Inclusive Growth

Inclusive growth is economic growth that creates opportunity for all segments of the population and distributes the dividends of increased prosperity, both in monetary and non-monetary terms, fairly across society.

In many countries, people have not seen their incomes rise for years. The gap between rich and poor has widened, with those at the top capturing the ‘lion’s share’ of growth. Rising inequality in earnings and in wealth is a major concern, but money is just one aspect of people’s well-being. In just about every area, whether it be education, life expectancy, or employment prospects, success is determined by socio-economic status, wealth and assets, sex, age or the places where people live.

The OECD approach to inclusive growth is multidimensional, going beyond income, and that the proceeds of economic growth must be shared.

Read our flagship report

All on Board: Making Inclusive Growth Happen puts forth a new approach to economic growth that goes beyond traditional monetary indicators and includes dimensions that reflect people's well-being. It introduces an analytical framework to assess economic growth based on a measurement of multidimensional living standards. The report also presents win-win policies that can deliver stronger growth and greater inclusiveness in areas such as: macroeconomic policies, labour market policies, education and skills, infrastructure and public services and development and urban policies. It underscores the need to assess and weigh trade-offs and complementarities between and among policies, and the crucial role of good governance in implementing an inclusive growth agenda.

OECD data links

 

How’s life?

There is more to life than the cold numbers of GDP and economic statistics. This index allows you to compare well-being across countries, based on 11 topics the OECD ‌has identified as essential, in the areas of material living conditions and quality of life.

Create your Better Life Index

 
What’s your share of the pie?

What’s your perception of income inequality? Statistics on income inequality often make the headlines but people don’t necessarily know how income is acually distributed. This tool allows you to see whether your perception is in line with reality.

Compare your income to find out your share of the pie

 

Our approach to inclusive growth

The OECD’s Inclusive Growth Framework includes a measure of “multidimensional living standards” designed to track societal welfare, and analyse the extent to which growth - in a given country and over a given period - translates into improvements across the range of outcomes that matter most for people’s lives.

It includes an income dimension, measured as average household real disposable income adjusted for inequality between the income of the average household and that of a household at a different decile (e.g. median or bottom 10%). It also includes the non-income dimensions of health and unemployment, chosen based on empirical work on the most significant determinants of subjective well-being.Recent data indicates that losses in living standards related to longevity and unemployment in the OECD equate to as much as 29% of household average income.

Methodological work is ongoing to refine the multidimensional livings standards measure, incorporating other non-income dimensions that matter for well-being, such as health inequality and education. Work is also underway to extend the analysis beyond the OECD to include emerging and middle-income countries, and to test the robustness of the Framework. The policy mapping work will pursue the analysis of the main drivers of the key dimensions – based on a production function approach – and the identification of robust empirical relationships.

Video

  

Inclusive Growth in Cities campaign

‌Cities are key actors in many domains that matter for inclusive growth, including education, health care services, social protection, training and employment services, as well as housing, neighbourhood regeneration and transport.  In March 2016, the OECD and the Ford Foundation launched the Inclusive Growth in Cities Campaign.

Central to this campaign is the creation of a network of mayors to promote Inclusive Growth. We have invited mayors from around the world to become Inclusive Growth Champions, by promoting policies and practices that foster both economic growth and inclusiveness.

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Left: At the launch of the 'Inclusive Growth in Cities' campaign, New York City Mayor Bill de Blasio explains why cities and local governments have to step up on the challenges of inequality.

Centre for Opportunity and Equality (COPE)

The OECD Centre for Opportunity and Equality is a platform for promoting and conducting policy-oriented research on the trends, causes and consequences of inequalities in society and the economy, and a forum to discuss how policies can best address such inequalities. COPE produces ground-breaking reports on inequalities, influences the international policy debate through high-impact events and promotes exchanges of information & expertise on inequality. With mounting evidence that inclusive growth policies are a must for shared prosperity, more governments and institutions are tackling the problem head on.  

Inclusive Growth and Public Governance

In many countries inequality is growing as the benefits of economic growth go to the richest members of society. Inclusive Growth is all about changing the rules so that more people can contribute to and benefit from economic growth. Governance - the way that governments do their jobs - can make the difference as to whether growth benefits everyone, or just a few. For more information, see our four steps of governance for inclusive growth or view the videos for a graphical presentation of each.

Group of Friends of Inclusive Growth

The Group of Friends of Inclusive Growth is an informal group involving OECD Delegations, Ambassadors from Key Partner countries and representatives from the OECD Secretariat who work on, or have a specific interest in, Inclusive Growth. Participation is voluntary and is open to all OECD members and Key Partner countries; staff of the Secretariat working on Inclusive Growth are also be part of the Group. Representation is at the Ambassador level; however, Delegations can also nominate a technical expert(s) to attend and contribute to meetings.