No one left behind? : criteria and tools the sustainable development goals have to meet to become successfully inclusive.

No one left behind?

Criteria and tools the Sustainable Development Goals

have to meet to become successfully inclusive

Master Thesis Human Geography

Vincent Cornelissen

Supervisor: Prof. dr. J. Gupta

June 2014

No one left behind?

Criteria and tools the Sustainable Development Goals have to meet to become successfully inclusive

Master Thesis Human Geography, University of Amsterdam Vincent Cornelissen – 10403884

Supervisor: Prof. dr. J. Gupta June 2014

Abstract

This master’s thesis provides an overview of the criteria that developmental processes have to meet in order to become inclusive and tests whether the Sustainable Development Goals (SDGs) meet these criteria. In the literature there is currently a lack of scientific knowledge on what elements constitute inclusive development. In the past decade, the concept has been gaining more attention and has risen in prominence and importance, as conventional development policies under the Millennium Development Goals (MDGs) have not benefited certain marginalized groups. Inclusion is beneficial for both excluded and included people, because it creates economic growth, political stability and reduces environmental pressure. This thesis therefore tests the successors of the MDGs, the SDGs, on their inclusiveness. This is done on the basis of the following research question: How can be ensured that the Sustainable Development Goals will be inclusive? To answer the research question, a content analysis on 22 research articles on inclusive development was conducted. In addition, 16 interviews have been held with experts and practitioners in the field of inclusive development and the SDGs. From the content analysis 10 elements are distilled that together define inclusive development. From both these elements and the interviews, 34 criteria are deduced that developmental processes should meet to become fully inclusive. Testing the inclusiveness of the SDGs along the lines of these criteria shows that whether the development they bring will be inclusive, will strongly depend on the context in which the policies related to the SDGs will be implemented1.

1_{The initial results of this master’s thesis are used for an UN Policy Brief which is currently being submitted}

and for an accepted article of which this author is a co-author:

Gupta, J., V. T. Cornelissen & M. A. F. Ros-Tonen (n.d), Inclusive Development. In P. Pattberg, F. Zelli and E. Elgar (Eds.), Encyclopaedia of Global Environmental Politics and Governance, submitted March 2014.

Preface

This master’s thesis is the final project of the Master’s program Human Geography I attended at the University of Amsterdam. Therefore the structure and methods used in this thesis are based on both my bachelor’s and master’s programs. I have always been interested in development issues and the master’s program in Amsterdam offered the opportunity to study environmental issues as well. Therefore I am grateful I could write my thesis about inclusive development and the Sustainable Development Goals.

I would like to thank all the people that have been willing to contribute to this thesis. Without their cooperation this thesis could not have been written. First I want to thank all the interviewees. Even though some had limited time, they wanted to share their knowledge about the topics of this research: Paulien Bruijn, Stefanie Gielen, Huib Cornielje, Koen Davidse,

Josien Sluijs, Henk Molenaar, Anne Poorta, Anne-Marie Heemskerk, Heinz Greijn, Dorine van Norren, Rolph van der Hoeven, Margriet Kuster, Marianne van Duin, Marleen Dekker, David Hidajattoellah, Wim van Brakel and Pritha Belle.

I also want to thank the research group of this thesis. Together we strengthened our personal theses; especially in the start-up phase: Ralien Bekkers, Petra Schoof, Johnny Wong and

Dylan van Zoomeren. Also special thanks to Sam Ubels for his support for the GIS part and Rik Recourt for his comments.

Lastly, I especially would like to thank my supervisor prof. dr. J. Gupta for all her advice and her confidence in me and this research.

Vincent Cornelissen Utrecht, June 2014

Table of contents Abstract ... 4 Preface ... 6 1 Introduction ... 10 1.1 Overview ... 10 1.2 Purpose ... 10

1.2.1 Academic, policy and societal relevance ... 11

1.3 Research questions ... 12

1.4 Methods and data collection ... 13

1.4.1 Literature survey ... 13

1.4.2 Content analyses ... 14

1.4.3 Interviews ... 15

1.4.4 Geographical aspect ... 17

1.5 Focus and limitations ... 17

1.6 Conceptual framework ... 18

1.7 Structure of the thesis ... 20

2 Theoretical framework ... 22

2.1 Introduction ... 22

2.2 Overview of inclusive development ... 22

2.3 Defining inclusive development ... 23

2.4 Inclusion and exclusion ... 29

2.5 Marginalized groups ... 30

2.6 Inclusive growth ... 33

2.7 Difficulties of inclusive development ... 35

2.8 Why inclusive development? ... 36

2.9 Geographical overview ... 42

2.10 Conclusion ... 46

3 Global development goals ... 48

3.1 Introduction ... 48

3.2 Millennium Development Goals ... 48

3.2.1 Overview ... 48

3.2.2 Inclusivity of the MDGs ... 49

3.3 Post-2015 ... 52

3.3.1 The pathway towards the SDGs ... 52

3.3.2 Current status of the SDGs ... 53

3.3.3 Key focus area ... 59

3.4 Inclusivity of the SDGs ... 63

3.5 Conclusion ... 65

4.1 Introduction ... 66

4.2 Inclusive development ... 66

4.2.1 Overview of inclusive development ... 66

4.2.2 Inclusion and exclusion ... 68

4.3 Stakeholders and marginalized groups ... 70

4.4 Difficulties of inclusive development ... 71

4.5 MDGs, SDGs and inclusive development ... 73

4.6 Conclusion ... 75

5 Criteria and tools... 76

5.1 Introduction ... 76 5.2 Element 1 ... 77 5.3 Element 2 ... 82 5.4 Element 3 ... 84 5.5 Element 4 ... 87 5.6 Element 5 ... 88 5.7 Element 6 ... 90

5.8 Using the criteria ... 93

5.9 Revised Conceptual model ... 96

6 Conclusion and discussion ... 101

6.1 Conclusion ... 101

6.2 Discussion and recommendations ... 102

References ... 105

Appendices ... 117

Appendix A MDG progress chart ... 117

Appendix B List of interviewees ... 118

Appendix C Interview guide ... 120

Appendix D Example of element related SPI indicators and components ... 121

Appendix E Table of component and inclusion scores of 132 countries of the world ... 124

Appendix F Frequencies of inclusive development being used in all subject areas, 1998-201 ... 128

Appendix G Frequencies of inclusive growth being used in the scientific literature, based on 15 subject areas, 1998-2013 ... 129

Appendix H Inclusive growth criteria according to Ali ... 130

Appendix I Inclusive growth criteria according to ADB... 131

1 Introduction

This chapter provides an overview of what is being researched and why and how this is conducted. This is done by using the following structure: (i) problem definition (including relevance) (section 1.2); this problem definition leads to (ii) the research questions (section 1.3); then (iii) the methods of data collection are explained (section 1.4); next (iv) the focus and limitations of this research are discussed; and (v) the conceptual model of this research is shown which is a visualization of how the theoretical key concepts are intertwined, it also provides an overview of the research goal. Section 1.2 briefly addresses the literature of the topic of this thesis. This, together with the key concepts, is explained in more detail in the theoretical framework (chapter 2). Section 1.7 provides an overview of the structure of this thesis.

