 Good afternoon everyone. I'm Rick Sammons a member of the managing board of the forum and I'm privileged to introduce this session on inclusive growth and development Inclusion is it suffuses if you will the the 2030 agenda very difficult from a political perspective to move on reforms and Almost any dimension and left list. There's a basic degree of public comfort that the reforms are going to benefit society as a whole and that people will be brought along Together in the journey to try to improve the country's economy and Society more generally now we at the forum. We've found this to be one of the most hotly debated and Most in-demand topics as we go around the world and talking with our various communities in the summits like this and so with in cooperation with some other international organizations and Other partners we began a bit of a journey ourselves analytically a couple of years ago to think through based on scholarship and Empirical experience what might be a way to translate what the near universal Aspiration for inclusive growth because it really fundamentally has just been mainly that into a Concrete policy framework and a set of tools to help guide countries in their societies more down that path and Earlier this year. We issued an inclusive growth and development report Which sought to lay out a? Framework for thinking more seriously about how one shifts the growth model of a country in this direction in a more Structured and deliberate manner. I'm not going to give you the details of it I'm suffice it to say that the conclusion is that institutional strength and the structural features of an economy Across a variety of dimensions. We identified 15 of them are really the key to getting the way win-win between dynamism and growth on the one hand and Inclusion or broad-based progress and living standards as we called on the other and that Policymaker economic policy makers for the last generation have been very focused on the efficiency opportunities in economies Understandably coming out of the 1970s where there was a big concern about stagflation particularly in the West and sclerotic markets But in the process we have under-emphasized during that period a spectrum of institutional features and structural features of economies which as a whole act as an ecosystem for Recycling and for broadening the diffusion of the benefits of growth throughout society that that set of 15 institutional areas Really is the income distribution system writ large in an economy and The point of the report was to say number one here is data We have amassed a comprehensive cross-country database in these 15 areas and said Countries you can take a look at how you are relatively weak or strong How much of your policy space relative to the experience of your peers you are or are not using in each one of these 15 areas of structural institutional strength So that's a tool But secondly we drew a larger conclusion for the larger economic policy debates post financial crisis to say everyone has talked about rebalancing economic policy and and growth models well the rebalancing is to assign an equal Priority to these kinds of institutional features across certainly education systems infrastructure the way Rents the way the financial system does or does not intermediate capital to real economy investments. You'll see in the material the different areas by assigning an equal weight to that those structural elements with that ascribed to financial stability or Macroeconomic management, which are still very very important We can rebalance and find a better Confluence between dynamism and growth and efficiency on the one hand and broad-based progress and living standards on the other Now you may ask why am I intervening on this in a summit that is dedicated not so much to public policy or economic policy But rather to multi-stakeholder partnership in advancing the sustainable development goals the reason is this is That yes there needs to be and there is already percolating quite an internal debate within the economics Academic community on the one hand and policymakers on the other and that needs to take place It doesn't necessarily have such a multi-stakeholder flavor to it. The reality is in order to shift the growth model this the economic policy priorities of a country what is needed is a constituency for that and Often we have found in our travels that two things can help very much in that regard When there's an intentionality and we see that leaders want to move toward inclusive growth What can be very helpful in that respect are is data and that's why we put out the benchmarking data in this regard, but secondly a Set of stakeholders who are prepared to engage with the policymakers at a very senior level at a leader level across business Across academia civil society groups labor unions and the rest to talk together about the strategy of the country in this regard and That kind of a strategic multi-stakeholder conversation Some kinds can improve the political economy can improve the political climate for governments to be able to take Reforms in such a direction and be able to explain it as being a win-win in the way that that I've just described so we the OECD the ILO and the World Bank have been in discussion about taking our various analyses and tools and combining to facilitate a multi-stakeholder a public private Series a dialogue if you want to call that of strategy discussions about inclusive growth actionable pathways for inclusive growth in countries that have an interest in having such a multi-stakeholder conversation and We in addition to that we in the World Bank Will soon be launching a platform that per that rolls up best practice both on the policy side But also on the corporate side for what can be done with the support of IDRC of Canada and also the German Development Ministry and so I just wanted to Set that institutional context for this discussion and handed over to Gillian Tett who is a Leader here of reporting for the Financial Times the United States. We are very privileged to have you Moderate this session. She if you don't remember Really had the most sterling Reporting during the heat of the financial crisis that at least as far as I'm concerned And she brings if I can say this a bit of an anthropological approach to her reporting on economic and financial issues And if there's one issue that requires Some anthropological Examination and support it's certainly this one because it is so multidisciplinary. Thank you very much. Well, thank you very much indeed And I'm very honored to be here today looking at this issue and it's a very striking Sign of the times the fact that we're sitting here talking about Inclusive growth and development or if you like to be more frank We're talking about inequality and what to do about that Because you only have to go back sort of four five six seven years and the issue of inequality Really wasn't top and center of the debates of places like Davos even the UN Now it's absolutely central to so much of the discussion Because there is such a clear recognition that we live in the best of times and the worst of times We're seeing economic growth, which actually has been relatively steady in recent years We're seeing stunning Technological miracles unfolding almost daily and yet we're also seeing signs of rising social tensions and Income inequality inside many countries and as of yet No one's actually worked out how to have good fast healthy growth That is equally spread and which doesn't create social tensions So it's a great time to be an anthropologist It's a great time to be a journalist and it's a great time to have these diverse perspectives on the panel essentially what we have are two People who are actually involved in trying to fix Inequality or deal with some of the challenges in relation to it We have Minister Anusha Rahman Khan who's Minister of State for information and technology and telecommunications In Pakistan who can tell us how they're using digital technology to try and deal with it She has a very interesting statistics to share We have Louis Fernando of Maya Azate who's the Minister of National Planning of Columbia I was just told that Columbia is the class SWAT the star pupil of the SDGs apparently Apparently it's been scurrying around ahead of almost anybody else to prepare for this So he can