Concepts and measurement of fairness of green economies - What can we learn from international development experience? Presentation by Maryanne Grieg-Gran. This presentation was given at the Expert Workshop on Equity, Justice and Well-being in Ecosystem Governance, held at the International Institute for Environment and Development (IIED) in London, March, 2015.

1. Concepts and measurement of
fairness of green economies
What can we learn from international
development experience?
Maryanne Grieg-Gran
Expert Workshop on Equity, Justice and Wellbeing in Ecosystem
Governance, March 26/27th, IIED, London

2. Concepts
Fairness
Fair
Unfair
Equity
Social equity
equitable
inequity
inequitable
Justice
Social justice
just injustice
unjust
Inclusion
Social
inclusion
inclusiveness
inclusivity
inclusive social
exclusion

3. Same or distinct?
• ‘Equity relates to fairness’ World Development Report 2006 p.18
• ‘For ethical considerations of equity and fairness,
growth must be shared and should be inclusive’
ADB 2011p.4
• ‘Sustainability is inextricably linked to basic questions
of equity –that is, of fairness and social justice.’
Human Development Report 2011
• ‘Equitable economic development is characterized by
narrowing development gaps …., better access to
opportunities for economic development, social
welfare and justice, and more inclusive participation’
ASEAN Framework for Equitable Economic Development

4. Conceptual influences
• Rawls: Theory of Justice
– Equal rights to liberty for all
– Inequalities only acceptable if they help the poorest - maximin
– Fair equality of opportunity – regardless of initial place in society
– Procedural justice – to ensure just outcomes
– Limitations on income inequality to prevent concentrations of
power
• Sen: Capabilities approach
– Poverty as a deprivation of capabilities not just low income
– Aim for equality of capabilities rather than resources
• Roemer: Equality of opportunities
– Target unequal opportunities caused by factors that are beyond
individuals’ control

5. Fairness defined
(Chronic Poverty Report 2008 p12 )
‘Fairness is about treating people equally.
This includes an avoidance of absolute
deprivation through basic entitlement and rights.
Fairness also includes three further aspects:
•Equality of opportunity
•Equality in process; and
•A limited disparity of outcomes’.

6. Equity and Development
World Development Report 2006
• Two principles for measuring equity
– Equal opportunities
– Avoidance of absolute deprivation
• Health, education and consumption
• Implications of these principles
– Distribution of opportunities matter more than
distribution of outcomes
• provided a social minimum is achieved
– Some inequalities in outcome are acceptable as they
reflect effort rather than pre-determined circumstances
• race, gender, social or family background

7. Equity and Development (cont.)
Measurement and indicators
• Absolute deprivation
– Poverty- national and international poverty lines
– Health - infant mortality rate
– Education – mean years of schooling, population share
with no schooling
• Equality of opportunities
– Poverty, health and education outcomes disaggregated by
gender and rural/urban location
– Distribution data for income, consumption and land
• Shows challenges of measuring equality of
opportunities
– distinguishing between effort and circumstances

8. Human Development Report 2011
Sustainability and Equity: A Better Future for All
• Definition of equity: by reference to inequity:
unjust inequalities between people
• Focus on inequalities in capabilities but
challenging to measure
• Uses inequality in outcomes as a proxy
– Trends in income, health, education inequality
– Inequality-adjusted human development index
• Poverty also measured as an equity element

9. Social Justice in an Open World
International Forum for Social Development
• Definition of social justice seems narrow
– equivalent to distributive justice as ‘the fair and
compassionate distribution of the fruits of economic
growth’
• But broad scope in examining what is distributed
• Critical domains of equality and equity
– Equality of rights
– Equality of opportunities
– Equity in living conditions – contextually determined
‘acceptable’ inequalities

10. Social justice in an open world
Measurement approach
• Six important areas of distributive inequality
– Income; assets; opportunities for work and employment
– Access to knowledge; health services, social security and safe
environment; opportunities for civic and political participation
• Concludes that social justice is receding globally
– Growing disparities in income and assets
– Link between socioeconomic class and access to healthcare and
education
– Decline of participation of citizens in public affairs
• Patchy data and anecdotal but:
– Draws attention to process and participation
– Highlights income inequality

