Promoting Inclusive Growth : Challenges and Policies

Abstract

Countries worldwide face challenges of high unemployment, unsustainable public finances and lower potential output. It is pertinent therefore to understand future challenges and devise policies accordingly. This document contains the proceedings of a conference co-hosted by the Organisation for Economic Co-operation and Development (OECD) and the World Bank in 2011. The policy issues highlighted herein include financial development, social policies, innovation, regulation, and political economy issues. The importance of structural reform, and exploiting synergies among policy domains are explored. It is understood that structural reforms can do much to unleash opportunities for investment and to allow countries to tap new sources of growth. They can also address issues of inclusiveness and social cohesion, ensuring that the benefits of sustained growth are shared equitably. Exploiting synergies among policy domains is also essential. For example, innovation calls for investment in human resources and appropriate competition policies to encourage entrepreneurship. Innovation is a key pillar of green growth, which is about greening old activities by harnessing knowledge and new technologies that can also create jobs and promote welfare in an environmentally sustainable manner.