientations and recommendations for Bank client countries and suggests approaches for the Bank's role in a rapidly changing industry with high economic potential. It identifies priorities and options for policy adjustments, catalytic investments, and entry points for the Bank and other investors to foster environmentally friendly, wealth-creating, and sustainable aquaculture. The objectives of the study are to inform and provide guidance on sustainable aquaculture to decision makers in the international development community and in client countries of international finance institutions. The study focuses on several critical issues and challenges: 1) Harnessing the contribution of aquaculture to economic development, including poverty alleviation and wealth creation, to employment and to food security and trade, particularly for least developed countries (LDCs); 2) Building environmentally sustainable aquaculture, including the role of aquaculture in the broader suite of environmental management measures; 3) Creating the enabling conditions for sustainable aquaculture, including the governance, policy, and regulatory frameworks, and identifying the roles of the public and private sectors; and 4) Developing and transferring human and institutional capacity in governance, technologies, and business models with special reference to the application of lessons from Asia to Sub-Saharan Africa and Latin America.Publication Making Monitoring and Evaluation Systems Work : A Capacity Development Toolkit(World Bank, 2009)There are constant and growing pressures on governments and organizations around the world to be more responsive to demands from internal and external stakeholders for good governance, accountability and transparency, greater development effectiveness and delivery of tangible results. Governments, parliaments, citizens, the private sector, non-governmental organizations (NGOs), civil society, international organizations, and donors are all among stakeholders interested in better performance. As demands for greater accountability and results have grown, there is an accompanying need for useful and useable results-based monitoring and evaluation systems to support the management of policies, programs, and projects. Governments and other organizations have many different kinds of tracking systems as part of their management toolkits: good human resource systems, financial systems, and accountability systems. They also need good feedback systems. A results-based monitoring and evaluation (M&E) system is essentially such a feedback system; it is a management tool to measure and evaluate outcomes, providing information for governance and decision making. Many management systems have been missing a feedback component to enable them to track the consequences of actions. Building an M&E system gives decision-makers an additional management tool by providing feedback on performance as a basis for future improvement.