• My guest this week is Prof Michael Spence, Nobel laureate for economics for 2001, chairman of the Growth Commission, but more than that, a global spokesman for economic growth. India is a tough place to be in for a global spokesman for growth - growth is getting a bad name in this place.

Oh really? Is that because it’s not inclusive enough ...

• Well, that is one of the charges, but also because of high inflation right now — so, often the debate is growth versus inflation.

That’s understandable. In fact, high growth in the developing world has increased demand pressure on commodity prices, oil, gas, minerals and food. In addition, in a high growth mode, there are a lot of jobs that are created and a lot of other jobs that are destroyed and this creates anxiety.

• I read your report, you talk about the need for inclusiveness, good governance, good leadership. But how do you define inclusive growth?

Well, it’s in an inter-temporal context. I mean, what people fundamentally have to believe is that the sacrifices they are going to make now are going to make their children and grandchildren better off and that means that no group is excluded just by the virtue of who they are, whether it is religion or ethnicity or anything else. It means that people are going to be protected through these economic transitions, and finally, it means that the government is not going to let the income distribution get too unequal.

... contd.