tell us as class SWAT what they're doing and how that's going to address inequality We have John MacArthur senior fellow at Brookings Institute who is taking a masterful overview of the issues and Sharon Burrow woman known to many of you who's a general secretary of the International Trade Union Confederation Who can talk to us from the labor perspective about what needs to be done? But I thought I'd start perhaps with John to I know you've been working at Brookings looking at these issues recently How do you interpret the current challenge and the fact that people are focusing on it so much? well First thank you, and I hesitate to take on a masterful overview next to the master fuel overviewer of these issues, but I Think it's exactly as you said I remember very clearly when the debates over the sustainable development goals got going You know five six years ago and some people were saying we need to include a centerpiece issue on inequality And I said oh that's sticky territory You know will that and it ended up being the through line that everyone agreed on Needed to be there at every stage and that's part of the big change and I would say geopolitics in the past several years is this Shift from not just tackling extreme poverty issues that were in the Millennium Development Goals, but really inclusive Prosperity, but when we think about just to think of a big big picture of what's going on I think the sustainable development goals boil down to three Basic issues that every country is trying to take on I Call it recoupling decoupling and then no one left behind The recoupling is this notion of recoupling economic progress with social progress when I went to graduate school It was always a given roughly speaking that as long as your economy was doing well, you know the social indicators would get better over time Roughly speaking most people don't believe that anymore So the economy is growing. What does that mean for me and this notion of the economy doing better meaning my family is doing better is A premise that needs to be reignited. I would say at the most basic level The second is the decoupling. That's the decoupling the economic progress from the environmental strain So roughly speaking each new unit of economic progress is cranking out one corresponding unit of an environmental problem And we haven't figured out how to disconnect those two variables yet That's climate. That's oceans. That's forest biodiversity water. What have you air? But the third is and I think this is where I'd really focus to it's the no one left behind and This notion and I would argue that this is Manifest in every society in the world right now. You know, what does it mean to have a both an economic and social contract where people Don't get left behind That's marginalized groups. That's based on sexuality in some countries. That's based on ethnicity in some places That's based on class. That's based on geography and What we see if we kind of drill down beneath these there are some very practical issues because each of those three issues Looks different in different parts of the world The first I think if I were to outline things that maybe we haven't been paying enough attention to at a practical level For the extremely poor people around the world. It's still the agriculture issue. This is the engine of the economy farming his business The infrastructure to get your goods to market this disconnection in its deepest form But the other is if you're in the job market, it's the skills agenda. It's the urban planning agenda It's the where do I live? How does my life? Physically connect to the economy in society and we're in the peak moment of people moving into cities in history And we have to make sure those cities work for people But the other and I'll just finish with this for now is no one left behind is a little bit different than In my home country, Canada we talk about inclusive prosperity for the middle class It's not quite the same thing actually And I've recently even been looking at the sustainable development goal Indicators within Canada and one of the thing that shows you is on issue after issue after issue There's a significant amount of the population just getting left behind Whether it's indigenous communities on health even access to drinking water Whether it's basic skills literacy and numeracy for functioning in an automated economy We see on each of these issues that there's maybe 10 15% of the population and so many societies just getting left behind and This is where we come to questions around. What is social protection look like? Do we need basic income? Do we have to think differently about pensions? Do we have to think in a new way especially for the fast-growing economies that are going to be putting a couple billion more people into the global middle class soon? How to not just think through how to make sure no one gets left behind But how to make sure there's protection for once they get there and that's how I would really boil down what I see is that the core issue today Right, right Well, how does that play out in a country like Pakistan? I mean, how do you see the challenges? Thank you very much for having me here this afternoon. It's This debate is going on and yesterday also we we heard a few panelists and it was quite an alarming actually observation made by one of the panelists yesterday that 50 people in this world hold the wealth which is more than three which three point five billion people hold here So this fact tells us about a lot about the inequality and the survey That has recently been done Makes us all think that if this is the outcome of whatever has been done in the last 50 years Do we want the next 50 years to continue like that? Or are we actually going to stand up and instead of saying you do this you do that? We start saying we all together come forward and do something about our children So I think there is this complete need of Thinking and rethinking the way we've always thought and this rethinking puts us Into some conclusions at least that I've made as a minister in the last four years there in Pakistan But first of all if you're talking about growth and you're talking about inequality We have to target Educating more girls and women We have to start thinking about means and ways of bringing them into the mainstream decision-making policymaking and Getting them educated. Obviously. That's the first and then one once we have done that We would have automatically got a huge workforce ready to start contributing to words the economy as a whole and Primarily once the economy as a whole is handled The the deprivation and as you said whether whatever is happening is helping me at home is improving my life and so on I Think we all need to work together To think collectively that whatever we have put in in the SDGs is Something that we all achieve together as well. Otherwise, we will have the same outcome as we have with MDGs So as as we speak In the last four years in Pakistan I And looking at the World Bank report saying that every 10 percent broadband penetration gives up to 1.38 percent growth I decided to start implementing that that that facet so we Targeted the USF funding and we invested something like 400 million dollars in the last three years in infrastructure Putting technology infrastructure to the underserved unserved areas and and I can claim that that I have given out from the USF Board today all the contracts Which will then in the rollout of coming competing in by December 2018 We will have every one village which has a hundred population on which is not connected who will be connected So we have an infrastructure then the e-highway as I call it complete by the end of 2018 So once we have done the supply side, I mean is the optic fiber cable there the technology They are going to improve the lives of people. I'm sorry the answer is no Just putting out the infrastructure is not the answer How we use the technology is what is required very much Technology itself does nothing the use of technology the how we use the technology for For education how we use the technology for health how we use the technology For security how we use the technology for all the m's and the ease is now the critical part of the technology which the next 3.5 odd billion who need to get connected and The challenge is that the next 3.5 or 4 billion people are not connected are the ones who are the Legards they're not connected because they didn't want to get connected that they're not connected because they're probably not literate enough Probably they're not they can't afford it. Simply probably. They don't even know they're ignorant about technology altogether So we will have to work all of us will have to work to ensure that those people who are getting the technology the optic fiber cable They also know how to use it How to use it to be economically vibrant sufficient for them for the socio-economic growth and once this all is happening without literacy without the digital skills everything that I'm speaking about those four hundred and Forty odd million dollars are zero if it doesn't get translated into the demand side So the for the demand side the the next realm has to be put in which is app development start-ups incubation technology parks, but most importantly the digi skills You have to teach them how to be digitally literate. So I've started a program. It's called a digi skills program training one million youngsters To become freelancers to know how to use technology Pakistan is ranked number four in freelancing and I want to take it up to number one, right? I have tough competition I'm training girls in ICTs and I've started a program called ICT for girls and Starting 31st of October one million Sorry 110,000 girls will be starting off on coding So starting from age year four till 15 I'm expecting 110,000 girls every year to be trained in coding just in Islamabad public sector schools But then we will scale it up to the rest of the country Although I do get a demand from the voice public sector schools that madam minister is very biased towards the girls But I think that just by starting this initiative Actually the schools are not pushed towards putting the same training program which I'm doing with Microsoft for the boys as well Right. There's one more thing which is very important for this inclusive growth and development And I would like to re-emphasize it that the governments can't do everything alone You will need to have the private sector the thought leaders The youth the old everybody who has done the cycle those who are coming on the cycle the NGOs and all of us to work together To attain this very ambition of achieving STGs by 2030 what was missed out when we were drafting the STGs was adding Adding ICT information communication technology as the 18th call Because in order to be the enabler in order to achieve those goals You need those infrastructures to be in place so that you can achieve your rest of the 17 goals with the speed But this got missed out But even though it was but I think there's a realization at all levels whether it's where whether it's ITU Whether it's at the UN the broadband Commission that we have missed it out But we can because it's a very cost-intensive intensive infrastructure Right this cost-intensive infrastructure is not going to come from the private sector alone Right. So what the private sector is doing is making a contribution in the form of the USF and I'm Emphasizing on every platform that the government should stop using that funding to cover their trade their budget deficit The government's have to start spending that money which coming from the private sector on the telecom infrastructure itself Because I think I in my country. I've noticed in the last two three years that the growths that we have achieved I do take a percentage of that to the infrastructure that we have right late Right. Thank you. Well, thank you. Those are absolutely fast things So in a nutshell what you're saying is that you need to build the infrastructure You need to teach people how to use additional infrastructure as one potential step or path to go down And then to work with the private sector essentially get them to pay for a fair amount of it And make sure that it actually have inclusive model. They're already paying for it What I'm saying is that the government should start using that money Right the purpose for which would for speed in the big right. Well, I must say I'm I'm very touched by your story because Many many years ago. I worked spent a year of my life working in Pakistan in a hospital And I learned to read and write Urdu with a group of the very lowly women in the hospital And we had to sort of basically hide in one of the laundry cupboards to do it together Almost in secret because they were worried about other people knowing that they were learning to read and write So I often think that one Teaching women who are kept trapped inside how to read and write is such a revolutionary thing giving them an iPhone is Extraordinary in terms of the potential, but then the question is how do you overcome the cultural obstacles and the inevitable? Resistance at that involved. I mean that's your problem No, but I would just want to interject here for one second that this my ICT for girls program I started rolling in the far flung areas The most remotest parts of the country I'm getting maximum membership for this program and the parents are letting them come great things are changing well That's incredibly exciting, but How about Columbia? Well, thank you very much as you mentioned Columbia had a very definite role in terms of formulating the SDGs We worked on that before the real conference in 2012 We had the idea of moving towards a more comprehensive set of goals not only goals developed and focused on growing economies in an emerging economies the things about for example inclusive growth about Gender equality are things that are not only affect developing economies that also developed economy So we wanted to set up an agenda that at first was met with very high skepticism Why Columbia was doing this, but then afterward I think it was very successful and now there's a well Well, we already know that the SDGs so Columbia moved forward starting from 2014 once the SDGs were already set up and Incorporating most of the objectives in the national development plan is kind of the road map for the new government What are the main policies that are gonna be attacking the objectives how to set up those goals? What are the private and public actors involved in attaining those goals and we also have a monitoring scheme Which is very important the private sector wants to get involved with the Completion of these objectives, but then he wants to of course have a good say in the monitoring How the projects are evolving what the finance and involved so it's important to have to have the monitoring as well Now in terms of inclusive growth So the Colombian government has been working I'd say in two main dimensions first peace process The peace process is one of the few good news that the world economy has This year we completed the peace process on and last year the the guns were handed out by the guerrilla by the guerrilla movement the FARC A couple of months ago That's gonna have not only an economic dividend, but also an environmental dividend the guerrilla used to for example had some You know plan some bombs with all pipelines that spilled the water sources and that had an enormous Environmental impact and that's gonna end with a peace process now the other part of course more micro Focused is especially education Education in terms of tertiary education professional education in Colombia has been very Backward the axis has been very low We managed to increase the axis from a 32% of total population to 51% in five years So that's very important unlocking the productivity of human capital that's key and also helps with with the thing that you were Mentioned before minister the appropriation of technology if you have the infrastructure if you have Access to broadband, but you don't know how to use it Well, we're not gonna be unlocking productivity and that finally I tied that to the other agenda Which is the fact that Colombia even though has has had well this civil conflict for more than more than 50 years Has had a remarkable macroeconomic stability. It's probably one of the few light American economies that didn't have a default on its public debt Since the 1930s. We have never had an hyper inflation So it's a very remarkable stable economy. We have grown about around four percent for the past 20 years on average Now where are the sources of growth coming from essentially