Inclusive Growth toward a Harmonious Society in the People’s Republic of China: Policy Implications

Abstract

This paper examines the policy implications of adopting a development strategy anchored on inclusive growth for the People’s Republic of China (PRC). In response to rising inequality, more and more developing Asian countries are embracing inclusive growth, with its focus on creating economic opportunities and ensuring equal access to them, as the goal of development policy. Inclusive growth provides an effective means to create a harmonious society in the PRC. The paper argues that an inclusive growth strategy for the PRC requires continued reforms to keep growth high and sustainable, carefully designed redistributive policy to promote equal access to opportunities, and good governance and strong institutions to ensure economic and social justice and an even playing field.