THE ATLAS OF Innovation For Economic Stability

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THE ATLAS OFInnovationfor EconomicStability Supported byThe Atlas of Innovation for Economic Stability1

Atlas- (n) A book of maps or charts.Innovation- (n) Anything different than standardpractice that has the potential for radical social,environmental, or economic impact.Economic Stability- (n) The ability to meet basicneeds and to prosper, even in the face of economic,political, or social volatility.ISBN 0-89492-927-52The Atlas of Innovation for Economic Stability

AcknowledgementsFHI 360 would like to acknowledge the generous support ofThe Rockefeller Foundation for this research and crowdsourcingeffort, and the constructive engagement and feedback providedby Alyson Wise, Associate Director, Jobs, and Ashvin Dayal,Associate Vice President & Managing Director, Smart Power.Phil Psilos served as FHI 360’s principal investigator. FHI 360team members include lead researcher Claire Gillum, writerShawn Kelley, art director and graphic designer Irinn Viniaphat,and social media lead Leanne Gray. An expert group includingCaroline Averch, Bryanna Millis, Monika Aring, and JacquelineBass provided input and feedback on the research process. FHI360’s Ivan Charner and Michael Tetelman provided invaluablereviews of a draft version of the Atlas. In addition, TanyaAccone, UNICEF, Derval Usher and Dwayne Caruthers, PulseLab Jakarta, and Tim Nourse, Making Cents International,made significant written contributions pertaining to theirorganizations and activities.The Atlas of Innovation for Economic Stability3

How to Navigate this Interactive PDFClick on any bold chapter title in the text or icon to navigate to that chapterStabilizing Jobs and Gigs focuses on work-linked innovationsthat help both employees and non-standard workers cope withpresent and future instability. These include several technologyenabled efforts by global brands to encourage worker welfare andlabor standards compliance;Where you see an innovation listed in bold text, click to go to its profileon work-linked innovations that help both employees and non-standard workers cope withpresent and future instability. Some of these, including LaborLink and Workplace Options,Golden Dreams, and the Strategic Partnership for Supply Chain Transformation areforging new technology-enabled alliances between global brands, local employers, and employeesto improve worker wellbeing and strengthen;Click to navigate to The Table of Contents or to a specific chapter from anywhere inthe document4567891011Click this icon at the bottom of the right-hand pages to return to the introductionBack to Innovations by Chapter4The Atlas of Innovation for Economic Stability12

Table of Contents ExecutiveSummary ForewordsIntroduction mBANKING Reg. Small Enterprises,Unlimited Stabilizing Jobsand GigsConsumptionFloors and Nets InclusiveFinancializationBig Data, Small Devices(Better Livelihoods)CollectiveSecurity RTPASSPO Personhood andRightsIndiaIndia Innovation LabConclusions &RecommendationsAnnex Annex Annex More aboutInnovationsFindingsReferencesThe Atlas of Innovation for Economic Stability1

1Executive SummaryBuilding on previous work to define the landscape and key indicators of inclusiveeconomies, in The Rockefeller Foundation provided support to FHI to engagein a global search to identify policy, program, and technology innovations that promoteeconomic stability for individuals, communities, firms, and countries, with an emphasison the welfare of poor and vulnerable people worldwide. This Atlas of Innovation forEconomic Stability is the output of our global research and crowdsourcing effort.A wave of good economic news in has not fundamentally altered the basic story ofa slow and imbalanced economic recovery from the financial crisis. The aftermathaccelerated growth in wealth and income inequality, economic fragility of the middleclass across the developed world, and saw little improvement in the livelihoods of mostpeople who live in lower-income countries and work in the informal sector.IContextIn the US and Europe, stagnant or declining real wages and a shift towards nonstandard work are now widely recognized as eroding longstanding social bargains,creating a large new class of formerly middle-class workers referred to as the “precariat.”Unstable work arrangements introduced over the past years and accelerated by the“gig” and “platform” economies, and predicted large-scale job loss or restructuringresulting from automation and other features of an oncoming “Fourth IndustrialRevolution,” portend a future of greater volatility in how people work and earn. Inhigh-income OECD countries, this means less certainty about opportunities in theformal job market. For developing countries, it interrupts development trajectoriesthat assumed the growth of mass industrial employment would be a stepping stone tohigher incomes.In this sense, there appears to be a convergence in process in which income earnersaround the world are likely to face more similar baseline levels of uncertainty andinstability. This is the case despite significant progress in reducing poverty in thedeveloping world, rapid growth in many emerging economies, emergence of dynamictechnology sectors in India, China, Kenya, Indonesia, and Vietnam, and broad-basedglobal commitment to achieving the Sustainable Development Goals.IIFramingEconomicStability2For individuals, households, and communities, economic stability is the ability to meet basicneeds and to prosper, even in the face of economic, political, or social volatility. Influences oneconomic stability encompass macroeconomic management, regulatory quality, socialsafety nets and labor protection, labor and agricultural markets, personal security,and basic rights, including recognition of identity, property, and fair treatment bygovernment. Together these factors comprise a “funnel,” depicted in Figure , withmore macro-factors at the top, meso-factors related to interaction with the market inthe middle layers, and more personal micro-influences at the base. Our findings are alsopresented in order, from top-to-bottom of the funnel.456789101112

