© rw ventures, llc 2014 inclusive regional economic growth ceos for cities national meeting...
TRANSCRIPT
© RW Ventures, LLC 2014© RW Ventures, LLC 2014
Inclusive Regional Economic Growth
CEOs for Cities National Meeting
Nashville, TNNovember 5, 2014
Robert Weissbourd
© RW Ventures, LLC 2014
Agenda
I. Scope -- Economics
II. The Inclusive Growth Paradox
III.What is “Inclusive Growth”?
IV. Implications for Practice
V. Examples
2
© RW Ventures, LLC 2014
Scope – Systems Influencing Inclusive Growth
3
Why Care Causes of Exclusion Fixes
Values
Governance
Prosperity
Social
Political
Economic
Erosion
Corruption of Political SystemReturns to Capital
Moral Imperative
Political Economy
Inclusive Economic Growth
© RW Ventures, LLC 2014
The Inclusive Growth Paradox
-.2
0.2
.4.6
Wag
e G
row
th (
199
0-2
000
)
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
Changes in Share of Total Household Income, 1979 - 2007
1979 2007
Sources: Federal Reserve Bank of St. Louis; Congressional Budget Office; RW Ventures Analysis
INCLUSION is a
BUSINESS IMPERATIVE
Nonfinancial Corporations Sector
Labor Share
140
120
100
80
60
40
20
0194
0195
0196
0197
0198
0199
0200
0201
0202
0
2013 research.stlouisfed.org
Index 2005=100
Profits
© RW Ventures, LLC 2014
What is Inclusive Growth? To
tal W
ealth
Distribution of Wealth
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© RW Ventures, LLC 2014
What is Growth?To
tal W
ealth
Distribution of Wealth
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© RW Ventures, LLC 2014
What is Growth?
Distribution of Wealth
Tota
l Wea
lth
Change in Height (Accumulation)
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What is Equity?To
tal W
ealth
Distribution of Wealth
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© RW Ventures, LLC 2014
What is Equity?To
tal W
ealth
Change in Slope of Line (Distribution)
Distribution of Wealth
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© RW Ventures, LLC 2014
What is Inclusive Growth? To
tal W
ealth
Distribution of Wealth
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© RW Ventures, LLC 2014
What is Inclusive Growth?To
tal W
ealth
Change in Accumulation and Distribution
How can we enable this growth….…with a more equitable
distribution?
Distribution of Wealth
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Our Challenge – Aligning Growth and Equity
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© RW Ventures, LLC 2014
Our Challenge – Aligning Growth and Equity
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© RW Ventures, LLC 2014
Our Challenge – Aligning Growth and Equity
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© RW Ventures, LLC 2014
Our Challenge – Aligning Growth and Equity
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© RW Ventures, LLC 2014
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Inclusive Regional Economic Growth (IREG): Implications for Practice
“It’s the Economy, ….” Focus on opportunities for value creation: specific assets, markets and growth drivers
“Skate to Where the Puck is Going to Be.” It’s the next economy. Stop putting poor people in old economy jobs and businesses!
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
© RW Ventures, LLC 2014
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 …
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
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© RW Ventures, LLC 2014
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
… Create Huge Opportunities for Inclusion
Inclusive Clusters: Chicago FOOD
Doer-Maker Space: Blue1647
Neighborhood/Sub-Regional Business Planning: Greater Chatham Initiative
Industrial land reuse:Casey-Atlanta
Targeted inclusive training for emerging industries: YearUp
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© RW Ventures, LLC 2014© RW Ventures, LLC 2014
Inclusive Regional Economic Growth
CEOs for Cities National Meeting
Nashville, TNNovember 5, 2014
Robert Weissbourd