inclusive regional economic growth

© RW Ventures, LLC 2014© RW Ventures, LLC 2014

Inclusive Regional Economic Growth

CEOs for Cities National MeetingNashville, TN

November 5, 2014

Robert Weissbourd

© RW Ventures, LLC 2014

Agenda

I. Scope -- EconomicsII. The Inclusive Growth ParadoxIII.What is “Inclusive Growth”? IV. Implications for Practice

V. Examples

2


Scope – Systems Influencing Inclusive Growth

3

Why Care Causes of Exclusion Fixes

Social

Political

Economic



3


Values

Governance

Prosperity

Social

Political

Economic



3


Values

Governance

Prosperity

Social

Political

Economic

Erosion

Corruption of Political SystemReturns to Capital



3


Values

Governance

Prosperity

Social

Political

Economic

Erosion

Corruption of Political SystemReturns to Capital

Moral Imperative

Political Economy

Inclusive Economic Growth


The Inclusive Growth ParadoxDrivers of growth exacerbate

inequity

0.05.0

10.015.020.025.030.035.040.0

Changes in Share of Total Household Income, 1979 - 2007

1979 2007

Nonfinancial Corporations Sector

Labor Share

14012010080604020

0194

0195

0196

0197

0198

0199

0200

0201

0202

0

2013 research.stlouisfed.org

Index 2005=100

Profits


The Inclusive Growth Paradox

-.20

.2.4

.6W

age

Gro

wth

(199

0-20

00)

0 .1 .2 .3 .4Poverty Rate (1990)

Inequity is bad for growth

Drivers of growth exacerbate inequity

0.05.0

10.015.020.025.030.035.040.0


1979 2007

Sources: Federal Reserve Bank of St. Louis; Congressional Budget Office; RW Ventures Analysis


Labor Share

14012010080604020

0194

0195

0196

0197

0198

0199

0200

0201

0202

0


Index 2005=100

Profits


The Inclusive Growth Paradox

-.20

.2.4

.6W

age

Gro

wth

(199

0-20

00)

0 .1 .2 .3 .4Poverty Rate (1990)

Inequity is bad for growth

Drivers of growth exacerbate inequity

0.05.0

10.015.020.025.030.035.040.0


1979 2007

Sources: Federal Reserve Bank of St. Louis; Congressional Budget Office; RW Ventures Analysis

INCLUSION is a

BUSINESS IMPERATIVE


Labor Share

14012010080604020

0194

0195

0196

0197

0198

0199

0200

0201

0202

0


Index 2005=100

Profits


What is Inclusive Growth? To

tal W

ealth

Distribution of Wealth

5


What is Growth?To

tal W

ealth


6


What is Growth?


Tota

l Wea

lth

Change in Height (Accumulation)

7


What is Equity?To

tal W

ealth


8


What is Equity?To

tal W

ealth

Change in Slope of Line (Distribution)


9


What is Inclusive Growth? To

tal W

ealth


10


What is Inclusive Growth?To

tal W

ealth

Change in Accumulation and Distribution


11


What is Inclusive Growth?To

tal W

ealth

Change in Accumulation and DistributionHow can we enable this growth….

…with a more equitable distribution?


11


Our Challenge – Aligning Growth and Equity

12



13



14



15


Inclusive Regional Economic Growth (IREG): Implications for Practice

“It’s the Economy, ….” Focus on opportunities for value creation: specific assets, markets and growth drivers

16




“Skate to Where the Puck is Going to Be.” It’s the next economy. Stop putting poor people in old economy jobs and businesses!

16





Inclusion is Not a Separate Economic Practice: it’s an intentional, integral part of every growth activity

16





Inclusion is Not a Separate Economic Practice: it’s an intentional, integral part of every growth activity

Operationalize as a Core Design Principle from the start of (not an afterthought or ancillary) and throughout (strategies, products, management …) each initiative and enterprise 16


Leverage Points

for Sustainable and Inclusive

Prosperity

DeployHuman CapitalAligned with

Job Pools

Increase Spatial

Efficiency

Create EffectivePublic & Civic

Culture & Institutions

EnhanceRegional

Concentrations/Clusters

DevelopInnovation-

EnablingInfrastructure

Market Levers Driving Next Economy Growth …

17


Leverage Points


Prosperity


Job Pools

Increase Spatial

Efficiency



EnhanceRegional


DevelopInnovation-


Market Levers Driving Next Economy Growth …

Functional clustering Shift towards SMEs More deliberate, open,

flexible, collaborative

Cluster restructuring new entrepreneurship and SME opportunities

Innovation Districts

Formal and informal economic networks

Cross Sector Initiatives

Transparency, openness

Move towards compact, well-connected urban form

Mobility and matching

Segmented, continuous, contextual training

Occupational-technology-firm pools

17


Leverage Points


Prosperity

… Create Huge Opportunities for Inclusion

18


Leverage Points


Prosperity

EnhanceRegional



Inclusive Clusters: Chicago FOOD

18


Leverage Points


Prosperity


Job Pools

EnhanceRegional




Targeted inclusive training for emerging industries: YearUp

18


Leverage Points


Prosperity


Job Pools

EnhanceRegional


DevelopInnovation-




Doer-Maker Space: Blue1647


18


Leverage Points


Prosperity


Job Pools



EnhanceRegional


DevelopInnovation-





Neighborhood/Sub-Regional Business Planning: Greater Chatham Initiative


18


Leverage Points


Prosperity


Job Pools

Increase Spatial

Efficiency



EnhanceRegional


DevelopInnovation-





Neighborhood/Sub-Regional Business Planning: Greater Chatham Initiative

Industrial land reuse:Casey-Atlanta


18

© RW Ventures, LLC 2014© RW Ventures, LLC 2014

Inclusive Regional Economic Growth

CEOs for Cities National MeetingNashville, TN

November 5, 2014

Robert Weissbourd

inclusive regional economic growth

Economy & Finance