GOVERNMENT AND SYSTEMSSTABILITY INFLUENCEATLAS CHAPTERMacroeconomic policy and managementGovernance and regulationSmall Enterprises, UnlimitedStabilizing Jobs and GigsConsumption Floors and NetsInclusive FinancializationSocial and labor protectionFinancial sector and inclusionAgricultural and labor marketsPublic safety and emergency servicesIdentity, individual land and property rightsBig Data, Small DevicesCollective SecurityPersonhood and RightsINIVIDUALS AND FIRMSWhen people and firms are supported in all of these dimensions, they have theconfidence and predictability required to invest in their own futures, the means ofinvesting at acceptable levels of risk and of capturing the returns on their investments,and economic resilience to shocks and stresses. Access to services and supports acrossthe funnel ultimately helps ensure sufficient stability of income and consumption toallow economic advancement even when confronted with volatility.Stability-enhancing policies and programs such as retirement and unemploymentbenefits, labor standards, and crop insurance are traditional hallmarks of moreadvanced economies. Outside of the European Union, many social protections arelinked to employment in the formal sector and tend to develop in middle-incomecountries as national wealth and formal sector employment rises. In lower- and lowermiddle income countries, the vast majority who are own-account and contributingfamily workers—for example, those engaged in subsistence agriculture or mixedlivelihoods—lack access to work-based social and labor protections, and householdsand communities typically bear the full risk of their economic participation. The currenttrend towards non-standard work and risk of elimination of formal sector jobs throughautomation calls into question the viability of existing work-linked social protectionmechanisms at several levels of this funnel, and makes the pathway out of extremeinstability for lower-income country workers unclear. Our holistic view of economic stability departs from the common understanding inthe global development community, where stability is often treated as a macroeconomiccondition or a social outcome of economic prosperity. Many economists valuemacroeconomic and regulatory predictability but neglect the micro-foundations thatallow people to prosper from stability. Stability as a goal may not be exciting enough toattract the attention of donor governments and agencies. And in somecontexts, stability is confused with stagnation, framed as an alternativeto economic advancement rather than as a critical enabler. Past worksupported by the Rockefeller Foundation and our own research suggestthat bringing stability out of the “background” and into the centerof the global development conversation can improve performance ofglobal efforts to achieve inclusive economic growth.3

