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Keywords

GDP/Capita, IDI, ESCWA, Inclusive growth, Economic Growth

Disciplines

Business

Abstract

Despite the fact that the Economic and Social Commission in Western Asia (ESCWA) have experienced substantial economic growth, no one can guarantee that this is sufficient enough to reduce chronic unemployment, combat economic insecurity, alleviate poverty or reduce people's frustrations in regards to the increase in income and wealth inequality which has infiltrated many Arab countries. In fact, not all forms of growth are considered effective in promoting structural and social changes as well as enhancing people's standards of living. Consequently, the increasing concerns in regards to rapid and sustained economic growth has led world economies to discover alternative means to achieve this. As a consequence inclusive economic growth emerged and took hold as a new concept for the fulfillment of sustainable economic development. This paper formulates a new index known as the Inclusive Development Index (IDI) which is used to measure inclusive economic growth in 18 Arab countries within Western Asia for a duration of 17 years by using twelve indicators. It also compares IDI score rankings to GDP/capita score rankings, as well as compares the IDI results of the ESCWA countries to the world's most inclusive economies. The results show that some economies have higher GDP/capital rank but have lower IDI rank, indicating that their growth has not translated well into social inclusion. Other economies are ranked lower in GDP/capita but have a higher IDI rank, these economies have done particularly well at making their growth processes more sustainable and inclusive. This paper also discovered that ESCWA’s inclusive growth fell below the world’s most inclusive economies such as Norway, Sweden, Denmark, Island, and so forth. In this regard, the governments and policymakers of various countries within the ESCWA region must renew their efforts in making their economic growth more inclusive and ensuring equitable distribution of income to all population strata.

English Abstract

Despite the fact that the Economic and Social Commission in Western Asia (ESCWA) have experienced substantial economic growth, no one can guarantee that this is sufficient enough to reduce chronic unemployment, combat economic insecurity, alleviate poverty or reduce people's frustrations in regards to the increase in income and wealth inequality which has infiltrated many Arab countries. In fact, not all forms of growth are considered effective in promoting structural and social changes as well as enhancing people's standards of living. Consequently, the increasing concerns in regards to rapid and sustained economic growth has led world economies to discover alternative means to achieve this. As a consequence inclusive economic growth emerged and took hold as a new concept for the fulfillment of sustainable economic development. This paper formulates a new index known as the Inclusive Development Index (IDI) which is used to measure inclusive economic growth in 18 Arab countries within Western Asia for a duration of 17 years by using twelve indicators. It also compares IDI score rankings to GDP/capita score rankings, as well as compares the IDI results of the ESCWA countries to the world's most inclusive economies. The results show that some economies have higher GDP/capital rank but have lower IDI rank, indicating that their growth has not translated well into social inclusion. Other economies are ranked lower in GDP/capita but have a higher IDI rank, these economies have done particularly well at making their growth processes more sustainable and inclusive. This paper also discovered that ESCWA’s inclusive growth fell below the world’s most inclusive economies such as Norway, Sweden, Denmark, Island, and so forth. In this regard, the governments and policymakers of various countries within the ESCWA region must renew their efforts in making their economic growth more inclusive and ensuring equitable distribution of income to all population strata.

ISSN

2664-9446

Included in

Business Commons

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