1.2 Purpose

On September 8th 2000, the United Nations’ (UN) General Assembly adopted the Millennium Development Goals (MDGs) following the UN Millennium Summit (UN, 2013b). The MDGs consist of eight different global goals that address global issues such as poverty, hunger, health and education (figure 1.1). National and civic society leaders that were present at the Millennium Summit agreed to operationalize and achieve these goals before the target date of 2015. Primarily, the MDGs can be seen as a blueprint on how to deal with global sustainability and development challenges, on which all the leading development institutions and countries have agreed upon (UN, 2013b). It is generally believed that the MDGs have been of great value for mobilizing support for development policies (UN, 2014c).

Figure 1.1 The Millennium Development Goals

Source: UN, 2014d

At the time of writing, the end date of the MDGs is approaching. Not all targets that have been set for the MDGs will be met (UN, 2013e; UN 2013f; appendix A). In addition, the MDGs did not take all people worldwide into account as will be shown in chapter 3 in more detial. For example, MDG 1 aims at halving the proportion of people with an income of 1.25

USD per day or less between 1990 en 2015 (UN, 2013d). This means that the other half of the poor will still live with an income of 1.25 USD per day or less if this goal is met. The question that can be asked then is: what to do if the deadline has past?

The global community has therefore been working on a new set of goals that replace the MDGs, commonly referred to as the Sustainable Development Goals (SDGs) (UN, 2013a). Officially all UN member states agreed at the 2012 Rio+20 Conference in Rio de Janeiro, Brazil, to create these subsequent goals that are targeted to be more holistic (UN, 2012a). When the research for this thesis was conducted, 19 focus areas were distinguished by the UN that formed the basis of the SDGs (UNSDKP, 2014a).

This thesis researches how it can be ensured that the SDGs are going to be inclusive. This is done by identifying criteria development has to meet to become inclusive. The overall goal is to contribute to the current debate about the global development goals; the MDGs and especially the SDGs. The outcome of this research demonstrates the relevance of inclusion in development processes and its usefulness for the SDGs for achieving beneficial progress for all. Since, as will be shown in this thesis, the MDGs did not focus enough in the most excluded and poor people. While including these people creates many benefits; e.g. it creates a wider consumer market (economic growth), the government earns more tax income and less the environment will be less under pressure (as explained in more detail in section 2.8). Overall, the purpose of this thesis is to create a set of criteria the SDGs have to meet to become inclusive. This research uses open questions in order to find these criteria (exploration). Therefore no hypotheses are given. By means of the different methods of data collection explained below, general elements are transformed into specified criteria and related tools.

1.2.1 Academic, policy and societal relevance

The academic goal of the research is to close the existing knowledge gap on the core concepts of this thesis. More specifically, there is a gap in knowledge on the link between inclusion and development. The concept of development is widely used in public discourse. Inclusive development on the other hand is a less publicly familiar concept. Most information available about inclusive development concentrates on specific subjects; for example disabled people or inclusive finance (Yeo & Moore, 2003; Chibba, 2009). In the current academic discourse there is a notable lack of studies that take a look at the bigger picture of how the concept of inclusive development is used. This gap in knowledge is addressed in chapter 2. It provides an overview of inclusive development (section 2.2), and it shows that the literature covers:

(i) Different elements of inclusive development (section 2.3); (ii) The concepts of social inclusion and exclusion (section 2.4); (iii) Examples of marginalized and vulnerable groups (section 2.5); (iv) Inclusive growth (section 2.6);

(v) Difficulties concerning inclusive development (section 2.7); (vi) The usefulness of inclusive development (section 2.8);

However, the literature does not provide any clear definition of inclusive development. Nor does the literature cover criteria development has to meet to become inclusive. Also, there are no clear figures of worldwide inclusion indicators. Therefore a visualization of inclusion is made in section 2.9 and definitions and criteria are addressed in chapters 2, 4 and 5. Furthermore, this research provides an overarching description of the concept of inclusive development, based on ten different elements (section 2.3).

The policy relevance of this thesis can be derived from the fact that it contributes to the current debates about the SDGs. To clarify this; the SDGs are not fully developed yet and the importance of inclusion for development is confirmed. This importance is derived from the fact that exclusion is expensive, creates social and political unrest, and is unsustainable (as will be explained in more detail in section 2.8). Theoretically, after testing the SDGs in their development phase on their inclusive component, there is still time to adjust them so that they will be completely inclusive when they are articulated, interpreted and implemented.

Moreover, in this thesis the importance of the creation of the SDGs is stressed and as stated by the UN Secretary-General: “People across the world have mobilized for the MDGs, the most successful anti-poverty push in history. Now we must finish the job and tackle a new generation of development challenges” (UNDP, 2013, para. 3). This research elaborates on the goals needed to help overcome these challenges. The UN stated that the MDGs “did not focus enough on reaching the very poorest and most excluded people” (UN, 2013a, p. vii). In other words, the MDGs were not inclusive enough.

Williams (2013, p. 502) states that “With the incorporation of lessons learned from the MDGs, increased scientific knowledge regarding climate change and ecological impacts of human consumption, an appropriate set of SDGs could be the powerful and sophisticated tool used to simultaneously affect social, economic and environmental change. Importantly, these goals could also be as a unique equalizer, helping to bridge the increasing gap between rich and poor.” It is thus stated that the SDGs could be a powerful tool to affect social change; the criteria developed in this thesis, may contribute to ensure the SDGs eventually will be this powerful tool for change.

Finally this thesis is of societal importance as it highlights the extension and effects of social exclusion. As this thesis shows, even as the SDGs relate to inclusive elements (section 3.4); it is not guaranteed they will be inclusive, because of the vast numbers of so-called invisible excluded people as will be explained in more detail in chapter 2 as well. By developing criteria development has to meet to become inclusive, millions of these excluded people can be helped (chapter 5). Despite this being a difficult task, the pursuit to do so is of vital importance for achieving the SDGs as will be seen in chapter 5.

1.3 Research questions

This section presents the overall research question for this thesis, together with its related sub-question. The overall research question is stated as follows:

How can be ensured that the Sustainable Development Goals will be inclusive? In order to answer the main question, the following sub-questions need to be answered:

1. How can inclusive development be defined and is inclusion of importance for (global) development processes? And where should this form of development be implemented? 2. What is the current status of the Sustainable Development Goals? And in what way

dealt the Millennium Development goals with inclusion?

