Ministerial Meeting 2016: Enhancing productivity for inclusive growth

ITEM 3: Enhancing Productivity for Inclusive Growth

Wednesday 1 June 2016 - 14:15

Enhancing productivity for inclusive growth is the main theme of the Ministerial Council Meeting. Ministers discussed the problems of slow productivity growth and rising inequalities, as well as possible linkages between them, addressing, in particular, the importance of knowledge diffusion, skill-matching and access to finance and infrastructure.

Following a plenary introductory session, Ministers convened in breakout groups. In the first segment of the breakout groups, Ministers were invited to exchange views on:

the factors driving the decline of productivity growth and of rising inequalities
their interaction and impact on our societies

In the second segment, Ministers were invited to address the topics identified under each group.

3.1 Anticipating Trends - Education, Skills and Quality Jobs

Ministers participating in this breakout group were invited to:

discuss policies that link education, skills and quality jobs, in the context of the next production revolution
exchange views on how to improve education and skills development to prepare people to adapt successfully to an uncertain and rapidly changing labour market
discuss how to promote more inclusive labour market policies and increased job quality
explore the future of jobs in response to digitalisation, technological and demographic changes

3.2 Preparing for the Next Production Revolution (Innovation, Entrepreneurship and the Digital Economy)

Ministers participating in this breakout group:

explored key structural factors that influence the knowledge creation and diffusion process, its effects on the transformational changes induced by the digitalisation of the global economy, and how governments can best deal with the resulting challenges (e.g. digital divide) and opportunities
discussed how to incentivise greater experimentation with new technologies and business models that encourage innovation and inclusive growth
explored the role of investment in R&D and other forms of Knowledge Based Capital (KBC)
discussed why productivity divergences between frontier firms (those most productive in each industry) and the rest have increased in recent decades
focused on policies that promote productivity growth by fostering innovation, investment and entrepreneurship
discussed how GVCs, KBC and digitalisation are ushering the next production revolution

3.3 Enabling Environment (regulatory policy and competition, finance and corporate issues) for Dynamic and Inclusive Economies

Ministers participating in this breakout group:

reviewed competition and regulatory policy frameworks to ensure a level playing field, including in the digital economy, to support productivity gains through a reallocation of resources, the avoidance of market distorting policies, and greater innovation diffusion
addressed how governments can provide a strong regulatory basis for dynamic businesses and an inclusive economy, including an efficient use of big data
identified factors that affect productivity growth on the corporate side (i.e. R&D expensing, debt-equity balance, M&A activity)
considered how labour, product and financial market policies interact to create an enabling environment for productivity, but also for the inclusion of vulnerable segments of society

documents

The Productivity-Inclusiveness Nexus
For reference: C/MIN(2016)3
Enabling the Next Production Revolution: The Future of Manufacturing and Services (Interim Report)
For reference: C/MIN(2016)5