to? Investment where we now have an investment rate, which is close to 30% of GDP the highest in Latin America And also the increased labor supply so the demographic changes have increased labor supply and the unemployment rate has come down for the past 15 years Now those two sources of growth are probably coming to an end What's left is productivity growth where Colombia has had? Permanent problems in increasing productivity growth now the agenda of education of technology Appropriation and of course one important impact, which is regulation better regulation is gonna have I think we think an important Impact in the medium term of increasing productivity growth, which is the one that we feel is gonna have an impact on Inclusive growth and does better regulation mean deregulation? Not at all. That's that's not the way That's what you know better regulation in America these days gets translated deregulation So what we mean by better regulation is better regulation is making sure that The the benefit of regulation exceeds its cost to the private sector Of course, there are things that we need to regulate regulation is important especially for environmental issues but sometimes the Process of regulation doesn't consider the alternatives or the intended unintended consequences of regulation just to mention a Number we did an inventory of regulation that was issued for the 21st century in Colombia And that there were two point seven decrease per day signed by the president for the past 17 years So the this is probably a problem of inflation of regulation the quality probably is not gonna be that high So we have we're setting up a program Where we are doing a widespread review of the process to guarantee the quality of regulation Which is important for for the productivity growth. Yeah, right, right? Well, that's in terms that we've heard about how to make economies more productive and How to try and spread some of the benefits through gender-focused tech focus How does what's your perspective on this? Sean well, I think the opening comment Re-coupling social progress and decoupling natural resources. I mean that's the central challenge and If you think that our current global model is simply inequality by design Then we've got the power to change it if we really want to when you think that 80% of the profits of global trade are captured by 10% just 10% of publicly listed companies and that that's based on a model of profit where 94% of those global corporations 94% of the workforce of those global corporations are actually hidden workforce Corporations today barely employ 6% directly. There's nothing wrong with you know working with partners contracting to SMEs etc, but if you don't know and take responsibility for decent work a world where there is in fact Labor market institutions human rights the right to bargain collectively for a fair share of the profits or the resource Productivity we're serious about decoupling or even pay a minimum wage with a secure contract of work and And the safe work then what you're doing is saying anything goes and we've got a global workforce now in trouble Because anything goes when you've got 60% only of the workforce on some kind of formal employment and then Contract of employment and then more than half of those are in insecure Precarious often unsafe work with in fact low wages Primarily and when I talk about low wages I can tell you what it would take to pay a living wage in Asia in the poorest of countries Which are the dominant supply chain hubs about 50 US dollars a month now you add that up 50 US dollars a month Times 12 do the maths around 600 some of those companies make up to $17,000 profit From every supply chain worker not just their direct employee, but some will tell you they have three or four hundred thousand employees actually have things like 1.2 for six million and So when you're taking that kind of profit from every worker and you won't pay them a minimum living wage Something's very very wrong and so why a market shrinking? Why are people worried about growth declining? Well, that's pretty obvious really then you've got 40% of our workforce It's just in the sector of desperation the informal workers. There's no regulation. No minimum living wages. No social protection Indeed no rule of law in fact Seventy five percent of workers in the global economy that means their families as well have little or no social protection And yet you know what that would cost Again in the poorest of countries less than 6% of GDP we could fund it From illicit flows and tax evasion. That would be a good start and if you put that level of social protection as a Floor with the care and and pensions and unemployment support Health education and then you add to that a minimum living wage Then that's a competitive flaw the one thing that the G20 countries acknowledge this year Got little press but the Labor Ministers said to the the leaders who supported their communique You have to take oppression out of competition You have to take violations of Labor rights out of competition something Rick and others have promoted for a very long time So if we're serious about a global economy, that's where we have to head and it's not a hard recipe In fact, I would say to you on the on the recipe side Just think about this. It's a social protection flaw. It's a minimum living wage It's the right to bargain for Direct productivity from labor or resource productivity where we get down a mission so that you save companies money either on carbon trading or indeed or carbon a carbon price or indeed on the cost of of energy and so on and I want to finish by saying, you know Digitalizations a really significant piece, but it's creating so many myths that it just drives me crazy You know, it's the tram tracks of the future Or in fact today and increasingly the future. It's nothing more than that It's the enabling business environment the enabling communications environment for social and business activity But work is work if I'm working for you directly or I'm working for an agency that employs me to work for you Or indeed I'm working for many of you on by contracting on the internet I still need the same things as that simple recipe might take a change to competition policy But if I can form co-operatives or I can form freelance unions and indeed I can bargain for a contract price the entertainment industry in this country has done it forever Then you set a floor of what we call a minimum living wage, but by any name So we've got the solutions. We really do have the solutions It's really about whether we've got the the will and the morality to care for each other So we share prosperity if you think Final word that the world is richer by three times in terms of GDP and yet Our people are in trouble Employment is a huge fear for people then what's wrong with us? We know investing in that architecture will drive jobs Investing in the green economy will drive jobs We know that care at the center of who we are as human beings will drive even more jobs You invest in child care age care health and education you get a triple jobs dividend You get jobs for women about seventy five percent of jobs will go to women And we need women in the in the global economy to actually drive productivity It'll free women to work in other areas of the economy and guess what guys you get a four percent male dividend in jobs as well Because of infrastructure and services, so all the facts are there, but if we don't recouple the commitment to some regulation around labor market institutions and and Protections if we don't care enough about the workers who drive our economy and we don't afford them their rights with some social Protection and a decent living wage then you've got to ask who we are as human beings And do we want to really deal with inequality? Well, that's a very rousing call to arms and a very powerful set of numbers I'm curious, you know when you listen to all the companies all the CEOs who are You know around at the UN meeting this week Do you see any sign that any of them get it because there's been a lot of you know Commitment to the SDGs a lot of I'd be very struck by how many business leaders are here this week Is that just you know cosmetic window dressing whitewash in your view? No, there is a core group. There's not enough, but there's a core group I'm a