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INCLUSIVE GROWTH
Renewal and rebuilding: Achieving a more inclusive and sustainable recovery
From a growing digital divide to vaccine equity, we highlight the economic and societal challenges that defined 2021 and point toward insights and resources from our partner network that can help advance shared prosperity around the world.
December 21, 2021
In the US, a two-track recovery exacerbates the jobs divide
The economic rebound in the wake of the pandemic has been a tale of two recoveries. In the U.S., low-wage earners, especially Black and Hispanic workers, have been hit hardest by pandemic-related job losses. Now, they’re thelast to recover. Millions have not returned to work, some because of COVID-19 fears, others because they cannot find child care. Still others want to retrain for a better job. On the higher end of the wage scale, jobs go begging for qualified candidates. All this points to a need to invest in job training and mapping career pathways.
The auto industry is supporting local trade schools, like Long Beach City College (pictured above) to help fill a labor shortage of mechanics and automotive technicians. (Photo credit: Brittany Murray/MediaNews Group/Long Beach Press-Telegram via Getty Images)
The auto industry is supporting local trade schools, like Long Beach City College (pictured above) to help fill a labor shortage of mechanics and automotive technicians. (Photo credit: Brittany Murray/MediaNews Group/Long Beach Press-Telegram via Getty Images)
In response, the Center for Inclusive Growth and our partners have accelerated development of a suite of tools that support action to address wealth and opportunity gaps. Withbillions of federal dollars flowing to cities and states to “build back better,” local and regional leaders have an opportunity to target investments for more effective and equitable outcomes. From broadband access to workforce development, policymakers will need the right tools and data to inform decisions.
In response, the Center for Inclusive Growth and our partners have accelerated development of a suite of tools that support action to address wealth and opportunity gaps. Withbillions of federal dollars flowing to cities and states to “build back better,” local and regional leaders have an opportunity to target investments for more effective and equitable outcomes. From broadband access to workforce development, policymakers will need the right tools and data to inform decisions.
Four tools that can help:
Bridge the digital divide in your state. Thisinteractive tool and a set of policy recommendations from IDEA 2030 at Tufts University can help federal, state and local policymakers address different facets of the digital divide.
Find and hire diverse tech talent. The rise of remote work shifted the geography of tech talent in the U.S. This IDEA 2030 analysis helps companies see where diverse STEM talent pools exist across 60 U.S. metro areas.
Support career advancement. New research from the Brookings Workforce of the Future initiativeon occupational transitions identifies pathways for low-wage worker job mobility.
Build a case for inclusive economic development. The Inclusive Growth Score offers a clear, simple view of social and economic indicators at the neighborhood level, enabling planners and investors to uncover and prioritize opportunities for investment.
Four tools that can help:
Bridge the digital divide in your state. Thisinteractive tool and a set of policy recommendations from IDEA 2030 at Tufts University can help federal, state and local policymakers address different facets of the digital divide.
Find and hire diverse tech talent. The rise of remote work shifted the geography of tech talent in the U.S. This IDEA 2030 analysis helps companies see where diverse STEM talent pools exist across 60 U.S. metro areas.
Support career advancement. New research from the Brookings Workforce of the Future initiativeon occupational transitions identifies pathways for low-wage worker job mobility.
Build a case for inclusive economic development. The Inclusive Growth Score offers a clear, simple view of social and economic indicators at the neighborhood level, enabling planners and investors to uncover and prioritize opportunities for investment.
“Every good-paying job going forward is digital, is data, is tech—and everybody deserves to participate. That means having broadband.”
Gina Raimondo
US Secretary of Commerce
“Every good-paying job going forward is digital, is data, is tech—and everybody deserves to participate. That means having broadband.”
Gina Raimondo
US Secretary of Commerce
The pandemic puts reaching the last mile to the test in developing economies
COVID-19 struck a blow to the world’s progressin fighting poverty—with a handful of countries feeling the most severe impacts. Restoring global progress toward ending poverty will increasingly depend on more precise targeting of aid in combination with better mobilization of resources. As some of the Center’s grantees have shown, investments in digital infrastructure and data science can help ensure aid reaches those that need it most.
