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Poverty                                                      Number 23
                   International Policy Centre for Inclusive Growth
                       Poverty Practice, Bureau for Development Policy, UNDP




Dimensions of Inclusive Development
2       International Policy Centre for Inclusive Growth




                                                        Growth, Equity and Sustainability: A Declaration of Interdependence
                GUEST
                                                            Over one billion of us live without many of the basics that the other six billion take as given.
             E D I TO R S                                   Although 28 countries have moved from low-income status to middle-income status, with
                                                            Ghana and Zambia among the newest Middle Income Countries, an estimated 800 million
                                                            people still live in low-income countries. Of these, half live in just five countries, three of
                                                            which are in sub-Saharan Africa. In these least-developed countries (LDCs), conflict, disaster
                                                            and broader human insecurity impose structural limits on efforts to move from crisis to risk
                                                            reduction and from growth to sustained development. So although many millions have been
Poverty in Focus is a regular publication of
                                                            lifted out of poverty in the last ten years, it is also true that more people live in chronic hunger
the International Policy Centre for Inclusive
Growth (IPC-IG). Its purpose is to present the              than ever before. Significant and sustained progress will require faster and better efforts.
results of research on poverty and inequality               The message of this Poverty in Focus is that, “For Growth to be inclusive, it must be sustained
in the developing world.                                    and sustainable and that, for it to be sustained and sustainable, it must also be equitable.”

                                                            As a contribution to the dialogue around Rio+20 and to the ongoing discussions around
Guest Editors                                               a post-2015 MDG Agenda, this Poverty in Focus links future development to sustainability and
  Leisa Perch and Gabriel Labbate                           particularly to social sustainability. Looking beyond the critical issues of ‘carbon footprints’,
                                                            ‘low-carbon development’,’ green economy’ and the economics behind saving the planet,
Desktop Publisher                                           it draws attention back to the continuing challenge of ensuring that growth and development
  Roberto Astorino
                                                            deliver for the poor and vulnerable. In its many forms—energy poverty, lack of access
Copy Editor                                                 to water and sanitation, malnutrition or insecure access to food, and lack of access to
  Lance W. Garmer                                           education and health—the scale and scope of global deprivation call current
                                                            development policy and practice into question.
Front page: Multiple Dimensions of
Development is the spirit behind this Poverty               Growth, gender, poverty and the environment can no longer be treated as loosely connected
in Focus. The images represent the range                    components of development. Recognizing their interdependence is at the core of improved
of issues, the people and the regions we                    and sustained development for all.
covered and also the message of dimensions
within a broader context. They also reinforce
                                                            For one thing, the continuing decline of the quantity and quality of natural resources and
the duality which lies behind development
at all levels, including the need for social as             of ecosystem functions is likely to exacerbate the likelihood of conflict over resources,
well as technological innovation as part of                 particularly water. According to UNDP’s Bureau for Crisis Prevention and Recovery,
structural transformation. Images 1, 3, 5-7                 35 countries had entered what could be designated a ‘post-conflict phase’ by 2008.
are from the IPC-IG “Humanizing Development”                The cost of conflict has been enormous, matching or surpassing, according to some
Global Photography Campaign (photographers
                                                            estimates, the value of ODA received in the last 20 to 30 years in the same countries.
respectively: GB Mukherji, Soleyman Mahmoudi,
Ramesh Pathania and Joyce Wambui).
Image 2 (Adrian Jankowiak) and image 4
                                                            Addressing topics such as the evolving debate on environmental and social justice
(Max Thabiso Edkins and ResourceAfricaUK).                  and improved accounting frameworks to ‘include’ environmental assets and services
                                                            in considerations of growth, the enclosed articles can help us go beyond lip-service to
Editors’ note: IPC-IG and the editors                       the notion of sustainability. They focus on the ‘software’ components of development,
gratefully acknowledge the generous                         highlighting the need for equal attention to process and to results. Suggesting that inclusive
contributions, without any monetary or
material remuneration, by all the authors
                                                            and sustainable development will need to leverage ‘social technologies’ such as political
and photographers of this issue.                            innovations, true engagement and honest evaluation, they make a clear case for a strong,
                                                            representative state and the complementary roles of civil society and the private sector
                                                            in defining and achieving sustained and sustainable development. They underscore the
                                                            role of formal and informal mechanisms in the negotiation and reconciliation
IPC-IG is a joint project between the United                of conflicting and competing interests.
Nations Development Programme and Brazil to
promote South-South Cooperation on applied
                                                            In view of the high expectations placed on the next year’s Rio+20 meeting, let us remind
poverty research. It specialises in analysing
poverty and inequality and offering research-               ourselves that ‘social sustainability’ will be built on the foundations of productive and social
based policy recommendations on how to reduce               inclusion. Too often, the focus has fallen largely on productive inclusion, with limited effort
them. IPC-IG is directly linked to the Poverty              to address the structural factors that cause and sustain exclusion and marginalization, be
Group of the Bureau for Development Policy,                 they related to gender, political processes, property rights for the poor, and so on. Moreover,
UNDP and the Government of Brazil.                          a focus on ‘sustained’ development as well as sustainable development acknowledges that,
                                                            for many countries, existing development gains are fragile and easily reversed. The acute
IPC-IG Director
   Rathin Roy
                                                            challenges faced by countries in the Horn of Africa due to persistent drought, displacement,
                                                            conflict and poverty are a case in point.
     International Policy Centre for Inclusive
     Growth (IPC-IG), Poverty Practice,                     A socially sustainable approach, say these authors, is one in which policy efforts do not shy
     Bureau for Development Policy, UNDP                    away from the many interdependent multiple dynamics, processes and situations that affect
                                                            vulnerability and predispose the poor and the vulnerable to harm from shocks and change.
     Esplanada dos Ministérios, Bloco O, 7º andar
     70052-900 Brasilia, DF Brazil
                                                            Growth, equity and sustainability are mutually compatible, if efforts have enough time
     ipc@ipc-undp.org                                       and resources, are responsive to underlying structural causes and encourage the vigorous
     www.ipc-undp.org                                       participation of the poor, allowing them to define their futures. What follows illuminates the
                                                            complexity of inclusiveness as a development outcome and highlights bold action in and by
The views expressed in IPC-IG publications                  the South. We hope that these articles serve as a source of further innovation and inspire
are the authors’ and not necessarily those of               more cooperation and the spread of knowledge within the South. Ours is an age of political
the United Nations Development Programme
or the Government of Brazil.
                                                            convulsions, global economic shifts, inexorable climatic change and stubborn poverty.
                                                            Informed and catalytic strategies are needed now more than ever before.
Rights and Permissions – All rights reserved. The
text and data in this publication may be reproduced
as long as written permission is obtained from IPC-IG
and the source is cited. Reproductions for
                                                                                                             by Olav Kjorven, Assistant Administrator
commercial purposes are forbidden.                                                          and Director of the Bureau for Policy Development, UNDP
Poverty in Focus    3




Overview:
Where People, Poverty,                                                                        by Leisa Perch,
                                                                                              International Policy Centre for Inclusive Growth


Environment and Development Meet
Twenty years after Rio, we are still            recently, within ‘making growth more
struggling with many of the same issues         inclusive including integrating both                             Often, the backdrop
and contradictions in the development           environmental risk and co-benefits’.                             for the discourse on
process that we faced earlier; in fact,                                                                          sustainability has been
many have become even more complex.             Overall, the successful combining of                             characterised by tension,
                                                social and environmental co-benefits in                          rather than by reconciliation,
The Rural Poverty Report 2011 (IFAD, 2010)      policy and practice has remained more                            among the economic,
notes that some 1.4 billion people              elusive. The Government of China’s                               social and environmental
continue to live in extreme poverty,            recent statements4 on the need to                                dimensions of development
struggling to survive on less than              reconcile growth and social development                          (i.e., the three pillars).
US$1.25 a day, and that more than two           with environmental sustainability signal
thirds reside in rural areas of developing      potential shifts, but the extent of such                         Overall, the successful
countries. Papers by Andrew Sumner              reconciliation is not yet clear. Similarly,                      combining of social and
(2010)1 and Ortiz and Cummins (2011)2           Indonesia and India have also taken                              environmental co-benefits
further emphasise that growth has not           steps to address such concerns, with the                         in policy and practice has
been equitable, with the latter paper           Government of India recently launching an                        remained elusive.
highlighting that the rate of change            incentive mechanism5 to promote greater
on the trajectory from indigence                energy efficiency in the private sector.                         The sustainability of
to poverty and from poverty to                                                                                   the supply of resources
non-poverty has been very slow for              Given the predominant view of the role                           (environment), sustained
the global poor as a constituency.              of capital and labour (in the economic                           access to resources in
                                                system) as factors of production and                             securing livelihoods
As the world turns its attention to COP 17      growth, competition and tensions are                             (society) and the quality
in Durban and the 20th anniversary of the       manifest in policy and institutional                             of financial resources
Rio Convention (the UN Convention on            frameworks. Natural capital is still seen                        (investments) are essential
Environment and Development), phrases           as another, even abundant factor of                              to stabilizing environmental
such as the ‘green economy’ and ‘inclusive      production, and the capacity of                                  change cycles, reducing/
and sustainable development’ are now            institutional checks and balances—                               mitigating ecological
shaping the discourse on development.           environmental ministries—to drive                                scarcity, and enhancing
In view of the expectations placed on           the agenda remains relatively weak.                              the renewal of the
the ‘green economy’, carbon credits,            Social sectors remain peripheral to                              ecological system.
and market-based mechanisms as                  many of the debates, national and
policy responses for development ills,          global alike, about how to arrest
this is a good time to remind ourselves         catastrophic environmental change.
about the need for ‘social sustainability’, a
critical pillar of sustainable development      The articles in this Poverty in Focus serve
—in other words, to reaffirm that               to highlight both the need for greater            1. See: <http://www.ipc-undp.org/pub/
                                                                                                  IPCOnePager120.pdf>.
greening processes will not automatically       focus on ‘software’ components to make
deliver for the poor or the vulnerable.         development work and the capacity of              2. See: <http://www.unicef.org/socialpolicy/files/
                                                                                                  Global_Inequality_Beyond_the_Bottom_Billion.pdf>.
                                                ‘social technologies’ to produce
Often, the backdrop for the discourse on        development and growth. Contributing              3. See Silent Spring by Rachel Carson (1962) and Limits
                                                                                                  to Growth by Donella Meadows (1972).
sustainability has been characterised by        to the debate about getting policy right,
tension, rather than by reconciliation,         Gabriel Labbate discusses the challenges          4. Thomas, L. (2011). ‘The Earth is Full’
among the economic, social and                  and opportunities that policy makers              in The New York Times. Available from
                                                                                                  <http://www.nytimes.com/2011/06/08/opinion/
environmental dimensions of                     face in implementing policies with                08friedman.html?_r=1&src=me&ref=general>.
development (i.e., the three pillars).          probably environmental and social
                                                                                                  5. See: <http://moef.nic.in/downloads/public-
At times, the discourse has been framed         dividends, and, together with Kishan              information/India%20Taking%20on%20
within ‘limits to growth’,3 and, more           Khoday, argues that the environment               Climate%20Change.pdf>.
4    International Policy Centre for Inclusive Growth




and society are organic systems                     While not a comprehensive list               of policy mixes that combine
constantly in flux and change and that              or accounting of the richness of social      the macro and the micro to deliver.
there may therefore be no ideal state of            and political innovation available for
sustainable development. Specifically,              development, the examples highlighted        On this point, Lucy Wanjiru’s article on
Khoday’s article, supported by many                 underscore the need for global policy,       accounting for gender and sustainability
others, including those of Lindiwe Sibanda          including the global climate change          raises the profile of equality as an
(FANRPAN) and Dan Smith and Janani                  agenda, to focus on incremental and          important condition for a green
Vivekananda (International Alert), signals          long-term gains as well as immediate         economy and shows the potential of
the need for more flexible policymaking,            ‘wins’. From the perspective of social       the Women’s Business Initiative to tackle
one able to adjust as new information is            innovations, the comparative analysis by     growth and affordability in tandem with
made available. Nicolas Perrin’s article on         Darana Souza and Danuta Chmielewska          equity, access, opportunity and the
the ECA region argues for the importance            highlights the benefits of ‘publicly-        quality of development. Leonardo
of taking note of the political economy             assigned rights and rights-holders’,         Hasenclever and Alex Shankland’s
dimensions of various policies.                     particularly when policy and                 review of REDD+ makes the case for
                                                    programmes then reinforce them.              the indigenous community as an equal
The article by Helene Connor and Laura                                                           partner, not just a beneficiary. Thus, a
Williamson further reinforces this by               The contributions by Leonardo                picture of cautious optimism, balanced
calling for a “blinders off” approach               Hasenclever, Alex Shankland and              with the need to move beyond
which move us beyond simplistic                     Nicolas Perrin highlight the continuing      rhetoric, emerges.
viewpoints of how power relationships               lack of coherence and the need to
define the interactions of the three                avoid complacency even when big              Reviewing the development context
pillars of development and how                      battles are won. Leisa Perch’s article       and challenges in the smallest countries
those pillars interact with each other.             on gender and employment also                (SIDS) to one of the largest (India), the
                                                    speaks to a number of subtle localized       authors’ common clarion call is for
Individually and collectively, the                  and micro realities that continue to         sustaining development and anchoring
contributions herein make a clear                   undermine socio-economic resilience.         development in society.
case for a strong, representative state             While specific to SIDS, they highlight
and the complementary role of civil                 the dynamic interplay between the            The authors argue that the sustainability
society and the private sector in                   economy at the household, group              of the supply of resources (environment),
defining and achieving sustained                    and macro level which often limits           sustained access to resources in securing
and sustainable development.                        sustained growth.                            livelihoods (society) and the quality of
They also refer directly and indirectly                                                          financial resources (investments) are
to the role of formal and informal                  Moreover, concerns expressed about the       essential to stabilizing environmental
institutions necessary for the negotiation          quality of employment and about the          change cycles, reducing/mitigating
and reconciliation of conflicting and               disconnect between needs and income          ecological scarcity, and enhancing
competing interests. The article by                 as well as the continuous exposure of        the renewal of the ecological system.
Denis Sonwa and Olufunso Somorin,                   SIDs to external shocks, resonate also       Even so, they also note that population
for example, makes a clear case                     for other countries and suggest the          growth and other demands place
anchoring rights and responsibilities               need to focus on adaptation and              significant and potentially exponential
in law where they can be defended                   resilience-building, not just as marks       pressures on assets, goods and services
yet linked to fluid systems of                      on the development trajectory, but           that are critical to future generations.
institutional building that respect                 also as continuously evolving processes.
local reality and culture.                                                                       Perhaps most critical for a rapidly
                                                    By probing some of the ‘uncomfortable’       globalizing and changing South is
This consensus suggests that the                    questions of politics and interests and      our reconfirmation that transnational,
planned discourse for the Rio+20                    by highlighting the potential for            regional and global concerns will
meeting on ‘institutional frameworks’               conflict, both overt and gradual, these      increasingly influence ‘national’ policy.
may need to ensure a broad scope                    articles suggest the need for greater        There can be no green economy
that can set standards and promote                  caution when addressing complex              without an international enabling
innovation and adaptation at all                    development challenges where not all         environment, particularly on trade,
levels of society.                                  interests, capacities and implications       that allows countries to invest, support
                                                    rest easily or clearly on the surface.       and anchor today’s development
This accords with Hodgson’s definition                                                           decisions in tomorrow’s possibilities.
of institutions as “systems of established          They particularly outline the acute but
and prevalent social rules that structure           lesser known ‘social’ knock-on effects
social interactions. Language, money,               of public policy failures and warn that
law, systems of weights and measures,               socially blind policies are unlikely         6. Hodgson, Geoffrey M. (2006). ‘What are Institutions?’
                                                                                                 Journal of Economic Issues, Vol. XL No. 1. Pp 1-25.
manners and firms (and other                        to be sustainable in the long term.          March edition. Accessed from <http://checchi.
organizations) are thus all institutions”.6         Critically, the articles show the capacity   economia.unimi.it/corsi/whatareinstitutions.pdf>.
Poverty in Focus   5




