The Inclusive Growth (IG) initiative was launched in 2012 in the midst of the crisis, in a context of high joblessness and growing inequalities. Preliminary work to develop an OECD approach to inclusive growth was launched in response to the Ministerial mandate for New Approaches to Economic Challenges (NAEC) initiative to “develop a strategic policy agenda for Inclusive Growth” and was built on in-house expertise on well-being, inequalities, and pro-growth structural policies.
This initial two-year effort produced a multidimensional approach to Inclusive Growth and provided a Policy Framework to assess, promote and monitor inclusive growth. The report “OECD Framework for Inclusive Growth”, delivered at the MCM 2014, advanced the notion of a measure of multidimensional living standards (MDLS) which accounts for income and non-income related outcomes (presently employment and health) that matter for people’s well-being. By emphasising the importance of distribution of multidimensional outcomes across the population at large, the Framework allows policy makers to better understand the main policy trade-offs and see how particular policies affect specific groups. It also provides guidance on how to better design and target policies. This allows policy makers to identify, analyse and exploit synergies among mutually-reinforcing policy levels, and to take compensatory actions when trade-offs are identified.
The Inclusive Growth Initiative also delivered a flagship publication “All on Board: Making Inclusive Growth Happen”, which offers a description of trends in income and non-income outcomes and introduces the IG Policy Framework. The report discusses win-win policies to deliver stronger growth and greater inclusiveness in areas such as macroeconomic policies, labour market policies, education and skills, competition and product market regulation, innovation and entrepreneurship, financial markets, infrastructure and public services, and development and urban policies. It also includes a discussion of inclusive institutions and the underlying governance requirements for the design and implementation of IG policies.