3. What criteria and tools can be defined for development to become inclusive? And how can it be applied to the SDGs?

The first sub-question addresses the importance of inclusion for development and its relation to global development processes of which the SDGs are an example. Inclusive development has to be defined first (chapter 2 and 4).

The second question addresses the current developments of the processes that will lead to the delineation of the SDGs and it discusses in what way the MDGs dealt with inclusion (chapter 3 and 4).

The last sub-question shows which criteria development has to meet so that it can become an inclusive form of development. These criteria are used to test the SDGs on their inclusivity (chapter 5).

Together the answers to the sub-questions contribute to the formulation of the answer to the research question; how all actors that are involved in the SDGs, from the beginning to the end, can ensure the SDGs will be inclusive (chapter 5 and 6).

1.4 Methods and data collection

In total four different methods of data collection will be used: (i) a literature survey; (ii) content analyses; (iii) interviews; and (iv) a geographical analysis. The combination of research methods provide insights from different points of view, e.g. government, NGOs, scientific, and the business sector, all related to the SDGs or inclusive development. This way information is gathered and statements can be made based on different stakeholders of society. The use of multiple sources and research methods contributes to the credibility of this research and strengthens the chance for societal and governmental support for the findings. Overall, it is important to stay objective while using the different methods (Silverman, 2011; Bryman, 2012).

1.4.1 Literature survey

The literature study can be considered as the corner stone of this research. It creates the basis of this research since the theoretical framework discussed in chapter 2, the overview of the

MDGs and SDGs in chapter 3, and the creation of criteria in chapter 5 are based on this study. The study is conducted by first studying the relevant available literature about the concept of inclusive development, including its definitions, concepts, key contributors and theories. The same is done for the MDGs and the SDGs; a literature study is conducted in order to create an overview of both subjects. This way the core concepts of this thesis are clarified and an insight of the research gap can be provided. Since inclusive development is a relative new concept (as will be explained in chapter 2) and the SDGs are currently being developed, the literature used for both concepts is relatively new.

The literature survey is conducted by searching for academic literature on inclusion linked to development processes, using mainly Google Scholar as well as the libraries of the University of Amsterdam and the University of Utrecht. Besides this survey for inclusive development and the MDGs and SDGs, information about these goals is also found by means of searching online for policy documents of the UN. Many websites that address inclusive development or the goals make use of databases, so different articles, by different authors and academics are found on these topics. 24 key terms are used for the search for sources: (i) “development”; (ii) “inclusive development”; (iii) “sustainable development”; (iv) “inclusive growth”; (v) “(social) inclusion”; (vi) “(social) exclusion”; (vii) “empowerment”; (viii) “exclusion development”; (ix) “marginalization”; “social inclusive development”; (x) “governance”; (xi) “social equity”; (xii) “equality”; (xiii) “inequality”; (xiv) “selective development”; (xv) “participation”; (xvi) “geographies of exclusion”; (xvii) “Sub-Saharan Africa”; (xviii) “Third World”; (xix) “stakeholders”; (xx) “elements”; (xxi) “criteria”; (xxii) “Millennium Development Goals”; (xxiii) “Sustainable Development Goals”; and (xxiv) “Post 2015”. Approximately 75 references are used for the production of the theoretical framework (chapter 2) of which 22 articles are used to describe inclusive development. Moreover, approximately 40 sources on MDGs and SDGs related topics are used for chapter 3.

1.4.2 Content analyses

The next methods used are both qualitative and quantitative content analyses. Qualitative by distilling key elements of inclusive development out of 22 articles and quantitative by counting the number of times features are mentioned, as explained in more detail below. Inclusive development only recently gained importance since the concept was hardly used in the scientific literature before the mid-2000s as will be explained in section 2.2. This means that information is rather scarce. A content analysis is a suitable way to gain knowledge about the core concept of this research. According to Bryman (2012), the content of the documents used can be arranged and a content analysis is especially useful in case information sources consist of all kinds of forms like reports, policy documents and in this case scientific literature.

For the first content analysis all the found references that clearly explain the combination of inclusion and development, or inclusive development itself are used. By reading these articles, important and (sometimes) overlapping elements can be found. The literature used

for this analysis mostly originates from the literature survey and by using this qualitative analysis, as Bryman (2012) states, categories emerge out of data. In this case the categories are the elements. Together these elements can be used achieve the objective of creating an overarching description of inclusive development.

The second content analysis provides an overview of common inclusive themes mentioned in the MDGs (section 3.2.2). If a goal addressed such theme, this goal is ticked. It is then investigated if these inclusive elements are going to be met before the expiration date of the MDGs by means of different references. This way statements can be made about how the MDGs dealt with inclusivity.

The third content analysis (section 3.3.2) elaborates on the 19 focus areas the UN has set for the SDGs. It combines the overview of the focus areas (section 3.3.2) and the list of marginalized groups (section 2.5). It shows and counts which groups are mentioned in which focus area. This gives an indication to what extent these areas are inclusive and which groups are mostly left out.

Sections 3.2.2 and 3.3.2 are both minor content analyses and are conducted because they provide an introductory overview of the inclusivity of the MDGs and SDGs which is further expanded in chapters 3, 4 and 5.

For the fourth content analysis seven sources are used that provide insights in the current development of the SDGs. If these sources address the same themes as the 19 focus areas, these focus areas are ticked. This way it becomes clear which focus area has the highest frequency of being mentioned and might be considered as the most important or urgent focus areas based on credible references, inter alia, the UN and independent think tanks. The references for this analysis are addressed in more detail in section 3.3. This analysis is conducted so the criteria can be tested on the key focus area that provides an example of how to use the criteria.

The last content analysis combines the literature survey, the first content analysis and the outcomes of the interviews concerning inclusive criteria. By studying these data sources, different criteria can be derived that together form an extended list (chapter 5). This list of criteria will be used to test the most important focus area, derived from the former content analysis, on its inclusivity (section 5.7).

1.4.3 Interviews

The next qualitative method used in this thesis is interviews. Semi-structured interviews are conducted with 16 respondents who were all informed about the goal of this thesis. They received the topic list beforehand, so they could prepare for the interview. This way it is prevented that an interviewee states that he or she cannot answer a question, because they need time to think about it.

The interviewees are specialists in the field of inclusive development or the SDGs from, inter alia, NGOs focused on inclusion, financial inclusion institutes, policy makers, the business sector and authorities in the field of inclusion and development (appendix B). Some of these respondents are thus more related to the SDGs and some more to inclusion. All interviewees contribute to the clarification of the core concepts of this research.

The selection process of these interviewees emerged after the literature survey, but also by means of an internet search on relevant topics, as well as asking interviewees if they knew other relevant people who could contribute to this research.

Overall, the interviewees provide different points of view. Therefore a diversity of knowledge is gained. The mean length of the interviews was approximately 40 minutes. All interviews were recorded with the permission of the respondent. Four interviews were conducted by Skype, because the respondents do not live in the Netherlands and because of limited time to conduct the interview. The other twelve interviews were conducted face-to-face.

An interview guide was used (appendix C) so that no topics that needed to be addressed were left out of an interview (Bryman, 2012). The guide consists of open questions together with topics. By using broad questions the respondents were not narrowed down in their answers (Bryman, 2012). It depended on the interviewees’ expertise which topics were emphasized by the researcher. The advantage of the use of the topic guide is that it provides flexible guidance and in addition, it leaves room for asking questions that are not listed in the guide but can nonetheless contribute to this research (Bryman, 2012). This way all 16 interviews have the same basis and were. The respondents told what they knew about the subjects asked, but if the interviewer wanted to know more, the semi-structured interviews allowed for follow-up questions. This is in line with the fact that, according to Bryman (2012, p. 470), “In qualitative interviewing, ‘rambling’ or going off at tangents is often encouraged─it gives insight into what the interviewee sees as relevant and important”. Moreover, it led to more rich and detailed answers. To quote Silverman (2011, p. 22): “The methods used by qualitative researchers exemplify a common belief that they can provide a ‘deeper’ understanding of social phenomena than would be obtained from a purely quantitative methodology”. The idea behind this is to gain information outside of the found literature and policy documents, thereby enriching the information of the subject areas.

All the interviews are processed by the author himself, because this provides a straightforward view of the relevance of the data (Bryman, 2012). To start with, the recorded interviews were translated into bullet points, classified per relevant topic for this research. This provides an immediate overview of what the interviewees stated. Moreover, through this method the data can be reused and objectively tested, since it is clear which parts of these bullet points are used and which are not. Moreover, it is more efficient to read about topics, than constantly rewind or forward to the right moment of the recordings. All processed interviews are handled confidentially.

1.4.4 Geographical aspect

This section addresses the geographical aspect of this research (used in section 2.9). The SDGs address both developing and developed countries (chapter 3). Three maps have been used in this thesis, of which one is specifically produced for this research. The first used map is supplemented by one graph from an external source.

The first map provides an overview of the worldwide scores of the “Social Progress Index

(SPI)”. It provides an overview of the level of quality of life per country. The graph compares

the SPI-scores of countries with their Gross Domestic Product (GDP) per capita. This way statements can be made about the expected inclusivity level. Countries with a high GDP per capita have often, but not always, high SPI-scores.

The second map shows a geographical overview of the progress the MDGs made, so statements can be made about which countries need extra attention to achieve the MDGs and need to be monitored more carefully when implementing the SDGs.

The last map is made by the author by means of ArcGIS. A database based on a set of indicators of the SPI is used to produce this map (appendix D and E). The map depicts the outcome of the created database and shows the levels of inclusion of the countries of the world. Statements can then be made about which countries need the implementation of criteria most urgently.

To conclude this section; the data found by means of the different methods of data collection makes it possible to make statements about inclusive development as well as the SDGs and their inclusivity. The aim is to close research gap by means of these data and statements. In order for these statements to be of value, they have to be credible. The credibility arises from the validity and reliability of this thesis. The methods used are reliable because different researchers can perform this research in the same manner if, for example, when the same categories of the content analyses or the bullets points of the interviews are used. Thus, standardized methods contribute to the reliability of this research. The validity is addressed by means of falsifiability, meaning that statements need to be in line with the results, acquired by the use of the above-mentioned methods (Silverman, 2011; Bryman, 2012). The standardized methods provide the opportunity to verify the results.

1.5 Focus and limitations

The SDGs are still being defined (chapter 3). This means that until the moment the SDGs will be implemented, changes in themes and focus areas can occur; their status is dynamic. Therefore this thesis will focus on the sub-areas derived from the available documents at the time of writing (section 3.3.2).

The concept of inclusive development creates difficulties: even though an overarching description is generated based 22 references (as will be explained in section 2.3), this does not mean this description is complete. Moreover, it might not be exhaustive since inclusive

development might have a broader or more specific description than stated in this research, because not every article that addresses inclusion and development can be researched in a short period of time. However, as will be explained in the discussion (section 6.2), the 22 references used, constantly emerged when searching for inclusion, development and inclusive development. The references were all found in scientific database. Therefore these references are considered as representative for formulating a description of inclusive development. There is a need for a single description of inclusive development since it forms the fundament of this research. Therefore only the definition of inclusive development produced in chapter 2 will be used. Moreover, the definitions and elements used were the only ones found during the literature survey so far and altering the definition during this research will only cause for disarrangements, since the research is built upon this description.

The time and resources available for the research (Bryman, 2012) need to be addressed in this section as well. In total, six months were available for the entire thesis of which approximately three months were available for a “Literature Course” and a “Research Proposal”, and three months for doing the actual research. This means that the methods used for this research are limited by this timeframe. The interviews are especially limited by this, because it takes time to find respondents, to arrange meetings, to process the interviews and to analyze the data (Bryman, 2012). Only the respondents available during the research period are used. Bryman (2012) states that it is of importance for the researcher to choose a realistic number of interviewees, considering the time span of the research. As a result, 16 interviews were conducted in this research.

Furthermore, only one focus area will be completely tested on its inclusivity because of the time span of this research. It takes a lot of time to test all 19 focus areas, which all have multiple sub-areas, by means of an extended list of criteria (34 as will be shown in chapter 5). Hence, the focus area that will be used regarded as an example of how the rest of the focus areas can be tested.

Finally, the geographical scope of this research is considered to be global, with the focus on global development goals (SDGs), because they focus on both developing and developed countries.

1.6 Conceptual framework

This section describes the conceptual framework of this thesis (figure 1.2). It is a visualization of how the theoretical key concepts are intertwined and it provides an overview of the research goal. At the end of this thesis this conceptual framework will be revised based on the findings, so it becomes more comprehensive. The framework shows that development and inclusive development are two different concepts. Inclusive development takes all relevant stakeholders into account, while most development approaches only reach the top layer of the poorest people, as will be explained further in chapter 2. Therefore the circles become more complete as development meets more elements of inclusive development.

The first aim of the research is to provide an overarching description of inclusive development. This is visualized in the next part of the model. Then, since the SDGs are currently dynamic, a demarcated list of SDGs will be established. This addresses the left side of the framework.

Derived from the overarching description of inclusive development, and by means of the different research methods used, criteria can be produced development has to meet to become inclusive (right side of the model). Only if development meets all these criteria, it becomes inclusive development. The same goes for the SDGs; if all aspects of these goals meet the list of criteria they can be considered inclusive.

The criteria can be met by means of tools, as will be explained in more detail in chapter 5. The purpose is to develop general tools for these criteria so they can be implemented. When analyzing future SDG as an example, statements can be made about how it can be ensured the SDGs become inclusive. This relates to the next part of the framework; it consists of the intersection of all the aspects of the SDGs with the criteria. Thus, if all aspects of a SDG meet all the relevant criteria, this SDG can be seen as inclusive. If not, it means that the un-inclusive parts need to be altered in such a way that they will meet the criteria and thus become inclusive.

A summary of this research is given at the bottom of the figure. It shows the overarching goal: making sure the SDGs become inclusive. Moreover, development is not good or bad per se (chapter 2), but an inclusive form of development is preferred since it benefits both the excluded and included people as will be explained in more detail in (section 2.8). At the bottom the use of a geographical overview is mentioned as well. This geographical overview makes clear which countries have the highest need for the implementation of inclusive SDGs.

Figure 1.2 Conceptual framework: process of creating and testing inclusive development criteria

Source: Figure made by author

1.7 Structure of the thesis

The thesis is structure as follows: (i) problem definition; (ii) research question; (iii) methods; (iv) focus and limitations; (v) a detailed literature review; (vi) empirical analysis; and (vii) conclusions.

In more detail:

Chapter 1 provides an overview of the research topic together with the description of the purpose of the research, the research problem and research questions. Data collection methods, used to gather and analyze the data, are described as well. Also the focus and limitations of this research are discussed and the conceptual framework is presented.

Chapter 2 answers sub-question 1. It consists of the theoretical framework that provides the basis of this research. Besides an overview and a detailed literature review of the concept of inclusive development; the concepts of exclusion, inclusion and inclusive growth are

Inclusive development Semi-inclusive development

Inclusive SDGs

Adapt Overarching description of inclusive _development

Criteria - - - -

Geographical overview: areas with highest need inclusive SDGs

High chance successfully implementing inclusive SDGs

Inclusive SDGs SDGs Meet? Yes No Un-inclusive development SDGs - - - - - - - - - -

addressed. Difficulties concerning inclusive development and the importance of this concept are likewise discussed. A geographical overview of social inclusion is shown at the end. Chapter 3 answers sub-question 2. It provides an overview of the background of the MDGS and SDGs. It addresses the current status of the SDGs and investigates which of the current topics of the goals is highly significant. It also discussed to how the MDGs deal with inclusivity.

Chapter 4 gives an overview of the data analysis of the interviews. It addresses sub-questions 1 and 2. It addresses the same topics as chapter 2.

Chapter 5 answers sub-question 3. Chapter 2 and 4 are combined in order to produce a set of criteria development has to meet by means of tools to become inclusive. The criteria are used to test the highly significant topic of chapter 3 for its inclusivity. This chapter will also revise the conceptual model of chapter 1.

Chapter 6 provides the conclusion and discussion drawn from this research. At the end recommendations are given based on issues identified during the research.

2 Theoretical framework

As this theoretical framework will show, different descriptions of inclusion and development can be distinguished. An inclusive form of development is emphasized. First an overview of the concept of inclusive development is given in section 2.2. Next a content analysis is used in order to define complementary elements that together form an overarching description of this concept in section 2.3. Section 2.4 takes a closer look at social inclusion and exclusion. Next the groups of people that are getting excluded are discussed in section 2.5. Inclusive development and inclusive growth are often used interchangeably while these concepts differ as will be seen in section 2.6. Section 2.7 addresses the strengths and weaknesses of inclusive development. Section 2.8 takes a closer look at the reasons of why inclusive development is of importance. Section 2.9 provides a geographical overview of where inclusive development is most needed and lastly concluding remarks are made in section 2.10. Hence, this theoretical framework answers sub-question 1.

A note; various kinds of literature are used; inter alia, journal articles, reports, working papers and websites. The choice for using working papers is based on the fact that there is a lack of academic journal articles that describe a clear definition of both inclusive development and growth.

2.2 Overview of inclusive development

The usage of the concept ‘inclusive development’ in academic literature has seen a sharp increase over the past decade. Inclusive development is most mentioned in the socio-economic research field. Frequencies of the usage of the concept are the highest in the areas of “Economics, Econometrics and Finance” and “Social Sciences” (appendix F). The concept was first used in the academic literature in 1998, and was mentioned 456 times until 2013 (Scopus, 2014a; appendix F). Since the mid-2000s inclusive development is mentioned more frequently (figure 2.1). The increase in the concept’s usage in academic literature has been the strongest between 2008 (15 times) and 2009 (44 times). In contrast to inclusive development, the concept of inclusive growth has been mentioned 971 times, but only saw an increase of its usage since 2004, and was only used once in 1998 (Scopus, 2014b; appendix G).

When looking at the number of times the concept of inclusive growth is mentioned in the academic literature, it is interesting to note that this concept shows a stronger increase compared to the concept of inclusive development.

Figure 2.1 Frequencies of inclusive development being used in the academic literature, based on 15 subject areas, 1998-2013

Source: Scopus, 2014a1

1_{Appendix F shows which subject areas mention inclusive development. Areas like “Biochemistry, Genetics and}

Molecular Biology” and “Computer Science” are left out because they have little to do with inclusive development in terms of including the most marginalized groups in development processes. Areas that are used for this graph are all related to economic, environmental or social dimensions.

2.3 Defining inclusive development

This section discusses how inclusive development can be defined. In order to do this, it is useful to first briefly define development and sustainable development. This relatively broad concept is described in the Oxford Dictionaries (2014b, para. 2) as “the process of developing or being developed”. It is about change from one situation to another, related to reduction of poverty, promoting prosperity and protecting the planet (UN, 2013c).

Sustainable development then is development that “meets the needs of the present without compromising the ability of future generations to meet their own needs” (UN, 1987, p. 15). Efforts need to be made to protect the environment (Sachs & Reid, 2006) like providing an additional income for poor people for engagement in environmental protection activities (ILO, 2012). Also social and economic issues need to be addressed to realize sustainable development. Closely related to the social element is inclusive development.

In short inclusive development means involving everyone in development and talking with people instead of about people (Yeo & Moore, 2003). Islam (2012) mentions five important features that contribute to the description of inclusive development: (i) reducing income inequality and poverty; (ii) a stable sustainable economic growth; (iii) improving access to health services and education; (iv) availability of a social protection system for everyone; and finally (v) employment growth that is decent and productive.