Integrating Poverty and                                                                     by Gabriel Labbate, Ph.D,
                                                                                            Senior Programme Officer,
                                                                                            UN-REDD Programme/Poverty

Environment Policies:                                                                       and Environment Initiative



Issues, Challenges and Opportunities
The integration of environmental               the poor, with a substantial share of
and development policies can be                damage originating in commercial                      The integration of
traced as far back to the 1960s with the       ventures attempting to satisfy the                    poverty and environment
publication of Silent Spring (Carson, 1962),   increasing demands of a growing                       policies has taken centre
to the 1970s with the establishment            population that has an increasing                     stage in the development
of UNEP, and to the 1980s with the             spending capacity and shifting                        debate for their potential
Brundtland Commission (WCED, 1987).            consumption patterns for value-added                  to generate substantial
The concept took central stage in the          good and services (MEA, 2005).                        social benefits.
Rio 1992 conference on environment and
development and continues today as a           There is little challenge to the idea that            Contrary to accepted
pivotal element in the ‘green economy’         the integration of development and                    beliefs, these policies
discussion (UNEP, 2011).                       environment can result in cost-effective              do not produce systematic
                                               policy options. The benefits can be                   win-win situations for
The understanding of how poverty and           non-trivial and encompass almost                      all sectors of society
environment interact with each other           every policy area, from local to national/            and therefore their
has also evolved. Initially, the idea          regional, from urban to rural (DFID, EC,              implementation faces
of a poverty-environment nexus                 UNDP, WB, 2002; TEEB, 2010). However,                 political difficulties.
as a synergistic spiral of environmental       while integrating poverty and
degradation and poverty dominated              environment policies can produce
the discussion (WCED, 1987; World Bank,        significantly positive and quantifiable
1992). Short-term needs overran potential      results, it remains more the
long-term benefits, with poverty inducing      exception than the rule.
environmental degradation, which,
in turn, exacerbated poverty. In this          Even development agencies find
conceptual model, poor individuals             the integration of their poverty and
are both victims and agents of                 environment portfolios a challenge,
environmental degradation.                     despite expanded efforts like the
                                               Poverty and Environment Initiative,
This synergistic cycle, however,               a partnership between UNEP and UNDP,
provides limited insight into the              and the global commitment to the
true dynamics of resource use by poor          MDGs as an overarching development
groups (Brocklesby and Hinshelwood,            policy framework.
2001; Dasgupta et al., 2005). Formal and
informal institutions are better at            There are good reasons for this:
explaining the short- and long-term
incentives that influence patterns             First, poverty and environmental
of resource use (North, 1990).                 policies can have significant
                                               synergies and be complementary,
The generalisation of this synergistic         but they still comprise largely
spiral also ignores issues of heterogeneity,   different types of intervention
or the notion that not all poor individuals    packages. A healthy environment
have the same capital endowments and           can be a necessary, but not sufficient,
that, therefore, equally poor groups can       condition to lift people out of
make different use of similar pools of         poverty. Some of the deepest poverty
resources (Chomitz, 1999; Barbier, 2000).      readings take place in quite pristine
                                               environments, such as in tropical forests
Often, the drivers of environmental            beyond the agricultural frontier
degradation are also moving away from          (Chomitz, 2007).
6   International Policy Centre for Inclusive Growth




                                                   The relationship can go the other way, too.   developing countries. In this context,
    The effect of very rapid                       Addressing social imbalances can be a         integrating poverty and environment
    growth on ecosystems                           necessary, but not sufficient, condition      would require policies that could be
    and their services has not                     to ensure sustainable resource use            politically unpalatable. The notion
                                                   (see also Gilbert, 2010).                     that sectors of society might have to
    been trivial. More than                                                                      sacrifice some consumption to achieve
    half of all ecosystem                          Second, a healthy environment is              a world free of poverty under conditions
    services are degraded or                       not a binary (0,1) variable. In most          of sustainability is still anathema to some
                                                   cases, the challenge is to find that          citizens in developed and developing
    being used unsustainably.                      level of resource pressure which allows       countries (Lind, 2010; Soley, 2010).
                                                   for increased income among the poor,
    Some estimates put                             yet that stays within perceived safe          Fourth, mainstreaming poverty-
                                                   limits—for example, those required to         environment policies in development
    global environmental                           preserve the resilience of ecosystems.        plans is not cost-free. It demands
    damages in 2008 alone                          This can turn into a complex                  time and attention from qualified
    at 11 percent of global                        optimisation problem, one in which            staff, a generally scarce resource.
                                                   the target is not to maximise a single        It can also entail re-accommodation
    GDP, several times the                         variable, but rather to find the              of expenditures between sectors
    impact of the global                           best balance among several.                   because realizing the benefits of
    financial crisis in the same                                                                 poverty-environment mainstreaming
                                                   Third, improving the well-being of the        can require increases in environmental
    year (UNEP, 2010).                             poorest implies increased consumption         spending, a potentially difficult choice
                                                   capacity (e.g., more food, better             for a policy maker with limited resources
    The best chances of                            clothing, housing, etc.). Traditionally,      (see also Bah, 2008).
                                                   development has been coupled with an
    success will come from                         increased production and consumption          As a result, some needed environmental
    sustained interventions                        of goods and services, resulting in a         investments may not be carried out
    that are honest at                             rate and pattern of growth in the last        because, as portfolio theory teaches us,
                                                   50 years in which the global economy          the fact that an intervention has a
    recognizing challenges,                        has increased six-fold, food production       positive payoff is not a sufficient
    focus on impact, do not                        has increased by two and a half times,        reason to automatically expect
    divorce themselves from                        and water use has doubled. The effect         its implementation. Proposed
                                                   of this very rapid growth on ecosystems       interventions must have a positive
    the underlying reasons                         and their services has not been trivial.      payoff and a rate of return above
    of poverty, and invest                         More than half of all ecosystem               that of other competing demands.
    in better governance                           services are degraded or being                In the long run, environmental
                                                   used unsustainably. The species               policy can pay for itself, but, in
    and greater efficacy                           extinction rate is 1,000 times above          the short run, the transition costs
    of public policy.                              the estimated normal level. Cultivated        can often be significant. Development
                                                   systems already cover one quarter             agencies would do well to better
                                                   of the Earth’s terrestrial surface, while     understand these costs and their
                                                   the amount of water impounded in              influence on the decision-making process.
                                                   dams is three to six times that
                                                   of natural rivers (MEA, 2005).                Finally, the mainstreaming of
                                                                                                 poverty-environment policies
                                                   Some estimates put global environmental       does not escape the law of diminishing
                                                   damages in 2008 alone at 11 percent of        returns. Projects that provide technical
                                                   global GDP, several times the impact          support to countries in order to integrate
                                                   of the global financial crisis in the same    poverty and environment policies
                                                   year (UNEP, 2010).                            should prioritise those interventions
                                                                                                 in which payoffs are maximised,
                                                   The unlimited production of                   preferably in the short run, and use
                                                   consumer goods is not a feasible              these as building blocks for more
                                                   option. Consequently, the increased           complex efforts.
                                                   consumption of the poorest under
                                                   conditions of sustainable resource use will   Vaguely focused interventions
                                                   need to be balanced by readjustments          distract scarce public-service talent,
                                                   in the consumption patterns of middle         render poor services to the objective of
                                                   and upper classes in developed and            scaling up the mainstreaming of poverty-
Poverty in Focus   7




environment policies, and generally              exposure to toxics, the informal          discussion notes prepared for the
                                                                                           WDR Summer Workshop on Poverty and
have difficulties in demonstrating impact.       waste collection sector, and recycling,   Development, 6-8 July 1999, Washington DC.
                                                 an area in which the Poverty
Notwithstanding the above, the potential         Environment Initiative is already         Chomitz, K. (2007). At Loggerheads?:
                                                                                           Agricultural Expansion, Poverty Reduction,
for integrating poverty-environment              working in Uruguay.
                                                                                           and Environment in the Tropical Forests,
policies is immense. The following                                                         Washington DC, World Bank.
examples outline the scale of potential          The increased production of
payoffs for rural and urban environments.        waste has surpassed the capacities        DFID, EC, UNDP and the World Bank (2002).
                                                                                           Linking poverty reduction and
                                                 of most urban centres in developing       environmental management:
   For the rural sector, small-scale             countries and has provided grounds        Policy Challenges and Opportunities.
   agriculture and improved                      for the establishment of an informal
                                                                                           Gilbert, N. (2010). ‘Can Conservation
   water and soil management hold                waste collection sector that is           Cut Poverty?’ Nature 467, 264–265.
                                                                                                         ,
   great potential for integrated poverty        responsible for most recycling.           Available at: <http://www.nature.com/news/
   and environment policies. In many             The conditions under which this           2010/100913/full/467264a.html>.
   settings, it can reverse ongoing              activity takes place are extremely        Holt, E. (2001). ‘Measuring Farmers’
   processes of land degradation,                harsh and often reinforce                 Agroecological Resistance to Hurricane
   improve food security, and diminish           structural poverty.                       Mitch in Central America’, Gatekeeper
                                                                                           Series No.Sa102, International Institute
   the vulnerability of poor populations                                                   for Environment & Development.
   (Barbier, 1987; Holt, 2001). It is true   In summary, the integration of poverty
   that, in many rural settings, realising   and environment policies can have             Lind, M. (2010). From Shrillness to S
                                                                                           obriety: Pragmatism in Climate Politics.
   the benefits of poverty-environment       significant social rewards. Sustained         Available at: <http://www.policy-network.net/
   policies can require addressing land      interventions that keep structural            publications_detail.aspx?ID=3758>.
   tenure issues, land concentration, and    realities in view, focus on impact,
                                                                                           Millennium Ecosystem Assessment (2005).
   power asymmetries, underscoring the       do not divorce themselves from                Ecosystems and Human Well-being:
   observation that environmental            the underlying causes of poverty,             Synthesis, Washington DC, Island Press.
   investments are insufficient, in of       and invest in better governance
                                                                                           North, D. (1990). Institutions, Institutional
   themselves, to lift people                in and greater efficacy of public             Change and Economic Performance,
   out of poverty.                           policy are more likely to deliver             Cambridge, Cambridge University Press.
                                             the transformations necessary
                                                                                           Soley, C. (2010). ‘Needs Must: Should the
   Current efforts at reducing               to anchor sustainable development.            Environment Trump Prosperity?’
   deforestation and forest                                                                Available at: <www.policy-network.net/
   degradation (REDD+) provide                                                             publications_download.aspx?ID=3662>.
                                             Bah, El-hadj M. (2008). ‘Structural
   another avenue with tremendous                                                          TEEB (2010). The Economics of
                                             Transformation in Developed and
   potential for ‘win-win’ poverty           Developing Countries’ MPRA Paper 10655.
                                                                    ,                      Ecosystems and Biodiversity.
   and environment policies.                 Available at: <http://mpra.ub.uni-            Available at: <http://www.teebweb.org/
                                             muenchen.de/10655/1/                          TEEBSynthesisReport/tabid/29410/
   A mosaic of improved land                                                               Default.aspx>.
                                             MPRA_paper_10655.pdf>.
   use practices and forested areas
   supported by economic incentives          Barbier, E. (1987). ‘Cash Crops, Food Crops   UNDP (2005). Millennium Project.
                                             and Agricultural Sustainability’ Gatekeeper
                                                                               ,           Report of Task Force 7 on Water
   and technical support is probably                                                       and Sanitation. Available at: <http://
                                             Series 2, International Institute for
   the best option currently available       Environment & Development.                    www.unmillenniumproject.org/documents/
   to stabilise frontiers in large sectors                                                 WaterComplete-lowres.pdf>.
                                             Barbier, E. (2000). ‘The Economic Linkages
   of developing countries and to                                                          UNEP (2010). Why environmental
                                             between Rural Poverty and Land
   reduce rural poverty. Such efforts        Degradation: Some Evidence from Africa’,      externalities matter to institutional
   alone will not reverse deforestation      Agriculture, Ecosystems and Environment,      investors. Available at: <http://
                                             Vol. 82, pp. 355-370.                         www.unepfi.org/fileadmin/documents/
   trends; they should be accompanied                                                      universal_ownership.pdf>.
   by efforts to tackle large-scale          Brocklesby, M. and Hinshelwood, E. (2001),
   agriculture, real estate speculation,     ‘Poverty and the Environment: What the        UNEP (2011). Towards a Green Economy:
                                             Poor Say: An Assessment of Poverty-           Pathways to Sustainable Development
   and other forces that promote                                                           and Poverty Eradication.
                                             Environment Linkages in Participatory
   forest cutting.                           Poverty Assessments’, DFID.                   Available at: <http://www.unep.org/
                                                                                           greeneconomy/GreenEconomyReport/tabid/
                                             Carson, R. (1962). Silent Spring.             29846/Default.aspx>.
   At the urban level, the traditional
                                             New York, Houghton Mifflin.
   sectors of water and sanitation                                                         World Bank (1992). World Development
   remain the most promising                 Dasgupta, S., Deichmann, U., Meisner, C.,     Report 1992 – Development and the
                                             and Wheeler, D. (2005). ‘Where is the         Environment, New York, Oxford
   areas for a twin-track approach.
                                             Poverty Environment Nexus? Evidence           University Press.
   The poverty-environment linkages          from Cambodia and Lao PDR and Vietnam’,
   here have been well researched            World Development, Vol. 33, No. 4,            World Commission on Environment
                                             pp. 617–638.                                  and Development (1987). Our Common
   and the payoffs are substantial
                                                                                           Future, Report of the World Commission
   (UNDP, 2005). Linked to these             Chomitz, K., (1999). Environment-Poverty      on Environment and Development, Oxford,
   is the interface between health,          Connections in Tropical Deforestation,        Oxford University Press.
8      International Policy Centre for Inclusive Growth




