An Integrated Governance Approach towards Inclusive Development Runa Sarkar Professor, Economics Group, IIM Calcutta

Some Definitions…1 Inclusive Growth: economic growth that creates opportunity for all segments of the population and distributes the dividends of increased prosperity, both in monetary and non-monetary terms, fairly across society. Inclusive Development: Growth plus plus…adding more wellbeing related parameters Inequality Health Education Empowerment entitlement WHICH growth WHOSE growth WHAT outcomes

Some Definitions…2 Governance: System of strategic processes and tools, as well as institutions, rules and interactions for effective policy making, leading to social cohesion, public expenditure efficiency control of corruption sustainable, inclusive economic growth reduce transaction costs strengthen contract enforcement Quality of institutions is more important for growth than geography or trade. Relevant THROUGHOUT the policy cycle Design Implementation Evaluation

Governance Implications of Inclusive Growth

Inclusive Institutions for Inclusive Policy Making Openness, Engagement, Transparency, Integrity, participatory Mechanisms, inclusive Public Sector, Dispute Resolution mechanisms Design Understand the challenges Policy framework to tackle multidimensionality Solid evidence identification Implementation Aligning spending decisions Coordination Innovation in service delivery Evaluation Assessment of distributional Impact Responsive Changes Comprehensive Evaluation and Feedback However, Inclusive Growth will only gain traction if it commands the attention of the public and of policy makers as an appropriate frame of reference for designing policies for the betterment of society.

Strategic Framework: Key Elements Assessment focuses on outcomes that matter for well-being. Responsive changes are made based on assessment Comprehensive independent evaluation, informs new policy Performance and accountability mechanisms to align capacity and resources Coordination mechanisms to enable ‘joined-up’’ outcomes. Innovation in service delivery - access and reach Key National Indicators translate societal priorities Evidence (ex ante, ex post) and multidimensional data for assessment Multilevel governance, policy coherence to align outcomes. Spending decisions are aligned with Inclusive Growth goals

Ministry Budget Assessment and Inclusive Growth DESIGN

Stakeholder Engagement IMPLEMENTATION

Stakeholder Engagement IMPLEMENTATION

Assessment EVALUATION

Microfinance – an Integrated Approach

Showing the way....... Multiple entities Complementary activities All related to inclusiveness Lessons Outcome focussed Equity AND efficiency Tradeoffs exist Fungible Model Political Economy undisturbed Achievable!!

Thank You!