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Promoting Inclusive Growth

Challenges and Policies

image of Promoting Inclusive Growth

This volume discusses several policy challenges facing countries to achieve and sustain inclusive growth. The volume is based on the proceedings of a conference co-organised by the OECD Economics Department and the World Bank on 24-25 March 2011, which brought together academics and practitioners from advanced, emerging-market and developing economies. While discussions on strong growth typically focus on the pace of economic expansion, those on inclusiveness also delve into the patterns of growth and on how its benefits are shared among the various social groups. An important message that came out of the conference is that strong growth is not necessarily inclusive and that policy action is needed to make sure that pro-growth initiatives also foster inclusiveness.

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Individualised service provision and the new welfare state

Are there lessons from Northern Europe for developing countries?

Welfare states in the advanced countries are responding to the rise of new, immeasurable risks by relying less on social insurance and more on the provision of customised social services, such as education, which enable citizens to acquire the capacities needed to respond to the risks they face. These services are provided by a novel form of organisation that addresses the classic problems of public administration - how to limit discretion while increasing the responsiveness of the organisation to changing circumstance - by authorising front-line workers to search for new solutions, but with the requirement that they explain and justify their decisions to peers. The successful Finnish school system exemplifies this new type of organisation. Research on the limited effectiveness of conditional cash transfers, which is the favoured strategy for improving social services in developing countries, suggests the need for customisation in this setting too, so changes in advanced country service provision may hold lessons for development.

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