New Growth Models

The report argues that traditional GDP-centric growth models are insufficient and often lead to rising inequality and environmental degradation. It proposes a shift toward a 'dashboard' approach to measurement, counter-cyclical fiscal policies, and the fostering of entrepreneurial ecosystems to ensure that growth benefits a broader segment of the population while preserving natural capital for future generations.

• Traditional reliance on GDP and GDP per capita is insufficient for measuring true progress because it ignores non-market value creation and the declining correlation between average income and other dimensions of well-being.
• Current growth patterns in many countries are characterized by rising domestic income inequality, where median incomes stagnate while the upper end of the distribution grows, undermining social cohesion and political stability.
• The erosion of the 'natural capital base' through environmental degradation threatens to short-circuit future prosperity and creates adverse intergenerational implications.
• Fiscal policy should be counter-cyclical and gradual in its deficit reduction to avoid crowding out public sector investment in infrastructure and to allow the private sector to adjust structurally.
• To achieve inclusive growth, policy-makers should prioritize protecting people and families directly during structural changes rather than attempting to protect specific jobs, companies, or sectors.
• Entrepreneurship is identified as a key driver of inclusive growth, requiring an 'ecosystem' of supportive institutional technology, including the rule of law, intellectual property protection, and a culture that tolerates failure.
• The quality of institutions—including the rule of law, property rights, and transparent government—is a fundamental determinant of whether a nation achieves prosperous and sustainable growth.

APA

World Economic Forum (2014). New Growth Models. http://www3.weforum.org/docs/GAC/2014/WEF_GAC_NewGrowthModels_ChallengesStepsGrowth_Report_2014.pdf

Chicago

World Economic Forum. New Growth Models. 2014. http://www3.weforum.org/docs/GAC/2014/WEF_GAC_NewGrowthModels_ChallengesStepsGrowth_Report_2014.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=New Growth Models |date=January 2014 |url=http://www3.weforum.org/docs/GAC/2014/WEF_GAC_NewGrowthModels_ChallengesStepsGrowth_Report_2014.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2014new, author = {{World Economic Forum}}, title = {{New Growth Models}}, institution = {World Economic Forum}, year = {2014}, month = jan, url = {http://www3.weforum.org/docs/GAC/2014/WEF_GAC_NewGrowthModels_ChallengesStepsGrowth_Report_2014.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }