Inclusive growth is economic growth that is distributed equitably across society. We work to identify bespoke inclusive growth pathways tailored to specific investment in places, including through planning, design and investment facilitation. We develop new models to engage a wider set of economic actors in local places, and link to changes in macroeconomic aggregates including factors of gross domestic product (GDP) and total factor productivity.
The definition implies direct links between the macroeconomic and microeconomic determinants of the economy and economic growth. We have evaluated a wide range of economic growth approaches, and incorporated findings from inclusive growth case studies and research, including from the OECD. From this we have determined six key aspects of inclusive growth that need to be addressed at the investment and operational decision making levels, and have developed methods to apply each:
Recognise non-financial measures
Taking a multi-disciplined approach to program design, monitoring and evaluation can enable companies and investors to differentiate social performance approaches, understand community impact, value social licence, and price this into cost of capital. Looking beyond GDP as a measure of national prosperity enables governments to identify and measure what really counts for economic and social performance, unlock the benefits of a profit model in the social sector, and work more productively in partnerships with private sector actors toward shared and aligned objectives.
Enable multi-party transactions
Activating the role of Government as an empowering convenor has been shown to increase trust between government, investors and communities which improves investment efficiency and enables stronger non-financial outcomes from deals. Involving qualified intermediaries in transactions can bring together and align a wider group of stakeholders in infrastructure and capital asset projects catalysing new social and environmental investment opportunities. Incorporating aspects of outcomes-based funding into transactions and involving multiple parties in deals can enable innovation, in particularly in areas of social and environmental performance.
Drive social impact in land-use and capital
Cities represent the growth engines of modern economies however can foster structural inequalities. With key workforce priced out of established urban areas, State and local governments alike need investment attraction and land use policy settings that enable inclusive growth of places. Social impact in land use planning can be achieved through an approach that reduces power imbalances in planning and investment decisions at local levels. Intermediaries working across governments, the private sector and investors have the ability to improve equality in cities by designing and leading transactions that improve access to services, public transport, affordable housing and support effective policy development around land use and investment attraction.
Invest in jobs, skills and places
Place-based approaches to program design, service delivery and investment has been demonstrated to improve environmental, social, and economic vitality. The approach is bottom-up and leverages the available resources, skills and capacity of a place in the development of solutions to local and broader demand. Scaling-up a place-based approach and incorporating with State and Federal level government objectives, as well as working with supply chains that transcend local areas and national boundaries, can activate and scale inclusive economic growth. Incorporating a broader ecosystem, supply chain and value chain lens on workforce planning and investment in skills can deliver meaningful jobs at local levels.
Unleash the power of youth and women
Developing individualised pathways into an inclusive economy while incorporating demographic shifts and migration into economic growth planning and investment strategy can unlock the economic growth potential in places and regions, enhance solidarity, and build greater cohesion in society. Inclusive growth can be enhanced through engaging the untapped potential of youth and women in the economy through improvements in diversity and inclusion metrics across workplaces and increased women in leadership. Supply-chains offer the potential for greater diverse and inclusive market access, while removing barriers to cash flow and capital equipment finance can deliver a stake for all in economic growth and improve the social performance of industry.
Use technology as an enabler
Technology is a powerful enabler and a proactive approach is required to identify and leverage the application of technology in all aspects of place-based approaches, measurement, transaction support, land-use planning, investment in skills, and workforce engagement of marginalized groups. To drive inclusive growth outcomes, a means is required for the diversity of ideas and potential innovation that can emerge from communities to be incorporated into supply chains, be embraced across capital works, be involved in government and planning decision making, and be visible to industry and investors.