0 10 20 30 40 50 60 70 80 90 100 110 N u m b e r o f p u b lic ation s Year

A more comprehensive description of inclusive development can be produced by means of a content analysis (table 2.1). This content analysis has been made on the basis of 22 articles that all give slightly different descriptions of inclusive development or of features related to inclusive development. The following articles have been used for the content analysis: Conceicão et al. (2001); Arthurson (2002); Tikare et al. (2002); Mansuri and Rao (2004); Sachs (2004a); Sachs (2004b); Shortall (2004); Chatterjee (2005); Cornwall and Brock (2005); Rodríguez-Pose and Tijmstra (2007); Shortall (2008); the World Bank (2008); Fritz et al. (2009); Ianchovichina and Lundstrom (2009); Kanbur and Rauniyar (2010); Lawson (2010); Rauniyar and Kanbur (2010); Jiang (2011); Thomsen et al. (2011); Abosede and Onakoya (2013); Borel-Saladin and Turok (2013); and Huang and Quibria (2013).

When analyzing the articles of these authors, in total ten complementary elements can be distilled that relate to the concept of inclusive development (table 2.1). In this thesis an element is considered as being a part of a bigger entity. Al ten elements together can therefore be used to produce a comprehensive description of inclusive development. For this thesis the following description was produced:

If development fits this description, it can be considered as inclusive. In order to meet this description, development has to meet certain criteria which will be developed in chapter 5. Although Inclusive development has to be related to all ten elements, it depends on what scale or for which group a development process is intended, which stakeholder groups have to be taken into account, and what types of development constitute inclusive development. Chapter 5 elaborates on this. This is confirmed by Rauniyar and Kanbur (2010) who state that different development approaches are needed for different areas.

The first element of inclusive development, which was derived from the content analysis, is found in 14 out of the 22 analyzed articles and is as such most used and therefore considered the key element for inclusive development. The other elements are mentioned one to three times. The key element underlines the importance of taking all relevant stakeholders into account and thereby reducing social exclusion. The authors who mention element one emphasize that participation contributes to inclusion, although participation is only part of the concept of inclusive development.

The second element states that development needs to be specified to the local context in order to create a balanced strategy between the relevant stakeholders (Huang & Quibria, 2013;

Inclusive development is development that takes every stakeholder, including their knowledge and experience, into account. It also requires locality- and context specific solutions to address social and environmental problems. Wealth and income have to be distributed equally and consumer markets should be inclusive. In addition, equal opportunities and inclusion in all dimensions and sectors are of interest. It is an inclusive form of development that goes beyond gaining knowledge or economic growth, strengthened by the creation of inclusive communities. Moreover, equal opportunities of social, institutional and economic growth are related to social goals. It consists of more than a societal distribution of income; it is about well-being that includes income, but it is not limited to it.

Rodríguez-Pose & Tijmstra, 2007). Thus the development approach needs to fit in the local situation.

The second element relates to the third element, which emphasizes the importance of incorporating and implementing the experience and knowledge of local stakeholders in strategies for poverty reduction, environmental progress and economic prosperity contributes to this (Tikare et al., 2002; Fritz et al., 2009; Borel-Saladin & Turok, 2013).

Table 2.1 also addresses opposites of inclusive development since, according to Sachs (2004a); it makes it easier to define this concept. He states that inclusive development is the opposite of a growth model that is perverse, together with consumer market exclusion and a concentration of income and wealth (element 4). Also, strong segmented labor markets with the vast majority of the population being limited to activities in the informal sector, often family farming (small-scale), with limited social protection, are part of the opposing element of inclusive development (Sachs, 2004a; section 2.8).

Element five addresses an opposite of inclusive development as well. It states that it is the opposite of the situation in which the majority of the population cannot freely participate in politics, are under-organized, has limited access to education (or no access at all) and has to struggle for survival (Sachs, 2004a; Cornwall & Brock, 2005). Women are most affected by the above opposites of inclusive development, due to gender discrimination (Sachs, 2004a) even though they can contribute to growth (Chatterjee, 2005; section 2.8). By means of available and equally distributed knowledge, domestic know-how and by an improvement of hygiene, women might make progress, but a requirement is that discrimination has to be eliminated (Sachs, 2004a). It are not solely women who are often excluded, many other groups can be defined, as will be shown in section 2.5.

Other important characteristics of the elements of inclusive development are transparency as well as accountability of democracies (Sachs, 2004a). Jiang (2011) adds innovation of institutions, reduction of barriers and capability building to this. Moreover, economic openness and effective governments are complementary characteristics (Jiang, 2011; World Bank, 2008). A level playground is necessary for politics so it provides social safety nets, strengthens capacities, creates a legal identity, and promotes sustainable and efficient economic growth (Rauniyar & Kanbur, 2010).

Element six shows that the creation of knowledge-generating conditions is not enough for realizing inclusive development since both the sharing and the diffusion of knowledge is vital as well. Global learning processes are an example of a sustainable creation and diffusion of knowledge. This knowledge should not be excluded to certain countries, but needs to be available for the global economy as a whole (Conceicão et al., 2001). Thus, besides using local and context specific knowledge (element two and three), sources of knowledge need to be open.

Table 2.1 Comprehensive elements ‘Inclusive Development’ Article Elements 1 2 3 4 5 6 7 8 9 10 Necessity of taking every person worldwide into account, including all kinds of stakeholders, and reducing social exclusiveness Locality-specific solutions for environ-mental and social problems Including the experience and knowledge of stakeholders The opposite of a perverse growth model in which consumer market exclusion takes place, together with a concentration of wealth and income; a labor market that is strongly segmented; overall exclusion Opposite of a majority of the population that is not free to participate in politics, most people have no or limited access to education, are under-organized and have to struggle to survive Development that goes further than creating conditions for generating knowledge Societal distribution of well-being that goes beyond income, not redistributing people Equal opportunities of growth in terms of social, institutional and economic dimensions Economic growth that goes together with social goals Development of inclusive communities Conceicão et al., 2001   Arthurson, 2002  Tikare et al., 2002  

Mansuri & Rao, 2004  Sachs, 2004a   Sachs, 2004b  Shortall, 2004  Chatterjee, 2005  Cornwall & Brock, 2005  Rodríguez-Pose & Tijmstra, 2007    Shortall, 2008  World Bank, 2008  Fritz et al., 2009  Ianchovichina & Lundstrom, 2009  Kanbur & Rauniyar, 2010   Lawson, 2010 

Rauniyar & Kanbur, 2010   Jiang, 2011  Thomsen et al., 2011  Abosede & Onakoya, 2013  Borel-Saladin & Turok, 2013  Huang & Quibria, 2013  Total 14 3 1 1 1 1 3 1 2 2

Source: Table made by author; copied from “Literature Course” of author1

Related to this is the “dissemination of practical know-how in domestic economy and hygiene” (Sachs, 2004a, p. 1803). It is stated that this has a direct impact on the well-being of people, as well as their ability to work and their health in general (Sachs, 2004a; element seven). It goes beyond income. For example, “by improving the productivity of domestic work, reducing its painfulness and shortening the long hours spent every day on fetching water and wood for fire, such modernization would release some time for women to engage in additional market-oriented activities and/or some leisure and for school-age children to study and play” (Sachs, 2004a, p. 1803). In addition, many poor spend a lot of time searching for fuel wood; they often have little resources and a lack of property rights to prevent degrading use of the environment (FAO, 1999).

