Inclusive growth: A comprehensive strategy to achieve the sustainable development goals

Abstract

This paper presents a growth strategy that, modifying the distribution of income in favor of wage earners, allows boosting aggregate demand, productivity and employment. This proposal is essential for the achievement of the Sustainable Development Goals, especially those related to growth, innovation, employment, and distribution in Colombia, opposed to the model that has historically been applied and that implied an exclusive growth. To build this alternative vision, the paper presents a renewed theoretical proposal based on the concept of inclusive growth, and by means of Structural Equations Modeling (SEM), the hypothesis that the concentration of the productive structure generates distortions in the economic, innovation process and job creation. This makes necessary to adopt policies focused on increasing productivity and diversifying the productive structure.