IIIBig TrendsEnablingInnovationIn addition to the widespread concerns about volatility in global labor markets and thefuture of work, we identified two big trends that are expanding the private and publicprivate provision of services that support of economic stability: the democratizationof data access on mobile devices and the trend towards more inclusive financialization.The rapid expansion of mobile phone technology in the developing world, includingmobile data services on smartphones, and associated technology trends that makeadvanced data and analytics services available through applications delivered tothese smartphones, has opened up a world of innovation across all of the layersof the stability funnel. Extraordinary levels of data power are now being deliveredvia commercial and non-commercial applications to very poor users in developingcountries, and to less poor but financially unstable citizens of the high-income world, inways that were impossible just a few years ago.New business models leveraging this technological revolution are also enabled byfinancialization—“the increasing role of financial motives, financial markets, financialactors and financial institutions in the operation of the domestic and internationaleconomies.” The financial sector has unleashed a great deal of interest, creativity,and capital on the global development agenda, moving beyond microfinance first intomobile payment and lending, often with donor encouragement. More importantly, thefinancial sector – often in partnership with global development actors – is actively developingdata-driven lending and products to spread financial risk that is traditionally borne entirelyby poor individuals, particularly small agricultural producers and firms, but also formal sectorworkers with unstable incomes worldwide. The data that formerly “financially invisible”mobile users generate allows banks to more accurately assess risks and more confidentlyextend new credit and insurance products while preventing over-indebtedness ofborrowers.For the purpose of this work, we define innovation broadly to include“anything different than standard practice that has potential forradical social, environmental, or economic impact.” IVInnovationsfor EconomicStabilityThe Atlas of Innovation for Economic Stability presents examples of howgovernments, donors, implementing partners, civil society organizations, andentrepreneurs work to deploy these and related technologies and approaches—as wellas hybrid models combining old and new approaches—at each level of the stability“funnel.” We found strong and diverse innovation “hot spots” in India, Kenya, andthe U.S., with Indonesia standing out for the use of data and innovation tools ingovernment, and Brazil innovating in public safety-related domains. The majority ofinnovations we discovered are privately-provided and enabled by mobile technologyand data, though we identified several pockets of significant government and donorparticipation in catalyzing or scaling innovation. Innovations are presented in seventopical chapters with a separate chapter on India.At the top of the stability funnel, governmental issues dominate. In the area ofmacroeconomic management—a cornerstone of stability that is not synonymous withinnovation—the Government of Indonesia is enhancing macroeconomic forecastingwith real-time transaction and shipping data to support its inclusive growth agenda.4456789101112

Innovations that simplify or enable small businesses to cope with their regulatoryenvironments appear in the chapter titled Small Enterprises, Unlimited. Theseinclude mobile technologies to improve MSME access to legal and regulatory complianceservices from Kenya, Uganda, and Nigeria, as well as regulatory reform in Jordan torecognize women’s home-based businesses, and the use of Human Centered Design toimprove business registration processes in Indonesia.Two chapters explore innovations in social and labor protection, which are traditionalareas of government leadership. Consumption Floors and Nets are targeted,government-driven social protection programs. The Atlas profiles evolving cash transfersystems in Mexico, Ethiopia, Indonesia, the Dominican Republic, and India. Themost innovative of these are incorporating new interfaces with privately-developeddigital payment and savings technologies. Experiments with universal basic income inFinland and UNICEF’s global innovation strategy for cash transfers are also explored.Stabilizing Jobs and Gigs focuses on work-linked innovations that help bothemployees and non-standard workers cope with present and future instability. Theseinclude several technology-enabled efforts by global brands to encourage worker welfareand labor standards compliance; privately-provided worker benefits in Vietnam andChina that extend credit and build worker loyalty; and two novel uses of real-time labormarket information to improve skills investment decisions from the U.S. Additionally,benefits for domestic and informal sector workers in the U.S. and Peru are featured.What is notable is the limited role of government in each of these areas—a significantdeparture from traditional labor protection practices.In the middle strata of the funnel, we explore new interfaces between livelihoods andthe market that enable people and small firms to confidently save and invest in thefuture, smooth income and consumption, insure against catastrophic risks, and makebetter production decisions. Inclusive Financialization highlights diverse data-drivenfinancial services and platforms that reduce instability, smooth consumption, and buildassets for people and firms. These innovations span women’s savings in Tanzania,data-informed agricultural and livestock insurance in China, India, Nepal, and Africawide, inclusive digital payment platforms in Mali, and agricultural leasing in Nigeria,as well as several technologies that provide direct assistance navigating personalfinances or smoothing inconsistent income while saving for the future in the U.S.Similarly, innovations featured in Big Data, Small Devices (Better Livelihoods)draw on financial technology, but are more focused on advanced uses of data andanalytics to improve livelihoods, particularly for subsistence farmers. Integrated, datapowered, and personalized farming or fishing advice, sometimes combined with accessto credit, is in operation in India, Indonesia, Senegal, Uganda, and Zimbabwe, withvoice-response services provided to expand access among low-literacy users in India.Two Kenyan innovations also link farmers to urban markets and assess smallholdercreditworthiness.Closer to the base of the funnel, stability issues become more focused on microfoundations: access to personal security and rights. Collective Security highlightsentrepreneurial, citizen- and government-led innovations that address acute gaps inpublic safety. Peer-to-peer or social models from Brazil and Kenya are highlighted,5

