VIDEO: The Future of Development Thought @ IEA 2014: Growth & Inclusion
Dr. Albert Berry reflects on what exclusion means in terms of development and growth. Presented at a panel of authors from the book—International Development: Ideas, Experience, and Prospects—at the International Economics Association Congress in Jordan, June 7, 2014 (English; Creative Commons attribution).

— Abstract

How do income growth, socio-economic equality, and inclusion interact to determine levels of satisfaction? Happiness is considered from three angles. First, economic growth by itself does not secure human happiness. While there are benefits to growth that occurs within favorable societal structures, these do not reach everyone in a society, given the centrality of relative income and status to people’s satisfaction levels. Second, though equality and inclusiveness are obvious potential contributors to happiness, inclusiveness can sometimes take socially damaging forms. A meaningful integration of the concept into social science thinking about the economy and welfare requires nuanced psychological approaches. Third, since preference formation is endogenous to a society, the challenge of increasing human satisfaction inevitably raises the question of how deliberate an effort should a “society” make to tilt preference systems towards the experience of satisfaction.

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— Suggested Readings

Chambers, Robert. (1997) Whose Reality Counts? Putting the Last First. London: Intermediate Technology Publications.

Davies, James B., Susanna Sondstron, Anthony Shorrocks and Edward N. Wolff (2011) “The Level and Distribution of World WealthEconomic Journal, Vol. 121, March, pp.223-254. [PDF 200KB]

Helliwell, John, Richard Layard and Jeffrey Sachs (editors) (2012) World Happiness Report. Columbia University: The Earth Institute. [5MB]

Isham, Jonathan, Thomas Kelly, and Sunder Ramaswamy (editors) (2002) Social capital and economic development: Well-being in developing countries. Cheltenham, U.K. and Northampton, Mass.: Elgar.

Sen, Amartya K. (1977) “Rational fools: a critique of the behavioral foundations of economic theoryPhilosophy and Public Affairs 6(4): 2317-344. [PDF 200KB]

Wamae, Watu. 2012. Innovation for social inclusion in Africa: thinking aloud. Innovation for Social Inclusion in Africa: Thinking Aloud.