The Five Characteristics of an Inclusive Economy: Getting Beyond the Equity-Growth DichotomyIn a ... report by researchers Chris Benner and Manuel Pastor (authors of Growth, Equity and Community, 2015), ... identified an impressive list of 15 sub-categories and 57 indicators associated with each of these five characteristics (executive summary here). “Inclusive Economy Indicators: Framework & Indicator Recommendations” introduces each characteristic and how one might go about measuring them given the data that is generally available. The five characteristics of an inclusive economy are defined by the Foundation as the following [documented as values and goals in this StratML rendition]But while growth and equity are critical ingredients for a more inclusive economy, they direct us away from a more constructive and nuanced conversation about other elements of what makes an economy more inclusive, particularly for the poor and vulnerable. Important, too, is who participates in the economy—as workers, consumers, and business owners—whether growth is lasting and sustainable, whether people have an equal shot at economic opportunities, and if there’s some minimum level of security and predictability associated with those opportunities. These questions are particularly important in rapidly-changing demographic, social, environmental and economic environments (i.e. today).Emily Garr PacettiEGP_173b29b6-c4e7-11e8-b6f1-0b6633b7c682Emily Garr Pacetti is VP and Community Affairs Officer at the Federal Reserve Bank of Cleveland, and formerly an Associate Director at The Rockefeller Foundation. She was Director of Research and Evaluation at the Fund for Our Economic Future in Cleveland, Ohio, a philanthropic collaborative dedicated to making the Northeast Ohio region more economically competitive and inclusive. She also brings experience in regional labor market analyses gained at The Brookings Institution Metropolitan Policy Program and The Economic Policy Institute in Washington, D.C., where she tracked the geographic distribution of poverty, income and jobs in the great recession and slow-growth recovery. Her previous experience also includes serving as Research Fellow at the Federal Reserve Bank of Boston’s Working Cities Initiative and as a Fulbright Fellow in Mexico City. Ms. Pacetti received a master’s degree in public administration from Harvard Kennedy School of Government, a master’s degree in urban studies from El Colegio de Mexico, and a bachelor’s degree in political communications from Emerson College.The Rockefeller FoundationChris BennerCo-Author of Growth, Equity and Community -- Benner and Pastor continue to work with the Foundation to think about how one might measure each of these characteristics globally, at the national and sub-national level, and across various markets (e.g. financial, dairy, coffee, electricity). More important than metrics and measurement, however, we seek to fundamentally expand the conversation about what an inclusive economy is and how to achieve it. How are people’s lives changing because of the presence, or the lack thereof, of each of these characteristics? How do we know?Manuel PastorCo-Author of Growth, Equity and CommunityBrookings InstitutionThe characteristics were originally posted by the Brookings Institution Metropolitan Policy Program, in an experimental analysis of economic inclusion based on preliminary measures of inclusion, using U.S. metro areas as a test case.An inclusive economy [with] expanded opportunity for more broadly shared prosperity, especially for those facing the greatest barriers to advancing their well-being._173b2ae2-c4e7-11e8-b6f1-0b6633b7c682To define the five characteristics of an inclusive economy._173b2b78-c4e7-11e8-b6f1-0b6633b7c682ParticipationPeople are able to participate fully in economic life and have greater say over their future. People are able to access and participate in markets as workers, consumers and business owners. Transparency around and common knowledge of rules and norms allow people to start a business, find a job, or engage in markets. Technology is more widely distributed and promotes greater individual and community well-being.EquityMore opportunities are available to enable upward mobility for more people. All segments of society, especially poor or socially disadvantaged groups, are able to take advantage of these opportunities. Inequality is declining rather than increasing. People have equal access to a more solid economic foundation, including equal access to adequate public goods, services and infrastructure, such as public transit, education, clean air and water.GrowthAn economy is increasingly producing enough goods and services to enable broad gains in well-being and greater opportunity. Good