'Left Behind' and the Future of Inclusive Growth

Inequality is at the centre of economic policy debate across the globe. A fair and equitable distribution of income and opportunity is a critical foundation of the social contract.

However, increasing disparities between regions within countries are growing both in the UK and across the world. In countries such as Ethiopia and Rwanda, for example, the gains from a decade of rapid growth pre-pandemic have not been shared equally, with regional inequalities having likely widened post-pandemic according to IMF analysis.

Takeaways from the Event:

In September, we welcomed in the second instalment of the Palladium Conversation Series to discuss regional inequality and the future of inclusive growth. The topic was brought to life by Sir Paul Collier and Palladium's Caroline Bostock.

The discussion focused on addressing the widening gap between regions, both domestic and internationally. Using extracts from his most recent book, Sir Paul underscored the importance of avoiding top-down, prescriptive approaches when working with disadvantaged regions. Instead, he advocated for humility and genuine partnership. Lessons drawn from countries such as Rwanda, where spatially inclusive policies have been pivotal, provide a blueprint for both the developing and developed world. Rwanda's innovative use of technology, such as drones to deliver medical supplies to rural areas, demonstrates how decentralisation can foster equality across regions.

Domestically, Caroline Bostock shared personal insights from her experience in left-behind ex-industrial communities, highlighting the necessity of place-based solutions. She emphasized the importance of creating opportunities in struggling regions, focusing on investment in education, infrastructure, and local job creation—ensuring people don't have to leave their homes to succeed. The call for inclusive policies in the UK revolves around not only boosting regional economies but also restoring hope and confidence in these communities.

Looking forward, the panel urged a rethinking of policy frameworks. For the UK, this means developing targeted investments in areas that need it most - ensuring a national commitment to equality of voice and respect. More globally, through a combination of resilience, robustness, rapid learning and reciprocity, we can reduce inequalities.

For policymakers the challenge is clear, commit to a future where growth is built off these principles to ensure it is truly inclusive and no region is left behind.