What is Inclusive Development? Introducing the Multidimensional Inclusiveness Index

Abstract Despite decreasing global poverty, feelings of increasing inequalities drive growing dissatisfaction with development outcomes. Inclusive benefiting larger parts societies will be perceived as more legitimate. Yet, there is neither a thorough agreement on what constitutes inclusive nor convenient measurement tool. The purpose this paper to address both these shortcomings in the literature. We derive notion that human-based and acknowledges all factors important for well-being. With introduction Multidimensional Inclusiveness Index (MDI), we conceptual drawbacks prominent approaches like Human Development (HDI), Inequality-Adjusted (IDI) extend available data sample (by 50% compared HDI). MDI consists two subindices—one equity achievements each—and calculated three versions up 171 countries years 1960–2018. By applying principal component analysis, rely structure underlying aggregation 14 variables into subindices. subindices are aggregated by geometric mean. show regional patterns captured major political events reflected country trends. correlations resulting from similarities, provides new insights when HDI, IDI gross domestic product . All display averages over time. These positive trends largely driven improvements dimension. optimistic recent years, considerations deserve stronger emphasis concepts.