Inequalities that disempower and exclude the poor persist across developing and developed countries. Youth unemployment is skyrocketing worldwide, which undercuts economic and social development and creates disillusionment, disenfranchisement, and social and political unrest. Moreover, inequality fuelled the Arab Spring, which indicates that economic growth without jobs and social cohesion can be politically explosive.
The World Bank, the International Monetary Fund (IMF) and the International Financial Corporation (IFI) all agree that rapid growth is key to reducing poverty, but for the growth to be sustainable, it should be increasingly broad-based across sectors, and inclusive of the majority of a country’s labour force. The main instrument for sustainable and inclusive growth is productive employment and self-employment.
Middle-income countries such as China, India, Indonesia, Nigeria and Pakistan are home to over 60 % of the world’s poor, yet they have do not have a growth problem; they have an inequality problem.
EU development policy should promote a ‘green economy’ that generates growth, creates jobs and helps reduce poverty by investing in natural capital through supporting market opportunities for cleaner technologies, energy and resource efficiency, as well as low-carbon development. At the same time, this could spur innovation, the use of ICT, and a reduction in the unsustainable use of natural resources. Development policy should also contribute to improving the resilience of developing countries and to combating climate change.
To meet these objectives, the ‘Agenda for Change’ recommends that the EU should focus its support for inclusive and sustainable growth on:
- Sectors that build the foundations for growth and help ensure that it is inclusive – notably social protection, health, and education;
- Enabling vectors for inclusive and sustainable growth – notably a stronger business environment and regional integration; and
- Sectors with a strong multiplier impact on developing countries’ economies and that contribute to environmental protection, climate change prevention, and adaptation.
European Development Days 2012
Participants at European Development Days 2012 – Europe’s premier forum on international affairs and development cooperation – are meeting at a critical crossroads. This is a unique opportunity for a wide range of stakeholders from around the world to take stock, debate and make recommendations. Six panels will tackle the issue of how to empower people for inclusive growth:
- Building a Social Contract for Health
- The Perspective of the Working Poor in the Informal Economy
- Placing Social Protection at the Heart of the Development Agenda
- Confronting Inequality
- Responding to Youth Unemployment
- Making Finance Work for Inclusive Development
European Development Days will also feature several special addresses and project lab presentations where participants can share best practices.
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