NEWS

Slow growth and rising inequality have reached a tipping point in many of the world’s advanced economies. The World Economic Forum’s Inclusive Growth and Development Report 2017 lays out strategies for cutting the current vicious cycle of stagnation and polarization of income and opportunities. It aims to answer the question – how can this be turned into a virtuous cycle of greater social inclusion and stronger, more sustainable growth?

Image: Inclusive Development Index 2017/World Economic Forum

Breaking the vicious cycle

In other words, how can we increase not just GDP but the extent to which this top-line performance of a country cascades down to benefit society as a whole? The answer, according to the report, is placing people and living standards at the center of national and international economic policies.

Education, infrastructure, ethics, investment, entrepreneurship and social protection are just some of the factors playing into creating this new economic policy – and the mix will be different for each country.

The World Economic Forum’s Inclusive Development Index (IDI) ranks the world’s advanced and developing economies based on their performance against key performance indicators ranging from poverty, inequality to public debt and environmental factors.

Norway tops the IDI, with high and rising living standards, effective social protection and low inequality. There is a high degree of social mobility, low unemployment and a large share of women participate in the labor force, helped by sound parental leave policies and affordable childcare.