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Major Constraints to Inclusive Growth

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Major Constraints to Inclusive Growth

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Inclusive Growth has been defined as, ‘growth that not only creates new economic opportunities, but also one that ensures equal access to the opportunities created for all segments of society, particularly for the poor’ (Ali and Son, 2007, p. 12), others have resolved that; growth is inclusive when it allows all members of a society to participate in and contribute to, and benefit from, the growth process on an equal basis regardless of their individual circumstances (Ali and Zhuang, 2007). This essay seeks to discuss the major constraints in promoting inclusive growth in Zambia. The key terms used in the essay shall be defined and the main concept which is inclusive growth will outlined, thereafter the constraints that hinder inclusive growth will be articulated and elaborated in detail and this will be accompanied by a conclusion. The following are the definitions of some of the key terms that stand out in this essay: A constraint refers to a limitation or restriction. Therefore, the constraints of inclusive growth are factors that limit inclusive growth (Dictionary.com). Economic Growth may be defined as ‘a quantitative increase in the national production of goods and services over a given period, usually a year’ (Chigunta, 2012). Inclusive growth is more than broad-based growth. While economic growth (i.e., increased economic output or income) is a well-defined but narrow concept, inclusive growth, by implication, focuses on a subset of such growth episodes. Since not all growth episodes are inclusive, it is necessary to separate those that are from those that are not (Klasen, 2010). Therefore, it is necessary to determine what characterizes growth episodes that qualify as inclusive. Two options are possible. One focuses on process, in the sense that the actual growth included many people who participated in that growth (i.e., inclusive growth is based on inputs from a large number of people). In this context, inclusive growth is somewhat related to...