Number 19

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6 5 4 3 2 1 A quarterly magazine. Stimulating, critical and constructive. A forum for discussion and exchange about the i ntersection of industry and development.

www.makingitmagazine.net makingit_19_pp2-3_intro.qxp_print 20/08/2015 11:07 Page 3 Editorial A water footprint shows the amount of fresh water used to produce the goods and services we consume, including that used for growing, harvesting, packaging and shipping. The global average water footprint of industrial products is 80 litres per US dollar of the purchase price. Every manufactured product requires water but some industries are more water-intensive than others. More than 4,600 litres of water are used to make one tonne of cement; 837 litres to make one kilogram of cotton; 458 litres to make one kilogram of synthetic plastic; 190 litres to make one litre of paint; and ten litres to make one sheet of paper. Industrial wastewater is one of the most serious sources of water pollution. There are many types of industrial wastewater based on different industries and contaminants, with each sector producing its own particular combination of pollutants. The production and cleaning processes in the iron and steel, textiles and leather, pulp and paper, and chemicals sectors, amongst others, pose a severe threat to water resources around the world, particularly in the Global South. More than 2.8 billion people in 48 countries will face water stress or scarcity conditions by 2025, yet at the same time global water demand for manufacturing is expected to massively increase. For industrialization to be sustainable, it must be a process that reduces water use and improves the quality of wastewater. Enterprises, whether small, medium or large, must make more progress in evaluating and reducing their water use and that of their supply chains. Water-use efficiency across all sectors must improve to ensure sustainable withdrawals. Water pollution must be reduced and the release of hazardous chemicals and materials eliminated in order to improve water quality. The greening of industry can help ensure safe and clean water for all.

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MakingIt IndustryforDevelopment Contents

Editor: Charles Arthur [email protected] GLOBAL FORUM world where the productive Editorial committee: Manuel 6 Letters power of water is harnessed Albaladejo, Thouraya Benmokrane, Jean Haas-Makumbi, Sarwar 8 A post-GDP world Lorenzo and its destructive force is Hobohm (chair), Kazuki Kitaoka, Victoria Nussbaumer, Dejene Tezera, Fioramonti on why it’s time minimized and Ravindra Wickremasinghe Design: Smith+Bell, UK – to end the tyranny of Gross 18 Brewing watershed? www.smithplusbell.com Domestic Product Water is a vital ingredient for Thanks for assistance to ZHONG Xingfei and 10 Hot topic: How does brewers. Anna Swaithes Laura Gil Martínez Printed by Imprimerie emigration affect the people shows how SABMiller plc Centrale, Luxembourg, on PEFC-certified paper – left behind in poor countries? regards it as part of a broader http://www.ic.lu Paul Collier argues that global challenge To view this publication online and to participate in discussions about skilled migration from some 22 Greening industry, saving industry for development, please visit www.makingitmagazine.net low-income countries is so water in North Africa Igor To subscribe and receive future issues of Making It, please send an email high that it undermines the Volodin introduces a with your name and address to development prospects of programme demonstrating [email protected] Making It: Industry for Development people “left behind”. Justin the benefits of adopting best is published by the United Nations Industrial Development Organization Sandefur responds available techniques, cleaner (UNIDO), Vienna International Centre, production technology, and P.O. Box 300, 1400 Vienna, Austria Telephone: (+43-1) 26026-0, 14 Business matters – news appropriate environmental Fax: (+43-1) 26926-69 and trends management and E-mail: [email protected] Number 19, third quarter 2015 accounting practices Copyright © The United Nations Industrial Development Organization FEATURES 24 Is water the next carbon? No part of this publication can be 16The water-energy-food- used or reproduced without prior Results of a survey by DNV permission from the editor health nexus Ursula Schaefer- GL – Business Assurance ISSN 2076-8508 Preuss wants a water-secure which investigated the The designations employed and the importance of water issues presentation of the material in this magazine do not imply the expression of any opinion and the way companies deal whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal with them status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of KEYNOTE FEATURE development. Designations such as “developed”, “industrialized” and 26 How industry can address “developing” are intended for statistical convenience and do not necessarily express a critical water-related judgment about the stage reached by a particular country or area in the development challenges UNIDO’s Water process. Mention of firm names or commercial products does not constitute an Management Unit and John endorsement by UNIDO. The opinions, statistical data and estimates contained in signed articles are the Payne consider how industry responsibility of the author(s), including those who are UNIDO members of staff, and can use water for increasing should not be considered as reflecting the views or bearing the endorsement of UNIDO. economic activity without This document has been produced without formal United Nations editing. 16 degrading the environment 4 MakingIt makingit_19_pp4-5_contents.qxp_print 17/08/2015 17:05 Page 2

