New Ideas on Development After the Financial Crisis: Forum on Constructive Capital

The global financial crisis of 2008 had a profound impact on economies around the world, leading to widespread recession and job losses. In the aftermath of the crisis, there was a growing sense that the prevailing economic model was no longer sustainable and that new approaches to development were needed.

In May 2021, the Forum on Constructive Capital was held to bring together experts and practitioners from various fields to discuss new approaches to development in the wake of the financial crisis. The forum was organized by the World Economic Forum in partnership with the Organisation for Economic Co-operation and Development (OECD) and the United Nations Development Programme (UNDP).

Main Ideas

The Forum on Constructive Capital identified a number of key ideas that are essential for promoting sustainable and inclusive growth in the wake of the financial crisis. These ideas include:

• Rethinking the role of finance: The financial sector has a critical role to play in supporting sustainable development. However, the traditional focus on short-term profit maximization has led to a number of problems, including financial instability and inequality. New approaches to finance are needed that emphasize long-term value creation and social impact.
• Investing in human capital: Human capital is essential for economic growth and development. Investing in education, health, and other forms of human capital can help to create a more productive and equitable society.
• Promoting social innovation: Social innovation is the development of new ideas and solutions to social problems. It can play a vital role in addressing the challenges of sustainable development, such as climate change, poverty, and inequality.
• Creating inclusive growth: Economic growth should not only benefit the wealthy. It should also create opportunities for the poor and marginalized. Inclusive growth requires policies that promote job creation, reduce inequality, and expand access to essential services.

Outcomes

The Forum on Constructive Capital led to a number of concrete outcomes, including:

• The launch of the Constructive Capital Alliance, a global network of organizations that are working to promote sustainable and inclusive growth.
• The development of a set of principles for constructive capital, which provide guidance for investors and other stakeholders on how to use their capital to create positive social and environmental impact.
• The creation of a number of new initiatives to support social innovation and inclusive growth.

The Forum on Constructive Capital was a significant event that brought together experts and practitioners from various fields to discuss new approaches to development in the wake of the financial crisis. The forum identified a number of key ideas that are essential for promoting sustainable and inclusive growth, and it led to a number of concrete outcomes that will help to shape the future of development.