job and work opportunities are growing and incomes are increasing, especially for the poor. Economic systems are transforming for the betterment of all, including and especially poor and excluded communities. Economic growth and transformation is not only captured by aggregate measures of economic output (such as GDP), but must include and be measured by other outcomes that capture overall well-being.StabilityIndividuals, communities, businesses and governments have a sufficient degree of confidence in their future and an increased ability to predict the outcome of their economic decisions. Individuals, households, communities and enterprises are secure enough to invest in their future. Economic systems are increasingly resilient to shocks and stresses, especially to disruptions with a disproportionate impact on poor or vulnerable communities.SustainabilityEconomic and social wealth is sustained over time, thus maintaining inter-generational well-being. Economic and social wealth is the social worth of the entire set of assets that contribute to human well-being, including human produced (manufactured, financial, human, social) and natural capital. In the case of natural capital, human use must preserve or restore nature’s ability to produce the ecosystem of goods and services that contribute to human well-being. Decision-making must thus incorporate the long-term costs and benefits, and not merely the short-term gains, of human use of our full asset base.ParticipationEnable people to participate fully in economic life and have greater say over their future._173b2c04-c4e7-11e8-b6f1-0b6633b7c6821MarketsEnable people to access and participate in markets as workers, consumers and business owners._173b2ca4-c4e7-11e8-b6f1-0b6633b7c6821.1WorkersConsumersBusiness OwnersRules & NormsEnsure transparency around and common knowledge of rules and norms allow people to start a business, find a job, or engage in markets._173b2d30-c4e7-11e8-b6f1-0b6633b7c6821.2TechnologyDistribute technology widely to promote greater individual and community well-being._173b2dc6-c4e7-11e8-b6f1-0b6633b7c6821.3IndividualsCommunitiesEquityMake opportunities available to enable upward mobility for more people. _173b2e70-c4e7-11e8-b6f1-0b6633b7c6822OpportunitiesEnable all segments of society, especially poor or socially disadvantaged groups, to take advantage of opportunities._173b2f06-c4e7-11e8-b6f1-0b6633b7c6822.1Poor GroupsSocially Disadvantaged GroupsInequalityReduce inequality._173b2f9c-c4e7-11e8-b6f1-0b6633b7c6822.2AccessProvide equal access to a more solid economic foundation, including equal access to adequate public goods, services and infrastructure, such as public transit, education, clean air and water._173b303c-c4e7-11e8-b6f1-0b6633b7c6822.3Public TransitProvide equal access to public transit._173b30dc-c4e7-11e8-b6f1-0b6633b7c6822.3.1EducationProvide equal access to education._173b3172-c4e7-11e8-b6f1-0b6633b7c6822.3.2Air & WaterProvide equal access to clean air and water._173b321c-c4e7-11e8-b6f1-0b6633b7c6822.3.3GrowthIncrease production of goods and services to enable broad gains in well-being and greater opportunity._173b32bc-c4e7-11e8-b6f1-0b6633b7c6823Jobs & IncomeIncrease jobs and work opportunities as well as incomes, especially for the poor._173b335c-c4e7-11e8-b6f1-0b6633b7c6823.1The PoorEconomic SystemsTransform economic systems for the betterment of all, including and especially poor and excluded communities._173b3410-c4e7-11e8-b6f1-0b6633b7c6823.2Poor CommunitiesExcluded CommunitiesMetricsInclude in measures of economic growth and transformation outcomes that capture overall well-being._173b34b0-c4e7-11e8-b6f1-0b6633b7c6823.3StabilityIncrease confidence in the future and the ability to predict the outcome of economic decisions._173b36a4-c4e7-11e8-b6f1-0b6633b7c6824IndividualsCommunitiesBusinessesGovernmentsInvestmentEnsure that individuals, households, communities and enterprises are secure enough to invest in their future._173b3794-c4e7-11e8-b6f1-0b6633b7c6824.1Economic SystemsMake economic systems resilient to shocks and stresses, especially to disruptions with a disproportionate impact on poor or vulnerable communities._173b383e-c4e7-11e8-b6f1-0b6633b7c6824.2Poor CommunitiesVulnerable CommunitiesSustainabilitySustain economic and social wealth over time._173b38e8-c4e7-11e8-b6f1-0b6633b7c6825Natural CapitalPreserve or restore nature’s ability to produce the ecosystem of goods and services._173b39b0-c4e7-11e8-b6f1-0b6633b7c6825.1Costs & BenefitsIncorporate the long-term costs and benefits into decision-making._173b3a5a-c4e7-11e8-b6f1-0b6633b7c6825.22016-12-13https://www.rockefellerfoundation.org/blog/five-characteristics-inclusive-economy-getting-beyond-equity-growth-dichotomy/OwenAmburOwenAmbur@verizon.net