INCLUSIVE BUSINESS

Recommendations

Info

DeLab Why and how to promote inclusive business through public policy interventions At the initial stages of the inclusive business approach, the role of governments and public policies was vastly overlooked. The inclusive business approach was seen as an alternative to the approach to development based on public policies and international cooperation, and reflections on the topic focused mainly on business strategy issues. However, the experience showed that in successful cases of inclusive business, virtuous public policies did play an important role (Tewes-Gradl, Peters et al., 2013). The need for public policies for inclusive business is two-fold. On the one hand, doing business in low-income communities is challenging, for a number of reasons that have been recalled in the previous chapter and that found confirmation in the G20 survey. On the other hand, positive externalities produced by inclusive businesses, such as the social benefits associated with the inclusion of poor people in the socio-economic system, cannot be “appropriated” (through higher prices) by the companies that invest in these businesses, and belong to a domain that is closer to the field of “public goods” and “development goals”. At the same time, many of the barriers to inclusive business are policy-related and can therefore be eased or resolved by government action. In fact, as the Development Working Group of G20 (2013) underlines, government action can help to create the general conditions (infrastructures, legal frameworks) needed for markets to Source table: “Policy Note on Inclusive Business Policies”, Development Working Group of the G20 (2013) 40
Chapter two function, it can correct market failures (such as externalities and information asymmetries), and implement policies of welfare inclusion, which ultimately enhance poor communities’ capabilities to participate in local markets and value chains. So how can public policies remove existing constraints and promote the development of inclusive business? The G20 Policy Note of Inclusive Business Policies proposes a framework that identifies 4 areas where inclusive business faces challenges and constraints (information, rules, financial resources, structure & capacity) and 3 types of public interventions (enabling, encouraging, and empowering) that governments can deploy to overcome such barriers. 5 The inclusive Business Policy Framework Type of constraint Type of approch Information Rules Financial Resources Strucutre and capacity Enable companies to enter low-income markets • Data • Research • Peer learning • Overarching policy frameworks • Legal forms • Industry regulation • Standards • Market-rate credit • Infrastructure Encurage companies to invest in inclusive business • Awards • Obligatory inclusion • Subsidies and tax relief • Impact investing funds • Guarantees • Public procurement • Development partnerships Empower low-income people to partecipate in markets • Awareness rasing • Formalizing informal markets • User subsidies • Inscurance schemes • Capacity building Source: “Policy Note on Inclusive Business Polices”, Development. Working Group of the G20 (2013). 5. See Development Working Group of the G20 (2013) for more details and discussion. The framework has later been developed into a policy toolbox by Tewes-Gradl, Peters et al. (2013). 41
Page 1: Lucia dal Negro (edited by) INCLUSI
Page 5: What is De-LAB? De-Lab is an intern
Page 8 and 9: 1 Instead, he now emphasises what h
Page 10 and 11: Executive Summary This publication
Page 12 and 13: DeLab: solutions about inclusive bu
Page 16 and 17: DeLab Chapter 01 Lucia Dal Negro De
Page 18 and 19: inclusive business DeLab 18
Page 20 and 21: DeLab 1 In 2025 there will be 3 bil
Page 22 and 23: DeLab 22
Page 24 and 25: DeLab Targets A univocal definition
Page 26 and 27: DeLab Understanding BOP people by s
Page 28 and 29: DeLab How? LOCAL PARTNERSHIPS How M
Page 30 and 31: DeLab Managerial innovations Togeth
Page 32 and 33: DeLab Green innovations One of the
Page 34 and 35: DeLab An enlightening example Accor
Page 38 and 39: DeLab The role of public policies i
Page 42 and 43: DeLab According to this framework,
Page 44 and 45: DeLab A Map of inclusive Business T
Page 46 and 47: DeLab Results of the develoPPP prog
Page 48 and 49: DeLab reference to inclusive busine
Page 50 and 51: DeLab Chapter 03 Mirko Tricoli NGO
Page 52 and 53: DeLab New approaches in development
Page 62 and 63: DeLab Chapter 04 Lucia Dal Negro De
Page 64 and 65: DeLab Inclusive Business Made in It
Page 66 and 67: DeLab Having said that, is this sce
Page 68 and 69: DeLab Construction, one of the most
Page 70 and 71: DeLab Photo: RhOME for denCity sust
Page 90 and 91:
DeLab: solutions about inclusive bu
Page 92 and 93:
DeLab: solutions about inclusive bu
Page 94 and 95:
DeLab Conclusions 94
Page 96 and 97:
DeLab Food for thoughts This public
Page 98 and 99:
DeLab Time to be engaged Since 2000
Page 101:
Acknowledgements Several sections i
Page 104:
delab.it
show all

INCLUSIVE BUSINESS

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?