Pathways to Inclusive Growth and the Role of Social Participation for Social Development

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A presentation on inclusive growth and social participation delivered by IPC-IG's Francisco Filho at Brazil's II Public Management National Congress (3-4 April 2012).

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Pathways to Inclusive Growth and the Role of Social Participation for Social Development

  1. 1. II CONAGESPPublic Management National Congress CONFIDENTIAL Pathways to Inclusive Growth and the Role of Social Participation for Social Development Document Date Francisco Filho International Policy Centre for Inclusive Growth (IPC-IG) United Nations Development Programme This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion. Brasilia, 3 April 2012
  2. 2. Pathways for Inclusive GrowthUnit of measure Outline First Section - The Mandate and Role of IPC-IG Second Section -The Global South Context Which Development? Inclusive Growth Concepts and Definitions Indicators Policy Innovations for Inclusive Growth Delegates of the VietnamStudy Tour Third Section - Social Participation for Social on Social Inclusion of Ethnic Development Minorities visit favelas in Rio de Janeiro, Brazil The role of participation The Productive Inclusion framework * FootnoteSource: Source 2
  3. 3. The mandate and role of IPC-IGUnit of measure Vision Produce policy-oriented research and facilitate learning and innovation at the global level on poverty reduction and inclusive growth through:  Global policy dialogue to better reflect the new balance of power and development imperatives of the Global South  Exchange and learning between countries to promote inclusive growth in the South * FootnoteSource: Source 3
  4. 4. The mandate and role of IPC-IGUnit of measure The Role of Applied Research and Knowledge Production Addressing the Global Knowledge Inequities  Think Tanks Distribution  Global ‘Go-To Think Tanks’ Report 2010  North America and Europe: 57%  USA: 1816  Brazil: 81  South Africa: 85  India: 292  World Impact of Scientific Output 2000-2010 (ISI/Thomsons Reuters)  Brazil:0.62%  India: 0.53 %  South Africa: 0.74 % * FootnoteSource: Source 4
  5. 5. The mandateUnit of measure and role of IPC-IG Strengthening the voice of the Global South in the development debate Vision Knowledge Management and Advocacy to give voice to a New Development Agenda from the South. Strategic focus areas  Strengthen knowledge management mechanisms for effective policy design and implementation towards inclusive growth  Enhance South-South policy dialogue frameworks that reflect the new balances of power in a changing global governance environment * FootnoteSource: Source 5
  6. 6. The mandate and role of IPC-IGUnit of measure The Role of Communications and Advocacy for Inclusive Growth  The Poor in the Media: Are development innovations contributing to national policy debate and agenda?  Coverage of the poor by the main daily news programmes under an empowering perspective (percentage of the total time):  Brazil: 7%  South Africa: 9%  Argentina: 13% * FootnoteSource: Source 6
  7. 7. The Global South ContextUnit of measure Which Development? oWhich development? Which logic? Which dimensions of life? The human development approach o Development as freedom: The contributions of AmartyaSen o Making development work for vulnerable/marginalised groups The value of equality Cultural diversity and ethnic richness oTraps: Negative impacts of ‘development’ to vulnerable groups The poor as ‘obstacles’ to development: Exclusion from citizenship and from government policies Assimilation of traditional communities and ‘alien’ development models * FootnoteSource: Source 7
  8. 8. The Global South ContextUnit of measure Inclusive Growth: Concepts and Definitions Ali and Son (2007): (i) an increase in the average opportunities available to the population; and (ii) improvement in the equitability of the distribution of opportunities among the population. Ianchovichina and Lundstrom (2009): “In short, inclusive growth is about raising the pace of growth and enlarging the size of the economy, while leveling the playing field for investment and increasing productive employment opportunities.” Rauniyar and Kanbur (2010): “growth […] accompanied by lower income inequality, so that the increment of income accrues disproportionately to those with lower incomes.” Habito (2010): “GDP growth that leads to significant poverty reduction.” McKinley (2010): “(i) achieving sustainable growth that will create and expand economic opportunities, and (ii) ensuring broader access to these opportunities so that members of society can participate in and benefit from growth.” Klasen (2010): “…in terms of outcome, inclusive growth could be termed ‘disadvantage-reducing’ growth.” * FootnoteSource: Source 8
  9. 9. The Global South ContextUnit of measure IPC-IG’s approach IPC-IG’s work on inclusive growth starts from the premise that societies based on equality tend to perform better in development and that long-term public investments on comprehensive social protection is a necessary condition to achieving sustainable and inclusive growth. A debate from the Global South A policy debate that emerged in the South: India, China, Brazil, South Africa, Indonesia, Turkey Inclusive growth seen as both an outcome and a process, requiring benefit-sharing and participation. * FootnoteSource: Source 9
  10. 10. The Global South ContextUnit of measure Inclusive Growth indicators in selected Emerging Economies Change in the Gini index of the Annual GDP growth 2002-2009 Countries household per capita income in the (% per year) 2000s (%) Argentina 3.7 -15 Brazil 3.7 -9 Chile 4.2 -6 Colombia 4.4 -1 Mexico 2.8 -6 Peru 5.6 -13 Venezuela 4.4 -1 * FootnoteSource: Source 10
