Inclusive Growth Analytics : Framework and Application

This paper argues that inclusive growth
analytics has a distinct character focusing on both the pace
and pattern of growth. Traditionally, applied
country-specific poverty and growth analyses have been done
separately. This paper describes the conceptual elements for
an analytical strategy aimed to integrate these two strands
of analyses, and to identify and prioritize country-specific
constraints to sustained and inclusive growth. The authors
apply the framework to the case of Zambia. The analysis
suggests that income growth in Zambia is constrained by poor
access to domestic and international markets, inputs,
extension services, and information. High indirect costs -
mostly attributable to infrastructure service-related inputs
in production including energy, transport, telecom, water,
but also insurance, marketing, and professional services -
undermine Zambia's competitiveness, limit job creation,
and therefore serve as a major constraint to inclusive
growth. Improving the quality and access to secondary and
tertiary education is essential if the poor are to benefit
from future growth of the non-farm economy. Weak governance
and, in particular, poor government effectiveness are
factors behind the market coordination failures and the
identified government failures, and are as such major
obstacles to inclusive growth in Zambia.