Linking Inclusive Growth and Sustainable Development Goals in Regional Economies

Introduction

In the current national context marked by political polarization around equity and inclusion policies, regional leaders increasingly acknowledge that racially inclusive growth is vital for sustained prosperity. This consensus among civic and business leaders aligns with the United Nations Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth) and SDG 10 (Reduced Inequalities). Furthermore, federal economic policies have highlighted the importance of strategic sectors such as clean technology, semiconductors, and biotechnology in driving regional prosperity, supporting SDG 9 (Industry, Innovation, and Infrastructure) and SDG 7 (Affordable and Clean Energy).

Challenges in Linking Growth and Inclusion

Inclusive growth is defined by the active participation of individuals from diverse backgrounds as owners, executives, innovators, and workers within future-oriented industries. However, most regions experience weak connections between economic growth initiatives and inclusion efforts. Local inclusion programs often operate independently from globally competitive industries, which are critical for providing quality jobs and wealth creation opportunities. This disconnect undermines progress towards SDG 8 and SDG 10.

Role of Business Leadership Organizations

Business leadership organizations, including chambers of commerce and regional economic partnerships, play a crucial role in bridging the gap between inclusive growth and economic development. Their responsibilities include:

1. Organizing businesses in key industries to communicate clear demands for skills and inputs.
2. Enabling public and civic sectors to invest confidently in workforce preparation aligned with industry needs.
3. Facilitating feedback from communities to businesses to enhance competitiveness and inclusivity.
4. Adapting business practices to incorporate overlooked workers and small business owners.

These functions contribute directly to achieving SDG 8, SDG 9, and SDG 10 by fostering equitable economic participation and innovation.

Importance of Civic Network Management

The orchestration of cross-sector collaboration, often termed “convening,” requires more than neutral coordination. It demands purposeful creation and management of civic networks to implement a shared economic strategy. Without a clear understanding of this role, investments tend to favor narrow programs with limited business engagement, impeding the foundations of inclusive growth.

Framework for Invisible Civic Infrastructure

This report identifies five regional capabilities that constitute the “invisible civic infrastructure” essential for racially inclusive economic growth. These capabilities were derived from case studies of eight diverse business leadership organizations participating in Brookings Metro’s Regional Inclusive Growth Network. The framework emphasizes:

• The necessity for organizations to invest in these capabilities.
• The challenges involved in developing such capabilities.
• The transition from siloed approaches to integrated strategies for inclusive growth.

This approach aligns with SDG 17 (Partnerships for the Goals) by promoting multi-stakeholder collaboration for sustainable development.

Implications for Leadership and Policy

Corporate, government, civic, and philanthropic leaders can utilize this framework to evaluate and enhance the effectiveness of business leadership organizations within their regions. The anticipated outcomes include:

• Recognition and support for organizations building essential capabilities.
• Increased pressure on other organizations to elevate their standards.
• Broader regional achievement of truly inclusive economic growth.

These outcomes contribute to the realization of multiple SDGs, including SDG 8, SDG 9, SDG 10, and SDG 17, by fostering equitable economic development and strong partnerships.

Conclusion

Integrating inclusive growth with strategic economic sectors through empowered business leadership organizations is critical for sustainable regional prosperity. This report provides a practical framework to guide such integration, emphasizing the importance of civic infrastructure and cross-sector collaboration in achieving the Sustainable Development Goals.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 8: Decent Work and Economic Growth
   • The article emphasizes inclusive economic growth and the importance of creating opportunities in key industries such as clean-tech, semiconductors, and biotechnology.
   • Focus on business leadership organizations to foster economic prosperity and job creation.
2. SDG 10: Reduced Inequalities
   • The article highlights racially inclusive growth and the need to ensure people of all backgrounds benefit and participate in economic growth.
   • Addressing equity and inclusion at regional levels.
3. SDG 17: Partnerships for the Goals
   • The article discusses the role of business leadership organizations as intermediaries that convene cross-sector collaboration between corporate, government, civic, and philanthropic leaders.
   • Emphasis on creating networks and partnerships to enable inclusive growth.

2. Specific Targets Under Those SDGs Identified

1. SDG 8 Targets
   • Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation.
   • Target 8.5: Achieve full and productive employment and decent work for all women and men.
2. SDG 10 Targets
   • Target 10.2: Empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, or other status.
3. SDG 17 Targets
   • Target 17.17: Encourage and promote effective public, public-private, and civil society partnerships.

3. Indicators Mentioned or Implied to Measure Progress

1. Indicators related to SDG 8
   • Employment rates in key strategic sectors such as clean-tech, semiconductors, and biotechnology.
   • Number and quality of jobs created in these industries.
   • Participation rates of diverse groups (racial and ethnic minorities) in ownership, executive roles, innovation, and workforce.
2. Indicators related to SDG 10
   • Measures of racial and ethnic inclusion in economic growth outcomes.
   • Representation of marginalized groups in business leadership and small business ownership.
3. Indicators related to SDG 17
   • Number and effectiveness of cross-sector partnerships and networks convened by business leadership organizations.
   • Investment levels in inclusive growth capabilities by business leadership organizations.

4. Table of SDGs, Targets, and Indicators

Source: brookings.edu