Putting Caveats on Growth: Policy for Inclusion and Productive Transformation

  • Moazam Mahmood
  • Florence Bonnet


Building on the empirical generalisation that the composition of growth, rather than the quantum, better explains why developing countries move up the income ladder, Mahmood and Bonnet argue that growth policy must be subject to two important caveats. First, it must aim to reduce poverty. Second, it should target the productive transformation of the economy. This chapter examines the policy conditions needed to meet these two caveats to growth, based on an empirical analysis of some 75 developing countries. The authors examine the policy needs of addressing the income gap of the poor through transfers and enhanced labour incomes. They also look at the non-income needs of the poor and the role of public goods in meeting these needs. Finally, they gauge the policy needs of productive transformation.


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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Moazam Mahmood
    • 1
    • 2
  • Florence Bonnet
    • 3
  1. 1.Lahore School of EconomicsLahore, PunjabPakistan
  2. 2.Capital University of Economics and BusinessBeijingChina
  3. 3.International Labour OrganizationGenevaSwitzerland

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