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

Pathways to Inclusive Growthand the

Role of Social Participation for Social Development

Francisco FilhoInternational Policy Centre for

Inclusive Growth (IPC-IG)United Nations Development Programme

II CONAGESP

Public Management National Congress

Brasilia, 3 April 2012

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Outline

First Section - The Mandate and Role of IPC-IG

Second Section -The Global South ContextWhich Development?Inclusive Growth

Concepts and DefinitionsIndicators

Policy Innovations for Inclusive Growth

Third Section - Social Participation for Social Development

The role of participationThe Productive Inclusion framework

Pathways for Inclusive Growth

Delegates of the VietnamStudy Tour on Social Inclusion of Ethnic Minorities visit favelas in Rio de

Janeiro, Brazil

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The mandate and role of IPC-IG

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

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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 %

The Role of Applied Research and Knowledge Production


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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

Strengthening the voice of the Global South in the development debate


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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%


The Role of Communications and Advocacy for Inclusive Growth

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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 groupsThe value of equalityCultural diversity and ethnic richness

oTraps: Negative impacts of ‘development’ to vulnerable groups The poor as ‘obstacles’ to development: Exclusion from citizenship and

from government policiesAssimilation of traditional communities and ‘alien’ development models

The Global South Context

Which Development?

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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.”


Inclusive Growth: Concepts and Definitions

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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 SouthA 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.


IPC-IG’s approach

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Inclusive Growth indicators in selected Emerging Economies

CountriesAnnual GDP growth 2002-2009

(% per year)

Change in the Gini index of the household per capita income in the

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

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From 1996 to

most recent:

Gini Change

Poverty Change

Avg. GDP

growthArgentina 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%

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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

GDP Growth Inflation

Government net lending/

borrowingCurrent account

balanceExchange Rate% consumer prices, % LUC / US$ General Gov, % GDP % GDP

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Gini, GDP average growth Poverty (<2US$/day), GDP average growth

c. 2006 c. 20061996 <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%

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Argentina

Brazil

China

Egypt

India

Indonesia

S. Africa

Thailand

Turkey

Vietnam

-112%

-92%

-72%

-52%

-32%

-12%

8%

28%

-19% -14% -9% -4% 1% 6% 11% 16%

Pove

rty

(<2U

S$/d

ay)

Perf

orm

ance

Gini PerformanceBubble size: GDP growth

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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.

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The role of cash transfers and public works increasing the investments in human capital through the support families give to their children.

Brazilian Bolsa Família

Seeks to promote access to health, education and social assistance; to fight hunger and poverty; and to stimulate the sustained emancipation of families living in poverty and extreme poverty

Colombian Familias en Acción

increase the investments by families in extremepoverty on their children’s human capital – resources conditional to attending school

Philippine 4P improving human development of extremelypoor households - cash grants to households with pregnant women or children

Mexican Oportunidades

enhance the opportunities of social and economicdevelopment through the improvement of their education, health and nutrition options

Ethiopian PSNP

fight food insecurity to reduce household s’vulnerability

Nutrition

Nutrition

HealthHealth

EducationEducation

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Participation: ‘There is no social development without social participation’

oFull access to development policy processesDesignImplementationMonitoringEvaluation

oMain barriers to participationBureaucracy jungleInstitutional racism and discriminationRelations with external plannersLack of access to basic services

Social Participation for Social Development

The Role of Participation

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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 Inequalityo Tackling Gender Inequalityo Enabling Productive Employment – via policies to foster productive inclusion


The Productive Inclusion Framework

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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.


The Productive Inclusion Framework: The Global Scenario

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Thanks!

[email protected]

+ 55 61 2105 5000

www.ipc-undp.org

Photos: Humanizing Development Global Photography Campaign,

IPC-IG

Economy & Finance

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