11. ADB’s framework of inclusive growth
Poverty and inequality outcomes
Pillar One
Growth and
expansion of
economic
opportunity
Pillar Two
Social inclusion
to ensure equal
access to
economic
opportunity
Pillar Three
Social safety nets
Good Governance and Institutions

12. Indicators for Inclusive Growth
• Outcomes for poverty and inequality
– Popn share below national/international poverty lines
– Top 20% to bottom 20% income/consumption ratio
– Non-income health and education
• Social inclusion
– Access and inputs to education and health
– Access to basic infrastructure, utilities, services
– Gender equality and opportunity
• Social safety nets
– Social protection and labour rating
– % of government expenditure on social security and welfare
• Good governance and institutions
– Voice and accountability
– Corruption perceptions index

13. Some reflections
• Little substantive difference between concepts of fairness,
equity, justice and inclusion when used by international
development organisations
– Often used inter-changeably
– Where distinctions are made this reflects personal choice or
political stance
• Measurement frameworks reviewed here differ less in the
concept they are measuring than in the relative emphasis
they give to the four elements in CPR’s fairness definition
– Reduction of poverty or deprivation
– Equality of opportunities
– Equality of process/procedural justice
– Limited disparity of outcomes

14. Reflections cont.(2)
• Poverty reduction is central to all 4 frameworks
– Income and non-income dimensions
• Equality of opportunities/capabilities
– Some disaggregation of outcomes by circumstance but
data gaps e.g for race and ethnicity
– Difficulties in distinguishing between effects of effort or
choice (‘good inequalities’) and circumstances (‘bad
inequalities’)
– Need to analyse not only outcomes but also:
• Political and social barriers
• Policy actions taken to promote access for different social groups
• Perceptions of discrimination of different groups

15. Reflections cont. (3)
• Equality in process/procedural justice
– Receives little attention – data challenges
– ‘Participation’ but in employment not decision-making
– ADB’s Good Governance and Institutions based on
composite indicators/rankings – perception surveys
• Limited disparity in outcomes
– Little emphasis in conceptual frameworks except IFSD
• focus on opportunities/good and bad inequalities distinction
• political sensitivities
– Income inequality indicators included but without a
conceptual underpinning.

16. Lessons for ecosystem governance
• All four ‘fairness’ elements are relevant to ecosystem
governance - poverty is central but one of several
• Frameworks offer little guidance on:
– judging what level of disparity in outcomes is acceptable
– Determining what are good or bad inequalities
• Distributive justice key for benefit sharing, compensation
• Local costs and national/global benefits
• Need all four elements but not enough
– Focus on poverty reduction, equal opportunities ,fair process
elements can reduce disparities
– Focus on fair process can affect how disparities are perceived
– But ultimately some negotiation needed
• Distribution of outcomes does matter

17. References
• ADB, 2011. Key Indicators for Asia and the Pacific 2011: Framework of Inclusive Growth Indicators, Special
Supplement. Asian Development Bank, Manila.
• Ali, I. and Zhuang, J. 2007. Inclusive Growth toward a Prosperous Asia: Policy Implications.ERD Working
Paper No. 97, Asian Development Bank, Manila.
• CPRC 2008. The Chronic Poverty Report 2008-09: Escaping Poverty Traps. Chronic Poverty Research
Centre. Manchester, UK.
• International Forum for Social Development. 2006. Social Justice in an Open World: The Role of the United
Nations. Department of Economic and Social Affairs, United Nations, New York
• Rawls, J. 1971. A theory of justice,: Harvard University Press, Cambridge, MA
• Roemer, J. 1998. Equality of opportunity, Harvard University Press, Cambridge, MA
• Sen, A. 1980. “Equality of what?” in S. McMurrin (ed.), The Tanner Lectures on Human Values, Vol.1, Salt
Lake City: University of Utah Press
• UNDP 2011.Human Development Report 2011.Sustainability and Equity: A Better Future for All. United
Nations Development Programme, New York: Palgrave Macmillan.
• World Bank, 2005.World Development Report 2006: Equity and Development , Washington D.C.: The World
Bank

18. Acknowledgements
This research was funded by UK aid from the
UK Government, however the views expressed do not
necessarily reflect the views of the UK Government.