The pandemic puts reaching the last mile to the test in developing economies
COVID-19 struck a blow to the world’s progressin fighting poverty—with a handful of countries feeling the most severe impacts. Restoring global progress toward ending poverty will increasingly depend on more precise targeting of aid in combination with better mobilization of resources. As some of the Center’s grantees have shown, investments in digital infrastructure and data science can help ensure aid reaches those that need it most.
Healthcare workers cross a river as they transport COVID-19 vaccines to rural villages in the Philippines. The country launched a three-day national vaccination holiday on November 29 with the goal of vaccinating at least nine million additional people. (Photo credit: Ezra Acayan/Getty Images)
Healthcare workers cross a river as they transport COVID-19 vaccines to rural villages in the Philippines. The country launched a three-day national vaccination holiday on November 29 with the goal of vaccinating at least nine million additional people. (Photo credit: Ezra Acayan/Getty Images)
Unsurprisingly, affordable and equitable access to COVID-19 vaccines remains a top priority. Limited vaccine supplies, uneven access to healthcare systems, the absence of formal identification and the costs of delivering aid to remote regions are justa few of the challenges to overcome.
Unsurprisingly, affordable and equitable access to COVID-19 vaccines remains a top priority. Limited vaccine supplies, uneven access to healthcare systems, the absence of formal identification and the costs of delivering aid to remote regions are justa few of the challenges to overcome.
Three resources to reach the last mile:
Target aid with the help of data science. In Togo,GiveDirectly and the Center for Effective Global Action (CEGA) used satellite imagery, cellphone data and machine learning to accelerate targeted pandemic aid to the most vulnerable residents. This is a model other countries can adopt to rapidly expand the safety net for those frequently underserved in times of crisis.
Learn what works for reaching the “hard-to-reach.” Rural Tanzania is getting vital medicine thanks to improved geocoding that makes delivery routes more efficient. This is just one of more than 30case studies from the University of Toronto’s Reach Alliance at the Munk School that demonstrate effective strategies for reaching excluded populations.
Support vaccine equity. Gavi, the Vaccine Alliance is spearheading global efforts to accelerate equitable access to COVID-19 tests, treatments and vaccines regardless of income.
Three resources to reach the last mile:
Target aid with the help of data science. In Togo,GiveDirectly and the Center for Effective Global Action (CEGA) used satellite imagery, cellphone data and machine learning to accelerate targeted pandemic aid to the most vulnerable residents. This is a model other countries can adopt to rapidly expand the safety net for those frequently underserved in times of crisis.
Learn what works for reaching the “hard-to-reach.” Rural Tanzania is getting vital medicine thanks to improved geocoding that makes delivery routes more efficient. This is just one of more than 30case studies from the University of Toronto’s Reach Alliance at the Munk School that demonstrate effective strategies for reaching excluded populations.
Support vaccine equity. Gavi, the Vaccine Alliance is spearheading global efforts to accelerate equitable access to COVID-19 tests, treatments and vaccines regardless of income.
“Vaccine policy is economic policy, and vaccine policy is trade policy. Those who have access to vaccines are doing well. The countries that don't are not doing well. That's the inequity that we have to solve globally.”
Ngozi Okonjo-Iweala
Director General, World Trade Organization
“Vaccine policy is economic policy, and vaccine policy is trade policy. Those who have access to vaccines are doing well. The countries that don't are not doing well. That's the inequity that we have to solve globally.”
Ngozi Okonjo-Iweala
Director General, World Trade Organization
The shift to digital for small businesses can expand opportunities
Globally, lockdowns drove digital transformation for companies large and small as consumers clicked to buy, bank and eat. While many businesses shifted to online sales, the smallest businesses struggled to pivot towards digitalization. Many restaurants in New York City’s Chinatown, for example, were slow to switch to digital,impeding sales, our analysis found.
The shift to digital for small businesses can expand opportunities
Globally, lockdowns drove digital transformation for companies large and small as consumers clicked to buy, bank and eat. While many businesses shifted to online sales, the smallest businesses struggled to pivot towards digitalization. Many restaurants in New York City’s Chinatown, for example, were slow to switch to digital,impeding sales, our analysis found.
