SESSION 6
INCLUSIVE GROWTH:
OVERVIEW OF THE
WORK AHEAD
New Approaches to Economic Challenges
NAEC Group Meeting, 28 November 2014
Lamia KAMAL-CHAOUI SENIOR ADVISOR TO THE SECRETARY-GENERAL
INCLUSIVE GROWTH INITIATIVEA Central Contribution to NAEC
Traditional economic growth
models in question
Levels of inequalities were brewing pre-2007
Inequalities increased almost
everywhere during periods of
sustained economic growth
Did not distribute benefits and opportunities fairly
New Approaches to
Economic Challenges
A core objective
is to develop a
strategic policy
agenda for
sustainable,
inclusive growth
Launched at the end of 2012
A response to rising inequalities
Building on longstanding OECD work on inequalities,
well-being and pro-growth structural policies.
LAYING THE FOUNDATIONS: Preliminary Work Phase
• During its preliminary work phase (2012-14) the IG Initiative delivered:
Report on the OECD Framework for Inclusive Growth to Ministers at the 2014 MCM
Publication on IG, presented at the OECD Forum 2014: All on Board: Making Inclusive Growth Happen
KEY DELIVERABLESReport on the OECD Framework for Inclusive Growth
A three-pronged approach:
Multidimensional
• Accounts for income and non-income related outcomes (presently employment and health)
Distributional
• Considers groups of households like the middle class or the bottom 10, 20, 40 %
Policy Actionable
• Establishes quantitative links between multidimensional outcomes and key policy variables to allow policy makers identify synergies among policy levers and take compensatory action when there are trade-offs
KEY DELIVERABLESAll on Board: Making Inclusive Growth Happen
• Overview of trends in inequalities
• Introduces the OECD Multidimensional Living Standard Measure
• Provides win-win policies that deliver both strong growth and greater inclusiveness in a wide range of policy areas
• Set outs the political governance requirement for the design and implementation of IG policies
KEY DELIVERABLESExternal Experts Group & Consultative Process
• External Experts Group
Guides and informs analytical work
Includes high-level experts from academia, the private sector, civil society, foundations and international organisations Sir Tony Atkinson - Honorary Fellow, Nuffield College,
University of Oxford
Mrs. Teresa Ter-Minassian – Economist, Former Director of Fiscal Affairs, International Monetary Fund
Kemal Dervis,– Vice President and Director, Global Economy and Development, The Brookings Institution
Prof. Philippe Aghion - Robert C. Waggoner Professor of Economics, Harvard University
KEY DELIVERABLESConsultative Process
• Consultative ProcessTwo International Workshops
(Paris, Apr. 2013; NY, Feb. 2014)
One Regional Consultation (LAC)
One National Consultation/Case Study (China)
KEY DELIVERABLESCommunications
• Launch OECD Inclusive Growth website
www.oecd.org/inclusive-growth
• Produce two videos Make Growth Inclusive to Tackle Rising
Inequality (Apr. 2013)Making Growth Inclusive (Feb. 2014)
• Deliver over 20 speeches on Inclusive Growth (by the Secretary-General)
• Publish articles on Inclusive Growth
STRENGTHENING OUR BASEA Four Pillar Approach for 2015-16
1. Methodological Refine and test the robustness of the IG Policy Framework
2. Sectoral Mainstream the IG approach across the sectoral work
3. National Test relevance of IG approach to a broad range of countries,
including emerging economies and developing economies, and put the framework into action
4. Regional Broaden the applicability of the IG Framework and expand the IG
database to emerging economies and developing countries
STRENGTHENING OUR BASEMainstreaming
• Further sectoral work is planned for 2015-16
Innovation (STI)Health (ELS)Education & Skills (EDU)Urban air quality (ENV)Inclusive Cities (GOV)And more…
STRENGTHENING OUR BASEMainstreaming
• NAEC projects are important contributions to the horizontal project
A. Reflection & Horizontal Scanning
B. Policy Trade-offs & Complementarities
C. Institutions and Governance
Deliverables before end 2014
B6 - Closing the loop: How inequality affects economic growth and cohesion? B3- Assessing the transitional costs and distributional consequences of structural
Deliverables planned to be finalised before 2015 MCM
B1 - New approaches to analysing multidimensional well-being: B8-Trade-offs and synergiesTrade-offs and synergies between environment and inequality
C1- Revisiting the social contract: Rebuilding trust for sustained economic recovery
Deliverables planned to be finalised after 2015 MCM
C5- Promoting IG through better regulation.
ENSURING CHECKS AND BALANCESInclusive Growth Governance
• Core Committees (CSSP, WP1/ECO, ELSAC) Vet substantive contributions, especially methodology
• Sectoral Committees (CTSP, EDPC, TDPC, EPOC, etc) Vet substantive contributions to sectoral work
• NAEC Group Serve as sounding board for substantive work
• Internal Inclusive Growth Focal Points Generate substantive inputs pursuant to achieving the horizontal
project’s overarching goals
• External Experts Group Provide ongoing guidance
MAKING INCLUSIVE GROWTH HAPPENTimeline for IG Horizontal Project
2014
•Finalise programme of work (POW)•Calendar of events•Communications strategy•Website development
2015
•Pillar 1: Update of the methodological and policy framework (timespan, countries, dimensions, distribution)•Pillar 2: Joint OECD/ADB/ESCAP Regional consultation with Southeast Asia •Pillar 3: Sectoral analysis •Pillar 4: National case studies •Consultations and communication•Progress report to 2015 MCM
2016
•Pillar 1: Continue refinement to methodology (finalisation of Policy Framework) •Pillar 2: Sectoral work•Pillar 3: Continue to pursue national case studies•Pillar 4: Possible Regional Consultation with MENA region/Africa•Other: Consultations and communications •Report to 2016 MCM
SUSTAINING MOMENTUMWinning the Battle Against Inequalities
• We need your continued support to keep the momentum going!
Continue to provide inputs and share your knowledge
Maintain interest on Inclusive Growth in your Capitals through outreach and awareness raising
Mobilise resources to deepen work on Inclusive Growth
STAYING INFORMED
Inclusive Growth Contact Information
• Online
www.oecd.org/inclusive-growth