What does inclusive economic growth actually mean in practice?

31 Jul 2015 by By Paloma Durán, Director, Sustainable Development Goals Fund

Coffee cooperative in AfricaA farmer with his family in Chingawaram village, India. Inclusive growth is about ensuring that the benefits of development reach the entire population, including the most vulnerable members. Photo: UNDP India
With the historic Third International Conference on Financing for Development (FfD3) now completed, “inclusive growth” remains a high priority on the agenda. While most stakeholders agree it’s an important and compelling part of the dialogue on development, it still remains rather ambiguous as a term. And seemingly when you ask five economists to define the concept, you will likely end up with six answers. Within the Sustainable Development Goals Fund (SDG Fund), we are keen to understand the various theories pertaining to inclusive growth and how best to put them into practice. We realize that there’s more than one way to achieve this objective, which means there is plenty of room for creativity.  There are many perspectives as to what inclusive growth means in practice, with big differences in approach amongst key institutions. The Open Working Group has included the concept as part of the post-2015 development agenda. Number 8 of the 17 proposed Sustainable Development Goals is “promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.” UNDP’s chief economist, Thangavel Palanivel, recognized multiple definitions but pointed out that there are some common features, namely: “Growth is inclusive when it takes place in the … Read more

Two journeys to drive climate change action

30 Jul 2015 by Daniel Price, Climate change scientist and Founder, Pole to Paris

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La infraestructura como inversión para el desarrollo

29 Jul 2015 by Stefano Pettinato, UNDP Deputy Resident Representative for El Salvador and Belize

airport workerDuring the year and a half project, it directly employed 314 men and 23 women and generated 1,500 indirect jobs. Photo: Mauricio Martínez/UNDP El Salvador
Para generar ese entorno son necesarias políticas públicas e inversiones que favorezcan una adecuada complementariedad entre las demandas de la sociedad y las necesidades y derechos de los individuos. Un buen ejemplo de ese entorno habilitante es la inversión pública y privada en infraestructura logística y de movilidad. Desarrollar y fortalecer esta infraestructura tiene un impacto potencial sobre el desarrollo económico y la disminución de la pobreza. La infraestructura de transporte es de vital importancia para la calidad de vida de la población; la movilidad vincula las áreas urbanas con las rurales; conecta al país con el exterior; facilita el acceso a servicios básicos como educación y salud; contribuye a la funcionalidad de las ciudades y las vuelve más competitivas. … Read more

Caring about those who care for others

28 Jul 2015 by René Mauricio Valdés, Resident Representative, UNDP Argentina

 In Argentina, women currently devote almost twice as much time as men to care-related tasks: 6.4 hours a day compared to 3.4 hours.
All societies have people to care for and care-givers. Although there are different forms of care-giving, it is often undertaken by family members, mostly women and girls whose labor is usually unpaid. Here in Argentina, a country which has made remarkable progress in women’s rights and gender equality, women currently devote almost twice as much time as men to care-related tasks: 6.4 hours a day compared to 3.4 hours. The ability to meet care needs is also critical to national well-being, and the economic dimension of care-work is becoming more visible in Latin America. Studies undertaken in Colombia and Mexico indicate that the economic value of care activities accounts for approximately 20% of GNP. The region is now facing a mounting care crisis. The number of people requiring care is increasing, due to greater life expectancy, while the number of people available as unpaid care-givers is diminishing, caused by a lower fertility rate and the mass entry of women and girls into the labour market and educational systems. In addition, the ‘demographic bonus’ – when the working population is larger than that of elderly people and children - is coming to an end in many countries, while the dependency rate will … Read more

The gender gap in extractive dependent countries

28 Jul 2015 by Degol Hailu, Senior Advisor, UNDP and Chinpihoi Kipgen, Research Associate, UNDP

Can we use the revenues generated from oil, gas and minerals to reduce the gender gap in countries with abundant natural resources? We found a statistically significant negative correlation between our Extractives Dependence Index (EDI) that ranks countries on their dependence on the extractive sector (where 0 equals no dependence and 100 equals highest dependence) and the Global Gender Gap Index (where 1 equals equality and 0 equals inequality). The Global Gender Gap Index for countries with the highest dependence on the extractive sector is 0.60 while it is 0.70 for the lowest dependent countries. We further examined the difference between women and men in leadership positions and employment. In countries with high dependence on extractives, women make up 8.7% of ministerial level positions; they take up 9.5% of seats in national parliaments and hold 18.4% of senior and managerial positions. In countries with low dependence on extractives, the numbers are almost twice as high at 16.9%, 17.9% and 32.7%, respectively. In high extractive dependent countries, the average unemployment rate for women is 15% and 8% for men. In the low extractive dependent countries, there is parity in a bad outcome; the unemployment rates are 8% for women and 7% for … Read more