              by Lucy Wanjiru,
        Programme Specialist,
      Gender and Environment,
                                               Accounting for Green
       UNDP/BDP Gender Team
                                               Growth From the Lens
                                               of Gender Equality: Why It Matters!
                                                         The world is shifting away from               While a green economy has the potential
While a green economy                                    economic growth models based on fossil        to contribute to global economic
has the potential to                                     fuels and toward a new ‘green’ economy        recovery and to create both high- and
contribute to global                                     based on low-carbon development.              low-skill jobs, it also supports quality
economic recovery and to                                 The financial and economic crises have        investments at the community level to
create both high- and                                    prompted increased investments in             provide clean, affordable energy and
low-skill jobs, it also                                  environmental infrastructure through          to reduce threats from food, water,
supports quality                                         economic stimulus packages, while             ecosystem and climate crises. A green
investments at the                                       countries continue to make commitments        economy that functions in this way is
community level to provide                               and substantial monetary pledges to           more likely to deliver on its promise to
clean, affordable energy                                 support emerging financing mechanisms         eradicate poverty and to promote equity,
and to reduce threats from                               to mitigate and adapt to climate change.      especially among women.
food, water, ecosystem
and climate crises.                                      A green economy can help to achieve           In many developing countries, women
                                                         sustainable development by alleviating        are living on the frontlines of climate
A green economy that                                     environmental threats, contribute to the      change. As primary producers of staple
functions in this way is                                 creation of dynamic new industries and        foods—a sector that is highly exposed
more likely to deliver on its                            income growth, and create quality jobs        to the risks of drought and uncertain
promise to eradicate poverty                             that can improve workers’ economic            rainfall—women are disproportionately
and to promote equity,                                   standing and thus their ability to            impacted by climate change and are
especially among women.                                  better support their families.                often excluded from political and
                                                                                                       household decisions that affect their
                                                         These new industries and jobs can help        lives. During natural disasters such as
                                                         protect and restore ecosystems and            floods and hurricanes, for example,
                                                         biodiversity, reduce energy consumption,      women suffer disproportionately and
                                                         decarbonize the economy, and                  often count higher among the dead.1
                                                         contribute to climate change
                                                         mitigation and adaption.                      In addition, women tend to possess
                                                                                                       fewer assets and have insecure forest
                                                         The sustainability of the new green           and land tenure rights. Even where
1. Oxfam International (2005).
                                                         economy depends, however, not only            legislation to secure women’s land rights
2. Gender Justice: Key to Achieving the Millennium       on that economy’s ability to yield            exists, the process of implementing the
Development Goals. Available at <http://
www.ungei.org/resources/files/MDGBrief-English.pdf>.
                                                         environmental benefits, but also on           laws remains a challenge. In Madagascar,
                                                         its effectiveness in helping to eradicate     for example, only 15 percent of women
3. Policy Paper: Intellectual Property, Agro             poverty and to increase gender equality       own small landholdings, although the
biodiversity and Gender.
                                                         and women’s empowerment.                      constitution guarantees women’s land
4. Evidence for Action Gender Equality and Economic                                                    rights and 83 percent of employees
Growth. Available at: <http://www.oecd.org/dataoecd/
34/15/45568595.pdf>.                                     Green economy initiatives that aim at         in the agricultural sector are women.
                                                         creating more environmentally-sound           Furthermore, agricultural financing
5. UNDP and Energy Access for the Poor: Energizing the
Millennium Development Goals. Available at: <http://
                                                         economies are not automatically               processes do not often include gender
www.undp.org/energy/>.                                   inclusive of fundamental social               considerations. “OECD statistics show
                                                         requirements such as income equity,           that of the US$18.4 billion spent on
6. “A Gender Perspective on the “Green Economy”
Equitable, healthy and decent jobs and livelihoods“,     job quality and gender equality. In failing   agricultural aid between 2002 and 2008,
Women’s major group position paper in preparation        to account for social factors, they could     donors reported that just 5.6 percent
of the “Rio+20" United Nations Conference on
Sustainable Development 2012.                            maintain or even aggravate the negative       included a focus on gender”.2
Available at: <http://www.unep.org/civil-society/        social and distributive trends of the
Portals/59/Documents/12_GMGSF/
docs_and_presentations/Additional_messages/
                                                         traditional economy, such as existing         Although women generally lack decision-
gender_perspective_on_the_green_economy.pdf>.            inequalities and gender gaps.                 making power in social and political
Poverty in Focus   9




institutions and are excluded                     are essential for climate change            mini-grids, water pumping and biofuel)
from leadership positions or given only           mitigation, can have significant and        are also being introduced rapidly.
secondary roles, they are not only victims        rapid economic benefits for women           Scaling up energy access in off-grid
of adverse climate impacts. Indeed, they          in developing countries. It can improve     areas across Africa will be instrumental
are also active agents of change, leaders,        productivity and efficiency and open up     in empowering women and accelerating
and champions of economic growth and              new income-generating opportunities         progress on multiple MDGs.5
sustainable development.                          for women, especially in currently
                                                  underserved rural areas.                    Still, despite recent gains in gender
Despite suffering from socio-economic                                                         equality and women’s empowerment,
disadvantages, women are already                  Supporting women in designing,              a significant wage gap and extremely
responding to climate changes while               producing and marketing new energy-         low numbers of women in high-growth
they work to maintain their families              related equipment could trigger a           employment fields remain. Women
and communities. They are at the                  positive chain reaction. Research shows     still face significant challenges in
frontlines of everyday adjustment and             that women are most likely to invest in     entrepreneurship, including limited
adaptation to changing conditions                 the wellbeing of their families; their      access to start-up capital, financing,
and environments.                                 increased control over resources likely     networks, and technical expertise,
                                                  leads to increased spending on children,    as well as a lack of opportunity to
As primary caretakers of families,                a greater accumulation of human capital     bid on competitive federal contracts.6
communities and natural resources,                in the next generation, and the creation
women are energetically supporting                of sustainable livelihoods for              A truly sustainable ‘green economy’
rural food security and maintaining               whole communities.4                         must promote gender-friendly, green-
agricultural biodiversity.3                                                                   collar employment and entrepreneurship
                                                  The green economy will need to support      opportunities and social equity and
They have accumulated specific                    innovative approaches and business          must create green pathways out of
knowledge and skills about local                  models to facilitate women’s                poverty for both genders.
conditions and ecological resources               entrepreneurship opportunities and
and have the power to contribute to               support the scaling-up of field-proven      The Case of UNDP’s Women’s Green
economic transformation and sustainable           solutions and approaches that facilitate    Business Initiative
development. But to reach their full              growth for female-owned business            The United Nations Development
potential, they need support in scaling up        ventures beyond social assistance and       Programme’s (UNDP’s) strategic approach
and upgrading their activities related to         micro-credit schemes. In Mali, Burkina      to addressing climate change is guided
sustainable agriculture, renewable energy,        Faso and Senegal, for example, access       by the principles of inclusion and
and the conservation of water supplies,           to mechanical power (multifunctional        sustainable development, recognizing
forests and other natural resources so that       platforms), some of which is run from       that climate change is a development
they can generate greater economic                clean biofuel, is generating income for     issue and must be addressed hand-in-
benefits from their labour.                       2 million rural women, increasing school    hand with efforts to reduce poverty.
                                                  completion rates, and equalising the        To this end, UNDP has launched the
Increased access to cleaner fuels, energy         girl-to-boy ratio in primary schools.       Women’s Green Business Initiative,
sources and technologies, all of which            New options (e.g., off-grid decentralised   a global programme aimed at
                                                                                              promoting women’s employment and
                                                                                              entrepreneurship opportunities through
    Women and the Environment:                                                                climate change mitigation and
                                                                                              adaptation activities.
         Forests contribute to the livelihoods of many of the 1.2 billion people living in
         extreme poverty, and the large majority of these poor (over 70 percent) are women    Working in close collaboration with
         (Gurung and Quesada, 2009).                                                          governments, civil society organizations,
         70 percent of the 1.3 billion people living in conditions of poverty                 and the private sector, the Initiative is
         are women. In urban areas, 40 percent of the poorest households are                  establishing “service delivery platforms”
         headed by women (UNDP, 2009 from UNFPA, 2008).                                       that offer policy advice, capacity
                                                                                              building, financing options, information,
         Women predominate in the world’s food production (50-80 percent), but they
                                                                                              and increased access to new
         own less than 10 percent of the land (UNDP, 2009 from UNFPA, 2008).
                                                                                              technologies for developing countries.
         In sub-Saharan Africa, women comprise 60 percent of the informal economy,            This initiative will further the UN System-
         provide about 70 percent of all the agricultural labour and produce about            wide Policy on Gender Equality and the
         90 percent of the food (FAO, 2008).                                                  Empowerment of Women7 and the UNDP
         By training women, including grandmothers, to be solar engineers, the Barefoot       Gender Equality Strategy (2008-2013).8
         College has helped them and communities to access renewable energy and reduce
         reliance on biomass as an energy source (Castonguay, 2009).                          The Women’s Green Business Initiative
                                                                                              will contribute to poverty reduction
10    International Policy Centre for Inclusive Growth




                                                                                                                 The green economy
     The Types of Enterprises that can be Supported by the
     Women’s Green Business Initiative Include:                                                                  will need to support
                                                                                                                 innovative approaches
          Producing and marketing low-emission, more efficient stoves and equipment.
                                                                                                                 and business models
          Producing, marketing, and installing renewable energy technologies.                                    to facilitate women’s
          Producing biofuels and biogas for lamps, cookers and motorised equipment.                              entrepreneurship
          Expanding existing businesses using new energy efficient and renewable                                 opportunities and
          energy sources.                                                                                        support the scaling-up
          Preserving forest and biodiversity through tree planting, ecosystem conservation                       of field-proven solutions
          and sustainable use of indigenous resources.
                                                                                                                 and approaches.
          Providing financial, business and environmental management
          and consulting services.
                                                                                                                 Integrating gender
                                                                                                                 considerations in the
and the achievement of the Millennium                    access to existing climate change                       green economy is critical
Development Goals (MDGs), especially of                  funds and pursues the establishment                     to the creation of a more
MDG 3 on gender equality and women’s                     of new targeted financing options for
                                                                                                                 equal and sustainable
empowerment. This is particularly                        women’s green business initiatives.
important for gender-responsive                                                                                  society for all.
and green public investment.                         The Women’s Green Business Initiative
                                                     aims to directly empower women in
The Initiative equips women to engage                developing countries to engage in the
vigorously in new economic activities                design, production and delivery of green       UNDP (2009) Resource guide on
                                                                                                    Gender and Climate Change.
that address climate change threats while            technologies, products, services, and          Available from: <http://content.undp.org/
building stronger, more resilient and self-          information to adapt to and mitigate the       go/cms-service/download/publication/
reliant communities by implementing                  effects of climate change. It also provides    ?version=live&id=2087989>.
three strategic elements:                            support services to remove legal, policy       FAO (2008). Gender Equality: Ensuring rural
                                                     and regulatory biases that hinder              women’s and men’s equalparticipation in
     Creating a policy environment that              women’s entrepreneurship and                   development. Food and Agriculture
                                                                                                    Organization. <ftp://ftp.fao.org/docrep/fao/
     enhances equal economic opportunities           employment in the new green industries         011/i0765e/i0765e10.pdf>.
     for women: The Initiative provides              and activities of the future. Evidence
     advice and technical support to                 shows that investing in gender equality        Castonguay, Sylvie (2009).
                                                                                                    Barefoot Colleague Teaching Grandmothers
     governments on policy and planning              can accelerate economic growth and             to be Solar Engineers. WIPO Magazine,
     frameworks to remove legal,                     reduce poverty.9                               3/2009. June 2009. WIPO, Communications
     administrative and financial constraints                                                       Division. Available from: <http://
                                                                                                    www.wipo.int/wipo_magazine/en/2009/03/
     affecting women’s economic                      Therefore, integrating gender                  article_0002.html>.
     advancement and provides incentives             considerations in the green economy
     and resources for the expansion of              is critical to the creation of a more
     women’s green enterprises.                      equal and sustainable society for all.         7. UN System Doc. CEB/2006/2.
                                                     Doing any less means not involving
                                                                                                    8. The UNDP Gender Equality Strategy calls
     Building capacity for women’s                   and capitalising on the capacity,              for tailored initiatives to support broad-based,
     organizations and women entrepreneurs:          innovation and learning of 50 percent          equitable development that is inclusive of women’s
                                                                                                    needs and contributions—especially those of poor
     The Initiative provides training and            of the world’s population.                     women. Section 6.1 of the Gender Equality Strategy
     support services to assist women’s                                                             deals broadly with “Poverty Reduction and the
                                                                                                    Achievement of the MDGs” and includes initiatives
     organizations and entrepreneurs in                                                             for “Promoting inclusive growth, gender equality
     starting, incubating and scaling up             The following references are related           and MDG achievement.” Paragraph 51 states that
     viable business enterprises that                to the box on page 9:                          UNDP will be pro-active in working with national
                                                                                                    entities to incorporate a gender perspective,
     contribute to climate mitigation,                                                              with special attention to four areas:
                                                     Gurung, Jeannette and Andrea Quesada
     adaptation and resilience.                                                                     1) macro-planning instruments that incorporate
                                                     (2009). Gender-Differentiated Impacts
                                                                                                    gender analysis and specify gender equality results;
                                                     of REDD to be addressed in REDD Social         2) women’s unpaid work; 3) gender-responsive public
                                                     Standards. A report prepared for an
     Increasing women’s access to climate                                                           investment; and 4) gender-sensitive analysis of data.
                                                     initiative to develop voluntary Social
     change finance mechanisms:                      and Environmental standards                    9. Klasen, S. “Does Gender Inequality Reduce
     The Initiative promotes gender-                 for REDD. Available from:                      Growth and Development? Evidence from
                                                     <http://www.wocan.org/files/all/               Cross-Country Regressions“.
     responsive public and private
                                                     gender_differentiated_impacts_of_redd_final_   Available at: <http://siteresources.worldbank.org/
     investments. It facilitates increased           report1.pdf>.                                  INTGENDER/Resources/wp7.pdf>.
Poverty in Focus    11