leader of the B team You know if you'd have ever said that the trade union number one trouble maker in the world would actually be joining forces with Paul Polman and Bob Collymore and a whole range of other CEOs to say our world has to shift That probably wouldn't have been able to be discussed five years ago. Let alone ten years ago The the Business and Sustainable Development Commission one of the recommendations is a new social contract and again I was part of that discussion so Yesterday, yeah, Stefan lovin the Prime Minister of Sweden a miracle economy by the way in the current world growth at 4.3% I think certainly around for Unemployment going right down the right way Integrated 300,000 refugees and indeed has a surplus in in budgetary terms It doesn't get much better than that But what's he saying that in fact we need social dialogue that unless there's a global around talking to each other and finding the solutions and if you'd been at the Concordia summit this morning, which I had the privilege to To in fact moderate. I must say I didn't have to put out the demands the CEOs and the government people They were putting them out and I was just reiterating them and Paul Polman's cold call to arms was voice your values Make no compromises and indeed we all set in the end and support each other because if we don't put the call out there And we don't design the economic and social base of our economies then who do we blame? ourselves Right well that seems like a good moment to put it put in the audience Since I know there are many people in the room who have a lot of expertise and have been very involved in this issue I think it'd be great to see if anyone wants to make any comments or ask any questions I can see a hand up going up already It would as ever be courteous, but not compulsory to identify yourself And I'd say let's try and keep the comments or questions You know relatively short so we can get as many of them as we can as possible Pitching right in because it's a interesting segue with Madam borrows work So in India we have One of the world's largest dairy cooperatives four billion dollars in revenue amul owned by farmers 84% of four billion dollars goes straight down to the farmers So I mean I we are in the process of trying to build out an ecosystem for farm and off farm of women So it's just an interesting to see what you just said and There's all this talk about financial inclusion Creating safety nets for women, but unless you're giving women real jobs in real value chains And we have the Millennial fashion customers who are going to want to buy sustainable fashion 10 years from now 20 years There's a lot of reinvention we need to do basically so that is just my comment right well Thank you That's a very good point particularly given discussion about using technology to unlock the economic potential of girls Can I just respond to that because I've just nominated a woman from India who builds cooperatives like the ones you're talking about a Woman from seawater to the ILO's future of work commission along with Phil Jennings Who I think is in the back of the room who many of you know as one of our thinkers on these questions and The reason I want Reema in the room is because she builds cooperatives in the real world They're working with us to try and formalize the childcare sector And of course a lot of care is now being delivered on global platforms with no regulatory support at all For public safety or for the worker and indeed you know We know that you can take that Technology that's age-old for us and build cooperatives on the internet So we're trying to marry the modern services union that Phil runs with of course the technology and the need to formalize work in Terms of the women's area and India has a lot to teach us I think along with Pakistan and others so I think that's a brilliant perspective Right. We have a comment back there Hi, I'm Brian Gallagher in the CEO of United Way. I wonder if sharing you were talking about jobs, but for the whole panel You know, there's this concentration of wealth in today's global economy and there's got to be a way to share the wealth Even though the you know digital, you know, the digitalization of the economy may be the tracks for the for the new economy Automation seems to be creating productivity and profit that doesn't require the same amount of labor and I wonder if jobs and a focus on jobs or is it a focus on livelihoods that Actually get us to a different place and I wonder if that framework around around jobs is is While important and you know, I you know, I think it's important Is it is it almost diminishing in that is it jobs and livelihood? Is it something broader in in terms of that redistribution and the other thing I'd love to hear comments on is the future of cities You know, what is the role of the city as more and more people will live in urban areas around sustainability and livability and And so for at least in the u.s. We're where you see this playing out is at the city level Not even at the state or provincial level, but the city level We would like to jump in on that I would just comment on one thing that in this world of disruptive technologies that we are entering now or we have already entered There is going to be a huge issue with jobs in terms per se jobs the traditional jobs that we have known Because artificial intelligence would not require any lawyers Because the computer all figured in is going to be responding to what legal advice you need You wouldn't be needing any doctors per se because artificial intelligence will tell it will tell you that what is your disease What the diagnosis what potential diseases can you have in the future and so on and so forth in addition to treating you? So I the way the world is moving and that's why I was saying that we all have to sit down and rethink the next 20 years Because this time is coming very very fast. No governments Can predict what technology does to them? Once they are hit this start thinking it's already too late So what the world economic forum should be thinking about what the next 20 years is bringing to this world? And what it bring it what it's bringing to the world is an era of disruptive technologies Netflix has more movies Honest repository without owning a single cinema Uber has got the largest taxi resource without owning a single taxi and You have examples and after examples When I discuss disruptive technologies So which country in the world or which forum in the world is talking about The scenarios that are going to emerge in the next 10 years Maybe we will have to rethink what education is Then we will have to rethink who is going to servers the computers the robots because we spoke about robots 30 years ago But this is the first time in the history of human era That we are actually talking about Having going to see elimination of the real jobs from the hands of the humans into the hands of the machine Well, can I just say the way he's doing really valuable work the future of production? Agenda council has all the partners in the room in a sense it has The ministers some are trade ministers some are other minister think about 28 Rick. I've lost count, but Helena could tell us It has the tech Folk it has civil society has a few renegades like us and it has some academic thinkers I mean super serious to co-chairs is with me is one of I think the deepest thinkers and he points out that we've made a Lot of mistakes that some of the best innovations of the last Century actually have caused some of the biggest global threats one of them being nuclear but and right now That's pretty topical given the address at the UN this morning by the US president, but When you actually think about this, I'm not a doomsayer about this. I think technology is technology and You know people our global Survey shows that it's not about the the technology that people are frightened It is about the jobs and that's where you're absolutely right But again, I say work is work We're not prepared to give up on the dignity of work and there's plenty of work in our communities There'll be work in our businesses. We just have to value work differently So the work that is about each other is that is about care shouldn't be undervalued While we value engineering or artificial intelligence Construction more so how do we actually do what you're