Ensuring Sustainable and Inclusive Global Growth

The World Economic Forum’s Annual Meeting of the New Champions (#AMNC24), taking place from June 25-27 in Dalian, People’s Republic of China, will gather leaders from business, government, civil society, and international organizations to discuss the future of global growth. With ‘A New Global Economy’ as one of the six key pillars, the meeting aims to address how the world can achieve sustainable and inclusive growth amid various challenges.

According to the World Bank’s latest Global Economic Prospects, the global economy is set to stabilize, while the World Economic Forum’s Chief Economists Outlook expresses ‘cautious optimism.’ About 80% of chief economists expect growth to remain unchanged or somewhat stronger this year, with nearly 70% anticipating global growth returning to levels above 4% within the next five years.

Innovation and Technological Advancement:

Fostering Innovation: Encouraging research and development in cutting-edge technologies can drive productivity and economic growth. Governments and businesses should invest in innovation ecosystems, including startups, research institutions, and educational programs.
Digital Transformation: Leveraging digital technologies can enhance efficiency, create new markets, and provide solutions to global challenges. Ensuring digital inclusion by bridging the digital divide is crucial for equitable growth.

Inclusivity:

Equitable Opportunities: Policies should focus on providing equitable access to education, healthcare, and employment opportunities. This includes promoting gender equality, supporting marginalized communities, and ensuring social protection for all.
Inclusive Labor Markets: Adapting labor markets to be more inclusive, with measures such as reskilling programs and support for small and medium-sized enterprises (SMEs), can ensure that economic growth benefits a broader population.

Sustainability:

Green Economy: Transitioning to a green economy is essential for long-term sustainability. This involves investing in renewable energy, sustainable agriculture, and green infrastructure while phasing out reliance on fossil fuels.
Climate Action: Governments and businesses must commit to reducing carbon emissions and mitigating climate change impacts. Policies should incentivize sustainable practices and support innovation in green technologies.

Resilience:

Strengthening Resilience: Building resilient economies that can withstand shocks, such as geopolitical tensions and climate crises, is crucial. This involves diversifying economies, enhancing social safety nets, and investing in infrastructure that can adapt to changing conditions.
Global Cooperation: Enhancing international cooperation is vital to address global challenges. Trade policies should aim to ensure security, employment, and development, balancing competing priorities like technological advancement and inclusive growth.

Policy Recommendations for Governments

Coordinated Fiscal Policies:
Governments should adopt coordinated fiscal strategies that promote sustainable investment and support economic recovery. This includes targeted spending on healthcare, education, and infrastructure to drive long-term growth.

Trade and Industrial Strategies:
Developing trade and industrial strategies that foster competitiveness and innovation is essential. Policies should encourage sustainable trade practices, support domestic industries, and facilitate access to global markets.

Social and Environmental Governance:
Strengthening social and environmental governance frameworks can ensure that economic activities align with sustainable development goals. This includes implementing regulations that promote corporate responsibility and environmental stewardship.