The Evian Group at IMD, a coalition of top stakeholders committed to a strong multilateral regime and open world economy in our current age of global interdependence, in collaboration with the Indian Ministry of Corporate Affairs and the Confederation of Indian Industry, organized a two-day international conference on the imperative of inclusive growth on October 20 and 21 in New Delhi. Over 200 participants attended the meeting, including individuals from government, international organizations and corporate representatives, and a group of young and inspiring entrepreneurs from around the world selected by the Evian Group to present their innovative approaches to the market with social impact. These business models included an SME finance initiative from China, mobile telephony services for the poor in Bangladesh, educational foundations in India, private equity for essential health services in Columbia, cash transfer schemes in Brazil, strategies to counter fake drugs in Ghana, skill development in Afghanistan and water management partnerships in Indian rural districts.

India has benefited from two decades of solid GDP growth yet Nehru’s “tryst with destiny” is far from having been achieved. The imperative for inclusive growth dynamics stems from the simple observation that 76 percent of India’s population contributes to 18 percent of national income. This is neither sustainable nor fair as recognized in India’s 11th Five Year Plan, which lays emphasis on inclusive growth, the social sector, rural development and physical infrastructure. All strands of Indian economic thought that contribute to this endeavour were present at the meeting: be it Social Democratic Nehruism espoused by the Congress Party in power, Radical Socialism in certain states such as Kerala or West Bengal, Liberal Capitalism dear to the business community or variants of Conservative Gandhism which certain NGOs and civil society adhere to.

A number of successful experiences and compelling cases for creating value through “bottom of the pyramid” integration were put forward at the meeting. In order to tend towards more inclusive growth, building a critical mass of responsible corporate involvement with the capacity to take the long view is crucial. The consensus was that growth in itself is not enough: opportunities must be provided, capabilities must be enhanced and ‘trickle-down’ agents must be identified. Many models exist for the provision of basic services that enhance welfare and equity and it is important to constantly assess and monitor the efficiency of the corporate sector relative to the state in terms of final delivery in specific contexts.

The discussions at the conference highlighted three facets of governance that need to be thought of in creating the type of accountability and incentive structures that will allow the fruits of growth to be shared by a broader segment of society: good governance beyond government, corporate strategies beyond the needs of stock markets and the responsibility of making the above happen.

Which partnerships are important? How can they be forged and sustained? How can pilot successes be mainstreamed and scaled-up? How can corporate leadership be exercised and applied to the dynamics of inclusion? These were among the questions that were tackled during the meeting.

“The issue at hand is not funds; it is the manner in which best outcomes can be achieved through knowledge, inspiration, motivation, management and leadership skills,” stated Jean-Pierre Lehmann, IMD Professor of International Political Economy and Founder of the Evian Group. “The absence of dignity attached to destitution and exclusion must be at the forefront of our minds.”

In summary, Professor Lehmann said: “Inclusive growth is an Indian challenge, but also a global one. One reason is that India will soon account for about 20% of the global population. The other is that India is justifiably aspiring to be a global leader. This conference was the launch of what is expected to be a five-year project on inclusive growth and global markets.”

IMD President John Wells opened the conference.

Learn more about the Evian Group Multi-stakeholder Dialogue V, held in Lausanne on October 3-5.