saying focus on? livelihoods and the dignity of work and And and and we've seen technological kind of you know doomsayers before I remember being told as a as a Well, I was a teacher in the 70s actually and I was taken out of schools as a very young teacher I might add to write curriculum for leisure in my own country Australia because everybody was gonna have all this leisure time It was great curriculum it's at the bottom of a big black hole because it didn't happen but then in the 90s I was a union leader and And we were told that all those dirty industries the you know blue collar sectors They were gonna go and there's all these knowledge industries and you know everyone had to be you know So highly educated that it was gonna be a disaster for the economy if they weren't but we did reskill But I tell you what we said and we were right you will just graph technology onto existing businesses and we'll still have Manufacturing and construction and services and agriculture, you know not just today, but tomorrow and so that's why I say You know, let's figure out some of the moral questions about technology. That's a societal debate But really if we look at how you create jobs and it gives us a chance to use the wealth that comes from some of that Technology to create jobs that are about Re-coupling the issue of social progress. So I'm not Pesimistic about reshaping jobs. We've seen that many many times. It's the same thing We say about this transition as we say about the green transition It's got to be just and that means it has to focus on people right Okay, well, I know that Enrique Borone wants to say something or add to the contribution my contribution Thank you. I'm Federico Borone. I'm a member of that's okay I'm a member of IDRC Canada's IDRC the International Development Research Centre In fact, I would like to first of all, I mean a pose a question to the to the whole panel One of the reasons why IDRC is partnering with the World Economic Forum is Essentially to better understand how research which is the subject which is the type of a world we do we support research for development research the production of knowledge and that could perhaps Shorten the way of reaching the solutions reaching some of the innovations that we are hearing this panel And as I said we partnered with the World Economic Forum in order to understand how we can create connections between the academic world the world of the researchers with the private sector What are the real challenges? Engaging research with the private sector is the private sector is serious about Contributing participating collaborating with the framework Sustainable development goals and much more specifically with inclusive growth. So one of the questions that would be for members of the panel Representing the different institutions representing your different contributions to this particular topic Not only what I think that we discussed enough in terms of what could be the agenda what could be the key topics? But on the how How do you think research centers could connect with the private sector and by doing that? could improve The relationship between your institutions garments and others with perhaps a much more Collaborative framework and approach moving forward Well, maybe that's something that John should talk to you and then also a minister from Columbia Full disclosure. I also have to be on the board of IDRC and I'm not involved with this project, but I think it differs by country. There's a whole movie called inside job saying there's too much collaboration Between academics in the private sector, right? And so I think I'm a big fan of problem-based applied research So what's the problem you're trying to solve and what are the incentives to get people? involved One of the big challenges that the social science has been dealing with is even conflicts of interest Making sure that those are managed transparently and that they're not Creating the wrong incentives for research and you're seeing even, you know, whether the scandals are real or not There's a lot of concern about all these stories that keep bubbling up about we didn't realize this research might have had a different incentive set than we thought so I think that is not to be understated and Medical science has actually dealt with that in a very good way in the past generation to have a whole set of Protocols to think more clearly about what they care about and different countries have different Institutions for dealing with it and I think that the the big thing is if you want to get Researchers to collaborate give them a problem that they might actually be able to help solve It's typically a very strong incentive rather than tell them ask them to come up with a new theory on some problem That might not exist where they'll be very busy, but they might not actually have the same incentive system But if I may I'd just like to come back to the previous points quickly because this notion of concentration of many things at once is a Is related to what we would call even the growth side of inclusive growth and one of the big challenges right now is Very fundamental just speaking as economists where you know growth ultimately in the long run is driven by productivity gains one of the big Problems right now in many of the advanced economies is that the productivity gains are very concentrated among very large firms and We we see this in the tech industry for example Which is doing tremendous things to drive down for example the potential costs of social protection Through very low transaction cost connectivity But the drivers of that have ultimately network effects that are you know at risk of being natural monopolies with huge Powers and even that word is controversial in some places, but they're natural. They're not necessarily intended and Grappling with the role of the productivity puzzle as a driver of You know wealth concentration and opportunity concentration in an economy as economies become more and more Gig-oriented less employment oriented provides a whole new set of puzzles for how you think about social policy and how you even invest in skills and How you invest in what it means to have a city where people's jobs jobs might be on their laptop at home And so all these questions are highly Interconnected and I would say you know the most positive side I did a calculation recently of Extreme poverty there's about six hundred and fifty million people in the world living on an extreme poverty the kind of dollar a day type poverty Roughly a hundred and eighty five million of those people live in countries where the government alone the home government Could end extreme poverty through cash transfers for less than one percent of GMP You know that's a huge that's because of technology bringing the cost down so much The flip side is if you're an advanced economy you want to interact with the technology You need the skills and I would argue. It's one of the great puzzles in the world today. Why we're not investing in skills We have Malala Winning the Nobel Peace Prize you couldn't have a more heroic articulate bold champion For education we have Gordon Brown Raising attention after attention we have Julia Gillard raising, you know the issue after the issue In the past generation we've seen a breakthrough tremendous breakthrough in investments in health Well, why haven't we seen the investments in skills? In really in any part of the world Let alone to match the problems that are coming in front of us And I think we really have to confront this there are some countries that are doing better and better at taking this on But I would argue this is probably the lowest hanging fruit in the world policy-wise is To invest in literacy numeracy breadth of skills We don't have the metrics to agree on so far, but it's Julia Gillard makes this point We just agree on the metrics, please so that we can know what we're financing but in front of that if we want to have a hope of taking on the technology economy that needs to be the baseline and If Larry Summers made this argument a generation ago investing in girl is the highest return dollar in development Why is it still such a teeny teeny share of all our investments, and this is a deep paradox? I think we have to be aware of that. We're not living our truth on that one yet right Okay Very interesting topics. I would