Sustainable Development                                                                                 by Kishan Khoday,
                                                                                                        Deputy Representative,
                                                                                                        UNDP Saudi Arabia1

as Freedom: Energy, Environment
and the Arab Transformation
Control over energy and the                  people’s long-term choices and freedoms.
environment has been central to state        Unless trends of resource scarcity and                      As countries across the Arab
legitimacy and power in the Arab region,     ecological change are addressed, basic                      region move forward with
shaping the nature of governance             freedoms, human security and human                          new social compacts, the
and influencing how sovereignty and          development stand in jeopardy.                              equitable and sustainable
statecraft function in the region.                                                                       use of natural resources
As the systemic transition across the Arab   In particular, the vulnerability of food,                   will emerge as an issue
region proceeds and countries craft new      water and energy resources and the                          of contention.
social compacts for development, the         exacerbation of climate change together
equitable and sustainable use of natural     bring serious risks to sustaining human                     Transformational change
resources will likely emerge as a central    development. As noted by former UN                          in the Arab region is an
issue of contention.                         Secretary General Kofi Annan, “when                         opportunity to rethink
                                             resources are scarce—whether energy,                        the role of natural resources
The social compact in past decades has       water or arable land—our fragile                            in creating more inclusive
been defined by a balance between state      ecosystems become strained, as do                           and sustainable growth and
control over natural capital, on the         the coping mechanisms of groups and                         as a means of expanding
one hand, and the provision of social        individuals. This can lead to a breakdown                   people’s long-term choices
welfare benefits, on the other. However,     of established codes of conduct, and                        and freedoms.
sustainable development is about more        even outright conflict.” Underlying shifts
than charity—it is also about justice and    in global resource demand and fragility                     Sustainable development is
accountability, with a key challenge         of supply combined to create record                         about more than charity—it
being to expand the benefits of the          prices for basic food and energy                            is also about justice and
region’s natural wealth for the average      commodities in recent years,                                accountability.
citizen and the poor in particular.          exacerbating social and political
                                             instability in many countries.
Higher expectations have emerged
for more transparent, accountable            The transformation in the Arab region
and participatory use of energy and          now provides space to rethink the role
the environment as a public good,            of natural resources in the economy, with
combating corruption, preventing             new green economy concepts potentially
the squandering of natural wealth,           providing a channel to increase social
and preserving natural capital               equity and the efficiency of resource use
for future generations.                      and generating new knowledge-based
                                             approaches to economic innovation and
The spirit of transformational change        competitiveness. Such rethinking would
in the region stands as an opportunity       do well to consider the role of the green    1. Kishan Khoday has served with UNDP since 1997,
to address entrenched systems of             economy, defined as an economy “that         as UNDP Sustainable Development Advisor and
                                                                                          Deputy Coordinator for Natural Resources
control, broaden access and benefit-         results in improved human well-being         and the Environment in Indonesia (1997-2005), UNDP
sharing related to natural wealth,           and social equity, while significantly       Assistant Representative and Team Leader for Energy
                                                                                          & Environment in China (2005-2009) and UNDP
expand the role of local governance, and     reducing environmental risks and             Deputy Representative in Saudi Arabia (since 2009).
strengthen resilience of the natural asset   ecological scarcities”. 2 The concept has
                                             emerged as a way to stimulate economic       2. UNEP, Towards a Green Economy: Pathways to
base on which the poor depend.
                                                                                          Sustainable Development and Poverty Eradication –
While analyses of the links between          activity, while responding to food, water,   A Synthesis for Policy Makers, UNEP, Nairobi (2011), 2.
environment and human development            energy and climate crises and reorienting
                                                                                          3. Jose Antonio Ocampo, The Transition to a Green
often focus on consumption                   the global economy from a “system that       Economy: Benefits, Challenges and Risks from a
sustainability, a broader perspective is     allowed, and at times generated, these       Sustainable Development Perspective, Report of
                                                                                          Experts to Second Preparatory Committee for the UN
needed to address the important role of      crises to a system that proactively          Conference on Sustainable Development (Rio2012),
natural resources as a means to expand       addresses and prevents them.”3               UNDESA, UNEP and UNCTAD, New York (2010), 2.
12    International Policy Centre for Inclusive Growth




                                                         Food Security at the Crossroads               Energy and Inclusive Growth
      The 2012 Rio Earth
                                                         Food security accelerated the emergence       As noted by the 2010 IMF World Economic
      Summit is an opportunity                           of some civil society movements, with         Outlook, “the persistent increase in oil
      to engage in new south-                            2011 seeing record prices because of          prices over the past decade suggests
                                                         surging global demand and historic            that global oil markets have entered a
      south cooperation for
                                                         droughts and flooding in key exporting        period of increased scarcity. Given
      sustainable development,                           countries in 2010.                            the rapid growth in oil demand in
      to engage the new role of                                                                        emerging market economies and a
                                                         The Arab region already stands as the         downshift in the trend growth of oil
      the South in emerging
                                                         world’s largest net food importer and         supply, a return to abundance is
      risks and solutions.                               many fear we are witnessing a shift away      unlikely in the near term.”5
                                                         from cyclical price fluctuations towards
                                                         longer-term structural change driven          The convergence of declining energy
      A south-south solutions
                                                         by a shift in supply and demand               reserves, the dramatic rise in emerging
      exchange can support                               fundamentals—a convergence of surging         economy demand, and a gradual global
      sharing of models for                              emerging economy demand alongside             shift to climate-friendly growth have
                                                         bottlenecks to expansion of agricultural      created a break from the type of cyclical
      sustainable development
                                                         land and productivity that include climate    factors that shaped the past, with oil
      and green economy                                  change, rising energy costs, reduced          prices likely to remain high for some
      policy, and the transfer                           groundwater irrigation capacities,            time to come. This holds risks for
                                                         desertification and reduced soil fertility.   Arab countries, most of which
      and development of clean
                                                                                                       are net energy importers.
      technologies within the                            Enhanced social safety nets and new
      south. It could also                               approaches to agricultural productivity       There is now recognition that rising
                                                         gains are needed for Arab countries to        prices could constrain future human
      facilitate the integration
                                                         adapt to these challenges. New attention      development trends unless energy
      of green economy                                   is needed to review economic and fiscal       alternatives are engaged. As a result,
      approaches into rapidly                            policies related to agricultural production   countries across the region are now
                                                         and land use, subsidy and social security     intensifying efforts to expand renewable
      growing ODA and foreign
                                                         systems, ecologically sound farming, crop     energy and energy efficiency measures
      investment flows from                              diversification, expansion of sustainable     to reduce import dependence and
      emerging economies to                              irrigation and water use efficiency, use of   thus to save public resources for social
                                                         energy efficiency and renewable energy        development goals while also creating
      least developed countries.
                                                         measures, and soil replenishment.             the foundations for new growth
                                                                                                       and a green economy.
                                                         Furthermore, food insecurity is driving
                                                         some Arab countries to explore overseas       Energy plays an equally important role
                                                         land acquisition and leasing. Globally,       in defining the nature of the state and
                                                         the acquisition of land for food security     human development in oil-exporting
                                                         has topped 140 million acres, bringing        countries in the Arab region. The energy
                                                         with it an investment potential of US$50      sector remains central to the region’s
                                                         billion to host countries.4                   economy, making up approximately 40
                                                                                                       percent of GDP, but, as reserves decline,
                                                         Saudi Arabia, for example, is now active      oil-exporting countries are also
                                                         in land acquisitions and leasing in           intensifying efforts to expand local
                                                         Ethiopia, Indonesia and Sudan driven by       renewable energy and energy efficiency
                                                         high population growth in the Arab Gulf,      measures. This is meant to conserve
                                                         with populations expected to double           increasingly scarce oil reserves for future
                                                         from 2000 levels by 2030 in an                export revenues, on the one hand, and to
                                                         environment of scarce arable land and         diversify economies beyond oil to ensure
                                                         groundwater resources. However, this          a sustainable base for economic growth
                                                         new global trend brings concerns              and youth employment, on the other.
                                                         about the impact on local communities
                                                         in terms of land and water rights and         In Saudi Arabia, for example, which is
                                                         their own food security, with a need          largely dependent on oil-burning power
                                                         for South-South cooperation and               facilities and the expansion of non-oil
                                                         integration of sustainability, inclusion      industrial sectors, recent years have seen
4. Lester Brown, The New Geopolitics of Food, May/       and equity into growth and                    a dramatic increase in local direct oil use.
June 2011, Earth Policy Institute, Washington DC, 7-8.   investment policies.                          The new King Abdullah City for Atomic
Poverty in Focus      13




and Renewable Energy forecasts that, if
current trends prevail, local oil demand
could increase from about 2.5 million
barrels per day (mbpd) out of the 10
mbpd produced today, to as many
as 8 million barrels per day by 2028.6

Thus, in addressing energy risks and
opportunities in the Arab region, two
complimentary goals are taking shape
in the region, both in line with the vision
of the UN Secretary General’s Advisory
Group on Energy and Climate Change:
1) to reduce the energy intensity of
growth and 2) to expand access to
sustainable forms of energy for the
poor, the latter of which is in particular
focus in 2012 as the International
Year of Sustainable Energy for All.7

As a result of the global shift in            Source: Cleantech Group (2011).
resource supply and demand and
emerging green economy opportunities,         social development and must be              Opportunities exist to build new strategic
clean technology reached a record high        overcome if the MDGs are to be achieved.”   partnerships to combine experiences and
market capitalization of US$386 billion                                                   expertise and to establish policies and
in 2010, of which US$200 billion was in       South-South Solutions                       institutions as the foundations for new
clean energy (see Figure).8 This is driven    Coming 20 years after the landmark 1992     green growth and benefits to the poor.
by emerging economies like Brazil,            Rio Earth Summit, the upcoming 2012 Rio     Scope also exists for cooperation
China, and India.9 Potential also exists      Earth Summit will place a major focus on    among natural resource exporting and
for the Arab region to join this trend        institutions for sustainable development    importing countries in the South to find
by building on its world-leading energy       and on the green economy.                   new solutions to surging prices, market
sector capacities and solar radiation                                                     volatility, and vulnerability of the poor.
levels. Initial steps include renewable       Two underlying issues are important:
energy and energy efficiency targets          the role of emerging economies in global    A South-South solutions exchange
in Algeria, Egypt, Jordan, Lebanon,           sustainability challenges and solutions     on issues of natural resources and
Morocco, Tunisia and UAE, and plans           and the emerging risks from resource        the environment can add value to this
for a pan-Arab solar power network.           scarcity for social equity and inclusive    process, connecting achievements and
                                              growth. Unlike in previous eras of          best practices among partners and
However, while clean energy holds             economic transformation, current            helping shape evolving green economy
benefits for the sustainability of            responses to food, water and energy         strategies in follow-up to the upcoming
development, it will not necessarily          security are emerging through               2012 Rio Earth Summit.
benefit the poor without policies             leadership of the South.
for inclusive growth in the sector.10
                                                                                          5. IMF, World Economic Outlook, International Monetary
                                              Thus, South-South cooperation can play      Fund (IMF), Washington (2011), 89.
The 2008 Riyadh Declaration on                a key role in harnessing the comparative
Energy for Sustainable Development,           advantages of partners in the South to      6. KACARE (2011), Statement by the President
                                                                                          of the King Abdullah City for Atomic and Renewable
for example, advocated to make clean          bring about transformational change in      Energy to the Global Competitiveness Forum,
energy accessible for Least Developed         the global economy and to support           14 January 14 2011, Riyadh.

