Contrary to popular belief, countries don’t need to choose between fostering economic growth and improving the lives of their citizens. They can, in fact, do both.
Time is up for the traditional approach to economic development. While boosting GDP is important, policymakers no longer have the luxury of waiting for gains to translate—hopefully—to improvements in citizens’ lives. Instead, they need to deliver growth and well-being simultaneously. By creating jobs, nurturing skills, and improving access—for all—to services and opportunities, governments create a foundation for faster, more sustainable economic development. This requires pulling a variety of levers in a carefully orchestrated way.
The dynamics around economic development are rapidly evolving, and the most crucial levers for economic development can also be the most challenging to apply. New technologies and business models are shifting economic growth to new sectors. Rising levels of inequality and increasing competition for foreign investment are adding complexity—and urgency—to achieving sustainable economic growth and well-being. Our economic development consulting team helps governments and policymakers tackle the imperatives and impediments alike.
True economic development means laying a foundation for sustainable economic growth—for both a country and its citizens. The following client-impact stories highlight BCG's approach to making that happen.
Improving Financial Inclusion in Morocco. It was an all-too-common problem: seemingly accessible financial products launch, but too few people use them. BCG worked with Morocco to understand the factors behind low penetration rates, particularly among women, and to zero in on strategic levers and enablers, such as mobile payments and microfinance. We identified 150 key actions and designed a roadmap for financial inclusion that is truly inclusive.
Driving Innovation in Bangladesh. BCG developed the country’s emerging-tech Centre of Excellence (CoE) to drive innovation and talent growth at a national level. The CoE has enabled Bangladesh to position itself as a hub for emerging technology and get the country—and local companies—on the radar of global IT and business-process-outsourcing (BPO) firms. Within two years, the initiative created more than 1,500 jobs and more than $50 million in export revenues.
The tools we use in economic development consulting consist of cutting-edge resources and programs that help us quickly develop the optimal strategy for a particular region. Our most important tools include:
Covering 143 countries, the SEDA database lets us zero in on focus areas for a specific country while revealing best practices from outperformers. Using SEDA, we can gauge a country’s true performance—and determine how it can do better.
As inflows tighten, attracting FDI is more challenging than ever. BCG employs an end-to-end methodology, helping countries look beyond one-off deals and develop the unique value propositions, resources, and ecosystems that catch investors’ eyes—en masse and fast.
We partner with some of the world’s most influential global economic development organizations, collaborating to gain insights on how new—and often disruptive—ideas, technologies, and business models can further sustainable economic growth and well-being. For example, we’ve worked with the Bill & Melinda Gates Foundation to examine how cash-in/cash out systems—and mobile money agent networks in particular—can foster financial inclusion.
There is a nearly $4 trillion annual shortfall in SDG-related investments. New approaches—including ways to unlock private sector investment—can close the gap.
An economic value proposition can help governments attract talent and investment. To get started, focus on a few critical priorities—and build on your strengths.
Catalytic specialization areas (CSAs) can jump-start and diversify an economy by tapping into current trends—enabling rapid commercial growth with relatively low investment.
Youth unemployment is rising in Africa. To address it, governments need to identify the most-promising digital jobs and lay the foundation for their creation.
Our global economic development consulting experts include thought leaders in agricultural and financial technologies, digital, and agile ways of working. These economic development consultants have vast experience helping advance sustainable economic growth and well-being. Meet some of our experts on the topic.
