The pursuit of an economy that not only grows but also benefits everyone is an ambitious goal that global leaders are increasingly embracing. The term inclusive growth has become the mantra of economists and politicians who seek a development model that goes beyond GDP and considers quality of life and equality among citizens. Let’s examine the six crucial steps to achieving inclusive growth by 2025.
1. Investment in Quality Education :
An educated population is not only productive , but also innovative. Countries that invest in education, especially at basic and secondary levels, tend to see significant economic returns in the long term. Furthermore, education is the greatest equalizer, allowing individuals from different backgrounds to have similar opportunities.
2. Promotion of Gender Equality :
Women’s empowerment is not just a moral issue, but an economic one. Women represent half of global human potential. Ensuring they have equal access to opportunities can boost productivity and economic growth.
Inclusive Growth and the Role of SMEs :
Small and medium-sized enterprises (SMEs) are often considered the engine of the economy. By supporting SMEs, particularly in innovative sectors, we can ensure that economic growth is spread more evenly across society.
3. Universal Access to Health :
A healthy citizen is a productive citizen. Ensuring that everyone has access to quality healthcare services not only improves the quality of life, but also increases a country’s productive workforce.
4. Infrastructure and Connectivity :
In today’s digital world, connectivity is synonymous with opportunity. Investing in digital and physical infrastructure allows more people to participate in the global economy, opening doors to innovation and trade.
5. Strengthened Social Security Systems :
Social protection ensures that the most vulnerable are not left behind. This includes assistance, insurance, and pension programs that protect individuals against economic shocks.
6. Progressive Tax Policies :
To finance these initiatives and ensure an equitable distribution of wealth, progressive tax policies can be implemented. This doesn’t just mean raising taxes on the wealthy, but ensuring tax systems promote equity.
The idea of inclusive growth has gained significant importance in recent years, particularly in light of the growing inequality challenges faced globally. The COVID-19 pandemic, in particular, has widened inequalities and shown the urgent need for more resilient and inclusive economic systems. Let’s delve deeper into this topic:
Global Inequality – A Growing Problem :
Even before the pandemic, inequality was rising in many economies. The richest 1% of the global population holds a disproportionate amount of the world’s wealth. This concentration of wealth is not only unfair, but also unsustainable, leading to social tensions and, in some cases, political instability.
Inclusive Growth and Sustainability :
Sustainability and inclusive growth are intrinsically linked. We can’t have one without the other. For example, the unsustainable exploitation of natural resources often leads to the exclusion of local and indigenous communities. Therefore, ensuring that development is sustainable also means ensuring that it benefits all segments of society.
The Digital Age and Inclusive Growth :
The digital revolution has brought with it a series of opportunities and challenges. On the one hand, technology has allowed many to access global markets, gain knowledge and connect like never before. However, there is also a risk of a “digital divide” where those without access to technology are left behind.
Financial Inclusion :
An essential part of inclusive growth is ensuring that everyone has access to financial services. This not only refers to having a bank account, but also having access to credit, insurance and other financial services. In many parts of the world, particularly in rural areas of Africa and Asia, financial inclusion remains a significant challenge.
Participation of Stakeholders in the Economy :
Inclusive growth also means that all stakeholders, including local communities, have a voice in economic decisions. This is particularly relevant in infrastructure or resource exploration projects, where local communities may be adversely affected.
Employment and Inclusive Growth Policies :
Decent, well-paid jobs are the foundation of inclusive growth. Therefore, policies that promote job creation, support small businesses and protect workers’ rights are essential.
Conclusion :
Inclusive growth is not an abstract concept, but a tangible and urgent need. For the global economy to prosper, it is essential to ensure that everyone has a fair opportunity to benefit from economic growth. This requires a reassessment of many current practices and policies and the adoption of a more holistic, people-centered approach to economic development. By doing so, we can build an economy that works for everyone, not just a few.