Cover image: www.istockphoto.com/claudiodivizia

32Tough love: China gets 26 serious about water pollution Debra Tan outlines China’s new plan to fight industrial and agricultural pollution of its drinking water sources 34An affordable water pump system using solar power Interview with Sunwater project leader, Paul Polak 36 Country feature: Tunisia –economic reforms to consolidate democracy plus interview with Yassine Brahim, Minister of Development, Investment and International Cooperation 40 Good business – Profile of Braskem, a Brazilian company converting sugarcane into plastic

POLICY BRIEF 42 Ecological enterprise zones: next generation industrial strategy or fool’s gold? 44Three keys to successful industrial policy in developing countries 46 Endpiece Exploring climate change from a gender perspective

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GLOBAL FORUM The Global Forum section of Making It is a space for interaction and discussion, and we welcome reactions and responses from readers about any of the issues raised in the magazine. Letters for publication in Making It should be marked ‘For publication’, and sent either by email to: [email protected] or by post to: The Editor, Making It, Room D2142, UNIDO, PO Box 300, 1400 Vienna, Austria. (Letters/emails may be edited for reasons of space).

LETTERS Women engineers The ruins of The interview with Roma capitalism Agrawal (“Why we need more Dora Apel has written an women engineers”, Making It interesting article, The Ruins of issue number 18) is really Capitalism, about ruin imagery interesting, particularly where (see the Jacobin magazine she says that many women website). It gives a quirky twist study science with a view to on Seth Schindler’s piece becoming doctors. “We should (“Degrowth machine politics” tap into their motivation to on the Making It website). She help people and encourage says that by depicting urban Above: The interview with Roma Agrawal (“Why we need more women those who don’t go on to do engineers”) in Making lt number 18). “Investment in women boosts decay and ecological crisis, economic development, competitiveness, job creation and GDP”. medicine to do engineering”, ruin imagery shows the she says. people and places that meant the level of output that equilibrium. The OECD now She refers to an OECD capitalism left behind. can be achieved without expects the global economy report from 2011 that “showed Whereas Schindler writes that causing a rise in the rate of to expand this year by 3.1%, a that there is no intrinsic Detroit is managing inflation. It predicts that in sharp downgrade from last difference in the ability of men inevitable degrowth through the advanced economies the November’s forecast of 3.7%. and women in science and economic diversification and growth of potential output The revision follows a weak maths.” Recent evidence from appears able to create a viable would barely rise from an first quarter of 2015 for the the OECD shows that not only future within the existing average rate of 1.3% a year in global economy, the softest should we encourage women capitalist system, Apel says 2008-14 to 1.6 percent in since the great recession of to be engineers or similar Detroit is a global metaphor 2015-20. This is way below the 2008-2009, led by a sharp occupations on a moral basis for capitalist decline. pre-crisis rate of 2.25% in decline in the United States. but that in fact investment in ●Johnny Johnson, website 2001-7. The IMF calculates that women boosts economic comment The IMF also predicts that private investment in the development, competitiveness, the “emerging market” advanced economies job creation and GDP. Mari Nicole Claes (in Letters, economies – the likes of declined by 25 percent in Kiviniemi, the OECD’s Deputy Making It issue number 18) China, India and Brazil – will 2008-14 compared to Secretary-General, said writes that the International slow down. Their rate of forecasts made in early 2007. recently. “We estimate that on Monetary Fund (IMF) “has growth of potential output But the cash is there. Rather average, across the OECD, a reduced its forecast again for will fall from 6.5% in 2008-14 than undertake productive 50% reduction in the gender global economic growth for to 5.2% in 2015-20. investments in sustainable gap in labour force 2015”. Since then, the IMF has In June, the Organization industrial development to participation would lead to an issued its latest six-monthly for Economic Co-operation get the world economy additional gain in GDP of World Economic Outlook. and Development (OECD) moving, the corporations are about 6% by 2030, with a It’s worse. also reduced its forecast for continually pouring money further 6% gain (12% in total) It included a study that global economic growth. It into the financial markets. if complete convergence suggests that the economic warned that weak investment Stock-market bubbles are occurred. Frankly, I don’t think and financial crisis has done and disappointing busily inflating all over the that our economies can afford permanent damage to global productivity growth risk world, most notably now in to ignore such huge potential.” growth. It traces the growth of keeping the world economy China. ●Joan Chiedozie, website potential output, by which is stuck in a “low-level” ●Clemens Stefan, by email comment

