By Hom Nath Gaire The phrase 'Inclusive Growth' is quite popular in recent days not only among academia but also with policy makers, development partners and media as well. It seems that there is paradigm shift in development strategies among the stakeholders. The concept of inclusive growth refers to both the pace and distribution of economic growth. In order for growth to be sustainable and effective in reducing poverty, it needs to be inclusive. What is Inclusive Growth? An IMF Commission on Growth and Development (2008) notes that inclusiveness—a concept that encompasses equity, equality of opportunity, and protection in market and employment transitions—is an essential ingredient of a successful growth strategy. Traditionally, poverty (or inequality) and economic growth analyses have been done separately. However, recent work indicates that there may not be a trade-off between equity and efficiency as suggested by Okun (1975) and that it would be a big mistak...