The European Year for Development: Sustainable Growth

03-06-2015

Economic growth is a key driver of poverty reduction, but its impact on the poor depends on growth patterns and policies. It is increasingly accepted that economic growth that advances development must be both socially inclusive and ecologically sustainable. Unlike the Millennium Development Goals (MDGs), the new Sustainable Development Goals (SDGs) are expected to contain a goal on sustainable and inclusive growth. Some have challenged the revived focus on growth, both for ecological reasons and because they argue that wellbeing is not fully reflected in GDP figures. EU development policy has focused on sustainable and inclusive growth since 2011, with more attention devoted to trade, private sector engagement and promoting a favourable business environment. The European Parliament has recognised the role of growth in achieving development objectives, but insists on the need to include the most deprived and vulnerable, and on combatting inequality.

Economic growth is a key driver of poverty reduction, but its impact on the poor depends on growth patterns and policies. It is increasingly accepted that economic growth that advances development must be both socially inclusive and ecologically sustainable. Unlike the Millennium Development Goals (MDGs), the new Sustainable Development Goals (SDGs) are expected to contain a goal on sustainable and inclusive growth. Some have challenged the revived focus on growth, both for ecological reasons and because they argue that wellbeing is not fully reflected in GDP figures. EU development policy has focused on sustainable and inclusive growth since 2011, with more attention devoted to trade, private sector engagement and promoting a favourable business environment. The European Parliament has recognised the role of growth in achieving development objectives, but insists on the need to include the most deprived and vulnerable, and on combatting inequality.