In the end, the case for job rich, inclusive growth is not economic, it’s political, according to Nobel prize-winning economist Michael Spence.
In this podcast with the IMF, Spence discusses the growing sense in many countries that it’s mostly the wealthy population who are reaping the benefits of economic development.
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As countries around the world continue to pull themselves up and out of the Great Recession, inclusive growth is a key factor to stabilize the global economy.
Spence also discusses the kinds of public sector investments, like infrastructure, which can help a country’s economy grow.
China has been very good at this and India’s had its ups and downs, said Spence.
Spence says the stability of economies and their ability to function depends on inclusiveness. If people are excluded they will object.
You can also listen to the podcast on the IMF’s homepage.