Countries and was supported by                sustainability of their own economic        7. UN, Report of the UN Secretary-General’s Advisory
the OPEC Fund for International               and social development.                     Group on Energy and Climate Change, United Nations
                                                                                          Publications, New York (2010), 7-9.
Development and other partners.
                                              Just as the agricultural green revolution   8. Nicholas Parker, The Emerging Global Clean Economy:
This is important for the Arab region,        of the past reduced poverty across the      The Race for Sustainability Prosperity Goes Mainstream,
                                                                                          Cleantech Group, Presentation to the Global
where 40 percent of the poor lack energy      world, so, too, could the next wave of      Competitiveness Forum, 24 January 2011, Riyadh.
access, with electrification rates in Sudan   clean technologies emerge as a critical
                                                                                          9. UNEP, Towards a Green Economy: Pathways to
and Yemen as low as 25 percent. As noted      tool for achieving inclusive growth and     Sustainable Development and Poverty Eradication:
at the global MDG+10 Summit in 2010,          sustainable development. South-South        Policy Synthesis, UNEP, Nairobi (2011), 23.
“lack of access to modern energy services     cooperation can be a transformative         10. IEA and UN, Energy Poverty: How to Make Modern
is a serious hindrance to economic and        force in this regard.                       Energy Access Universal, OECD/IEA (2010), Paris.
14   International Policy Centre for Inclusive Growth




                        by Nicolas Perrin,
     Senior Social Development Specialist
         Europe and Central Asia Region,
                                                    Challenges and Opportunities
                             World Bank
                                                    for Inclusive
                                                    Green Growth
                                                    In the Europe and Central Asia                and legacy issues, even countries and
A focus on the social                               region (ECA), where the effects of            sectors that potentially stand to benefit
dimensions of climate                               climate change are already being felt,        from a warming climate are poorly
change improves                                     post-Communist legacies create unique         positioned to do so (Fay et al., 2009).
operational quality in                              environmental and infrastructural
terms of both substance                             problems, and the consequences of             Although most ECA countries have
and process, thereby                                climate change could easily exacerbate        achieved an absolute reduction in
contributing to better                              existing social inequalities.                 emissions during the past two decades
overall results.                                                                                  due to industrial decline, emissions
                                                    This article seeks to identify some           have begun to rise again, as efforts
Social and institutional                            of these intersecting considerations          to de-couple economic development
analysis helps provide a                            and the role of social approaches in          from carbon intensity meet with little
snapshot of vulnerability                           sustaining efforts to mitigate and            success (World Bank, 2010).
and assesses institutional                          adapt to climate change.
capacity for responding to                                                                        Among the world’s top ten highest
climate change helping us                           Why? A focus on the social dimensions         greenhouse gas emitters per unit of GDP,
not just to understand                              of climate change improves the                five are from the ECA: Uzbekistan (1),
vulnerability in itself but                         operational quality of substance              Kazakhstan (3), Ukraine (6), Russia (7),
who is vulnerable, for                              and process, thereby contributing             Azerbaijan (8). Still, while reducing GHG
how long and why.                                   to better overall results. Social and         emissions is vital for stabilising the
                                                    institutional analyses help provide           global climate, national public policy
This strategy is particularly                       a snapshot of vulnerability                   often seeks to balance this with the need
important in the Europe and                         and assess institutional capacity             to provide access to affordable energy,
Central Asia region (ECA),                          for responding to climate change,             opportunities for the mobility of people,
where the effects of climate                        helping us to understand not just             goods and services, and transitional
change are already being                            vulnerability itself, but also who is         support to those dependent on
felt, post-Communist                                vulnerable, for how long, and why.            carbon-intensive livelihoods.
legacies create unique
environmental and                                   Can ECA countries adapt to climate            Structural transformation of the
infrastructural problems,                           risks and reduce emissions while              economy to renewable energies in ECA
and existing social                                 safeguarding development?                     offers opportunities for GHG reductions
inequalities could easily be                        Climate change represents a multi-            and important distributional and
exacerbated by the                                  sectoral concern for the Europe               institutional challenges.
consequences of                                     and Central Asia region. Temperature
climate change.                                     increases between 0.5 degrees celsius in      Social dimensions of green
                                                    the south and 1.6 degree celsius in the       growth and climate change in ECA
                                                    north have been noted, with anticipated       Unprepared to manage a changing
                                                    increases of up to 1.6 to 2.6 degrees         climate, ECA countries face increasing
                                                    celsius by the mid-century.                   economic losses and inequitable social
                                                                                                  impact that will be disproportionately
                                                    Climate variability significantly threatens   borne by the poor. Climate change,
                                                    ECA countries, with negative effects          combined with a crumbling and
                                                    already evident. The region’s poor            inflexible infrastructure, renders ECA
                                                    infrastructure and dire environmental         countries vulnerable.
                                                    situation, rather than the changing
                                                    climate itself, figure most prominently as    Over the past 30 years, natural disasters
                                                    the region’s key drivers of vulnerability.    have cost ECA countries about US$70
                                                    Due to these pervasive socio-economic         billion, a figure anticipated to rise.
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment
Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment

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Dimensions of Inclusive Development: Growth, Gender, Poverty and the Environment

