Inclusive Growth is Better Than Other Types of Economic Growth

Inclusive Growth is the Best Growth for an Economy

Inclusive Growth

An economic growth is the increase in the value of an economy’s goods and services, which creates more profit for businesses. In the whole globe, countries will only get fully develop when there is proper initial growth because without growth, the development will never occur in the entire economic world. To stress on economic growth, the modern economic growth was initiated in the 18th century. As time passed, the economic growth also started to expand similar to the ripples in the pond, when the stones have fallen in the water. Gradually, in the 19th century, the whole world started to spread the economic growth to the other parts of the globe. There are six types of economic growth. However, three of them are not completely focused on that are extensive growth, unbalance growth and exclusive growth. Thus, other three types of growth is much stressed on such as intensive growth, balance growth and inclusive growth.

Extensive growth is also a part of growth in an economy. Extensive growth is the growth that uses the existing resources along with the exploitation of the resources that are found beyond the geographical boundaries and which are beyond the limit of the country’s potential in order to have a quicker growth without thinking about the future generation. Indeed, the extensive growth does not allow the resources to be sustainably utilized. In other words, extensive growth can lead to selfish and provisional growth eventually hampering the whole nation to grow properly and also slows down the economic growth of a specific nation. However, people were wise enough to understand about the scarce resources, allocation of scarce resources and relied on intensive growth. Intensive growth is a rise in aggregate economic activity that is generated by accumulating more labor and capital as well as improving the skills and technology. Intensive growth also increases the productivity. For instance, intensive growth tries to maximize the more output from the given amount of input. Therefore, highly developed countries always try to attain faster growth of economy by depending on the both labor and capital expansion.

An unbalance growth is also one of the types of economic growths. Unbalance growth usually takes place only in some parts of the country and even the budget invested by the government is mostly on the leading sectors of the economy. The center of attention is all the time on the major sectors, which is quite unfair in the whole nation as people will not be satisfied with this kind of growth. Consequently, in the long term nations will face adversities to have proper and balanced growth. Perhaps disappointing the citizens of the country. Nonetheless, people prefer balance growth to unbalance growth because these two growths are completely reverse. Balanced growth refers to a particular type of growth that is sustainable in the long run. It is supportable in terms of low inflation, the environment and the balance between various types of economy which includes primary, secondary, and tertiary sector. Moreover, the development sectors are fully developed by simultaneously giving equal importance to all the sectors. Low inflation is better than high inflation because high inflation could discourage investment. In addition, the balanced growth also gives equal importance on exports and imports of the country because if the growth is only spent by consumer spending and imports, economy could be in danger. Similarly, balanced growth concerns on the environment and relies on both renewable and non-renewable resources as well. In case the growth is only focused on the non-renewable resources. It creates less sustainability in the long term. Thus, causing current account deficit and ultimately making the economy imbalance.

An exclusive growth is also one of the aspects of economic growths. Exclusive growth is the growth that is mostly concentrated on lesser areas of economy. It also gives the problems of inequality and injustice to the society in terms of accessing the market resources as well as only few people are benefited when the policy makers only put actions on the surface of the countries. Nevertheless, brave countries prefer inclusive growth to exclusive growth since an inclusive growth not only provides equal opportunities to the people but also provides security to the people benefiting every native of the county. Additionally, inclusive growth ensures welfare of the entire population and also respects the human rights. When people are given equal opportunities for decent employments. It declines poverty and inequality in the economy. Likewise, inclusive growth even adds value and maximizes productions such as increase in technologists, sustains micro, small, and medium businesses in the country. It also enhances the quality of products with greater range of various products in the economy along with acceleration of infrastructures and investments. In addition, inclusive growth maintains stable environment eventually escalating the country’s businesses as well as connecting prime markets. An economy never grows without trade and businesses. Subsequently, to have a good flow of business activities, the government must come up with a proper regulatory framework especially in order to reduce and restrict the corruption in and around the countries. 

In a nutshell, the three types of growths such as intensive, balanced, and inclusive is preferred to extensive, unbalanced, and exclusive growth because extensive growth brutally devastates the resources by exploiting resources which are scarce in nature. The unbalanced growth is also sort of selfish steps taken by the policy makers by only attempting to attain development in some of the major working areas as well as exclusive growth considers only some parts of the country ultimately creating inequality and injustice to the citizens. However, to solve the above issues, developmental economists have come up with better types of growth that are intensive growth focusing on optimizing the utilization of resources with the given amount of resources without exploitation, the balanced growth where the government gives clear vision to the people by providing equal infrastructures development in each and every corner of the nation, avoiding high inflation and precisely inclusive growth is recommended by many people and also marked as one of the best growths amongst six types of growth because the economic growth is measured in terms of real gross domestic product (RGDP) removing the impacts of inflation as well as benefits the entire population in many different ways such as getting justice, having equal job opportunities as well as provides equity to every individual eventually creates wealth, more jobs, higher investment and increases the standard of the people bringing quicker development for the whole economy.

                                References

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