along with technology-enabled improvements in emergency response from El Salvadorand Indonesia. Two innovations specifically focused on women’s safety in urbanenvironments, one in the U.S. and a rapidly-spreading data-driven model from India.The final topical chapter on Personhood and Rights presents innovations that helpmarginalized groups—women in particular—to assert rights to identity, property, andfair treatment—both through improved policy channels and in private technologyenabled efforts. The Atlas profiles efforts to strengthen women’s rights to land,property, livelihoods, and health care enabled by social media and technology inBurundi, India, Pakistan, and throughout South Asia; expanding access to formaljustice for poor and vulnerable people in Haiti and Bangladesh; mobile technologiesthat help citizens hold government to account in providing rights and basic services inBrazil and Cambodia; and new and novel uses of blockchain-based digital identities forrefugees and vulnerable migrants in Jordan and throughout Southeast Asia.We reserve a special chapter for India, which has emerged in the last decade as theworld’s most dynamic lab for stability-enhancing innovations. The India Stack is a “publicgood” open data exchange system that combines biometric digital identities, verifiedpayments, and secure storage and signature of digital documents, upon which newentrepreneurial innovation for stability can flourish. Enhanced financial literacy, microlending to underserved businesswomen, and advanced services to farmers, in additionto the innovations profiled elsewhere in the Atlas, complement these efforts to build anew digital infrastructure for economic inclusion. If India’s public-private experiment issuccessful bringing hundreds of millions of rural poor into the economic mainstream,the approach will represent an entirely new political economy of economic inclusion.Throughout the Atlas, we also profile nine diverse individuals and groups of innovatorsin-depth. They include technology entrepreneurs, local and international NGOs, civilsociety networks, government initiatives, and multi-stakeholder partnerships fromIndia ( ), Indonesia, Kenya ( ), Pakistan, Peru, and the U.S., as well as one globalinstitution (UNICEF). Each shares a commitment to improving stability for individualsand communities. This diversity of innovation origins serves to dispel the notion thatinnovation and resulting entrepreneurship are driven primarily by “lone wolves:”almost none of these innovators worked alone. The reality is that innovations relevantto this topic often have a “driver”— a committed innovator or small group who drivetheir vision into reality—but also rely on a spectrum of social and inter-organizationalcollaboration.Conclusions and RecommendationsVThe purpose of the Atlas is to present novel and compelling innovations related toeconomic stability. Nonetheless, five broader conclusions and recommendations forglobal development emerged from analysis of and reflection on our findings.First, economic stability is central to the global development agenda andshould be identified and promoted as a cross-cutting enabler.Economic stability is closely related to many well-established inclusive developmentobjectives, including at least six of the Sustainable Development Goals (SDGs) andmore than twenty targets. However, because the concept of stability straddles severaldisciplines it does not have a coherent or unified constituency, and is often absent fromthe global development dialogue. Stakeholders in global development can strengthendisciplinary conversations by recognizing economic stability as a natural, cross-cutting6456789101112

enabler of their development goals. Donors can incorporate stability-related objectivesand indicators into programs designed to achieve their own objectives and the SDGs.Government, multilateral, and donor economists can more deliberately prioritize thedimensions of stability that impact household- an

2 The Atlas of Innovation for Economic Stability ISBN 0-89492-927-5 Atlas- (n) A book of maps or charts. Innovation- (n) Anything different than standard practice that has the potential for radical social, environmental, or economic impact. Economic Stability- (n) The ability to meet basic needs and to prosper, even in the face of economic,