  • 1. Poverty Number 23 International Policy Centre for Inclusive Growth Poverty Practice, Bureau for Development Policy, UNDP Dimensions of Inclusive Development
  • 2. 2 International Policy Centre for Inclusive Growth Growth, Equity and Sustainability: A Declaration of Interdependence GUEST Over one billion of us live without many of the basics that the other six billion take as given. E D I TO R S Although 28 countries have moved from low-income status to middle-income status, with Ghana and Zambia among the newest Middle Income Countries, an estimated 800 million people still live in low-income countries. Of these, half live in just five countries, three of which are in sub-Saharan Africa. In these least-developed countries (LDCs), conflict, disaster and broader human insecurity impose structural limits on efforts to move from crisis to risk reduction and from growth to sustained development. So although many millions have been Poverty in Focus is a regular publication of lifted out of poverty in the last ten years, it is also true that more people live in chronic hunger the International Policy Centre for Inclusive Growth (IPC-IG). Its purpose is to present the than ever before. Significant and sustained progress will require faster and better efforts. results of research on poverty and inequality The message of this Poverty in Focus is that, “For Growth to be inclusive, it must be sustained in the developing world. and sustainable and that, for it to be sustained and sustainable, it must also be equitable.” As a contribution to the dialogue around Rio+20 and to the ongoing discussions around Guest Editors a post-2015 MDG Agenda, this Poverty in Focus links future development to sustainability and Leisa Perch and Gabriel Labbate particularly to social sustainability. Looking beyond the critical issues of ‘carbon footprints’, ‘low-carbon development’,’ green economy’ and the economics behind saving the planet, Desktop Publisher it draws attention back to the continuing challenge of ensuring that growth and development Roberto Astorino deliver for the poor and vulnerable. In its many forms—energy poverty, lack of access Copy Editor to water and sanitation, malnutrition or insecure access to food, and lack of access to Lance W. Garmer education and health—the scale and scope of global deprivation call current development policy and practice into question. Front page: Multiple Dimensions of Development is the spirit behind this Poverty Growth, gender, poverty and the environment can no longer be treated as loosely connected in Focus. The images represent the range components of development. Recognizing their interdependence is at the core of improved of issues, the people and the regions we and sustained development for all. covered and also the message of dimensions within a broader context. They also reinforce For one thing, the continuing decline of the quantity and quality of natural resources and the duality which lies behind development at all levels, including the need for social as of ecosystem functions is likely to exacerbate the likelihood of conflict over resources, well as technological innovation as part of particularly water. According to UNDP’s Bureau for Crisis Prevention and Recovery, structural transformation. Images 1, 3, 5-7 35 countries had entered what could be designated a ‘post-conflict phase’ by 2008. are from the IPC-IG “Humanizing Development” The cost of conflict has been enormous, matching or surpassing, according to some Global Photography Campaign (photographers estimates, the value of ODA received in the last 20 to 30 years in the same countries. respectively: GB Mukherji, Soleyman Mahmoudi, Ramesh Pathania and Joyce Wambui). Image 2 (Adrian Jankowiak) and image 4 Addressing topics such as the evolving debate on environmental and social justice (Max Thabiso Edkins and ResourceAfricaUK). and improved accounting frameworks to ‘include’ environmental assets and services in considerations of growth, the enclosed articles can help us go beyond lip-service to Editors’ note: IPC-IG and the editors the notion of sustainability. They focus on the ‘software’ components of development, gratefully acknowledge the generous highlighting the need for equal attention to process and to results. Suggesting that inclusive contributions, without any monetary or material remuneration, by all the authors and sustainable development will need to leverage ‘social technologies’ such as political and photographers of this issue. innovations, true engagement and honest evaluation, they make a clear case for a strong, representative state and the complementary roles of civil society and the private sector in defining and achieving sustained and sustainable development. They underscore the role of formal and informal mechanisms in the negotiation and reconciliation IPC-IG is a joint project between the United of conflicting and competing interests. Nations Development Programme and Brazil to promote South-South Cooperation on applied In view of the high expectations placed on the next year’s Rio+20 meeting, let us remind poverty research. It specialises in analysing poverty and inequality and offering research- ourselves that ‘social sustainability’ will be built on the foundations of productive and social based policy recommendations on how to reduce inclusion. Too often, the focus has fallen largely on productive inclusion, with limited effort them. IPC-IG is directly linked to the Poverty to address the structural factors that cause and sustain exclusion and marginalization, be Group of the Bureau for Development Policy, they related to gender, political processes, property rights for the poor, and so on. Moreover, UNDP and the Government of Brazil. a focus on ‘sustained’ development as well as sustainable development acknowledges that, for many countries, existing development gains are fragile and easily reversed. The acute IPC-IG Director Rathin Roy challenges faced by countries in the Horn of Africa due to persistent drought, displacement, conflict and poverty are a case in point. International Policy Centre for Inclusive Growth (IPC-IG), Poverty Practice, A socially sustainable approach, say these authors, is one in which policy efforts do not shy Bureau for Development Policy, UNDP away from the many interdependent multiple dynamics, processes and situations that affect vulnerability and predispose the poor and the vulnerable to harm from shocks and change. Esplanada dos Ministérios, Bloco O, 7º andar 70052-900 Brasilia, DF Brazil Growth, equity and sustainability are mutually compatible, if efforts have enough time ipc@ipc-undp.org and resources, are responsive to underlying structural causes and encourage the vigorous www.ipc-undp.org participation of the poor, allowing them to define their futures. What follows illuminates the complexity of inclusiveness as a development outcome and highlights bold action in and by The views expressed in IPC-IG publications the South. We hope that these articles serve as a source of further innovation and inspire are the authors’ and not necessarily those of more cooperation and the spread of knowledge within the South. Ours is an age of political the United Nations Development Programme or the Government of Brazil. convulsions, global economic shifts, inexorable climatic change and stubborn poverty. Informed and catalytic strategies are needed now more than ever before. Rights and Permissions – All rights reserved. The text and data in this publication may be reproduced as long as written permission is obtained from IPC-IG and the source is cited. Reproductions for by Olav Kjorven, Assistant Administrator commercial purposes are forbidden. and Director of the Bureau for Policy Development, UNDP
  • 3. Poverty in Focus 3 Overview: Where People, Poverty, by Leisa Perch, International Policy Centre for Inclusive Growth Environment and Development Meet Twenty years after Rio, we are still recently, within ‘making growth more struggling with many of the same issues inclusive including integrating both Often, the backdrop and contradictions in the development environmental risk and co-benefits’. for the discourse on process that we faced earlier; in fact, sustainability has been many have become even more complex. Overall, the successful combining of characterised by tension, social and environmental co-benefits in rather than by reconciliation, The Rural Poverty Report 2011 (IFAD, 2010) policy and practice has remained more among the economic, notes that some 1.4 billion people elusive. The Government of China’s social and environmental continue to live in extreme poverty, recent statements4 on the need to dimensions of development struggling to survive on less than reconcile growth and social development (i.e., the three pillars). US$1.25 a day, and that more than two with environmental sustainability signal thirds reside in rural areas of developing potential shifts, but the extent of such Overall, the successful countries. Papers by Andrew Sumner reconciliation is not yet clear. Similarly, combining of social and (2010)1 and Ortiz and Cummins (2011)2 Indonesia and India have also taken environmental co-benefits further emphasise that growth has not steps to address such concerns, with the in policy and practice has been equitable, with the latter paper Government of India recently launching an remained elusive. highlighting that the rate of change incentive mechanism5 to promote greater on the trajectory from indigence energy efficiency in the private sector. The sustainability of to poverty and from poverty to the supply of resources non-poverty has been very slow for Given the predominant view of the role (environment), sustained the global poor as a constituency. of capital and labour (in the economic access to resources in system) as factors of production and securing livelihoods As the world turns its attention to COP 17 growth, competition and tensions are (society) and the quality in Durban and the 20th anniversary of the manifest in policy and institutional of financial resources Rio Convention (the UN Convention on frameworks. Natural capital is still seen (investments) are essential Environment and Development), phrases as another, even abundant factor of to stabilizing environmental such as the ‘green economy’ and ‘inclusive production, and the capacity of change cycles, reducing/ and sustainable development’ are now institutional checks and balances— mitigating ecological shaping the discourse on development. environmental ministries—to drive scarcity, and enhancing In view of the expectations placed on the agenda remains relatively weak. the renewal of the the ‘green economy’, carbon credits, Social sectors remain peripheral to ecological system. and market-based mechanisms as many of the debates, national and policy responses for development ills, global alike, about how to arrest this is a good time to remind ourselves catastrophic environmental change. about the need for ‘social sustainability’, a critical pillar of sustainable development The articles in this Poverty in Focus serve —in other words, to reaffirm that to highlight both the need for greater 1. See: <http://www.ipc-undp.org/pub/ IPCOnePager120.pdf>. greening processes will not automatically focus on ‘software’ components to make deliver for the poor or the vulnerable. development work and the capacity of 2. See: <http://www.unicef.org/socialpolicy/files/ Global_Inequality_Beyond_the_Bottom_Billion.pdf>. ‘social technologies’ to produce Often, the backdrop for the discourse on development and growth. Contributing 3. See Silent Spring by Rachel Carson (1962) and Limits to Growth by Donella Meadows (1972). sustainability has been characterised by to the debate about getting policy right, tension, rather than by reconciliation, Gabriel Labbate discusses the challenges 4. Thomas, L. (2011). ‘The Earth is Full’ among the economic, social and and opportunities that policy makers in The New York Times. Available from <http://www.nytimes.com/2011/06/08/opinion/ environmental dimensions of face in implementing policies with 08friedman.html?_r=1&src=me&ref=general>. development (i.e., the three pillars). probably environmental and social 5. See: <http://moef.nic.in/downloads/public- At times, the discourse has been framed dividends, and, together with Kishan information/India%20Taking%20on%20 within ‘limits to growth’,3 and, more Khoday, argues that the environment Climate%20Change.pdf>.
  • 4. 4 International Policy Centre for Inclusive Growth and society are organic systems While not a comprehensive list of policy mixes that combine constantly in flux and change and that or accounting of the richness of social the macro and the micro to deliver. there may therefore be no ideal state of and political innovation available for sustainable development. Specifically, development, the examples highlighted On this point, Lucy Wanjiru’s article on Khoday’s article, supported by many underscore the need for global policy, accounting for gender and sustainability others, including those of Lindiwe Sibanda including the global climate change raises the profile of equality as an (FANRPAN) and Dan Smith and Janani agenda, to focus on incremental and important condition for a green Vivekananda (International Alert), signals long-term gains as well as immediate economy and shows the potential of the need for more flexible policymaking, ‘wins’. From the perspective of social the Women’s Business Initiative to tackle one able to adjust as new information is innovations, the comparative analysis by growth and affordability in tandem with made available. Nicolas Perrin’s article on Darana Souza and Danuta Chmielewska equity, access, opportunity and the the ECA region argues for the importance highlights the benefits of ‘publicly- quality of development. Leonardo of taking note of the political economy assigned rights and rights-holders’, Hasenclever and Alex Shankland’s dimensions of various policies. particularly when policy and review of REDD+ makes the case for programmes then reinforce them. the indigenous community as an equal The article by Helene Connor and Laura partner, not just a beneficiary. Thus, a Williamson further reinforces this by The contributions by Leonardo picture of cautious optimism, balanced calling for a “blinders off” approach Hasenclever, Alex Shankland and with the need to move beyond which move us beyond simplistic Nicolas Perrin highlight the continuing rhetoric, emerges. viewpoints of how power relationships lack of coherence and the need to define the interactions of the three avoid complacency even when big Reviewing the development context pillars of development and how battles are won. Leisa Perch’s article and challenges in the smallest countries those pillars interact with each other. on gender and employment also (SIDS) to one of the largest (India), the speaks to a number of subtle localized authors’ common clarion call is for Individually and collectively, the and micro realities that continue to sustaining development and anchoring contributions herein make a clear undermine socio-economic resilience. development in society. case for a strong, representative state While specific to SIDS, they highlight and the complementary role of civil the dynamic interplay between the The authors argue that the sustainability society and the private sector in economy at the household, group of the supply of resources (environment), defining and achieving sustained and macro level which often limits sustained access to resources in securing and sustainable development. sustained growth. livelihoods (society) and the quality of They also refer directly and indirectly financial resources (investments) are to the role of formal and informal Moreover, concerns expressed about the essential to stabilizing environmental institutions necessary for the negotiation quality of employment and about the change cycles, reducing/mitigating and reconciliation of conflicting and disconnect between needs and income ecological scarcity, and enhancing competing interests. The article by as well as the continuous exposure of the renewal of the ecological system. Denis Sonwa and Olufunso Somorin, SIDs to external shocks, resonate also Even so, they also note that population for example, makes a clear case for other countries and suggest the growth and other demands place anchoring rights and responsibilities need to focus on adaptation and significant and potentially exponential in law where they can be defended resilience-building, not just as marks pressures on assets, goods and services yet linked to fluid systems of on the development trajectory, but that are critical to future generations. institutional building that respect also as continuously evolving processes. local reality and culture. Perhaps most critical for a rapidly By probing some of the ‘uncomfortable’ globalizing and changing South is This consensus suggests that the questions of politics and interests and our reconfirmation that transnational, planned discourse for the Rio+20 by highlighting the potential for regional and global concerns will meeting on ‘institutional frameworks’ conflict, both overt and gradual, these increasingly influence ‘national’ policy. may need to ensure a broad scope articles suggest the need for greater There can be no green economy that can set standards and promote caution when addressing complex without an international enabling innovation and adaptation at all development challenges where not all environment, particularly on trade, levels of society. interests, capacities and implications that allows countries to invest, support rest easily or clearly on the surface. and anchor today’s development This accords with Hodgson’s definition decisions in tomorrow’s possibilities. of institutions as “systems of established They particularly outline the acute but and prevalent social rules that structure lesser known ‘social’ knock-on effects social interactions. Language, money, of public policy failures and warn that law, systems of weights and measures, socially blind policies are unlikely 6. Hodgson, Geoffrey M. (2006). ‘What are Institutions?’ Journal of Economic Issues, Vol. XL No. 1. Pp 1-25. manners and firms (and other to be sustainable in the long term. March edition. Accessed from <http://checchi. organizations) are thus all institutions”.6 Critically, the articles show the capacity economia.unimi.it/corsi/whatareinstitutions.pdf>.
  • 5. Poverty in Focus 5 Integrating Poverty and by Gabriel Labbate, Ph.D, Senior Programme Officer, UN-REDD Programme/Poverty Environment Policies: and Environment Initiative Issues, Challenges and Opportunities The integration of environmental the poor, with a substantial share of and development policies can be damage originating in commercial The integration of traced as far back to the 1960s with the ventures attempting to satisfy the poverty and environment publication of Silent Spring (Carson, 1962), increasing demands of a growing policies has taken centre to the 1970s with the establishment population that has an increasing stage in the development of UNEP, and to the 1980s with the spending capacity and shifting debate for their potential Brundtland Commission (WCED, 1987). consumption patterns for value-added to generate substantial The concept took central stage in the good and services (MEA, 2005). social benefits. Rio 1992 conference on environment and development and continues today as a There is little challenge to the idea that Contrary to accepted pivotal element in the ‘green economy’ the integration of development and beliefs, these policies discussion (UNEP, 2011). environment can result in cost-effective do not produce systematic policy options. The benefits can be win-win situations for The understanding of how poverty and non-trivial and encompass almost all sectors of society environment interact with each other every policy area, from local to national/ and therefore their has also evolved. Initially, the idea regional, from urban to rural (DFID, EC, implementation faces of a poverty-environment nexus UNDP, WB, 2002; TEEB, 2010). However, political difficulties. as a synergistic spiral of environmental while integrating poverty and degradation and poverty dominated environment policies can produce the discussion (WCED, 1987; World Bank, significantly positive and quantifiable 1992). Short-term needs overran potential results, it remains more the long-term benefits, with poverty inducing exception than the rule. environmental degradation, which, in turn, exacerbated poverty. In this Even development agencies find conceptual model, poor individuals the integration of their poverty and are both victims and agents of environment portfolios a challenge, environmental degradation. despite expanded efforts like the Poverty and Environment Initiative, This synergistic cycle, however, a partnership between UNEP and UNDP, provides limited insight into the and the global commitment to the true dynamics of resource use by poor MDGs as an overarching development groups (Brocklesby and Hinshelwood, policy framework. 2001; Dasgupta et al., 2005). Formal and informal institutions are better at There are good reasons for this: explaining the short- and long-term incentives that influence patterns First, poverty and environmental of resource use (North, 1990). policies can have significant synergies and be complementary, The generalisation of this synergistic but they still comprise largely spiral also ignores issues of heterogeneity, different types of intervention or the notion that not all poor individuals packages. A healthy environment have the same capital endowments and can be a necessary, but not sufficient, that, therefore, equally poor groups can condition to lift people out of make different use of similar pools of poverty. Some of the deepest poverty resources (Chomitz, 1999; Barbier, 2000). readings take place in quite pristine environments, such as in tropical forests Often, the drivers of environmental beyond the agricultural frontier degradation are also moving away from (Chomitz, 2007).
