AMSTERDAM – Since the 2008 financial crisis threw the world economy into a tailspin, there has been much talk about the need to pursue inclusive, sustainable prosperity. Yet policymakers in developed and developing countries alike have largely continued to rely on reactive, one-dimensional strategies aimed at boosting economic growth, instead of adopting a systemic approach that moves beyond output to account for social and environmental objectives. This may be about to change.
A recent report called New Growth Models – produced by the Nobel laureate Michael Spence and an array of distinguished policy and business practitioners, and released at the World Economic Forum’s meeting in Davos – highlights the deficiencies of the current approach. More important, it calls upon policymakers worldwide to commit to new growth models that foster inclusiveness and sustainability, alongside prosperity.