Inclusive Growth in cities: a sympathetic critique

Neil Lee

doi:10.1080/00343404.2018.1476753

Abstract

ABSTRACTThe concept of ‘Inclusive Growth’ – a concern with the pace and pattern of growth – has become a new mantra in local economic development. Despite enthusiasm from some policy-makers, others argue it is a buzzword which is changing little. This paper summarizes and critiques this agenda. There are important unresolved issues with the concept of Inclusive Growth, which is conceptually fuzzy and operationally problematic, has only a limited evidence base, and reflects an overconfidence in local government’s ability to create or shape growth. Yet, while imperfect, an Inclusive Growth model is better than one which simply ignores distributional concerns.

Highlights

“when you ask five economists to define the concept [of Inclusive Growth], you will likely end up with six answers.”
The concept was used in the New Urban Agenda which argued that economic development should be achieved in a way which achieved opportunity for all, because: “private business activity, investment and innovation are major drivers of productivity, inclusive growth and job creation” (United Nations, 2016: 33)
There have been a series of high-profile reports published and research centres launched, including the final report of the Inclusive Growth Commission of the Royal Society of the Arts (RSA), a series of practice focused reports by the Joseph Rowntree Foundation (e.g. Crisp et al, 2016; Green et al, 2016; Pike et al, 2017) and an influential new research centre – the “Inclusive Growth Analysis Unit” established at the University of Manchester

Summary

Introduction

“when you ask five economists to define the concept [of Inclusive Growth], you will likely end up with six answers.”. Widespread use of the term “Inclusive Growth” raises an important question: is Inclusive Growth a genuinely useful concept for economic development, or a buzzword, offering policymakers the promise of addressing two major problems – inequality and low growth – simultaneously, but achieving little? This paper is sympathetic with the overall concept of Inclusive Growth, which represents an important, clever and overdue attempt to link economic development to distribution It argues that Inclusive Growth remains a fuzzy concept which is often vaguely and inconsistently defined, is rapidly becoming a buzzword used to signal progressive intent but with relatively little evidence, to date, of actual implementation. Section five concludes with an evaluation of the concept, and the argument that while it is not perfect, Inclusive Growth is certainly an improvement on a narrow focus on growth alone

The roots of inclusive growth

Defining ‘Inclusive Growth”

The rationale for Inclusive Growth in cities

Limitations

Findings

Conclusion