Study On The Evolution Of Inclusive Growth Theory

Economic growth has always been an important issue in the long history of human development. The public hope that improving the national power and people’s living standards through persistent economic growth. Since entering modern society, economic growth is still a "the top economic issues" and " survival conditions". But in the process of economic growth for most countries (especially developing countries) a lot of undesirable phenomena such as unbalanced developments, the widening income gaps, environment problems and social unrests become more frequent. The occurrences of these phenomena prompt us to rethink why growth has not brought development. Whether Economic growth target is just its total economic output and per capita GDP level or contains a certain value judgment to achieve the goal of fairness. In this background, the academia and international institutions put forward the inclusive growth theory to lead the developing countries to achieve sustainable development.This paper reviews the theories of economic growth and considers that there are two directions in the analysis of the economic growth. First theory is growth accounting and Solow is a representative of this theory. Growth accounting pays close attention to determinant in economic growth. The other theory is welfare economics and the most famous representative is Smith welfare economics which seek to maximize the welfare of the whole society. Inclusive growth emphasizes the participation and equalization. Its connotation and target is same as welfare economics. To realize Inclusive growth needs economic growth that increase the social welfare level.Improving the social welfare level in a country or area need to pays attention to the problems of poverty and inequality in the process of economic growth. This article clarifies the evolution of poverty meaning through dealing with the domestic and foreign literature then argues that personal differences is the main cause of poverty. The claim of income equalization to solve the problems of poverty and inequality has the effect of increasing effective demand and improving welfare level and it is a kind of social choice which pursuing the greatest happiness of most people. Because of the problems of poverty and inequality relates to the problem of value judgment, this paper further analyzes three kinds of value evaluations (the Utilitarianism, the Contractualism and the Classical liberalism). This paper considers the inclusive growth (emphasizing on all-round development of human being) is a choice in line with the social moral orientation and can promote to solve inequality by reaching consensus.Because the inclusive growth pays attention to the equality of all social classes in the process of economic growth, the relationship between fairness and efficiency has became the main contents of inclusive growth. From this perspective, this paper analyses the relationship between fairness and efficiency based on sorting the literatures of fairness and efficiency as well as the implementation condition. Based on the meaning and interpretation of the "Kuznets hypothesis" theory, this paper further analyzes the relationship between income inequality and economic growth by describing the evolution of the relationship between fairness and efficiency in China since the reform and opening. This paper argues that inclusive growth theory is important in solving the problem of social justice in the process of economic development and promoting the emergence of Kuznets turning point to let Chinese economic development has entered a new stage.This paper further analyzes three aspects about the equality in opportunity on the basis of discussions that how to coordinate the relationship between fairness and efficiency. The first is explaining the meaning and components for equality in opportunity; the second is discussing the meaning, realization condition and disputes for equality in education opportunity; the third is to clarify the role of equality in education opportunity to promote economic growth based on the analysis of the links between education and human capital, education and economic growth.The above of this paper discussed the growth theory, poverty and inequality and the balance of fairness and efficiency. Then the last part of this paper analyzed the inclusive accomplished level of China’s economic growth based on the connotation and core content of inclusive growth. This paper expounded the factors restricting the realization of inclusive growth, and then analyzed policy toward China to achieve inclusive growth.