A young entrepreneur in Cameroon presents his products at a fair featuring businesses who have benefited from the government‘s "Triennial Youth Plan" 2016. The plan aims to support 1.5 million young people entering the fields of agriculture, industry, handicraft, digital economy and innovation. (Photo by Kepseu/Xinhua via Getty Images)
A young entrepreneur in Cameroon presents his products at a fair featuring businesses who have benefited from the government‘s "Triennial Youth Plan" 2016. The plan aims to support 1.5 million young people entering the fields of agriculture, industry, handicraft, digital economy and innovation. (Photo by Kepseu/Xinhua via Getty Images)
The Center is working with our grantees to ensure micro and small businesses can more fully benefit from digitalization. The challenges go beyond access and connectivity and include lagging digital skills, lack of confidence and the costs of cybersecurity, according to a recent ILO report.
The Center is working with our grantees to ensure micro and small businesses can more fully benefit from digitalization. The challenges go beyond access and connectivity and include lagging digital skills, lack of confidence and the costs of cybersecurity, according to a recent ILO report.
Three ways to enable the shift to digital:
Collaborate to empower small businesses. Strive Community is connecting digital platforms, super apps and fintechs with nonprofit and development-focused organizations to help small businesses bring digital technologies into their operations. Innovative public-private partnerships like the $100 million credit facility recently launched in India by HDFC Bank, Mastercard and the U.S. International Development Finance Corporation can help women-run and other underserved small businesses access the capital they need to make the shift to digital.
Lay the foundation for inclusive digital marketplaces. A new set of principles from the World Economic Forum’sEdison Alliance offers foundational guidance for building high-quality, safe and efficient financial services infrastructure that powers an inclusive digital economy.
Use behavioral science to improve financial resilience. Common Cents Lab is testing new data-driven behavioral science to improve the financial well-being of gig platform workers and entrepreneurs in Latin America. Insights from the program will inform how tech platforms can integrate interventions that motivate positive financial behaviors and improve savings rates.
Three ways to enable the shift to digital:
Collaborate to empower small businesses. Strive Community is connecting digital platforms, super apps and fintechs with nonprofit and development-focused organizations to help small businesses bring digital technologies into their operations. Innovative public-private partnerships like the $100 million credit facility recently launched in India by HDFC Bank, Mastercard and the U.S. International Development Finance Corporation can help women-run and other underserved small businesses access the capital they need to make the shift to digital.
Lay the foundation for inclusive digital marketplaces. A new set of principles from the World Economic Forum’sEdison Alliance offers foundational guidance for building high-quality, safe and efficient financial services infrastructure that powers an inclusive digital economy.
Use behavioral science to improve financial resilience. Common Cents Lab is testing new data-driven behavioral science to improve the financial well-being of gig platform workers and entrepreneurs in Latin America. Insights from the program will inform how tech platforms can integrate interventions that motivate positive financial behaviors and improve savings rates.
“What small business owners need right now are partners who will listen to them and develop innovative solutions that will help them grow in the wake of the pandemic. It comes down to an investment in making their success our success.”
Michael Miebach
CEO, Mastercard
“What small business owners need right now are partners who will listen to them and develop innovative solutions that will help them grow in the wake of the pandemic. It comes down to an investment in making their success our success.”
Michael Miebach
CEO, Mastercard
An inclusive financial system is critical infrastructure
The pandemic underscored the importance of inclusive financial service providers in meeting the financial needs of low- and moderate-income communities.
An inclusive financial system is critical infrastructure
The pandemic underscored the importance of inclusive financial service providers in meeting the financial needs of low- and moderate-income communities.
