Enabling models of inclusive growth: Addressing the need for financial and social inclusion

[...]why are different countries in the same region (and indeed different regions in the same countries) experiencing dramatically diverse trajectories in economic growth and poverty reduction, often in spite of similar macroeconomic policies, institutions, and regulatory regimes? [...]the diffusion...

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Bibliographic Details
Published in:Global focus (Belgium) 2019-01, Vol.13 (1), p.36-39
Main Authors: Hedrick-Wong, Yuwa, Thomas, Howard
Format: Magazinearticle
Language:English
Subjects:
Access to information
Collaboration
Economic development
Economic growth
Electricity
Financial services
Growth models
Infrastructure
Macroeconomics
Poverty
Productivity
R&D
Research & development
Research & development expenditures
Skiing
Tacit knowledge
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Summary:[...]why are different countries in the same region (and indeed different regions in the same countries) experiencing dramatically diverse trajectories in economic growth and poverty reduction, often in spite of similar macroeconomic policies, institutions, and regulatory regimes? [...]the diffusion of collective knowhow is far more difficult than the diffusion of embodied and codified knowledge. Exclusion from accessing networks of complementary inputs in the form of knowhow is therefore particularly detrimental to productivity. Because the networks of complementary inputs in the dimensions of tacit knowledge are made up of people, not machinery or electricity supply, discrimination on the basis of gender, class, caste, region, dialect, religion, and so on can play a big role in suppressing productivity. Whether it is poor infrastructure, labour market rigidity, monopolistic practices, restricted access to finance, collusion of vested interests, or stifling regulations (most likely some combinations of them), it is clear that innovative microentrepreneurs and successful firms alike in many poor countries are prevented from expanding, which reduces their potential growth of productive employment, thereby leading to lower productivity in the overall economy. [...]the distance between the richest and the poorest has continued to grow despite a massive reduction in poverty.
ISSN:1784-2344