Presentation on theme: "November 2, 2006 1 Discussion Framework: Inclusionary Growth" Robert Weissbourd, RW Ventures, LLC | November 2, 2006 INTO THE ECONOMIC MAINSTREAM."— Presentation transcript:
November 2, Discussion Framework: Inclusionary Growth" Robert Weissbourd, RW Ventures, LLC | November 2, 2006 INTO THE ECONOMIC MAINSTREAM
November 2, Were at a point where left and right are converging … its great that you are doing this. Ive been trying to do this, but I cant bring together thinkers on these issues, as the conservatives complain and the liberals wont talk to me. - Conservative Policy Leader The Process
November 2, How Divided are We? Closely and Deeply Divided Republican Democrat Closely but not Deeply Divided Republican Democrat Source: Morris Fiorina, Culture War? Public Impressions: Likely Reality: At least on political issues, the general public shares much more in common than current rhetoric would imply.
November 2, Searching for Common Ground Market Based Development Free Markets Ownership Society Asset Development Empowerment Inclusiveness Community Devolution Business Investment Individual
November 2, Common Goals: Inclusive Economic Growth ProductivityInclusiveness Asset Development I N C L U S I O N A R Y G R O W T H Constructive Government Ownership Society Asset-Based Development Economics & Markets
November 2, Elements of Inclusionary Economic Growth Developing AssetsExpanding Inclusiveness Increasing Productivity Long term economic growth occurs through enhancing productivity of individuals, businesses and institutions (including government) Invest in technology, R & D, human capital, knowledge factors that lead to innovation Reincorporating wasted market-ready assets – such as underdeveloped land, underemployed labor or underserved markets – into the economy can increase efficiency and productivity This growth is not just good, but good for business – no trade-off between equity and growth Getting assets market-ready also makes economic sense Also necessary for strong society: healthy economy and democracy linked
November 2, Inclusionary Economic Growth is about Markets We need to find market based solutions or policies that stimulate market corrections, such as creating competition for payday lenders. – Moderate Policy Analyst We need to create a market culture that is currently missing in some communities and constituencies … – CDFI Leader
November 2, Common Means: Markets Exchange ProductionConsumption Market Environment Internal Market Operations Markets are how wealth is created and economic growth occurs Markets determine which assets are included Other Exogenous Influences: Infrastructure Resources Technology Tastes Institutional Context: Enabling Laws Prescriptive Regulation Entry Barriers Transaction Costs Finding Costs Measurement Costs Productivity Costs Income Taste
November 2, Aligning Markets and Development Low Alignment High Alignment Market Intervention Market solution possible if market operations and environment changed through public policy and advocacy Market Redefining Market solution possible if market operations and market environment changed through private activities Market Refining Market solution possible with new information, products or networks Pure Market Market solution possible; market already generates development outcomes Non-Market No market solution; market is not the appropriate channel Adapted from Kahane-Weiser- Weissbourd/Ford CII Market Interests DevelopmentGoals
November 2, Aligning Markets and Development Low Alignment High Alignment Market Intervention Market solution possible if market operations and environment changed through public policy and advocacy Market Redefining Market solution possible if market operations and market environment changed through private activities Market Refining Market solution possible with new information, products or networks Pure Market Market solution possible; market already generates ED outcomes Non-Market No market solution; market is not the appropriate channel Market Interests ED Goals Adapted from Kahane-Weiser- Weissbourd/Ford CII Make Market Work (Addressing Internal Imperfections) Change Market Parameters (Using Market Mechanisms) Change Market Parameters (Using Non- market Mechanisms) Vital Work – but not market based! Market Works: Company profits while providing Development impact.
November 2, If we care about markets, whats the role of government? The governments role is to reduce or eliminate market imperfections, and shine a light on areas of need. – Republican Policy Leader Structure incentives to bring people back into the labor market, to motivate people to join the mainstream, such as by lowering the payroll tax or expanding EITC. – Conservative Think Tank
November 2, Implications for Government Roles Degree to which market and asset development goals are already aligned Getting Assets Market Ready Moving assets to market (developing assets in ways which yield growth) Non-market objectives (but market awareness) IDAs; Brownfield Remediation; Education and training Using Moving markets on their margins Positive externalities; more efficient approach to non- market goals (equity, public welfare) Empowerment Zones; New Markets Tax Credit (NMTC); CRA (in part) Improving Fixing markets Externalities, information imperfections, entry barriers Regulating pollution; education Enabling Create optimal infrastructure for market to perform; increase productivity Role Public goods; market preconditions Market Rationales Property rights; law enforcement; transportation infrastructure Examples What is the proper role and best means for government to enhance market operations towards inclusionary economic growth?
November 2, Implications and Issues Aligning Inclusion with Growth Customizing to Particular Markets Expanding Individual Choice: Vouchers + ? Directly Investing in Productivity Development as Freedom Capacity and Responsibility
Discussion Robert Weissbourd, RW Ventures, LLC | November 2, 2006