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Symposium 2015

Virtual Library File - Inclusive Growth in Nepal

The Challenge

“Inclusive Growth” refers to sustained economic growth while at the same time improving equal access to opportunities among (groups of) individuals and reducing income disparities (ADB 2011). It ...

“Inclusive Growth” refers to sustained economic growth while at the same time improving equal access to opportunities among (groups of) individuals and reducing income disparities (ADB 2011). It aims to provide different groups of a society with equal opportunities to participate in economic development processes, thus enhancing the living standards and promoting mobility across different social groups. A key driver of future development in the world is “innovation”.

Strategies for inclusive growth need to be the combination of traditional policies to foster economic growth and inclusive policies to support societal inclusiveness; the author uses Nepal as an example.

Governments’ engagement in developing education and training programs can be both growth enhancing and inclusive. Primary education and skill training programs need to particularly address the needs of individuals with disadvantaged backgrounds. Taking Nepal as an example, it is important to identify measures to motivate in particular Madhesi Dalit children to stay in schools, because this group is still characterized with an extremely low literacy rate (lower than10%). Providing particularly the poor adequate access to low-priced health services of good quality can stimulate a more inclusive economic development as well. Medical crises can be existence-threatening for most poor people in Nepal. To help them overcome the medical challenges, ensuring their integration into a reliable health care system with adequate services and medical treatment to low prices is crucial. Investments in education and health care system require funding. Governments of developing countries cannot rely on donation only for these purposes. It is also important to establish a well-functioning fiscal system and a good broad-based domestic tax system to support such investments. This paper discusses this and other policy implications in details.