like to comment on the question about how to Improve the connection between research and an enterprise is with an answer that you're not gonna probably like because As you said, Colombia and every country has its particularities in Colombia The problem is not about connecting research with enterprises The problem is moving enterprises to a frontier of technology It is estimated about about 80% of the gains in productivity are gonna be Through just moving from tea to a frontier to the other technology the enterprise So we're working with a World Bank in a managerial services survey about practices in managing and The results were very very bad for Colombia So we have we have the worst practices in terms of managerial practices in Latin America Well below our level of development But the most important problem is that people don't tend to know that they are bad and managing their enterprises So if you don't know that you're bad at something you're not gonna do anything about it So there's an informational problem that we're trying to tackle and we're doing some technology service with Manufacturing and service medium enterprises and small enterprises to improve on managerial practices that we think Currently is the bottleneck for productivity growth in Colombia So of course we're also working in terms of connecting Universities and and enterprises about the focus right now is improving managerial practices Now I would like to comment on some of the topics that I have been raised before Again, Colombia has some particularities for example More than 50% of jobs are informal jobs you mentioned the problem of informality But sometimes informality is the market reaction to regulation And I just want to make one case in point The minimum wage in Colombia is one of the highest relative to the median wage to the average wage in the region So Colombia has one of the largest minimum wages relative to the average or median wage Now when you take a look at informality rates across the country across a different cities in Colombia Well, not surprisingly those those cities where the average income is higher have the lower informality rates And I'm talking about differences that are in Bogota informality rates about 17% in cities in the coast which are backward and poor Informality goes to 80% so We also have to take care that The the the informality sometimes is just the market response to excessive regulation That doesn't take into account that productivity growth is not high Across the whole nation mentioned again the problem of having we call it the democratization of productivity It's important that Bogota Medellin, but also the small cities have high productivity growth So we think that we along with the formality agenda. We also have to have an agenda that Gets people towards the entrepreneurial mood So it's not only about firm versus labor and high wages and minimum wages It's also about setting up the conditions that Can unlock the entrepreneurial spirit for every citizen in the Colombian economy? So it's it's also important to move toward that agenda It's not only about wages and the firms it also about how do we we do we do we increase Predictivity growth through entrepreneurial activities right can I just take I think Lots of wisdom there, but I just want to challenge the productivity argument I've been having a look at the figures actually for what drives economies and I think US is more than 70% consumption based now Productivity is always nice where you can drive productivity and we can bargain collectively and sharing it as a dollar piece It pumps up consumption obviously Or savings take your pick but indeed we live with this myth that somehow you can get productivity From somewhere if it's not actually being driven off pretty fundamental 101 growth Which is supply and demand through consumption So I actually think we have to have a have a look at that and I think nobody's really doing the figures on What it would at what the the growth impact would be on resource productivity And we have to really take that on because I think that is the new wealth I say to labour leaders, you know get in there help reduce emissions Let's get the zero economy on Sirocarbon economy on track because saves money and we can bargain for it in wealth Which again drives up people's capacity, so I just think we have to look at a balance of those old thinking Areas around productivity, but the don't go ahead. I was just to clarify There's one kind of mathematical truth, which is if you create something new that's a productivity boost and that's a new innovation But the whole that's not inconsistent with at all what I was saying at the outset was just the decoupling problem And so yeah part of what I think we ultimately need to get to in the Commission Which I was also an advisor to came up with is this need for benchmarking and Companies and it's a big issue for the next five to ten years to get really common standards for each industry On what's the company measuring itself against? Because if we it's not just your 10k if you're a u.s. Company or your shareholder price It's all the other things that matter in your supply chain and your energy efficiency and your footprint of and your products And what broader societal problems are you actually helping to solve or at a minimum not make worse? And we actually don't have ways for companies in a strong way to compare themselves yet and that they need that yeah One of the things I was the gig economy. I really wanted to take this off because it kind of drives me crazy. You know These are just these I've been talking to a lot of people who are in various sectors Driving businesses on a digital platform. They're platform business. Not a it's not a platform economy They're platform businesses the difference is they have no license no social licensed operators businesses and Until governments and some are now impose a social licensed operator And what does it mean to be a registered business that means you have to pay your tax where you earn it means you have to Take some responsibility for whatever the system is of paying into social protection for your employees Not true that Uber doesn't have dependent employers. They do it's not about the technology any business It doesn't adapt technology that people want will fail But it is about business leaders who are simply absolving responsibility in saying I'm going to take all of the profits from your labor But it doesn't matter government whether I'm using your roads or your Communication service infrastructure. I'm not going to pay you any tax And I'm not going to contribute to the welfare of the people making me the profit an end if we just sorry but regulate Properly regulate for a social license to operate. It's also not fair in other businesses Any other business has to actually you know accommodate the social Licent they can't get away with tax evasion. They can't get away with you know unsafe conditions for people without having to Go to court and defend themselves. So governments have to step up and actually say every business every business Doesn't matter what the shape or form is has a license to operate. We can organize the workers That's not the problem provided we can see freedom of association respected The problem is if you're just letting people in the rule of the jungle take profit without any Responsibility and that's not what societies have ever been about or should be about that's why the recoupling is critical But I would add and then as I spoke about disruptive technologies And I would with all due respect. I would want miss member or to think about it That I'll just give you one example and I can give you hundreds What's up Facebook? They all operate from the United States and They do not have their offices in every part of the world Yet they do business in other countries and don't pay any tax and don't engage any labor Yet they do business and get away with it. I will hold from here onwards for you to think What would you say on that? I'm on your team. Hey attacks where you earn it. That's what BEPS is about That's what the G20 is engaged in so if you're earning money in that country It's traceable and if it's not there's a very old-fashioned Pace that the European governments kind of dodged in the end, which is of course the Financial transaction tax. So that's what I'm