Compiling an inclusive growth index: Methodological challenges, considerations and conclusions

Abstract

In recent years there has been much debate about the need to supplement existing economic indicators, most notably gross domestic product (GDP), with a more rounded and balanced set of indicators that better reflect the complexity of today’s economic, societal and environmental needs. To address this need, the United Nations Conference for Trade and Development (UNCTAD) in cooperation with the Eurasian Economic Commission (EEC) developed a first prototype composite index measuring inclusive growth tailored to that region. This paper summarises the conceptual objectives and some of key methodological challenges and considerations faced in compiling such an index. Many of the challenges and methodological considerations are universal and not specific to EEC. A brief outline of results and future work is also detailed.