The Centre for Social and Economic Progress hosted a Seminar on Poverty to Empowerment: Raising the Bar for Sustainable and Inclusive Growth on Friday, August 25, 2023, 04:15 pm – 05:30 pm IST. Attendees joined in-person at the CSEP Auditorium (6 Jose P Rizal Marg, 2nd Floor, Chanakyapuri, New Delhi – 110021).

About the event:

Economic growth, inclusion, and the net zero transition have largely been viewed in silos. In a new study, From poverty to empowerment: Raising the bar for sustainable and inclusive growth, MGI examines them as part of a connected system as the world simultaneously attempts to raise living standards and get on a net zero pathway. The research, launched against the backdrop of the G20 dialogue with the Business 20 (B20) Summit, assesses how much progress market forces can deliver—and the choices facing leaders about how much further to go.

This is a decisive decade for both people and the planet since 2030 is the target date for the Sustainable Development Goals (SDGs) and also approximately when the world’s carbon budget is projected to run out. MGI’s research sizes what it would take in economic terms to address both of these imperatives.

With large populations exiting extreme poverty, development economists have argued for a complementary bar to measure the next stage of progress, with higher minimum living standards. MGI’s research puts forth a concept called “economic empowerment.” The empowerment line identifies the spending power needed for everyone to meet their basic needs for housing, energy, food, healthcare, education, and more, plus a small margin for savings to reduce the risk of falling back into poverty.

Presenters:

Sven Smit is a senior partner at McKinsey & Company and the chair of the McKinsey Global Institute (MGI), the firm’s business and economics research division. He leads research on global economic trends and topics such as productivity and growth, urbanisation, innovation and technology, labour markets, the future of work, emerging markets, and Europe’s economic outlook. He is currently a member of MGI’s global leadership team, and the Shareholders’ Council, which oversees MGI’s knowledge development. Based in Amsterdam, he contributes to society through NL2025, an initiative committed to a better future for the Netherlands.

Anu Madgavkar is a partner with the McKinsey Global Institute (MGI) and is based in New Jersey. Anu leads global research focused on labour markets and human capital, technology’s economic impact, gender economics, digital and financial inclusion, and inclusive growth. She has also led research efforts focused on India’s economic growth, labour market, and digital economy. Anu was previously based in Mumbai, where she co-led McKinsey’s financial institutions work in India.

Panelists:

Laveesh Bhandari is President and a Senior Fellow at CSEP. He has been leading climate change and sustainability research at CSEP, and has published widely on subjects related to sustainable livelihoods, industrial, economic and social reforms in India, economic geography and financial inclusion. He has taught economics at Boston University and IIT Delhi. He has been the managing editor of the Journal of Emerging Market Finance and worked at the National Council of Applied Economic Research (NCAER), New Delhi.

Renu Kohli is a Senior Fellow at CSEP. She has research and practitioner experience on macroeconomic policies and issues. She has previously worked with the RBI, the IMF and think tanks including ICRIER and the Institute of Economic Growth. Her work has focused on financial sector liberalisation, capital flows and exchange rate management in emerging markets with a special India focus, international macroeconomic coordination, and recently, the macroeconomic impact of decarbonisation in India.

Closing Remarks:

Montek Singh Ahluwalia is a Distinguished Fellow at CSEP and has been a notable figure in Indian economic reforms from the early 1980s onwards. He has previously served as the Deputy Chairman of the Planning Commission of India, Finance Secretary in the Ministry of Finance, and as the first director of the Independent Evaluation Office of the IMF. He has written extensively on various aspects of development economics and is a recipient of the Padma Vibhushan, India’s second-highest civilian award for public service.

Moderator:

Rakesh Mohan is President Emeritus and Distinguished Fellow at CSEP. Previously, he was Senior Fellow at the Jackson Institute for Global Affairs, Yale University, Professor at Yale’s School of Management, and a Distinguished Consulting Professor at Stanford University. Closely associated with the Indian economic reforms process since the late 1980s, he has served in senior roles including as the Deputy Governor of the Reserve Bank of India, Secretary, Economic Affairs and Chief Economic Adviser, Ministry of Finance.

Please contact Manmeet Ahuja at MAhuja@csep.org for any enquiries.

All content reflects the individual views of the speakers. The Centre for Social and Economic Progress (CSEP) does not hold an institutional view on any subject.