Is There a One-Size-Fits-All Approach to Inclusive Growth? A Case Study Analysis

IMF Working Papers, April 29, 2021

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Authors: Sriram Balasubramanian, Lahcen Bounader, . Jana Bricco, Dmitry Vasilyev
Published: April 29, 2021
Series: IMF Working Papers

Research question: Is there a one-size-fits-all approach to inclusive growth?
Approach: Qualitative case study analysis of four key countries spanning advanced and emerging markets.
Core finding: There is a lack of homogeneity among the approaches by these countries; a one-size-fits-all approach doesn’t seem to work. The more customized the inclusive growth model, the better the overall outcome.
Focus areas highlighted: co-operative labor markets, direct benefit transfers, social assistance combined with commodity booms, and country-specific inequality dynamics.

Heterogeneity of models:
- The four countries employ distinct inclusive growth models; similarities are limited.
- Customized solutions tailored to country-specific institutions, labor markets, and fiscal constraints are necessary.
Outcome linkage:
- The evidence in these case studies suggests that the more customized the inclusive growth model, the better the overall outcome.
Policy emphasis:
- Design inclusive growth policies that reflect country-specific economic structures and social-assistance architectures.
- Consider the interaction between macroeconomic shocks (for example commodity booms) and social assistance when assessing distributional outcomes.

Source: Is There a One-Size-Fits-All Approach to Inclusive Growth? A Case Study Analysis (IMF Working Paper No. 2021/111, April 29, 2021).