  • 6. 6 International Policy Centre for Inclusive Growth The relationship can go the other way, too. developing countries. In this context, The effect of very rapid Addressing social imbalances can be a integrating poverty and environment growth on ecosystems necessary, but not sufficient, condition would require policies that could be and their services has not to ensure sustainable resource use politically unpalatable. The notion (see also Gilbert, 2010). that sectors of society might have to been trivial. More than sacrifice some consumption to achieve half of all ecosystem Second, a healthy environment is a world free of poverty under conditions services are degraded or not a binary (0,1) variable. In most of sustainability is still anathema to some cases, the challenge is to find that citizens in developed and developing being used unsustainably. level of resource pressure which allows countries (Lind, 2010; Soley, 2010). for increased income among the poor, Some estimates put yet that stays within perceived safe Fourth, mainstreaming poverty- limits—for example, those required to environment policies in development global environmental preserve the resilience of ecosystems. plans is not cost-free. It demands damages in 2008 alone This can turn into a complex time and attention from qualified at 11 percent of global optimisation problem, one in which staff, a generally scarce resource. the target is not to maximise a single It can also entail re-accommodation GDP, several times the variable, but rather to find the of expenditures between sectors impact of the global best balance among several. because realizing the benefits of financial crisis in the same poverty-environment mainstreaming Third, improving the well-being of the can require increases in environmental year (UNEP, 2010). poorest implies increased consumption spending, a potentially difficult choice capacity (e.g., more food, better for a policy maker with limited resources The best chances of clothing, housing, etc.). Traditionally, (see also Bah, 2008). development has been coupled with an success will come from increased production and consumption As a result, some needed environmental sustained interventions of goods and services, resulting in a investments may not be carried out that are honest at rate and pattern of growth in the last because, as portfolio theory teaches us, 50 years in which the global economy the fact that an intervention has a recognizing challenges, has increased six-fold, food production positive payoff is not a sufficient focus on impact, do not has increased by two and a half times, reason to automatically expect divorce themselves from and water use has doubled. The effect its implementation. Proposed of this very rapid growth on ecosystems interventions must have a positive the underlying reasons and their services has not been trivial. payoff and a rate of return above of poverty, and invest More than half of all ecosystem that of other competing demands. in better governance services are degraded or being In the long run, environmental used unsustainably. The species policy can pay for itself, but, in and greater efficacy extinction rate is 1,000 times above the short run, the transition costs of public policy. the estimated normal level. Cultivated can often be significant. Development systems already cover one quarter agencies would do well to better of the Earth’s terrestrial surface, while understand these costs and their the amount of water impounded in influence on the decision-making process. dams is three to six times that of natural rivers (MEA, 2005). Finally, the mainstreaming of poverty-environment policies Some estimates put global environmental does not escape the law of diminishing damages in 2008 alone at 11 percent of returns. Projects that provide technical global GDP, several times the impact support to countries in order to integrate of the global financial crisis in the same poverty and environment policies year (UNEP, 2010). should prioritise those interventions in which payoffs are maximised, The unlimited production of preferably in the short run, and use consumer goods is not a feasible these as building blocks for more option. Consequently, the increased complex efforts. consumption of the poorest under conditions of sustainable resource use will Vaguely focused interventions need to be balanced by readjustments distract scarce public-service talent, in the consumption patterns of middle render poor services to the objective of and upper classes in developed and scaling up the mainstreaming of poverty-
  • 7. Poverty in Focus 7 environment policies, and generally exposure to toxics, the informal discussion notes prepared for the WDR Summer Workshop on Poverty and have difficulties in demonstrating impact. waste collection sector, and recycling, Development, 6-8 July 1999, Washington DC. an area in which the Poverty Notwithstanding the above, the potential Environment Initiative is already Chomitz, K. (2007). At Loggerheads?: Agricultural Expansion, Poverty Reduction, for integrating poverty-environment working in Uruguay. and Environment in the Tropical Forests, policies is immense. The following Washington DC, World Bank. examples outline the scale of potential The increased production of payoffs for rural and urban environments. waste has surpassed the capacities DFID, EC, UNDP and the World Bank (2002). Linking poverty reduction and of most urban centres in developing environmental management: For the rural sector, small-scale countries and has provided grounds Policy Challenges and Opportunities. agriculture and improved for the establishment of an informal Gilbert, N. (2010). ‘Can Conservation water and soil management hold waste collection sector that is Cut Poverty?’ Nature 467, 264–265. , great potential for integrated poverty responsible for most recycling. Available at: <http://www.nature.com/news/ and environment policies. In many The conditions under which this 2010/100913/full/467264a.html>. settings, it can reverse ongoing activity takes place are extremely Holt, E. (2001). ‘Measuring Farmers’ processes of land degradation, harsh and often reinforce Agroecological Resistance to Hurricane improve food security, and diminish structural poverty. Mitch in Central America’, Gatekeeper Series No.Sa102, International Institute the vulnerability of poor populations for Environment & Development. (Barbier, 1987; Holt, 2001). It is true In summary, the integration of poverty that, in many rural settings, realising and environment policies can have Lind, M. (2010). From Shrillness to S obriety: Pragmatism in Climate Politics. the benefits of poverty-environment significant social rewards. Sustained Available at: <http://www.policy-network.net/ policies can require addressing land interventions that keep structural publications_detail.aspx?ID=3758>. tenure issues, land concentration, and realities in view, focus on impact, Millennium Ecosystem Assessment (2005). power asymmetries, underscoring the do not divorce themselves from Ecosystems and Human Well-being: observation that environmental the underlying causes of poverty, Synthesis, Washington DC, Island Press. investments are insufficient, in of and invest in better governance North, D. (1990). Institutions, Institutional themselves, to lift people in and greater efficacy of public Change and Economic Performance, out of poverty. policy are more likely to deliver Cambridge, Cambridge University Press. the transformations necessary Soley, C. (2010). ‘Needs Must: Should the Current efforts at reducing to anchor sustainable development. Environment Trump Prosperity?’ deforestation and forest Available at: <www.policy-network.net/ degradation (REDD+) provide publications_download.aspx?ID=3662>. Bah, El-hadj M. (2008). ‘Structural another avenue with tremendous TEEB (2010). The Economics of Transformation in Developed and potential for ‘win-win’ poverty Developing Countries’ MPRA Paper 10655. , Ecosystems and Biodiversity. and environment policies. Available at: <http://mpra.ub.uni- Available at: <http://www.teebweb.org/ muenchen.de/10655/1/ TEEBSynthesisReport/tabid/29410/ A mosaic of improved land Default.aspx>. MPRA_paper_10655.pdf>. use practices and forested areas supported by economic incentives Barbier, E. (1987). ‘Cash Crops, Food Crops UNDP (2005). Millennium Project. and Agricultural Sustainability’ Gatekeeper , Report of Task Force 7 on Water and technical support is probably and Sanitation. Available at: <http:// Series 2, International Institute for the best option currently available Environment & Development. www.unmillenniumproject.org/documents/ to stabilise frontiers in large sectors WaterComplete-lowres.pdf>. Barbier, E. (2000). ‘The Economic Linkages of developing countries and to UNEP (2010). Why environmental between Rural Poverty and Land reduce rural poverty. Such efforts Degradation: Some Evidence from Africa’, externalities matter to institutional alone will not reverse deforestation Agriculture, Ecosystems and Environment, investors. Available at: <http:// Vol. 82, pp. 355-370. www.unepfi.org/fileadmin/documents/ trends; they should be accompanied universal_ownership.pdf>. by efforts to tackle large-scale Brocklesby, M. and Hinshelwood, E. (2001), agriculture, real estate speculation, ‘Poverty and the Environment: What the UNEP (2011). Towards a Green Economy: Poor Say: An Assessment of Poverty- Pathways to Sustainable Development and other forces that promote and Poverty Eradication. Environment Linkages in Participatory forest cutting. Poverty Assessments’, DFID. Available at: <http://www.unep.org/ greeneconomy/GreenEconomyReport/tabid/ Carson, R. (1962). Silent Spring. 29846/Default.aspx>. At the urban level, the traditional New York, Houghton Mifflin. sectors of water and sanitation World Bank (1992). World Development remain the most promising Dasgupta, S., Deichmann, U., Meisner, C., Report 1992 – Development and the and Wheeler, D. (2005). ‘Where is the Environment, New York, Oxford areas for a twin-track approach. Poverty Environment Nexus? Evidence University Press. The poverty-environment linkages from Cambodia and Lao PDR and Vietnam’, here have been well researched World Development, Vol. 33, No. 4, World Commission on Environment pp. 617–638. and Development (1987). Our Common and the payoffs are substantial Future, Report of the World Commission (UNDP, 2005). Linked to these Chomitz, K., (1999). Environment-Poverty on Environment and Development, Oxford, is the interface between health, Connections in Tropical Deforestation, Oxford University Press.
  • 8. 8 International Policy Centre for Inclusive Growth by Lucy Wanjiru, Programme Specialist, Gender and Environment, Accounting for Green UNDP/BDP Gender Team Growth From the Lens of Gender Equality: Why It Matters! The world is shifting away from While a green economy has the potential While a green economy economic growth models based on fossil to contribute to global economic has the potential to fuels and toward a new ‘green’ economy recovery and to create both high- and contribute to global based on low-carbon development. low-skill jobs, it also supports quality economic recovery and to The financial and economic crises have investments at the community level to create both high- and prompted increased investments in provide clean, affordable energy and low-skill jobs, it also environmental infrastructure through to reduce threats from food, water, supports quality economic stimulus packages, while ecosystem and climate crises. A green investments at the countries continue to make commitments economy that functions in this way is community level to provide and substantial monetary pledges to more likely to deliver on its promise to clean, affordable energy support emerging financing mechanisms eradicate poverty and to promote equity, and to reduce threats from to mitigate and adapt to climate change. especially among women. food, water, ecosystem and climate crises. A green economy can help to achieve In many developing countries, women sustainable development by alleviating are living on the frontlines of climate A green economy that environmental threats, contribute to the change. As primary producers of staple functions in this way is creation of dynamic new industries and foods—a sector that is highly exposed more likely to deliver on its income growth, and create quality jobs to the risks of drought and uncertain promise to eradicate poverty that can improve workers’ economic rainfall—women are disproportionately and to promote equity, standing and thus their ability to impacted by climate change and are especially among women. better support their families. often excluded from political and household decisions that affect their These new industries and jobs can help lives. During natural disasters such as protect and restore ecosystems and floods and hurricanes, for example, biodiversity, reduce energy consumption, women suffer disproportionately and decarbonize the economy, and often count higher among the dead.1 contribute to climate change mitigation and adaption. In addition, women tend to possess fewer assets and have insecure forest The sustainability of the new green and land tenure rights. Even where 1. Oxfam International (2005). economy depends, however, not only legislation to secure women’s land rights 2. Gender Justice: Key to Achieving the Millennium on that economy’s ability to yield exists, the process of implementing the Development Goals. Available at <http:// www.ungei.org/resources/files/MDGBrief-English.pdf>. environmental benefits, but also on laws remains a challenge. In Madagascar, its effectiveness in helping to eradicate for example, only 15 percent of women 3. Policy Paper: Intellectual Property, Agro poverty and to increase gender equality own small landholdings, although the biodiversity and Gender. and women’s empowerment. constitution guarantees women’s land 4. Evidence for Action Gender Equality and Economic rights and 83 percent of employees Growth. Available at: <http://www.oecd.org/dataoecd/ 34/15/45568595.pdf>. Green economy initiatives that aim at in the agricultural sector are women. creating more environmentally-sound Furthermore, agricultural financing 5. UNDP and Energy Access for the Poor: Energizing the Millennium Development Goals. Available at: <http:// economies are not automatically processes do not often include gender www.undp.org/energy/>. inclusive of fundamental social considerations. “OECD statistics show requirements such as income equity, that of the US$18.4 billion spent on 6. “A Gender Perspective on the “Green Economy” Equitable, healthy and decent jobs and livelihoods“, job quality and gender equality. In failing agricultural aid between 2002 and 2008, Women’s major group position paper in preparation to account for social factors, they could donors reported that just 5.6 percent of the “Rio+20" United Nations Conference on Sustainable Development 2012. maintain or even aggravate the negative included a focus on gender”.2 Available at: <http://www.unep.org/civil-society/ social and distributive trends of the Portals/59/Documents/12_GMGSF/ docs_and_presentations/Additional_messages/ traditional economy, such as existing Although women generally lack decision- gender_perspective_on_the_green_economy.pdf>. inequalities and gender gaps. making power in social and political
  • 9. Poverty in Focus 9 institutions and are excluded are essential for climate change mini-grids, water pumping and biofuel) from leadership positions or given only mitigation, can have significant and are also being introduced rapidly. secondary roles, they are not only victims rapid economic benefits for women Scaling up energy access in off-grid of adverse climate impacts. Indeed, they in developing countries. It can improve areas across Africa will be instrumental are also active agents of change, leaders, productivity and efficiency and open up in empowering women and accelerating and champions of economic growth and new income-generating opportunities progress on multiple MDGs.5 sustainable development. for women, especially in currently underserved rural areas. Still, despite recent gains in gender Despite suffering from socio-economic equality and women’s empowerment, disadvantages, women are already Supporting women in designing, a significant wage gap and extremely responding to climate changes while producing and marketing new energy- low numbers of women in high-growth they work to maintain their families related equipment could trigger a employment fields remain. Women and communities. They are at the positive chain reaction. Research shows still face significant challenges in frontlines of everyday adjustment and that women are most likely to invest in entrepreneurship, including limited adaptation to changing conditions the wellbeing of their families; their access to start-up capital, financing, and environments. increased control over resources likely networks, and technical expertise, leads to increased spending on children, as well as a lack of opportunity to As primary caretakers of families, a greater accumulation of human capital bid on competitive federal contracts.6 communities and natural resources, in the next generation, and the creation women are energetically supporting of sustainable livelihoods for A truly sustainable ‘green economy’ rural food security and maintaining whole communities.4 must promote gender-friendly, green- agricultural biodiversity.3 collar employment and entrepreneurship The green economy will need to support opportunities and social equity and They have accumulated specific innovative approaches and business must create green pathways out of knowledge and skills about local models to facilitate women’s poverty for both genders. conditions and ecological resources entrepreneurship opportunities and and have the power to contribute to support the scaling-up of field-proven The Case of UNDP’s Women’s Green economic transformation and sustainable solutions and approaches that facilitate Business Initiative development. But to reach their full growth for female-owned business The United Nations Development potential, they need support in scaling up ventures beyond social assistance and Programme’s (UNDP’s) strategic approach and upgrading their activities related to micro-credit schemes. In Mali, Burkina to addressing climate change is guided sustainable agriculture, renewable energy, Faso and Senegal, for example, access by the principles of inclusion and and the conservation of water supplies, to mechanical power (multifunctional sustainable development, recognizing forests and other natural resources so that platforms), some of which is run from that climate change is a development they can generate greater economic clean biofuel, is generating income for issue and must be addressed hand-in- benefits from their labour. 2 million rural women, increasing school hand with efforts to reduce poverty. completion rates, and equalising the To this end, UNDP has launched the Increased access to cleaner fuels, energy girl-to-boy ratio in primary schools. Women’s Green Business Initiative, sources and technologies, all of which New options (e.g., off-grid decentralised a global programme aimed at promoting women’s employment and entrepreneurship opportunities through Women and the Environment: climate change mitigation and adaptation activities. Forests contribute to the livelihoods of many of the 1.2 billion people living in extreme poverty, and the large majority of these poor (over 70 percent) are women Working in close collaboration with (Gurung and Quesada, 2009). governments, civil society organizations, 70 percent of the 1.3 billion people living in conditions of poverty and the private sector, the Initiative is are women. In urban areas, 40 percent of the poorest households are establishing “service delivery platforms” headed by women (UNDP, 2009 from UNFPA, 2008). that offer policy advice, capacity building, financing options, information, Women predominate in the world’s food production (50-80 percent), but they and increased access to new own less than 10 percent of the land (UNDP, 2009 from UNFPA, 2008). technologies for developing countries. In sub-Saharan Africa, women comprise 60 percent of the informal economy, This initiative will further the UN System- provide about 70 percent of all the agricultural labour and produce about wide Policy on Gender Equality and the 90 percent of the food (FAO, 2008). Empowerment of Women7 and the UNDP By training women, including grandmothers, to be solar engineers, the Barefoot Gender Equality Strategy (2008-2013).8 College has helped them and communities to access renewable energy and reduce reliance on biomass as an energy source (Castonguay, 2009). The Women’s Green Business Initiative will contribute to poverty reduction