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For further discussion of the issues raised in Making It, please visit the magazine website at www.makingitmagazine.net and our Twitter page, @makingitmag. Readers are encouraged to surf on over to these sites to join in the online discussion and debate about industry for development.

Caribbean Turning on tourism the heat

I was pleased to see Keith Assaad W Razzouk, in a Nurse’s article on what he thoughtful article on how we are calls ‘the creative sector’ in the going to finance the transition to Caribbean (Making It issue a green economy (“Where’s the number 17). I sincerely hope money?” Making It issue number that the wealth of cultural 16), says: “Governments are quite output from the region, happy developing emission- epitomized by the images of reducing policies and measures Bob Marley and Rihanna, can on their own terms.” He seems be an engine for economic relaxed about this, but concludes growth. A tough ask, especially Above: Keith Nurse’s article (“Creative industries: a window of opportunity”) that more effort might be devoted in Making lt number 17). There is a “disconnect between the reliance on (as Nurse himself points out) tourism and its contribution to the region’s economic base via taxation.” to “ensuring the integrity of given the fact that the underlying climate actions”, Caribbean actually imports taxation and operating costs. with an estimated 80% of the rather than getting countries to more ‘creative’ merchandise Given the reluctance of the money spent by tourists agree on comparable targets. Fair (such as CDs) than it exports. hotels to share such ending up leaving the region enough, but there are going to be Nurse highlights the information, it can be via foreign owned hotels, problems doing this. creative industry’s strong assumed that they were operators, airlines, imported In the United States, Barack cross-promotional linkages seeking to avoid making the food and drinks, and so on. Obama has pledged to cut with tourism, which he terms of their concessions The lack of regulation emissions by 26-28% over ten describes as “a key driver of public. discourages the creation of years. In China, Xi Jinping has the economy with the largest The disconnect between the much needed linkages with said their emissions will still share of GDP, export earnings Caribbean’s reliance on the local economy and job grow but peak by 2030. But, as and employment.” tourism and the sector’s creation for farmers, food Assaad pointed out, “the Earth is The problem is that contribution to the region’s processors and artisans. Thus, set to warm by four to five degrees Caribbean tourism is economic base via taxation is due to the uneven nature of compared with pre-industrial dominated by a network of demonstrated by the fact that the Caribbean’s tourism levels that will wreak devastating foreign multinational tourism provides anywhere industry, out of 12 global effects on the planet.” According corporations, which makes from one to three quarters of regions, the 2014 World Travel to scientists Kevin Anderson and the regulation of the industry a country’s income, yet tax and Tourism Council ranked Alice Bows-Larkin, countries like virtually impossible due to the revenue from hotel the Caribbean as the most the US and China need to reduce threat of relocation to a more accommodation for example dependent on tourism (based their overall carbon emissions lax environment. This is ranges from 0.5 to 3.2% of on contribution to GDP in by 10% every year, starting now if especially the case when it national GDP. 2013). we are to give ourselves even a comes to matters of taxation. Due to the all-inclusive I hope Nurse’s call for the fifty-fifty chance of limiting For example, a 2006 enclave structure of much of Caribbean’s creative industries warming to two degrees above CARIFORUM study of the the Caribbean’s tourism to “offer scope for innovation, pre-industrial levels. Caribbean tourism industry industry, according to the economic diversification and It’s one thing for politicians to lamented that the project was United Nations Environment global competitiveness”, debate numbers in international “hindered by a lack of Programme (see the UNEP’s particularly, as he says, in the forums but it’s an entirely willingness by hoteliers in the Negative Economic Impacts of digital market, bears fruit. different task to get them to region to share data” Tourism) the region leads the ●Mick England, website control the output of fossil fuel. pertaining to issues of world in tourism “leakage” comment ●Ger Bergsson, by email