  11. 11. The Global South ContextUnit of measure Inclusive Growth indicators in selected Emerging Economies From 1996 to Avg. most Gini Poverty GDP recent: Change Change growth Argentina 2008 -4% 23% 5% Brazil 2008 -9% -54% 6% China 2005 10% -44% 9% Egypt 2008 -16% -30% 3% India 2005 -1% -7% 6% Indonesia 2008 3% -27% 4% S. Africa 2005 4% -99% 3% Thailand 2004 -14% -34% 9% Turkey 2008 -13% -8% 4% Vietnam 2006 13% -51% 7% * FootnoteSource: Source 11
  12. 12. The Global South ContextUnit of measure Inclusive Growth indicators in selected Emerging Economies Government net lending/ Current account GDP Growth Inflation Exchange Rate borrowing balance % consumer prices, % LUC / US$ General Gov, % GDP % GDP 2000 2010 2000 2010 2000 2010 2000 2010 2000 2010Argentina -0.8 9.2 -0.9 10.5 1.0 3.9 -3.6 -1.6 -3.1 0.8Brazil 4.3 7.5 7.1 5.0 1.8 1.8 -3.4 -2.9 -3.8 -2.3China 8.4 10.3 0.4 3.3 8.3 6.8 -3.3 -2.3 1.7 5.2India 5.8 10.1 3.9 12.0 44.9 45.7 -9.9 -8.4 -1.0 -2.6Indonesia 5.4 6.1 3.8 5.1 8421.8 9090.4 -2.0 -1.2 4.8 0.8South Africa 4.2 2.8 5.4 4.3 6.9 7.3 -1.5 -5.0 -0.1 -2.8Turkey 6.8 8.9 55.0 8.6 0.6 1.5 n/a -2.9 -3.7 -6.6 * FootnoteSource: Source 12
  13. 13. The Global South Context Unit of measure Inclusive Growth indicators in selected Emerging EconomiesGini, GDP average growth Poverty (<2US$/day), GDP average growth c. 2006 c. 2006 1996 <35 35-40 40-50 50+ 1996 <10 10-25 25-40 40+ <35 India,6.4% Vietnam,7.3% <10 Malaysia,6.9%35-40 Egypt,3.2% Indonesia,4.2% Turkey,4.3% China,9.2% 10-25 Thailand,9.1%40-50 Malaysia,6.9%Argentina,4.5% Brazil,5.9% Turkey,4.3% Mexico,3.8% 25-40 Egypt,3.2% South Africa,3.9% 50+ Thailand,9.1% Brazil,5.9% 40+ Vietnam,7.3% India,6.4% South Africa,3.9% * Footnote Source: Source 13
  14. 14. The Global South ContextUnit of measure Inclusive Growth indicators in selected Emerging Economies 28% Argentina 8% Turkey India -12% m o n P e a c r f Egypt Indonesia -32% Thailand China U d $ 2 < a S y / ) ( -52% Vietnam Brazil o P e y v r t -72% -92% S. Africa -112% -19% -14% -9% -4% 1% 6% 11% 16% Gini Performance * Footnote Bubble size: GDP growthSource: Source 14
  15. 15. The Global South ContextUnit of measure Policy Innovations for Inclusive Growth Highlights Engagement with cross sectorial ministries, implementation agencies along with policy think- thanks/public intellectuals to support a change agenda. Shibboleth destruction (e.g. social protection is expensive). Demonstration of political results. Alliances within legislature, judiciary, and collective action groupings. Enabling actions to confront vested interests. Resistance to external imposition of best practices. * FootnoteSource: Source 15
  16. 16. The Global South ContextUnit of measure Policy Innovations for Inclusive GrowthThe role of cash transfers and public works increasing the investments in human capitalthrough the support families give to their children. n Brazilian Bolsa Família Seeks to promote access to health, education and social assistance; to fight hunger and poverty; and to stimulate N utritio the sustained emancipation of families living in poverty and extreme poverty th Colombian increase the investments by families in extreme Heal Familias en poverty on their children’s human capital – resources Acción conditional to attending school io n Philippine 4P improving human development of extremely Educat poor households - cash grants to households with pregnant women or children Mexican enhance the opportunities of social and economic Oportunidades development through the improvement of their education, health and nutrition options Ethiopian PSNP * Footnote fight food insecurity to reduce household s’Source: Source vulnerability 16
  17. 17. Social Participation for Social DevelopmentUnit of measure The Role of Participation Participation: ‘There is no social development without social participation’ oFull access to development policy processes Design Implementation Monitoring Evaluation oMain barriers to participation Bureaucracy jungle Institutional racism and discrimination Relations with external planners Lack of access to basic services * FootnoteSource: Source 17
  18. 18. Social Participation for Social DevelopmentUnit of measure The Productive Inclusion Framework Productive inclusion “…capacity building activities to enhance access to formal employment and/ or improve the quality of productive work and activity that the poor are inserted into through self employment, individual, collective self‐employment […], family farming. It has social assistance, production chain and territorial dimensions” . (IPC-IG Flagship Report, Sep 2011) Four pillars o Extreme Poverty Eradication o Reduction in Income Inequality o Tackling Gender Inequality o Enabling Productive Employment – via policies to foster productive inclusion * FootnoteSource: Source 18
  19. 19. Social Participation for Social DevelopmentUnit of measure The Productive Inclusion Framework: The Global Scenario Creating jobs is not enough. One must ensure that productive inclusion in on the agenda so as these individuals are among the beneficiaries: oMore than 600 million people are disabled, many of whom live under the poverty line. oMore than 33 million live with HIV/AIDS. oOver 300 million are indigenous peoples. oMore than 2 billion have no access to safe water and sanitation. o1.3 billion are without access to electricity. oMore than a billion are undernourished. oOver 30 million are refugees or displaced people. oMore than 1 billion rural poor. * FootnoteSource: Source 19
  20. 20. Unit of measure Thanks! francisco.filho@ipc-undp.org + 55 61 2105 5000 www.ipc-undp.org Photos: Humanizing Development Global Photography Campaign, IPC-IG * FootnoteSource: Source 20

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