Intermediaries for Inclusive Development – a case for social innovation

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Dr. Vaqar AhmedSustainable Development Policy Institute

IDRC Meeting in Jetwing Hotel, Sri Lanka 3rd Feburary, 2012

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• Revisiting actors in inclusive development

• Current state of inclusiveness

• Are universities pro-inclusive development?

• Constraints in strengthening university-development

nexus

• Social innovations and participatory development –

how universities can help?

Outline

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Regulators

Policy implementors

EntrepreneursAcademia

Civil Society

Traditional Actors in Inclusive Development

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Regulators

Civil service

Entrepreneurs

Academia

Civil Society

Traditional Actors in Inclusive Development

Working age population

Labor force

Employment

abroadPermanent

Returning

Employed

Modern Sector Employee /

Wage employee

Self Employment,Agricultural Subsistence,Informal SectorUnderemployed

Unemployed

Inactive population

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Approach to Inclusive Development

Takes account of demographic

trends

Looks into production

patterns

Facilitates employment

Makes growth pro-poor

Keeps growth sustained

Economic Growth Employment Generation Social Safety Nets Pro-poor growth

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Takes account of demographic

trends

Looks into production

patterns

Facilitates employment

Allows sustainability

Approach to Inclusive Development

Physical Capital

Human Capital

Social Capital

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Economic growth & job creation

Social inclusion & access to public

goodsSocial safety nets

Standard Inclusiveness Indicators

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• Inequality in education attainment (Barro & Lee

1997, 2000)

• Negative impact of education inequality on

economic growth (Birdsall & Londono 1997)

• Gender gaps in education (Zhang and Li 2002)

Are Universities Pro-Inclusive Development?

So who are the students who manage to reach universities?

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Priority to investment in Science & Technology

Promotion of Hi-Tech Industries

Emphasis on Value-added Agriculture

Self-reliance in Defense Manufacturing

Promotion of services sector

Transition from Agriculture to

Knowledge-Based economy

State and Reform of Universities in Pakistan

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• Increased access– 1947 – 2003: 135,000 university students– 2009: 400,000 university students

• Between 2000-2009 public sector universities doubled

• Women Participation In Higher Edn : 36.8% in 2002 to 46.2% in 2008

• 600% in publications and 1000% increase in citations over last 4 years

Results of Reforms in Higher Education

Did increased university graduation lead to greater innovation?

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Why innovations don’t sustain?

Binding constraints literature – Ricardo Haussmann

Rank out of 139 countries

Capacity for innovation

University-Industry

Collaboration

Utility patents/popula

tion

China 23 29 46Sri Lanka 50 73 77Philippines 95 83 68India 35 50 59Pakistan 51 69 89Bangladesh 121 127 90Nepal 129 129 90Source: Global Competitiveness Report 2012

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• Formal innovations require formal markets

– Lack of competitive markets , weak intellectual property

• Institutional barriers & Misuse of government incentives

– Special incentive regions

• Lack of cluster development

– Restrictive zoning in cities

• Missing venture capital industry

– Need for a legal framework

Constraints in linking Universities with Inclusive Development

How much do poor benefit from formal innovations?

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• Disaster management

• Waste management

• Farm to market channels

• Alternate energy

• Alternate dispute resolution and implementation

• Education - Khan Academy

Social Innovation & Inclusiveness

Can universities leverage these initiatives?

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• Understand historical evolution of the process of social innovation

• Understand factors behind social success stories

• Identify what kind of Institutional environment and policy mechanisms will help nurture social innovation

• Propose policy suggestions

Universities Communities

Policy practitioners

Entrepreneurs

Actors in Social Innovation – Goal Setting

Can universities leverage these initiatives?

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Phase-I

Contextual Analysis

Objectives, measures, outcomes

Profiling (Inputs/sectoral mapping)

Analytical Framework for Social Innovation

Markets for Social Innovation

vaqar@sdpi.org

www.sdpi.org

Thank You