Trickle down policies favour companies and rich people through tax facilities and investments, assuming that the positive effects will also ‘seep down’ to the poor at the bottom of the pyramid. However, there is limited evidence that this approach works. We decided to explore and elaborate a complementary approach in which the poorest and most vulnerable groups are considered to be the main target groups: the so-called Trickle Up approach.
The current predominant neo-liberal approach favours the higher segments of society through investments and lower taxes, assuming that this also benefits the poor, the so-called Trickle down principle. However, the Trickle down effect manifests itself as a collateral benefit rather than having a robust impact. Also, the focus is very much on the formal sector and has limited impact on the informal sector, being the biggest sector in many countries. Moreover, there is limited evidence that this approach works.
Partos and The Spindle decided to explore and elaborate a complementary approach in which we primarily invest in the poorest and most vulnerable groups, rather than the upper or middle classes, which will benefit wide economic development. The so-called Trickle Up approach.
Read everything about this approach in the synthesis study 'Trickle Up: How Pro-Poor Investments Drive Economic Development'.
The aim of the publication was to provide a synthesis of evidence and to formulate principles, to guide programmatic interventions and lobby efforts in pursuit of fair, and sustainable economic development, in which everybody counts and no one is left behind.
In April 20119, six members of the Leave No One Behind platform co-developed the Trickle Up proposition, which advocates inclusive economic development and pro-poor investments. Eventually. Since the Trickle Up principles got published various members of the ‘Partos lobby group’ used the Trickle Up proposition in their lobby demands for the next government to innovate the private sector development by using a more bottom up approach and integrating key SDG principles, such as inclusion and social dialogue. Meanwhile, The Spindle gave a presentation to members of Fondsen in Nederland on development cooperation and inclusion (how to reach the poorest of the poorest/most marginalised) and the Trickle Up proposition. The proposition and its principles were discussed multiple times during various meet-ups such the Partos Innovation Festival and the meetings of the Dutch platform Leave No One Behind.
Finally, in early 2020, the Partos lobby group incorporated the Trickle Up notion and approach, for the first time, in the position and lobby papers of Partos vis-à-vis the next parliamentary elections.
The following Trickle Up principles are meant to guide the programmatic interventions and lobby efforts in pursuit off fair, and sustainable economic development, in which everybody counts and no one is left behind.
Nothing about us without us. The further development of these Trickle Up principles is a continuous mutual learning process. We will seek more inputs by and to empower those who are at stake in the first place: the most vulnerable and excluded groups.
Mainstream SDGs. Apply and mainstream the Sustainable Development Goals, the objectives of reducing income and wealth inequality and the ‘leave no one behind’ principle in all policies, goals, targets and interventions.
Participation and access. All stakeholders should be enabled to participate in, and have access to governance, justice, natural resources as well as ecological, social and economic services.
Pro-active impact assessment. When designing policies or interventions: apply an SDG assessment on these policies and interventions, with a particular focus on the inclusion of the most vulnerable groups.
Integration. Implement comprehensive, multifaceted, integrated and gender-sensitive programmes to sustainably lift the poor(est) out of poverty and invest in the creation of decent, productive employment.
Tax. Promote the shift towards progressive taxation and from taxation on labour to taxation of ‘unsustainable’ activities. Eliminate illicit financial flows and tax avoidance in developing and developed countries. Invest in the capacity building of national and subnational governments to generate tax revenue for redistributive, pro-poor policies.
Divestment. Stop investing in unsustainable practices and trade/value chains and promote investments in sustainable practices and trade/value chains as well as coherent policy-making with regards to fair trade agreements.
Dialogue. Provide for overarching dialogues within value chains (e.g. supply chains) to address root causes that prevent the creation of decent and productive employment and to promote shared responsibility for both creating decent work and minimising collateral, social, ecological or other damage.
Engage with the private and informal sector in jointly promoting and pursuing coherent, fair and inclusive business practices; e.g. refer to NGO and company partnerships for inclusive business. Invest in (informal) smallholder businesses with spill-over effects for the broader economy and design development interventions that suit the (semi-)informal character of the local economy.
Innovation and technology. Invest in innovative technologies serving inclusion and empowerment of the bottom of the pyramid and promote digital literacy in developing countries.