Inclusive Growth Framework Fundamentals
Inclusive economy
Summary
An inclusive economy is one in which everyone has a part to play. The economy is flourishing and sustainable, and everyone benefits from it. This contrasts with an economy where a small group of people benefit first, and where wealth is then redistributed later or trickled down.
Considerations
For growth to be inclusive, interventions in investment and policy must improve living standards for everyone, leaving nobody behind.
It is important to consider all elements of the economy. For example, strengthening smaller businesses and social enterprises in local areas increases the vibrancy of our local places and encourages pride in place. This also improves the ability of local areas to stay resilient when faced with external shocks which adversely impact the economy.
Investments that increase and sustain future spending power in a local area help to nurture improvements beyond the initial investment period. When businesses and organisations pay a real living wage, growth becomes fairer, and the wealth of the community as a whole grows.
Outcome
People experience an increase in their household incomes and a better standard of living.
Metrics
- Gross Disposable Household Income per head of population at current basic rates
- Youth claimant rates as a % proportion of 16-24 year olds in the WMCA area.
- GDP per capita in the WMCA area
- Proportion of employee jobs below Living Wage in the region
- Average turnover for a social enterprise in the West Midlands
Inclusive Growth Framework
