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Panel at CEOs for Cities 2014 National Meeting explored how to align economic growth with economic opportunity. Inclusion is becoming a business imperative, as the cities which best develop and deploy all of their assets are most prosperous. Yet the drivers of growth in the knowledge economy tend to increase inequality. How can we best achieve innovative AND inclusive city and regional economic growth? We will explore how some cities and metro regions are bridging the “growth” and “opportunity” disconnect through inclusive economic development strategies that expand economic opportunity as an integral part of transitioning to high growth, knowledge-based economies. For more info, visit ceosforcitiesnationalmeeting.org.
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© RW Ventures, LLC 2014© RW Ventures, LLC 2014
Inclusive Regional Economic Growth
CEOs for Cities National Meeting
Nashville, TNNovember 5, 2014
Robert Weissbourd
© RW Ventures, LLC 2014
Agenda
I. Scope -- Economics
II. The Inclusive Growth Paradox
III. What is “Inclusive Growth”?
IV. Implications for Practice
V. Examples
2
© RW Ventures, LLC 2014
Scope – Systems Influencing Inclusive Growth
3
Why Care Causes of Exclusion Fixes
Values
Governance
Prosperity
Social
Political
Economic
Erosion
Corruption of
Political System
Returns to Capital
Moral Imperative
Political Economy
Inclusive Economic
Growth
© RW Ventures, LLC 2014
The Inclusive Growth Paradox
-.2
0.2
.4.6
Wage G
row
th (
1990-2
000)
0 .1 .2 .3 .4Poverty Rate (1990)
Inequity is bad for growth Drivers of growth exacerbate inequity
0.0
10.0
20.0
30.0
40.0
LowestQuintile
SecondQuintile
MiddleQuintile
FourthQuintile
81st - 99thPercentiles
Top 1Percent
Changes in Share of Total Household Income, 1979 - 2007
1979 2007
Sources: Federal Reserve Bank of St. Louis; Congressional Budget Office; RW Ventures Analysis
INCLUSION
is a
BUSINESS IMPERATIVE
Nonfinancial Corporations Sector
Labor Share
140
120
100
80
60
40
20
01940 1950 1960 1970 1980 1990 2000 2010 2020
2013 research.stlouisfed.org
Index 2005=100
Profits
© RW Ventures, LLC 2014
What is Inclusive Growth? Tota
l W
ealth
Distribution of Wealth
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© RW Ventures, LLC 2014
What is Growth?Tota
l W
ealth
Distribution of Wealth
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© RW Ventures, LLC 2014
What is Growth?
Distribution of Wealth
Tota
l W
ealth
Change in Height (Accumulation)
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© RW Ventures, LLC 2014
What is Equity?Tota
l W
ealth
Distribution of Wealth
8
© RW Ventures, LLC 2014
What is Equity?Tota
l W
ealth
Change in Slope of Line (Distribution)
Distribution of Wealth
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© RW Ventures, LLC 2014
What is Inclusive Growth? Tota
l W
ealth
Distribution of Wealth
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© RW Ventures, LLC 2014
What is Inclusive Growth?Tota
l W
ealth
Change in Accumulation and Distribution
How can we enable this growth….…with a more equitable
distribution?
Distribution of Wealth
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© RW Ventures, LLC 2014
Our Challenge – Aligning Growth and Equity
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© RW Ventures, LLC 2014
Our Challenge – Aligning Growth and Equity
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© RW Ventures, LLC 2014
Our Challenge – Aligning Growth and Equity
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© RW Ventures, LLC 2014
Our Challenge – Aligning Growth and Equity
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© RW Ventures, LLC 2014
Inclusive Regional Economic Growth (IREG): Implications for Practice
“It’s the Economy, ….” Focus on opportunities for value creation: specific assets, markets and growth drivers
“Skate to Where the Puck is Going to Be.” It’s the next economy. Stop putting poor people in old economy jobs and businesses!
Inclusion is Not a Separate Economic Practice: it’s an intentional, integral part of every growth activity
Operationalize as a Core Design Principle from the start of (not an afterthought or ancillary) and throughout(strategies, products, management …) each initiative and enterprise
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© RW Ventures, LLC 2014
Leverage Points
for Sustainable and Inclusive
Prosperity
DeployHuman CapitalAligned with
Job Pools
Increase Spatial
Efficiency
Create EffectivePublic & Civic
Culture & Institutions
EnhanceRegional
Concentrations/Clusters
DevelopInnovation-
EnablingInfrastructure
Market Levers Driving Next Economy Growth …
Functional clustering Shift towards SMEs More deliberate, open,
flexible, collaborative
Cluster restructuring new entrepreneurship and SME opportunities
Innovation Districts
Formal and informal economic networks
Cross Sector Initiatives
Transparency, openness
Move towards compact, well-connected urban form
Mobility and matching
Segmented, continuous, contextual training
Occupational-technology-firm pools
17
© RW Ventures, LLC 2014
Leverage Points
for Sustainable and Inclusive
Prosperity
DeployHuman CapitalAligned with
Job Pools
Increase Spatial
Efficiency
Create EffectivePublic & Civic
Culture & Institutions
EnhanceRegional
Concentrations/Clusters
DevelopInnovation-
EnablingInfrastructure
… Create Huge Opportunities for Inclusion
Inclusive Clusters: Chicago FOOD
Doer-Maker Space: Blue1647
Neighborhood/Sub-Regional Business Planning: Greater Chatham Initiative
Industrial land reuse:Casey-Atlanta
Targeted inclusive training for emerging industries: YearUp
18
© RW Ventures, LLC 2014© RW Ventures, LLC 2014
Inclusive Regional Economic Growth
CEOs for Cities National Meeting
Nashville, TNNovember 5, 2014
Robert Weissbourd
