QUALITY OF GROWTH

The last decade of the 20th century witnessed striking progress in the developing world but it also saw stagnation and setbacks. These differences and reversals in outcomes have taught us much about what contributes to development. The pace and quality of economic growth remains central. The discussion here brings out four dimensions of quality relevant for poverty outcomes: distribution, sustainability, variability, and governance surrounding the growth process. Viewing the quantative and qualitative sides of growth together puts the spotlight on a balanced growth of three sets of assets: human, physical, and natural capital, rather than an almost exclusive focus on promoting accumulation of physical capital.