Why inclusive growth is stable growth

In the end, the case for job rich, inclusive growth is not economic, it’s political, according to Nobel prize-winning economist Michael Spence.

In this podcast with the IMF, Spence discusses the growing sense in many countries that it’s mostly the wealthy population who are reaping the benefits of economic development.

As countries around the world continue to pull themselves up and out of the Great Recession, inclusive growth is a key factor to stabilize the global economy.

Spence also discusses the kinds of public sector investments, like infrastructure, which can help a country’s economy grow.

China has been very good at this and India’s had its ups and downs, said Spence.

Spence says the stability of economies and their ability to function depends on inclusiveness.  If people are excluded they will object.

This article is published in collaboration with IMF Direct. Publication does not imply endorsement of views by the World Economic Forum.

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Author: Michael Spence is an American economist and recipient of the 2001 Nobel Memorial Prize in Economic Sciences

Image: A vendor hands change back to a customer at her market stall with price tags marked in Cuban pesos in Havana October 23, 2013. REUTERS/Desmond Boylan.