The pandemic spurred the growth of tech start-ups like "El-Gam’eya" in Egypt (pictured above) which are reaching unbanked populations by digitizing traditional, informal systems of money-pooling for saving and borrowing. (Photo credit: KHALED DESOUKI/AFP via Getty Images)
The pandemic spurred the growth of tech start-ups like "El-Gam’eya" in Egypt (pictured above) which are reaching unbanked populations by digitizing traditional, informal systems of money-pooling for saving and borrowing. (Photo credit: KHALED DESOUKI/AFP via Getty Images)
In developing countries, microfinance institutions’ (MFIs’) quick pivot to new forms of support during COVID-19 saved thousands of microbusinesses and positioned MFIs to be even more effective going forward. In the U.S., corporate donors and impact investors made commitments to support community development financial institutions (CDFIs) to help businesses owned by people of color survive and thrive.
However, MFIs, CDFIs and other inclusive financial service providers often face a variety of operational hurdles in scaling financial services. The Center’s grantees are generating new insights, frameworks and best practices to drive collective action that meets the needs of underserved segments, including women and people of color.
In developing countries, microfinance institutions’ (MFIs’) quick pivot to new forms of support during COVID-19 saved thousands of microbusinesses and positioned MFIs to be even more effective going forward. In the U.S., corporate donors and impact investors made commitments to support community development financial institutions (CDFIs) to help businesses owned by people of color survive and thrive.
However, MFIs, CDFIs and other inclusive financial service providers often face a variety of operational hurdles in scaling financial services. The Center’s grantees are generating new insights, frameworks and best practices to drive collective action that meets the needs of underserved segments, including women and people of color.
Three resources to build an inclusive financial system:
Advance a national financial inclusion strategy. Anational financial inclusion strategy can bring stakeholders together to ensure that everyone can effectively use the financial system to their benefit. ThisAspen Institute paper can help policymakers develop a roadmap for action, based on lessons learned from other countries.
Look to best practices for digital transformation. Accion’sdigital transformation guide captures best practices from inclusive financial service providers working to better serve small businesses and families with digital financial services.
Scale lending to entrepreneurs of color. This brief from Aspen’s Business Ownership Initiative details the challenges CDFIs face in scaling the supply of affordable, responsible microloans for small business owners.
Three resources to build an inclusive financial system:
Advance a national financial inclusion strategy. Anational financial inclusion strategy can bring stakeholders together to ensure that everyone can effectively use the financial system to their benefit. ThisAspen Institute paper can help policymakers develop a roadmap for action, based on lessons learned from other countries.
Look to best practices for digital transformation. Accion’sdigital transformation guide captures best practices from inclusive financial service providers working to better serve small businesses and families with digital financial services.
Scale lending to entrepreneurs of color. This brief from Aspen’s Business Ownership Initiative details the challenges CDFIs face in scaling the supply of affordable, responsible microloans for small business owners.
“The first step to achieving financial inclusion in the United States is access to basic financial services, but it can't stop there. We have to ensure all Americans can reap the benefits of these services, as well.”
Chris Coons
U.S. Senator (DE)
“The first step to achieving financial inclusion in the United States is access to basic financial services, but it can't stop there. We have to ensure all Americans can reap the benefits of these services, as well.”
Chris Coons
U.S. Senator (DE)
The challenges facing people, planet and prosperity are increasingly interconnected
The need to create growth that is both inclusive and sustainable has never been greater, as we highlighted at the 2021 Global Inclusive Growth Summit.
Climate change is estimated to push100 million people into poverty in just nine years, according to the World Bank, and could cost the global economy $23 trillion by 2050, according to Swiss Re. The November 2021 United Nations Climate Change Conference, COP26, put the climate crisis at the top of the public agenda. World leaders struck many important agreements, including a pledge to end deforestation by 2030. However, these promises must turn into action to move the needle forward.
The challenges facing people, planet and prosperity are increasingly interconnected
The need to create growth that is both inclusive and sustainable has never been greater, as we highlighted at the 2021 Global Inclusive Growth Summit.
Climate change is estimated to push100 million people into poverty in just nine years, according to the World Bank, and could cost the global economy $23 trillion by 2050, according to Swiss Re. The November 2021 United Nations Climate Change Conference, COP26, put the climate crisis at the top of the public agenda. World leaders struck many important agreements, including a pledge to end deforestation by 2030. However, these promises must turn into action to move the needle forward.