Inclusive development is thus not only advantageous for the environment, but also for the health of the poor as well as the economy in general (section 2.8). An example of an activity that can be done when more time is available is employment participation (Ali & Zhuang, 2007). Now people can learn skills and become active in the labor market. For ways of income shifting from (unsustainable) use of land to other ways of income, substitutes need to be available (Sunderlin et al., 2005). If these are available, it not only benefits nature, but also the economy (section 2.8).

Element eight and nine state that economic growth needs to go together with social development; inclusive growth is only part of inclusive development as will be seen in section 2.6. Growth alone does not ensure social progress.

For inclusive development capacities need to be strengthened so suitable macroeconomic protection policies can be implemented, fiscal administration can be accountable, public services can efficiently be delivered and governance can be improved (Rauniyar & Kanbur, 2010; Huang & Quibria, 2013). There is however no consensus in the way inclusion has to be part of governmental policies (Hoeven, 2013, para. 4): “Conservative politicians argue mainly for inclusiveness as an outcome of better functioning markets while more progressive politicians argue for including people in the process itself, focusing on the often conflicting nature of any development process”.

The last element underlines the importance of inclusive communities. Excluded people and related social problems are often concentrated in certain neighborhoods (Arthurson, 2002). The creation of inclusive communities prevents this.

To close this section, it can be stated that if development is completely inclusive, every relevant person is taken into account and will benefit. The difficulty is however to maintain development that is inclusive, and more significant, to create an inclusive form of development in the first place as will be seen in section 2.7. The described ten elements contribute to the achievement of inclusive development. Next a closer look is taken at what is meant by inclusion and exclusion.

2.4 Inclusion and exclusion

This section discusses both the concepts of social inclusion and exclusion. In this thesis the words inclusion and exclusion are used for social inclusion and social exclusion. Exclusion is a broad concept. People who are excluded can have limited or no citizen rights. They can also be unable to participate in political activities, or in output sharing, economic production and social integration, and can lack social connections (Jiang, 2011; Dempsey et al.; 2011; Shortall, 2008). Inclusion has therefore also been described as a process whereby participation and opportunities, are equally accessible for all (Jiang, 2011; Sachs, 2004a).

Citizen rights and exclusion also relate to the environment through the concept of environmental justice. It can be described as: “an ideal of accountability and fairness in the protection and vindication of rights and the prevention and punishment of wrongs related to the impacts of ecological change on the poor and vulnerable in society” (Khoday & Perch, 2012, p. 1).

The idea of an inclusive approach towards environmental decision-making processes is mentioned in the “Rio Declaration on Environment and Development”; it is stated that everyone needs to be able to participate in these decision-making processes and needs to have access to information about the environment (Khoday & Perch, 2012).

Some scholars argue social inclusion can be realized by means of decentralization (Sachs, 2004b; Shortall, 2004). A trade-off exists between inclusion and exclusion because, according to the World Bank (2008) and Jiang (2011), during development, exclusion reduction is desired, which in turn refers to an increase of inclusion.

Closely related to social inclusion is social progress that will be addressed in section 2.9. It is defined as “the capacity of a society to meet the basic human needs of its citizens, establish the building blocks that allow citizens and communities to enhance and sustain the quality of their lives, and create the conditions for all individuals to reach their full potential” (Porter et al., 2014, p.13).

Tax benefits or an increase in public transaction costs, are also possible solutions to reduce exclusion. Jiang (2011, p. 8) gives an example: “the establishment of specialized rural cooperatives, which enhance the bargaining power of farmers, while reducing the transaction costs of product sales”.

Furthermore, Rauniyar and Kanbur (2010) state that by reinforcing institutions (law and order, financial and basic services), an increase in inclusion can be accomplished in the underprivileged and rural regions. They also state that infrastructure is a vital instrument in reducing poverty in rural areas, especially in regions that have potential in commercially based agriculture (Chatterjee, 2005). It takes however more than rural roads to make progress since all the relevant factors influencing agricultural performances have to be sufficient to trigger progress. It is stated that both national and local governments need to focus their development policies on agriculture and rural areas in general (Rauniyar & Kanbur, 2010). The focus should however not only be on rural areas; the domestic economy has to be integrated in urban sectors as well (Ali & Zhuang, 2007).

Overall, to increase inclusion; “the government needs to foster an enabling environment for all people, including the poor, to contribute to and benefit from the growth process” (Rauniyar & Kanbur, 2010, p. 466). Also, “the world’s resources are allocated to meet a few people’s wants, not everyone’s needs” (Shah, 2005). People with power often benefit from natural resource use and people without power are affected more by the negative consequences. Economic growth often goes together with environmental degradation at first (environmental Kuznets curve) (Sunderlin et al., 2005), although technologies might counter this trend (section 2.8).

For growth to be inclusive (inclusive growth is addressed in more detail in section 2.6), it has to be accompanied by equal and accessible opportunities (Ali & Zhuang, 2007). Progressive labor markets, foreign aid, an economic structure that is balanced, and efficient systems of regulation and finance are essential for inclusive growth (Ali, 2007; Huang & Quibria, 2013). Chatterjee (2005), Rauniyar and Kanbur (2010), and Huang and Quibria (2013) on the other hand, all emphasize the importance of the primary sector for inclusive growth, but note that industry is an important sector as well.

In addition, urbanization processes have been regarded as essential for inclusive growth trajectories. In general, urban areas have better access to basic services and provide better opportunities in regards to innovation, employment and overall economic growth (Huang & Quibria, 2013). In contrast to this, urbanization is also associated with inequalities.

Although inequalities often pose a problem for inclusive growth, it should be kept in mind, that not all forms of inequality are bad; it depends on which kind of inequality (Berg & Ostry, 2011, p. 3): “Some inequality is integral to the effective functioning of a market economy and the incentives needed for investment and growth. But inequality can also be destructive to growth, for example, by amplifying the risk of crisis or making it difficult for the poor to invest in education”. A distinction has to be made between inequality in efforts and circumstances (Ali, 2007; Ali & Zhuang, 2007).