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A post-GDP world Lorenzo Fioramonti on why it’s time to end the tyranny of Gross Domestic Product

In global governance, a country’s status is less acute. But it is an outmoded tool for a intimately connected with the size of its generation increasingly concerned with economy. In his influential book, The Rise social well-being and climate change. and Fall of the Great Powers, Yale historian Against this backdrop, numerous calls Paul Kennedy concludes that economic have been made – not only by experts, but strength is more significant than military also by leading policymakers – to move might when it comes to determining the beyond the GDP framework. international pecking order. This has The French government established a certainly been the case during the 20th high-level commission in 2008 to define century, when Gross Domestic Product post-GDP parameters of success, when (GDP) became the key parameter deciding both the OECD and the EU launched which countries should lead the their “Beyond GDP” campaigns. In 2012, institutions of global governance. the Rio+20 Summit proposed the Definitions of “superpower,” “middle development of new measurements and power,” or “emerging power” have all been targets, paving the way for the adoption of defined by GDP. The distinction between the Sustainable Development Goals the “developed” and the “developing” world (SDGs). is also a result of GDP. Powerful “clubs” like Even among the emerging powers, the the G7/G20, the OECD, and even the BRICS influence of GDP has taken a knock. For (Brazil, Russia, India, China and South instance, Chinese President Xi Jinping Africa) are determined by actual or announced in 2013 that GDP will no

prospective estimates of GDP. GDP is not @cartoonralph Image: longer be considered a parameter of just an economic policy tool: it is first and success in China, ending the Communist foremost the leading parameter through through barter, etc.), which account for the Party tradition of rewarding officials that which a nation can gain global clout and bulk of economic activity in many maximize GDP growth in their territory. access the top echelons of global countries. A year later, over 70 Chinese cities ditched governance. Chopping and selling trees adds to GDP as an economic policy tool. As In the past few years, however, there has GDP but planting them doesn’t. As a admitted by the UN Secretary-General been a growing debate about the adequacy consequence, the measure yields a Ban Ki-moon, “[GDP] fails to take into of GDP as an indicator of economic distorted perception of “wealth” and account the social and environmental performance, let alone as a benchmark for resulting global status: How rich are costs of the so-called progress.… We need international relevance. Indeed, GDP is not emerging powers like China and India if, a new economic paradigm that a measure of all gains and losses in an as the World Bank estimates, most of their recognizes the parity between the three economy. While it counts the exploitation GDP will have to be spent to fix the pillars of sustainable development. of natural resources as profit, it does not environmental destruction caused by its Social, economic and environmental consider the economic costs of growth? well-being are indivisible.” environmental degradation, and it The concept of the GDP was introduced But given that GDP has determined the completely disregards goods and services in the 1930s, when the myths of leadership of global governance, how exchanged outside the market (within industrialization were uncontested, and would international politics be affected by households, in the informal economies, environmental and social concerns were the adoption of new measures of well-

