Rebuilding state capacity for inclusive economic transformation – Harvard Kennedy School

Report on Harvard Kennedy School’s Reimagining the Economy Initiative: Emphasizing Sustainable Development Goals

Introduction to the Initiative and Event

The Harvard Kennedy School’s Reimagining the Economy initiative, managed by the Malcolm Wiener Center for Social Policy and the Center for International Development, recently hosted the fourth event in the 2024 “Economics and Beyond” series. This series convenes experts from diverse disciplines to address major economic challenges, focusing on state capacity—the government’s ability to implement policies effectively—and ensuring inclusive economic systems that benefit all citizens.

Event Focus: Rebuilding State Capacity for Inclusive Economic Transformation

The discussion titled “Rebuilding State Capacity for Inclusive Economic Transformation” featured:

• Don Moynihan, Professor at the University of Michigan Ford School
• Jennifer Pahlka, Senior Fellow at Niskanen Center and author of Recoding America
• Elizabeth Linos, Emma Bloomberg Professor of Public Policy and Management and Faculty Director of The People Lab (moderator)
• Dani Rodrik, Co-director of the initiative and Ford Foundation Professor of International Political Economy (introducer)

The panel concentrated on enhancing government efficiency and effectiveness to serve citizens better, aligning closely with several Sustainable Development Goals (SDGs), including:

1. SDG 16: Peace, Justice, and Strong Institutions
2. SDG 10: Reduced Inequalities
3. SDG 8: Decent Work and Economic Growth

Streamlining Services: Designing Policy with People in Mind

Don Moynihan introduced the concept of administrative burdens, defined as the complex paperwork, bureaucracy, and regulations citizens face when interacting with government services. These burdens consume valuable time and effort, often obstructing access to essential resources.

Moynihan’s personal experience highlighted the challenges faced by individuals navigating government systems, particularly in immigration and accessing disability resources for his child. Together with sociologist Pamela Herd, he authored Administrative Burden: Policymaking by Other Means (2018), which explores the learning, documentation, administrative, and emotional costs imposed on citizens.

This concept resonates with the SDGs by emphasizing the need to reduce barriers to government services, thereby promoting:

• Inclusive access to social protection and public services (SDG 1: No Poverty)
• Equitable participation in economic and social life (SDG 10: Reduced Inequalities)

Cutting Bureaucracy and Building Efficient Governments

Jennifer Pahlka stressed the importance of government’s role in supporting its constituents while acknowledging existing inefficiencies. She noted that government employees themselves face cumbersome procedures, which hinder service delivery.

Pahlka described the current state as an “over-proceduralized bureaucracy” across state, local, and federal levels, which undermines the government’s capacity to implement policies effectively.

Addressing these inefficiencies aligns with the SDGs by:

• Strengthening institutions for transparency and accountability (SDG 16)
• Fostering innovation and inclusive economic growth (SDG 8)
• Ensuring responsive, inclusive, and participatory decision-making (SDG 16)

Conclusion

The Harvard Kennedy School’s Reimagining the Economy initiative highlights the critical role of state capacity in achieving sustainable and inclusive economic transformation. By focusing on reducing administrative burdens and streamlining government bureaucracy, the initiative contributes directly to advancing multiple Sustainable Development Goals, particularly those centered on strong institutions, reduced inequalities, and sustained economic growth.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 16: Peace, Justice and Strong Institutions
   • The article focuses on state capacity, government efficiency, and reducing administrative burdens, which relate directly to building effective, accountable, and inclusive institutions.
2. SDG 8: Decent Work and Economic Growth
   • The discussion on inclusive economic transformation and ensuring the economy works for everyone connects to promoting sustained, inclusive economic growth and productive employment.
3. SDG 10: Reduced Inequalities
   • The article highlights challenges faced by vulnerable groups (e.g., people with disabilities) in accessing government services, linking to reducing inequalities within and among countries.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 16 Targets:
   • 16.6: Develop effective, accountable and transparent institutions at all levels.
   • 16.7: Ensure responsive, inclusive, participatory and representative decision-making at all levels.
2. SDG 8 Targets:
   • 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation.
   • 8.5: Achieve full and productive employment and decent work for all women and men.
3. SDG 10 Targets:
   • 10.2: Empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicators related to SDG 16:
   • 16.6.1: Primary government expenditures as a proportion of original approved budget, by sector (implied through discussion on government efficiency and capacity).
   • 16.6.2: Proportion of the population satisfied with their last experience of public services (implied by focus on reducing administrative burdens and improving government service delivery).
   • 16.7.2: Proportion of population who believe decision-making is inclusive and responsive (implied through emphasis on inclusive economic transformation and government responsiveness).
2. Indicators related to SDG 8:
   • 8.3.1: Proportion of informal employment in non-agriculture employment, by sex (implied by focus on inclusive economic policies).
   • 8.5.2: Unemployment rate, by sex, age and persons with disabilities (implied by mention of challenges faced by people with disabilities in accessing resources).
3. Indicators related to SDG 10:
   • 10.2.1: Proportion of people living below 50 per cent of median income, by sex, age and persons with disabilities (implied through discussion on social inclusion and access to government services).
   • 10.3.1: Proportion of population reporting discrimination or harassment (implied by highlighting administrative burdens affecting vulnerable groups).

4. Table of SDGs, Targets and Indicators

Source: hks.harvard.edu