saying where you earn it That's what I'm saying that in this world of disruptive technologies the way things are moving You will not have the traditional me via the ways and means of having physical labor Physical presence physical companies you will have remote accesses remote businesses remote companies And that's why we need to have this new social contract to talk about the future how it is evolving And we need to talk about everything all in one go. Absolutely. Yeah, so I minister. I was out there and then I think we should Yeah, I just want to comment on one of the questions that asked about the importance of cities I didn't want to pass up on that on that question so So Every every country again. It's tied to its own dynamic Colombia. It's a very urban economy more than 70% of the people live in cities We have large cities around the country But one of the things we're working on its land use planning We have At least 30% of the land properties that it's outdated around 80% of the municipalities have updated lands and use plans So we're implementing what we call a multi-purpose Cadaster which is essentially planning with up to that information with one important component Which is adaptation and mitigation of climate change which has been disregarded for the plan that were constructed eight or twelve years ago so I mentioned this well that sounds like a very An important issue for developing economies, but for example in Houston I just read the past month that Houston is the largest city in the US doesn't have any land zone regulations and That's well when you think about things are effect The the environment well the flooding effect for example well you think about the importance of regulating some part of land zone use and We're working towards that especially in Colombia, which is a growing economy and is going to be having growing Cities as well the importance of having these components in terms of mitigation to climate change Towards the long-term right. Thank you. Well, it's been a fascinating discussion I mean I take away two or three points of cheer and At least one point of well not despair but gloom or challenge You know the good news is that the issue of inclusion or inequality is absolutely center stage on the agenda We all agree about that The even better news is that there are tangible Examples and granular steps policy steps being taken to try and think about this and we've heard a number of them On the platform today about not simply ways that we could move but ways that people are trying to act to move already The bad news is that there are still formidable obstacles And I think as Sharon says very clearly and has been picked up by the panel You know what to do about technology remains in some ways one of the most Challenging issue that crystallized a lot of the questions about inequality and inclusion I was chatting to someone yesterday said well in some ways what's happening with technology today is a bit like oil or commodity In that oil has been used to create some relatively equal Integrated includes the societies like Norway that in some ways are a shining success story about inclusion and Economic growth I was also being used to create some terrible oligarchs and The riches of oil have been used to essentially prop up the wealthy at the expense of the poor Either way what you have essentially is a massive windfall gain suddenly that gives an economy a shock And the question is how that windfall gain is used and it seems to me that technology is very similar It could be used to create much more inclusive societies where even girls in remote villages in Pakistan are given for the first time in their lives a Chance to actually participate and have economic power and having lived with them for a long time That is so transformational all technology can be used to create these essential monopolies Where powers concentrate in the hands of few who never actually pay taxes anywhere? That's the question about which way we're going to go so on that note, I'm going to hand over now to Jan Wallace who's going to leave us with a few thoughts to wrap up with And try to summarize some of this debate Jan Well, thank you very much and it's a pleasure to be here Although I feel that having been two hours on the train from in Wilmington Waiting on the way up that the first point of inclusive growth would be infrastructure infrastructure before we go to anything else but That aside Having listened to some of you coming in. I think I'm particularly happy to hear both a combination of course of education but also Minister from Columbia who mentioned the the work that we're doing on firm capabilities Which is one of the key issues that we find is critical for raising productivity at the firm level is something that we that we feel strongly has been overlooked at working actually directly with firms and making them stronger and Erase their productivity as we As they bring more work on and they have to hire and hire more labor over time and then can integrate into Global value chains more easily So that brings me to the point that I wanted to make Originally at the outset of this of this conversation About when we think about inclusive growth. I think one of the Paradigm shifts that we're seeing is that originally we had we have had this mantra to just talk about let's do structural reforms And the private sector will do what they will deal with arrest And often that resulted in more fiscal adjustment and and and difficulties at the country level But not necessarily in a comprehensive thinking of what was necessary And I think you all are aware that as we track inequality around the world We've seen rising inequality around the world and even though there has been Slowing down of this trend since the global financial crisis with some countries turning the corner a little bit We still have two-thirds of countries having significantly higher inequality today than they had 10 years ago 15 years ago So I think from from that perspective and bringing these pieces together What has been important of course has been the highlight on on skills the inclusion and the ability of people to continue participating in the global economy by investing in education and skill levels Has been the I mentioned infrastructure But has also been what we find is increasing increasingly important is exactly understanding the microeconomics of the of the growth process the microeconomics at the firm level and the linkages between the financial sector financial access skills and firm capabilities that are so critical to bring Firms and economies to the frontier and I think this is something that links very closely with the work that we've been doing with the World Economic Forum on global value chains and sustainable value chains to start finding a way in which Firms around the world can actually access information About what is it that's where are people investing where firms investing in value chains? Where are they engaging? Where are they expanding and what are the opportunities for local firms to tap into these value chains and what are the Practices and the regulatory environment that is needed to make the participation in these values change sustainable and That's a platform the the grow inclusive platform that you may have been have heard mentioned before That we're working on that have been working on for some time now and that will be launched in January And big and go public. It's gonna provide it's gonna use big data for allowing us around the world to see Actually, what is happening on the value chain world, but also give the public site sufficient information on Regulating or overseeing the expansion of these value chains in the way that they're actually sustainable and that workers who are tapping into these value chains have jobs that are safe and and sound and secure and Not damaging the environment either. So I think that's the that's the vision It's going from the big reforms and the big structural reforms to the more micro understanding of what's happening at the firm level and supporting the integration of the Developing world into these value chains to then get lasting reduction of poverty Around the world as as more workers actually tap and are able to be part of trade and development And the growth process Going forward. Thank you very much. Great. Well, thank you