The World Bank has cut its forecast for world economic growth in 2019 from 3% to 2.9%, citing rising trade tension, weakening manufacturing activity and growing financial stress in emerging-market countries. And while the world watches and waits for the potential fallout (some economists say a recession is inevitable for both the U.S. and China), impoverished countries remain the most vulnerable. Kristalina Georgieva, World Bank Chief Executive Officer, explains.
“… As economic and financial headwinds intensify for emerging and developing countries, the world’s progress in reducing extreme poverty could be jeopardized.”
“To keep the momentum,” Georgieva continues, “countries need to invest in people, foster inclusive growth, and build resilient societies.”
Georgieva’s comment speaks volumes; not only during times of economic uncertainty, but in everyday life as a well, as a means to grow socially and economically.
We Must Provide Opportunities for All
According to the Organisation for Economic Co-operation and Development (OECD), on average, 60% of young people in developing countries are unlikely to reach their careers goals. Even more shocking, if women could play the same role as men in their communities and labor markets, they would add $28 trillion USD to the global economy by 2025 (OECD).
The OECD has developed a “Framework for Policy Action on Inclusive Growth” to guide policy action that “brings everyone along” towards a more robust, confident future.
- Invest in people and places that have been left behind:
- Promote quality childcare and early education programs.
- Ensure access to quality health services, housing and infrastructure.
- Enable fair and efficient reallocation of labor, capital and natural resources across regions.
- Support business dynamism and inclusive labor markets:
- Boost productivity by fostering entrepreneurship and innovation at all levels.
- Achieve more inclusive labor markets by facilitating the reallocation of workers and capital, and ensuring the economic empowerment of women and other underrepresented people.
- Ensure that ongoing transformations in the world of work do not widen divides.
- Strengthen trade and investment through international co-operation on tax policy.
- Rebuild trust with efficient and responsive governments:
- Ensure citizens play a meaningful role in the design and evaluation of policies that concern them.
- Align policy packages across levels of government.
- Integrate equity aspects in policy design from the start.
If you’re ready to invest in people, foster inclusive growth, and build a resilient society, we have the tools to help make that happen. Contact us today.