In Turkey, COVID-19 and extreme drought conditions, exacerbated by climate change, hurt the annual harvest of roses (pictured above), with production down approximately 30 percent. While local shops have seen a decline in demand, many producers of rose-related products saw an increase in online sales during the pandemic. (Photo credit by Chris McGrath/Getty Images)
In Turkey, COVID-19 and extreme drought conditions, exacerbated by climate change, hurt the annual harvest of roses (pictured above), with production down approximately 30 percent. While local shops have seen a decline in demand, many producers of rose-related products saw an increase in online sales during the pandemic. (Photo credit by Chris McGrath/Getty Images)
Increasingly, consumers are driving change by shifting their choices of products and services. In a recent survey, 85 percent of respondents said they were willing to take personal action to combat environmental and sustainability challenges in 2021. In response, more companies are beginning to embrace consumer-conscious business models.
Increasingly, consumers are driving change by shifting their choices of products and services. In a recent survey, 85 percent of respondents said they were willing to take personal action to combat environmental and sustainability challenges in 2021. In response, more companies are beginning to embrace consumer-conscious business models.
Empower consumers to make sustainable choices. Mastercard’s newGlobal Sustainability Innovation Lab, and its partnership with Swedish fintech Doconomy to launch a Carbon Calculator, are helping consumers better understand the environmental impact of their purchases.
Cut carbon emissions. As more companies strive for net-zero, the importance of managing emissions across the value chain will grow exponentially.
Adopt a regenerative mindset. Sustainability leaders increasingly recognize the interdependence of ecosystems and are adopting regenerative business modelsthat worktofundamentally repair, renew and heal systems on which we all depend.
Finance a sustainable future. Sustainability bonds are on course to top $1 trillion this year. Proceeds from Mastercard’s $600 million sustainability bond, the company’s first, will support efforts to cut carbon emissions, help customers make smart environmental choices and foster inclusive growth. In addition, the growing interest in green inclusive finance reveals an opportunity to connect financial inclusion with the need to help vulnerable communities prepare for and withstand climate change.
Four actions to advance sustainable business:
Empower consumers to make sustainable choices. Mastercard’s newGlobal Sustainability Innovation Lab, and its partnership with Swedish fintech Doconomy to launch a Carbon Calculator, are helping consumers better understand the environmental impact of their purchases.
Cut carbon emissions. As more companies strive for net-zero, the importance of managing emissions across the value chain will grow exponentially.
Adopt a regenerative mindset. Sustainability leaders increasingly recognize the interdependence of ecosystems and are adopting regenerative business modelsthat worktofundamentally repair, renew and heal systems on which we all depend.
Finance a sustainable future. Sustainability bonds are on course to top $1 trillion this year. Proceeds from Mastercard’s $600 million sustainability bond, the company’s first, will support efforts to cut carbon emissions, help customers make smart environmental choices and foster inclusive growth. In addition, the growing interest in green inclusive finance reveals an opportunity to connect financial inclusion with the need to help vulnerable communities prepare for and withstand climate change.
“We've got to see sustainable business as a pathway to better profitability.”
Alan Jope
CEO, Unilever
“We've got to see sustainable business as a pathway to better profitability.”
Alan Jope
CEO, Unilever
These tools and insights are just a start in ensuring an equitable recovery and healthier new year. 2022 will no doubt bring both new challenges along with new innovations and advances.
The Center for Inclusive Growth will continue to advance new insights, tools and workable solutions to advance inclusive digital economies, financial security, small business resilience and environmental sustainability.
In the meantime, we encourage you to delve into our Built for All framework, which offers broad actions leaders can take toward building more inclusive economies, and visit our new insights library to access the latest research from our partners and grantees on these topics and more.
These tools and insights are just a start in ensuring an equitable recovery and healthier new year. 2022 will no doubt bring both new challenges along with new innovations and advances.
The Center for Inclusive Growth will continue to advance new insights, tools and workable solutions to advance inclusive digital economies, financial security, small business resilience and environmental sustainability.
In the meantime, we encourage you to delve into our Built for All framework, which offers broad actions leaders can take toward building more inclusive economies, and visit our new insights library to access the latest research from our partners and grantees on these topics and more.