Weekly Development Brief

1. Towards Inclusive Growth: The elusive buzzword is made (slightly more) tangible with specific policy objectives on how to achieve it: increasing productivity, decreasing inequality, promoting equal access to employment opportunities, creating inclusive financial instruments, and developing and safety net infrastructure for people most vulnerable. Nothing new is revealed; although, on a purely self-serving perspective, it behooves emerging economies to include financial inclusion in their policy agenda because it has shown to be the engine for sustainable long-term growth. (Tao Zhang, IMF)
2. Rethinking GDP: Some new measures are proposed, such as natural capital and its rate of loss, externalities, welfare, etc. It's easier to criticize rather than change something, however, and the article acknowledges this. GDP's shortcomings are explained, but unless something simple and exhaustive can replace it, this measure is here to stay. It presents modern challenges to measuring GDP. Evolving technology and the blurring between household work and "legitimate" work (rightfully decried by feminist champions) are a few examples. Nonetheless, the key takeaway from reading this article is that my memory is abysmal. A lot of these concepts shouldn't be refreshers, but they are. I need to be more disciplined in my learning. (Diane Coyle, IMF)
3. Getting It Right: Behind every sexy new robot is a less sexy policy agenda that is just as important in spurring innovation. And it's just as complicated to conceive of, develop, and create: while patent box policy is effective in some countries, it can have adverse effects on others. I believe innovation isn't created by a once-in-a-lifetime-wunderkind-who-achieves-beyond-all-expectations. Wunderkinds are cultivated through time, with long-term educational planning and proper fiscal incentives that encourage innovation. Now that's sexy. (Ruud de Mooij, IMF)