  • 10. 10 International Policy Centre for Inclusive Growth The green economy The Types of Enterprises that can be Supported by the Women’s Green Business Initiative Include: will need to support innovative approaches Producing and marketing low-emission, more efficient stoves and equipment. and business models Producing, marketing, and installing renewable energy technologies. to facilitate women’s Producing biofuels and biogas for lamps, cookers and motorised equipment. entrepreneurship Expanding existing businesses using new energy efficient and renewable opportunities and energy sources. support the scaling-up Preserving forest and biodiversity through tree planting, ecosystem conservation of field-proven solutions and sustainable use of indigenous resources. and approaches. Providing financial, business and environmental management and consulting services. Integrating gender considerations in the and the achievement of the Millennium access to existing climate change green economy is critical Development Goals (MDGs), especially of funds and pursues the establishment to the creation of a more MDG 3 on gender equality and women’s of new targeted financing options for equal and sustainable empowerment. This is particularly women’s green business initiatives. important for gender-responsive society for all. and green public investment. The Women’s Green Business Initiative aims to directly empower women in The Initiative equips women to engage developing countries to engage in the vigorously in new economic activities design, production and delivery of green UNDP (2009) Resource guide on Gender and Climate Change. that address climate change threats while technologies, products, services, and Available from: <http://content.undp.org/ building stronger, more resilient and self- information to adapt to and mitigate the go/cms-service/download/publication/ reliant communities by implementing effects of climate change. It also provides ?version=live&id=2087989>. three strategic elements: support services to remove legal, policy FAO (2008). Gender Equality: Ensuring rural and regulatory biases that hinder women’s and men’s equalparticipation in Creating a policy environment that women’s entrepreneurship and development. Food and Agriculture Organization. <ftp://ftp.fao.org/docrep/fao/ enhances equal economic opportunities employment in the new green industries 011/i0765e/i0765e10.pdf>. for women: The Initiative provides and activities of the future. Evidence advice and technical support to shows that investing in gender equality Castonguay, Sylvie (2009). Barefoot Colleague Teaching Grandmothers governments on policy and planning can accelerate economic growth and to be Solar Engineers. WIPO Magazine, frameworks to remove legal, reduce poverty.9 3/2009. June 2009. WIPO, Communications administrative and financial constraints Division. Available from: <http:// www.wipo.int/wipo_magazine/en/2009/03/ affecting women’s economic Therefore, integrating gender article_0002.html>. advancement and provides incentives considerations in the green economy and resources for the expansion of is critical to the creation of a more women’s green enterprises. equal and sustainable society for all. 7. UN System Doc. CEB/2006/2. Doing any less means not involving 8. The UNDP Gender Equality Strategy calls Building capacity for women’s and capitalising on the capacity, for tailored initiatives to support broad-based, organizations and women entrepreneurs: innovation and learning of 50 percent equitable development that is inclusive of women’s needs and contributions—especially those of poor The Initiative provides training and of the world’s population. women. Section 6.1 of the Gender Equality Strategy support services to assist women’s deals broadly with “Poverty Reduction and the Achievement of the MDGs” and includes initiatives organizations and entrepreneurs in for “Promoting inclusive growth, gender equality starting, incubating and scaling up The following references are related and MDG achievement.” Paragraph 51 states that viable business enterprises that to the box on page 9: UNDP will be pro-active in working with national entities to incorporate a gender perspective, contribute to climate mitigation, with special attention to four areas: Gurung, Jeannette and Andrea Quesada adaptation and resilience. 1) macro-planning instruments that incorporate (2009). Gender-Differentiated Impacts gender analysis and specify gender equality results; of REDD to be addressed in REDD Social 2) women’s unpaid work; 3) gender-responsive public Standards. A report prepared for an Increasing women’s access to climate investment; and 4) gender-sensitive analysis of data. initiative to develop voluntary Social change finance mechanisms: and Environmental standards 9. Klasen, S. “Does Gender Inequality Reduce The Initiative promotes gender- for REDD. Available from: Growth and Development? Evidence from <http://www.wocan.org/files/all/ Cross-Country Regressions“. responsive public and private gender_differentiated_impacts_of_redd_final_ Available at: <http://siteresources.worldbank.org/ investments. It facilitates increased report1.pdf>. INTGENDER/Resources/wp7.pdf>.
  • 11. Poverty in Focus 11 Sustainable Development by Kishan Khoday, Deputy Representative, UNDP Saudi Arabia1 as Freedom: Energy, Environment and the Arab Transformation Control over energy and the people’s long-term choices and freedoms. environment has been central to state Unless trends of resource scarcity and As countries across the Arab legitimacy and power in the Arab region, ecological change are addressed, basic region move forward with shaping the nature of governance freedoms, human security and human new social compacts, the and influencing how sovereignty and development stand in jeopardy. equitable and sustainable statecraft function in the region. use of natural resources As the systemic transition across the Arab In particular, the vulnerability of food, will emerge as an issue region proceeds and countries craft new water and energy resources and the of contention. social compacts for development, the exacerbation of climate change together equitable and sustainable use of natural bring serious risks to sustaining human Transformational change resources will likely emerge as a central development. As noted by former UN in the Arab region is an issue of contention. Secretary General Kofi Annan, “when opportunity to rethink resources are scarce—whether energy, the role of natural resources The social compact in past decades has water or arable land—our fragile in creating more inclusive been defined by a balance between state ecosystems become strained, as do and sustainable growth and control over natural capital, on the the coping mechanisms of groups and as a means of expanding one hand, and the provision of social individuals. This can lead to a breakdown people’s long-term choices welfare benefits, on the other. However, of established codes of conduct, and and freedoms. sustainable development is about more even outright conflict.” Underlying shifts than charity—it is also about justice and in global resource demand and fragility Sustainable development is accountability, with a key challenge of supply combined to create record about more than charity—it being to expand the benefits of the prices for basic food and energy is also about justice and region’s natural wealth for the average commodities in recent years, accountability. citizen and the poor in particular. exacerbating social and political instability in many countries. Higher expectations have emerged for more transparent, accountable The transformation in the Arab region and participatory use of energy and now provides space to rethink the role the environment as a public good, of natural resources in the economy, with combating corruption, preventing new green economy concepts potentially the squandering of natural wealth, providing a channel to increase social and preserving natural capital equity and the efficiency of resource use for future generations. and generating new knowledge-based approaches to economic innovation and The spirit of transformational change competitiveness. Such rethinking would in the region stands as an opportunity do well to consider the role of the green 1. Kishan Khoday has served with UNDP since 1997, to address entrenched systems of economy, defined as an economy “that as UNDP Sustainable Development Advisor and Deputy Coordinator for Natural Resources control, broaden access and benefit- results in improved human well-being and the Environment in Indonesia (1997-2005), UNDP sharing related to natural wealth, and social equity, while significantly Assistant Representative and Team Leader for Energy & Environment in China (2005-2009) and UNDP expand the role of local governance, and reducing environmental risks and Deputy Representative in Saudi Arabia (since 2009). strengthen resilience of the natural asset ecological scarcities”. 2 The concept has emerged as a way to stimulate economic 2. UNEP, Towards a Green Economy: Pathways to base on which the poor depend. Sustainable Development and Poverty Eradication – While analyses of the links between activity, while responding to food, water, A Synthesis for Policy Makers, UNEP, Nairobi (2011), 2. environment and human development energy and climate crises and reorienting 3. Jose Antonio Ocampo, The Transition to a Green often focus on consumption the global economy from a “system that Economy: Benefits, Challenges and Risks from a sustainability, a broader perspective is allowed, and at times generated, these Sustainable Development Perspective, Report of Experts to Second Preparatory Committee for the UN needed to address the important role of crises to a system that proactively Conference on Sustainable Development (Rio2012), natural resources as a means to expand addresses and prevents them.”3 UNDESA, UNEP and UNCTAD, New York (2010), 2.
  • 12. 12 International Policy Centre for Inclusive Growth Food Security at the Crossroads Energy and Inclusive Growth The 2012 Rio Earth Food security accelerated the emergence As noted by the 2010 IMF World Economic Summit is an opportunity of some civil society movements, with Outlook, “the persistent increase in oil to engage in new south- 2011 seeing record prices because of prices over the past decade suggests surging global demand and historic that global oil markets have entered a south cooperation for droughts and flooding in key exporting period of increased scarcity. Given sustainable development, countries in 2010. the rapid growth in oil demand in to engage the new role of emerging market economies and a The Arab region already stands as the downshift in the trend growth of oil the South in emerging world’s largest net food importer and supply, a return to abundance is risks and solutions. many fear we are witnessing a shift away unlikely in the near term.”5 from cyclical price fluctuations towards longer-term structural change driven The convergence of declining energy A south-south solutions by a shift in supply and demand reserves, the dramatic rise in emerging exchange can support fundamentals—a convergence of surging economy demand, and a gradual global sharing of models for emerging economy demand alongside shift to climate-friendly growth have bottlenecks to expansion of agricultural created a break from the type of cyclical sustainable development land and productivity that include climate factors that shaped the past, with oil and green economy change, rising energy costs, reduced prices likely to remain high for some policy, and the transfer groundwater irrigation capacities, time to come. This holds risks for desertification and reduced soil fertility. Arab countries, most of which and development of clean are net energy importers. technologies within the Enhanced social safety nets and new south. It could also approaches to agricultural productivity There is now recognition that rising gains are needed for Arab countries to prices could constrain future human facilitate the integration adapt to these challenges. New attention development trends unless energy of green economy is needed to review economic and fiscal alternatives are engaged. As a result, approaches into rapidly policies related to agricultural production countries across the region are now and land use, subsidy and social security intensifying efforts to expand renewable growing ODA and foreign systems, ecologically sound farming, crop energy and energy efficiency measures investment flows from diversification, expansion of sustainable to reduce import dependence and emerging economies to irrigation and water use efficiency, use of thus to save public resources for social energy efficiency and renewable energy development goals while also creating least developed countries. measures, and soil replenishment. the foundations for new growth and a green economy. Furthermore, food insecurity is driving some Arab countries to explore overseas Energy plays an equally important role land acquisition and leasing. Globally, in defining the nature of the state and the acquisition of land for food security human development in oil-exporting has topped 140 million acres, bringing countries in the Arab region. The energy with it an investment potential of US$50 sector remains central to the region’s billion to host countries.4 economy, making up approximately 40 percent of GDP, but, as reserves decline, Saudi Arabia, for example, is now active oil-exporting countries are also in land acquisitions and leasing in intensifying efforts to expand local Ethiopia, Indonesia and Sudan driven by renewable energy and energy efficiency high population growth in the Arab Gulf, measures. This is meant to conserve with populations expected to double increasingly scarce oil reserves for future from 2000 levels by 2030 in an export revenues, on the one hand, and to environment of scarce arable land and diversify economies beyond oil to ensure groundwater resources. However, this a sustainable base for economic growth new global trend brings concerns and youth employment, on the other. about the impact on local communities in terms of land and water rights and In Saudi Arabia, for example, which is their own food security, with a need largely dependent on oil-burning power for South-South cooperation and facilities and the expansion of non-oil integration of sustainability, inclusion industrial sectors, recent years have seen 4. Lester Brown, The New Geopolitics of Food, May/ and equity into growth and a dramatic increase in local direct oil use. June 2011, Earth Policy Institute, Washington DC, 7-8. investment policies. The new King Abdullah City for Atomic
  • 13. Poverty in Focus 13 and Renewable Energy forecasts that, if current trends prevail, local oil demand could increase from about 2.5 million barrels per day (mbpd) out of the 10 mbpd produced today, to as many as 8 million barrels per day by 2028.6 Thus, in addressing energy risks and opportunities in the Arab region, two complimentary goals are taking shape in the region, both in line with the vision of the UN Secretary General’s Advisory Group on Energy and Climate Change: 1) to reduce the energy intensity of growth and 2) to expand access to sustainable forms of energy for the poor, the latter of which is in particular focus in 2012 as the International Year of Sustainable Energy for All.7 As a result of the global shift in Source: Cleantech Group (2011). resource supply and demand and emerging green economy opportunities, social development and must be Opportunities exist to build new strategic clean technology reached a record high overcome if the MDGs are to be achieved.” partnerships to combine experiences and market capitalization of US$386 billion expertise and to establish policies and in 2010, of which US$200 billion was in South-South Solutions institutions as the foundations for new clean energy (see Figure).8 This is driven Coming 20 years after the landmark 1992 green growth and benefits to the poor. by emerging economies like Brazil, Rio Earth Summit, the upcoming 2012 Rio Scope also exists for cooperation China, and India.9 Potential also exists Earth Summit will place a major focus on among natural resource exporting and for the Arab region to join this trend institutions for sustainable development importing countries in the South to find by building on its world-leading energy and on the green economy. new solutions to surging prices, market sector capacities and solar radiation volatility, and vulnerability of the poor. levels. Initial steps include renewable Two underlying issues are important: energy and energy efficiency targets the role of emerging economies in global A South-South solutions exchange in Algeria, Egypt, Jordan, Lebanon, sustainability challenges and solutions on issues of natural resources and Morocco, Tunisia and UAE, and plans and the emerging risks from resource the environment can add value to this for a pan-Arab solar power network. scarcity for social equity and inclusive process, connecting achievements and growth. Unlike in previous eras of best practices among partners and However, while clean energy holds economic transformation, current helping shape evolving green economy benefits for the sustainability of responses to food, water and energy strategies in follow-up to the upcoming development, it will not necessarily security are emerging through 2012 Rio Earth Summit. benefit the poor without policies leadership of the South. for inclusive growth in the sector.10 5. IMF, World Economic Outlook, International Monetary Thus, South-South cooperation can play Fund (IMF), Washington (2011), 89. The 2008 Riyadh Declaration on a key role in harnessing the comparative Energy for Sustainable Development, advantages of partners in the South to 6. KACARE (2011), Statement by the President of the King Abdullah City for Atomic and Renewable for example, advocated to make clean bring about transformational change in Energy to the Global Competitiveness Forum, energy accessible for Least Developed the global economy and to support 14 January 14 2011, Riyadh. Countries and was supported by sustainability of their own economic 7. UN, Report of the UN Secretary-General’s Advisory the OPEC Fund for International and social development. Group on Energy and Climate Change, United Nations Publications, New York (2010), 7-9. Development and other partners. Just as the agricultural green revolution 8. Nicholas Parker, The Emerging Global Clean Economy: This is important for the Arab region, of the past reduced poverty across the The Race for Sustainability Prosperity Goes Mainstream, Cleantech Group, Presentation to the Global where 40 percent of the poor lack energy world, so, too, could the next wave of Competitiveness Forum, 24 January 2011, Riyadh. access, with electrification rates in Sudan clean technologies emerge as a critical 9. UNEP, Towards a Green Economy: Pathways to and Yemen as low as 25 percent. As noted tool for achieving inclusive growth and Sustainable Development and Poverty Eradication: at the global MDG+10 Summit in 2010, sustainable development. South-South Policy Synthesis, UNEP, Nairobi (2011), 23. “lack of access to modern energy services cooperation can be a transformative 10. IEA and UN, Energy Poverty: How to Make Modern is a serious hindrance to economic and force in this regard. Energy Access Universal, OECD/IEA (2010), Paris.
  • 14. 14 International Policy Centre for Inclusive Growth by Nicolas Perrin, Senior Social Development Specialist Europe and Central Asia Region, Challenges and Opportunities World Bank for Inclusive Green Growth In the Europe and Central Asia and legacy issues, even countries and A focus on the social region (ECA), where the effects of sectors that potentially stand to benefit dimensions of climate climate change are already being felt, from a warming climate are poorly change improves post-Communist legacies create unique positioned to do so (Fay et al., 2009). operational quality in environmental and infrastructural terms of both substance problems, and the consequences of Although most ECA countries have and process, thereby climate change could easily exacerbate achieved an absolute reduction in contributing to better existing social inequalities. emissions during the past two decades overall results. due to industrial decline, emissions This article seeks to identify some have begun to rise again, as efforts Social and institutional of these intersecting considerations to de-couple economic development analysis helps provide a and the role of social approaches in from carbon intensity meet with little snapshot of vulnerability sustaining efforts to mitigate and success (World Bank, 2010). and assesses institutional adapt to climate change. capacity for responding to Among the world’s top ten highest climate change helping us Why? A focus on the social dimensions greenhouse gas emitters per unit of GDP, not just to understand of climate change improves the five are from the ECA: Uzbekistan (1), vulnerability in itself but operational quality of substance Kazakhstan (3), Ukraine (6), Russia (7), who is vulnerable, for and process, thereby contributing Azerbaijan (8). Still, while reducing GHG how long and why. to better overall results. Social and emissions is vital for stabilising the institutional analyses help provide global climate, national public policy This strategy is particularly a snapshot of vulnerability often seeks to balance this with the need important in the Europe and and assess institutional capacity to provide access to affordable energy, Central Asia region (ECA), for responding to climate change, opportunities for the mobility of people, where the effects of climate helping us to understand not just goods and services, and transitional change are already being vulnerability itself, but also who is support to those dependent on felt, post-Communist vulnerable, for how long, and why. carbon-intensive livelihoods. legacies create unique environmental and Can ECA countries adapt to climate Structural transformation of the infrastructural problems, risks and reduce emissions while economy to renewable energies in ECA and existing social safeguarding development? offers opportunities for GHG reductions inequalities could easily be Climate change represents a multi- and important distributional and exacerbated by the sectoral concern for the Europe institutional challenges. consequences of and Central Asia region. Temperature climate change. increases between 0.5 degrees celsius in Social dimensions of green the south and 1.6 degree celsius in the growth and climate change in ECA north have been noted, with anticipated Unprepared to manage a changing increases of up to 1.6 to 2.6 degrees climate, ECA countries face increasing celsius by the mid-century. economic losses and inequitable social impact that will be disproportionately Climate variability significantly threatens borne by the poor. Climate change, ECA countries, with negative effects combined with a crumbling and already evident. The region’s poor inflexible infrastructure, renders ECA infrastructure and dire environmental countries vulnerable. situation, rather than the changing climate itself, figure most prominently as Over the past 30 years, natural disasters the region’s key drivers of vulnerability. have cost ECA countries about US$70 Due to these pervasive socio-economic billion, a figure anticipated to rise.