Literature Review;’No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable It is but equity, besides, that they who feed, cloth and lodge the whole body of the people, should have such a share of the produce of their own labor as to be themselves tolerably well fed, clothed and lodged’Adam smith (1974) in his book wealth of nation..
Then the role of inclusive growth as engine and source to promote equality and eliminate poverty have a great consideration recently, all the SDGS plans emphasis on the contribution of inclusive growth to achieve the prosperity and equally sharing of gains among citizens and among all sectors in the country.
Many literature reviews focused on analyzing the relationship between health and economic growth as stated in economic growth theories.
(Navidn and Weil 2013), this paper studied the impact of health on economic growth .it represented the magnitude of health impact on economic growth. it also explained causality relationship between income and health .one of its main contributions that it explained change in cross –sectional relationship between income and health due to health technology .also it focused on impact of growth in health on utility rather than income. This research used descriptive analysis to explain these relations and Conclude that correlation between income growth and change in life expectancy( as an index for health ) is weak in short run .while in very long run both are indeed correlated .
Since the higher economic growth doesn’t reflect equally among citizens also there is a gap between classes, so there is an intensive need for new era of inclusive growth.
Dividing the theoretical into two vital periods (2001 to 2010) and (2011 to 2017)
First period from 2001 to 2010
(Asian development bank(ADB),2007) argued that inclusive growth is the overarching goal because of the income and non-income inequality that can be seen in the Asian countries since inclusive growth is associated with the creation of equal access to opportunities .Also this paper tackled a development strategy which is main aim to achieve inclusive growth divided into two mutually reinforcing strategic .First, Acquiring high and sustainable growth in order to create economic opportunities .Second, social inclusion to ensure equal access to opportunities by expanding Human capacities which means investing in education , health and other social services . Moreover, improved health and nutrition have a direct effect on labor productivity and individual’s earning capacities particularly among poor .In addition Health- related shocks are important factors that push people into poverty.
(Ali and Hyun 2007) , This paper used the concept of social opportunity function to measure inclusive growth through opportunity curve that has one to one positive relationship with social opportunity function .this study applied in Philippines used Annual poverty indicator survey (APIS) , This paper concluded that there is positive relation between equal distribution of social services and inclusive growth.
Second period from 2011 to 2017
Stuart (2011) ,This paper represented that economic growth contributed effectively in reducing poverty rate in developing countries but it failed to achieve equality .so it represented case studies of three countries (Brazil – Viet Nam –and Ghana) then provided some suggestions to introduce suitable environment for inclusive growth through redistributive agenda GOV has to redistribute its expenditures on basic services including health and education to provide increased opportunities for poor –macroeconomic prudence government must set moderate levels of inflation ,debt and deficit –policy environment that stimulate pro-poor private investment
(Asian Development Bank (ADB ), 2011) discussed the key indicators for inclusive growth( 35 indicators that measures poverty and inequality ,income and non-income, economic growth and employment, key infrastructure endowments, access to education and health, access to basic infrastructure utilities and services, gender equality and opportunity, social safety nets, and good governance and institutions) in 48 ADB member countries in Asia and pacific region that had been grouped into developing and developed countries using a qualitative method (descriptive analysis) and data provided from international statistical agencies or national statistical agencies (depending on data availability) from 1999 to 2009 and stated that life expectancy at birth and government expenditure at health as a proxy for health sector are one of the key indicators for inclusive growth as inclusive growth requires equal opportunities and so equal access to health care
(Adedeji, Huancheng Du and Afari 2013) They focused on concept of social opportunity function to study the impact of social and economic opportunities on inclusive growth in some African countries (Cameron –Ghana –Mozambique –Tanzania- Zambia). Since many developing countries that achieved economic growth still suffer from income inequality and unequal opportunities so the main objective of this study was to achieve equity in providing opportunity combined with economic growth especially, education and health opportunity. The most important findings of this paper that it used opportunity function as a measurable for inclusive growth. (Using opportunity curve that reflected inclusive growth in quantitative method). The opportunity curve can also be useful in dynamic analysis that can be explained through shifts in opportunity curves between two periods. Concluding: upward sloping opportunity curve for primary education, secondary education and health care services.
(Abou Ali and Abou Ali,2014) their paper assess the inclusive growth trend in Egypt from 1991 to 2011 and they argued that despite the reforms to stabilized economy in 1991 there are negative impacts on different aspects as it appears in slow GDP ,social injustice, escalating unemployment and raising in poverty.They establish an inclusive growth index which include (Economic growth ,employment productivity, economic infrastructure ,poverty ,equity ,human ability ,social protection)The main finding of the paper how to fulfill inclusive growth in Egypt through suggested policies.
(Organization for Economic Co-operation and Development (OECD), 2016) examined the impact of health care system on inclusive growth in the 35 OECD countries from 2010 to 2015 using a qualitative method (descriptive analysis) and data provided from OECD statistics about Sickness absence incidence , Average duration of sickness absence, Presenteeism incidence Percentage , growth hourly earnings by health status and Employment in health and social work as a share of total employment from the 35 countries and found that providing a well-established health system will enhance the economic growth and enable it to be more sustainable and inclusive as a well-health employees are more productive at work .Also health sector provides more job opportunities and by the way increases the employment.
(African Development Bank Group (AFDB ),2016) it explored the impact of health indicators on inclusive growth separately in 178 African countries using nine health indicators (depending on international available data) divided into three main pillars which are the quantity of health care services, the quality of health care services, the accessibility (equal or unequal access) to health care service building an inclusive health index and through applying two different methodologies which are the Totally Fuzzy Analysis (TFA) and Principal Component Analysis (PCA) through qualitative method (descriptive analysis) .And the result proved that health indicators affect positively inclusive growth as it shown that health is a key concept for an inclusive development .It also showed that African has the worth performance in inclusive health index.
(James C, M.Devaux and F.Sassi 2017) , This paper studies relation between health and inclusive growth .its aim is to reach to method that enables government to achieve inclusive growth .the study is applied in35 OECD countries from 1990 till 2015 .this paper focused on two way relation between income and socioeconomic factors with health , This paper concluded that there is direct and indirect relation between health and inclusive growth . Indirect relation through impact of education and income on health. Direct relation through positive impact of health on inclusive growth . (Asian Development Bank (ADB),2017) according to the Asian development bank (ADB) Strategy 2020. In this strategy ADB recognized the important role health plays in fostering and promoting the inclusive growth in 8 countries in central and west Asia region (Armenian ,Azerbaijan ,Georgia ,The republic of Kazakhstan ,Kyrgyz ,Uzbekistan ,Tajikistan ,Turkmenistan),the relation between health and inclusive growth, identifying approaches and propose the guiding policies to reach a better impact of health policies. in 2014, as a result of the Mid-Term Review of the Strategy 2020, The review proposed ADB will increase the health sector investments from 1-2% of total financing in 2014 to 3-5% of total financing by 2020.
As shown above most of theoretical literature emphasis on the failure of economic growth to reflect equality in gains among citizens and sectors so inclusive growth as new concept appears to Economy context to overcome the drawbacks of economic growth, also most of literatures focus on indirect relation between health and inclusive growth through social opportunity function and a direct positive effect of health on inclusive growth. Most of studies done in group of countries like (African, Asian and OECD countries) conclude that health one of the determinant of inclusive growth.