A presentation on inclusive growth and social participation delivered by IPC-IG's Francisco Filho at Brazil's II Public Management National Congress (3-4 April 2012).

1. II CONAGESP
Public Management National Congress
CONFIDENTIAL
Pathways to Inclusive Growth
and the
Role of Social Participation
for Social Development
Document
Date
Francisco Filho
International Policy Centre for
Inclusive Growth (IPC-IG)
United Nations Development Programme
This report is solely for the use of client personnel. No part of it may be
circulated, quoted, or reproduced for distribution outside the client
organization without prior written approval from McKinsey & Company.
This material was used by McKinsey & Company during an oral
presentation; it is not a complete record of the discussion. Brasilia, 3 April 2012

2. Pathways for Inclusive Growth
Unit of measure
Outline
First Section - The Mandate and Role of IPC-IG
Second Section -The Global South Context
Which Development?
Inclusive Growth
Concepts and Definitions
Indicators
Policy Innovations for Inclusive Growth
Delegates of the VietnamStudy Tour
Third Section - Social Participation for Social
on Social Inclusion of Ethnic Development
Minorities visit favelas in Rio de
Janeiro, Brazil The role of participation
The Productive Inclusion framework
* Footnote
Source: Source 2

3. The mandate and role of IPC-IG
Unit of measure
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
* Footnote
Source: Source 3

4. The mandate and role of IPC-IG
Unit of measure
The Role of Applied Research and
Knowledge Production
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 %
* Footnote
Source: Source 4

5. The mandate
Unit of measure and role of IPC-IG
Strengthening the voice of the Global South in
the development debate
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
* Footnote
Source: Source 5

6. The mandate and role of IPC-IG
Unit of measure
The Role of Communications and Advocacy for Inclusive Growth
 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%
* Footnote
Source: Source 6

7. The Global South Context
Unit of measure
Which Development?
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 groups
The value of equality
Cultural diversity and ethnic richness
oTraps: Negative impacts of ‘development’ to vulnerable groups
The poor as ‘obstacles’ to development: Exclusion from citizenship and
from government policies
Assimilation of traditional communities and ‘alien’ development models
* Footnote
Source: Source 7

8. The Global South Context
Unit of measure
Inclusive Growth: Concepts and Definitions
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.”
* Footnote
Source: Source 8

9. The Global South Context
Unit of measure
IPC-IG’s approach
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 South
A 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.
* Footnote
Source: Source 9

10. The Global South Context
Unit of measure
Inclusive Growth indicators in selected Emerging Economies
Change in the Gini index of the
Annual GDP growth 2002-2009
Countries household per capita income in the
(% per year)
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
* Footnote
Source: Source 10

11. The Global South Context
Unit of measure
Inclusive Growth indicators in selected Emerging Economies
From
1996 to Avg.
most Gini Poverty GDP
recent: Change Change growth
Argentina 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%
* Footnote
Source: Source 11

12. The Global South Context
Unit of measure
Inclusive Growth indicators in selected Emerging Economies
Government net
lending/ Current account
GDP Growth Inflation Exchange Rate borrowing balance
% consumer prices, % LUC / US$ General Gov, % GDP % GDP
2000 2010 2000 2010 2000 2010 2000 2010 2000 2010
Argentina -0.8 9.2 -0.9 10.5 1.0 3.9 -3.6 -1.6 -3.1 0.8
Brazil 4.3 7.5 7.1 5.0 1.8 1.8 -3.4 -2.9 -3.8 -2.3
China 8.4 10.3 0.4 3.3 8.3 6.8 -3.3 -2.3 1.7 5.2
India 5.8 10.1 3.9 12.0 44.9 45.7 -9.9 -8.4 -1.0 -2.6
Indonesia 5.4 6.1 3.8 5.1 8421.8 9090.4 -2.0 -1.2 4.8 0.8
South Africa 4.2 2.8 5.4 4.3 6.9 7.3 -1.5 -5.0 -0.1 -2.8
Turkey 6.8 8.9 55.0 8.6 0.6 1.5 n/a -2.9 -3.7 -6.6
* Footnote
Source: Source 12

13. The Global South Context
Unit of measure
Inclusive Growth indicators in selected Emerging Economies
Gini, GDP average growth Poverty (<2US$/day), GDP average growth
c. 2006 c. 2006
1996 <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%
* Footnote
Source: Source 13

14. The Global South Context
Unit of measure
Inclusive Growth indicators in selected Emerging Economies
28%
Argentina
8%
Turkey India
-12%
m
o
n
P
e
a
c
r
f
Egypt Indonesia
-32%
Thailand China
U
d
$
2
<
a
S
y
/
)
(
-52% Vietnam
Brazil
o
P
e
y
v
r
t
-72%
-92%
S. Africa
-112%
-19% -14% -9% -4% 1% 6% 11% 16%
Gini Performance
* Footnote Bubble size: GDP growth
Source: Source 14

15. The Global South Context
Unit of measure
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.
* Footnote
Source: Source 15

16. The Global South Context
Unit of measure
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.
n
Brazilian Bolsa
Família
Seeks to promote access to health, education and social
assistance; to fight hunger and poverty; and to stimulate N utritio
the sustained emancipation of families living in poverty
and extreme poverty
th
Colombian increase the investments by families in extreme Heal
Familias en poverty on their children’s human capital – resources
Acción conditional to attending school
io n
Philippine 4P improving human development of extremely
Educat
poor households - cash grants to households with
pregnant women or children
Mexican enhance the opportunities of social and economic
Oportunidades development through the improvement of their education,
health and nutrition options
Ethiopian PSNP
* Footnote fight food insecurity to reduce household s’
Source: Source vulnerability 16

17. Social Participation for Social Development
Unit of measure
The Role of Participation
Participation: ‘There is no social development without social participation’
oFull access to development policy processes
Design
Implementation
Monitoring
Evaluation
oMain barriers to participation
Bureaucracy jungle
Institutional racism and discrimination
Relations with external planners
Lack of access to basic services
* Footnote
Source: Source 17

18. Social Participation for Social Development
Unit of measure
The Productive Inclusion Framework
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 Inequality
o Tackling Gender Inequality
o Enabling Productive Employment – via policies to foster productive
inclusion
* Footnote
Source: Source 18

19. Social Participation for Social Development
Unit of measure
The Productive Inclusion Framework: The Global Scenario
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.
* Footnote
Source: Source 19

20. Unit of measure
Thanks!
francisco.filho@ipc-undp.org
+ 55 61 2105 5000
www.ipc-undp.org
Photos: Humanizing Development
Global Photography Campaign,
IPC-IG
* Footnote
Source: Source 20