Dynamics of Inclusive Prosperity

For centuries cities have had the potential to provide opportunities for a better life. Often, they are the focal points for economic, social, intellectual and political activities. However, increasing urbanization typically goes hand in hand with rising inequality and exclusion and this is a challenge for cities in both the Global North and South. What can be done at the municipal level to reduce poverty and inequality, raise participation in education, reduce crime and insecurity and increase employment? The typical external partner in our project under this theme will be the City of Rotterdam, including collaboration with the port authority. Also, collaboration with other cities, both nearby (The Hague) and far away (especially in China) are foreseen. While work in this area primarily takes the perspective of possible interventions by the public sector, it will also study how private actors and for-profit initiatives can contribute to improvements. Clearly, this theme has a strong link to the topics covered by the Erasmus Initiative “Vital Cities and Citizens”.

Ecological trade-offs can have significant effects on inclusion (or exclusion) through activities that, at least at first glance, quite clearly lead to more prosperity. Industrial agriculture, fishery and forestry, mineral mining and petrochemical industry are commonly seen to contribute to economic prosperity and are therefore protected by strong legal frameworks, despite degrading the environment at the local and global level. Obvious gains from industrial activities and global supply chains are accompanied by substantial and sometimes dramatic losses for widespread communities. What is needed to create outcomes that are socially more fair and ecologically sustainable? How can global supply chains be transformed so that the benefits are fairly shared and the environment is respected? In this context, there is also a connection to the Erasmus Initiative “Smarter Choices for Better Health”, especially their work on population health and health equity.

In our complex society the availability of a sophisticated financial system is indispensable. Much of our innovation and development would be impossible without a system that efficiently distributes the financing and allows for risk sharing. However, financial markets are also considered by some as culprit of much inequality and many argue that both academic research in finance and actual industry practices have to change drastically if finance is to play a more positive role in society. Is the current financial system helping or does it widen the gap between the rich and the poor? How should finance research and industry practice change to stimulate sustainable investments, corporate social responsibility, or universal access to financial services? How can current and new socio-legal institutions of finance re-orient and regulate investment practices to stimulate inclusive prosperity?