Despite consensus in the econo-mics profession that growth alone does not lead to better social outcomes (Ianchovichina and Gable, 2012), quality growth still lacks a rigorous definition or formal quantification.
In a recent paper (Mlachila, Tapsoba, and Tasoba, 2014), we develop a quality of growth index (QGI) that captures both the intrimsic nature of growth and its social dimension.
Our premise is that not all growth produces favourable social outcomes. How growth is generated is critical to its sustain-ability and ability to create decent jobs, enhance living stan-dards, and reduce poverty. We aim in our design of the QGI to capture these multidimensional features of growth by focusing on its very nature and desired social outcomes.
The QGI is a composite index, simple and transparent in itd design. The index results from the aggregation of two building blocks: the intrinsic nature of growth – its strength, stability, diversification, and outward ori-entation – and the social dimension, representinh the desired social outputs for growth.