How Inclusive Growth is different from Pro-poor Growth?

In the previous question we have discussed evolution of concept of Inclusive Growth from Simple Growth and Pro-poor growth. Many scholars argue that ‘inclusive growth’ is closely related to ‘pro-poor growth’ when taking into account their absolute definitions. Both are referring to the contribution of growth in improving the quality of life by reducing poverty and inequality. Thus, these two terms are often used interchangeably. However, some others claim that there are sufficient reasons to consider these two as different concepts though they both have many parallel features.

• Firstly, pro-poor growth focuses mainly on the poor segment while inclusive growth focuses not only on the poor but also on the others in a society including the near poor, middle income groups and even the rich. This means that inclusive growth addresses both poverty and inequality but pro-poor growth addresses only the absolute poverty but not the inequality that is widely prevalent.
• Secondly, Pro-poor growth focuses mainly on the welfare of the poor but inclusive growth focuses on creating opportunities for the labour force in the poor and middle income classes alike.
• Thirdly, Inclusive growth is concerned not only about sharing the benefits of growth but about the pattern of the growth or how growth takes place. By participating in the growth process the poor can raise their income and this can be supplemented further through the income redistribution that is a part of the pro-poor growth policy. But obtaining benefits through actively participating in the growth process is the objective of inclusive growth. Inclusive growth allows all people in a society including the poor and those from the disadvantaged regions to contribute effectively to and in return derive benefits from economic growth.

Hence, this approach should concentrate on refining the policies that involve the expansion of opportunities for the people to participate in the growth process. Growth policies must focus on the use of resources possessed by the poor and poorer regions.