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
The mandate and role of IPC-IG
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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
The mandate and role of IPC-IG
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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 mandate and role of IPC-IG
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.”
The Global South Context
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.
The Global South Context
IPC-IG’s approach
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The Global South Context
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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The Global South Context
Inclusive Growth indicators in selected Emerging Economies
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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The Global South Context
Inclusive Growth indicators in selected Emerging Economies
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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The Global South Context
Inclusive Growth indicators in selected Emerging Economies
Gini, GDP average growth Poverty (<2US$/day), GDP average growth
c. 2006 c. 20061996 <35 35-40 40-50 50+ 1996 <10 10-25 25-40 40+<35 India,6.4% Vietnam,7.3% <10 Malaysia,6.9%
35-40 Egypt,3.2% Indonesia,4.2% Turkey,4.3%China,9.2% 10-25 Thailand,9.1%
40-50 Malaysia,6.9% Argentina,4.5% Brazil,5.9%Turkey,4.3% Mexico,3.8% 25-40 Egypt,3.2% South Africa,3.9%
50+ Thailand,9.1% Brazil,5.9% 40+ Vietnam,7.3% India,6.4%South Africa,3.9%
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The Global South Context
Inclusive Growth indicators in selected Emerging Economies
Argentina
Brazil
China
Egypt
India
Indonesia
S. Africa
Thailand
Turkey
Vietnam
-112%
-92%
-72%
-52%
-32%
-12%
8%
28%
-19% -14% -9% -4% 1% 6% 11% 16%
Pove
rty
(<2U
S$/d
ay)
Perf
orm
ance
Gini PerformanceBubble size: GDP growth
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The Global South Context
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.
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The Global South Context
Policy Innovations for Inclusive Growth
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
Social Participation for Social Development
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.
Social Participation for Social Development
The Productive Inclusion Framework: The Global Scenario
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Thanks!
+ 55 61 2105 5000
www.ipc-undp.org
Photos: Humanizing Development Global Photography Campaign,
IPC-IG