If everyone has the same circumstances and opportunities, differences in efforts lead to inequalities. If however these circumstances or opportunities differ and these differences are not addressed by means of policy interventions, the inequalities that arise then are negative. The next section takes a closer look at the people who are often being marginalized and excluded.

2.5 Marginalized groups

The key element of inclusive development relates to taking all relevant stakeholders into account as seen in section 2.3. These stakeholders can consist of people as well communities or countries as a whole (Rauniyar & Kanbur, 2009). The strategies for inclusive growth or development need to be in line with the comparative advantages of the relevant countries (Rauniyar & Kanbur, 2009). Inclusive communities are of importance, because, according to Arthurson (2002) and Mansuri and Rao (2004), development that is community driven leads

to a reduction in information problems, increases the availability of resources for the poor and the civic capacities of the relevant communities are strengthened by it.

By involving all stakeholders in development processes, Huang and Quibria (2013) state, development processes can be seen as non-discriminatory as well as disadvantage-reducing. This means that benefits that go together with development have to reach all the people for which it is intended. Thus, development only becomes inclusive if its benefits have actually reached all the poor in that area (Rauniyar & Kanbur, 2010).

To make sure the poor profit from development, it is useful to take the following two elements into account: (i) public investments need to create basic needs of which safety nets are of importance (Ali & Zhuang, 2007) and (ii) employment opportunities need to be created by means of incentives of the private sector on which pro-poor economic growth is based (Ali & Zhuang, 2007). This means that both the public and private sector are integrally linked to inclusive growth.

Many scholars therefore see a strong link between inclusive development, employment opportunities, and productive employment (Ianchovichina & Lundstrom, 2009; Huang & Quibria, 2013). If opportunities are created at the employment demand side, this will lead to productive employment, and if the resources and the productive capacity of people at the employment supply side are strengthened, returns and wages can be lifted, and new jobs can be created (Ianchovichina & Lundstrom, 2009). This can be realized by growth in productivity and employment. Moreover, a high-employment economy with elasticity of employment leads to social, territorial and economic cohesion, as well as to social inclusion (Sachs, 2004a; Huang & Quibria, 2013). Employment plays thus an important role in including people to benefit from growth and development.

As table 2.2 shows, many groups can be divined that experience social exclusion. The table only provides an example of 28 vulnerable or marginalized groups and as Steel (2004, p. 2) states: “The list is not an attempt to be comprehensive, but serves to give an example of the range of people who are often described as, or who might describe themselves as vulnerable or marginalized”. Marginalize means, according to the Oxford Dictionaries (2014c, para. 2): “Treat (a person, group, or concept) as insignificant or peripheral: by removing religion from the public space, we marginalize it”. In addition to the groups defined by Steel (2004), woman have often been regarded as a marginalized group, which is further discussed in section 2.3. The diversity of Steel’s (2004) list underlines the fact that there is no clear or single group that is marginalized. Reaching these groups can therefore be difficult. However, it can be stated that in general, the inclusion of these groups can be realized by means of dialogues, both on national and local levels. In addition, cooperation between the relevant stakeholders needs to be enhanced as well (Huang & Quibria, 2013). Also, health services, education and resources should be channeled to the people who need them the most, realized by governments, and well-being should be distributed an such a way that people with more needs have to possibility to use more services; redistribution of people is not the solution (Ali & Son, 2007; Kanbur & Rauniyar, 2010; Lawson, 2010; Thomsen et al., 2011).

Table 2.2 Example of vulnerable or marginalized groups Marginalized or vulnerable groups

1 People experiencing Mental Health problems/personality disorder

2 Brain injured individuals

3 Children in general

4 Children in care

5 Young Carers

6 Carers in general

7 People with a Learning Difficulty

8 Ethnic Minorities

9 Asylum seekers and refugees

10 Travellers 11 Homeless people 12 Frail Older Persons 13 Older persons in general

14 Those experiencing forms of dementia

15 People for whom speech and/or hearing is not their principle means of communication 16 Visually impaired people

17 People suffering from a life limiting illness 18 People whose voices cannot be heard 19 Disabled people

20 Drug addicts 21 Single parents

22 People who cannot read or write in English1

23 People who cannot speak or understand spoken English well1

24 People in poverty

25 People who need, but are not receiving health or social care services

26 People whose lives are affected by the complex repercussions of disability, long term illness,

or social care needs, who encounter different services that do not ‘join up’

27 People in receipt of forensic mental health services 28 Prisoners

Source: Steel, 2004, p. 2

1

Or cannot speak the dominant language

As seen in this chapter, poverty and inequality often go together with being excluded. Therefore a closer look is taken at an example of the global income distribution to which these concepts are related. A commonly used visualization for this is a pyramid, as seen in figure 2.2.

The lower parts of the bottom layer of the pyramid consists of people that have an annual income below 4000 USD per year (MVO Nederland, 2012). The bottom part compromises 4 billion people, which largely live in South America, Africa and Asia. The vast majority of these 4 billion people are not included in formal markers (BoPInc, 2014) It is therefore stated that “there is a strong demand for innovative products, services and technologies that provide access to basic needs” (BoPInc, 2014, para. 1). It is of importance to engage people such as entrepreneurs, consumers and producers at this bottom layer, to stimulate livelihood improvements and initiate economic growth for the private sector and communities. There is a lot of potential in this layer to address the needs of the poorest people, but it has to be utilized (BoPInc, 2014).

Figure 2.2 Economic pyramid of the world

Source: MVO Nederland, 2012; edited by author

2.6 Inclusive growth

Different definitions of Inclusive growth exist. In general inclusive growth relates to economic growth from which all stakeholders in a society can benefit. According to critics of contemporary economic growth (e.g. Poschen et al., 2012), much of the economic growth realized over the past decades has not been efficient from employment, economic, social and environmental perspectives. They argue that natural resources are overused and large proportions of the world’s population are unable to find decent income and living standards (Poschen et al., 2012).

The concepts of Inclusive growth and inclusive development are related to each other, but cannot be considered as the same concept. Inclusive growth takes non-income dimensions into account, as inclusive development does. However inclusive growth is only related to income increase per capita that goes together with a reduction of inequality in income (Kanbur & Rauniyar, 2010). Inclusive development relates to well-being that goes beyond income (Kakwani & Son, 2003; Beall & Fox, 2006; Kanbur & Rauniyar, 2010).

Both Ali (2007) and the ADB (2012) have five different criteria economic growth needs to meet, before it can be considered as inclusive growth (Ali, 2007; ADB, 2012). Appendix H and I show the full set of these criteria. The first three parts are described as pillars (see table 2.3).

4

2

3.260 to 20.000

>20.000

Individual annual income

(in USD Purchasing Power Parity, 2005)