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being, prosperity and sustainable “Several countries have been sources of energy (whose energy cannot development? Let’s simulate the results able to maximize human and travel long distances) become dominant. using four leading alternative indicators: Global regulations to curb climate change the Social Progress Index, the Legatum environmental well-being, will also make the resurgence of a GDP- Prosperity Index, the Environmental but the GDP model of fueled global economy very unlikely, Performance Index, and Ecological governance has relegated especially as they will impose restrictions Footprint. on emissions and environmental damage. Using these measures, conventional them to irrelevance.” But this will not mean a return to national powers – both in the West and in the East economic self-sufficiency. – would rank far below countries that The post-GDP economy will be less have been more successful at building global – but more regional. Trade within equitable and sustainable economies. The regions and subcontinents will offer only current G7 members to survive the opportunities for more inclusive and shift would be Germany (relatively high sustainable development, especially in its capacity to address basic needs and where territorial contiguity and shared promote well-being) and Canada (mostly energy sources provide new opportunities thanks to its education and social capital for cross-border cooperation. as factors of prosperity). By contrast, the A post-GDP world is just a possibility. world’s largest economies (in terms of But with the convergence of economic, GDP) would slide sharply down the household and community services social, and environmental crises, there rankings. Indeed, the United States ranks provided free of charge (which are appear to be no reasonable alternatives. 10th in prosperity (mostly due to its poor neglected by GDP), the income of many Ultimately, global governance is what track record in safety and security), 36th European economies increases states want it to be. As we have seen, in well-being, and at the very bottom in significantly. The infamous acronym several countries have been able to sustainable development (due to its PIGS, describing the allegedly inefficient maximize human and environmental massive ecological footprint). China is economies of Portugal, Italy, Greece and well-being, but the GDP model of 51st in terms of overall prosperity, mainly Spain, would also need some rethinking, governance has relegated them to due to limited individual freedom and as their economies are much more irrelevance. As the world gears up to ratify security, 92nd in well-being, due to a prosperous – in non-GDP terms – than the SDGs and embark on negotiations for shaky recognition of personal rights, and the current metrics reveal. Logically, a a new climate change agreement, these at the very bottom in environmental post-GDP scenario should lead to a nations have an unprecedented window performance (118th). revision of the European Union’s Stability of opportunity to present themselves as The new global leaders would be and Growth Pact, which forces member beacons of sustainable development. A countries that have been able to marry states to anchor their capacity to invest in WE7 or WE20, that is, an alliance of economic progress with human and welfare mechanisms to their GDP leading “well-being economies,” would be ecological well-being. Among them we performance. better suited to address global challenges find dynamic economies with a high Structural factors, too, are likely to such as inequality and climate change quality of life such as Costa Rica, New accelerate the end of the GDP world. than the current G7/G20, which is led by Zealand, and South Korea (leaders in their According to the IMF, the global highly unequal and polluting countries. respective regions) as well as established economy is entering a “secular Time is ripe for major change. social democracies such as Sweden, stagnation” – a prolonged phase of very l LORENZO FIORAMONTI is professor of Norway, Denmark and Switzerland. We low (if any) economic growth. political economy and director of the Centre also find champions of good governance International trade, a key driver of global for the Study of Governance Innovation at the such as Botswana and Uruguay. GDP expansion, is also likely to contract, University of Pretoria. He is the author of the Things would change for Southern especially since fossil fuels (which can be award-winning book, Gross Domestic Europe too. By including the value of the easily transported) are becoming scarcer Problem: The Politics Behind the World’s informal economy and the variety of and more expensive, while renewable Most Powerful Number.

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HOT TOPIC How does emigration affect the people left behind in poor countries?

Paul Collier argues that skilled migration from some low- income countries is so high that it undermines the development prospects of people “left behind”

That many countries still provide little evidence that emigrants can be influential hope of even basic prosperity to their in their home societies. Students from citizens is the great global challenge of poor countries who have studied abroad our century. It is a vital matter that the in democracies and then return home poorest countries catch up with the rich bring with them pro-democracy attitudes. world, but it will require decades of They spread these attitudes and are sustained high growth. To see how sufficiently influential that they speed up emigration might affect this process of democratization. An astonishingly high convergence we need some proportion of the political leaders of poor understanding of why poor countries countries have studied and worked have remained poor. Poverty persists in abroad, and this equips them with both very poor countries because of weak new skills and new attitudes. Even political institutions, dysfunctional social migrants who do not return have some attitudes, and a lack of skills. These all influence with their relatives back home. make it difficult to harness economic During elections they give advice and opportunities. Emigration can either commentary, and they become role help or hinder convergence depending models for smaller family size. education than otherwise. It turns out upon who leaves, how many leave, and for There has been a lot of research on that which of these effects predominates how long they go. whether emigration causes a brain drain depends upon how many educated people Potentially the most important effect of or a ‘brain gain’. Intuitively, if educated emigrate. In big countries that are already emigration is on political institutions people leave there can only be a brain converging, such as China, relatively few and social attitudes. There is now solid drain. But we now know that this may be educated people emigrate and so the offset by an enhanced incentive to get brain gain predominates: China gains education. If education is the prerequisite from emigration. But in small countries l These two articles were first published on the From Poverty to Power blog: for getting to America, then the many that are falling even further behind, such http://oxfamblogs.org/fp2p/ and are youths who dream of going there will try as Haiti, so many of the educated leave republished in accordance with a harder at school. While some will achieve that the brain drain predominates. Many Creative Commons licence: https://creativecommons.org/ their dream, many will not but in the small, poor countries are unfortunately in licenses/by/2.0 process will have acquired more the same position as Haiti.

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emigration is better for poor countries than having none. But this is a clear answer to the wrong question. The pertinent issue is whether poor countries would be better off with somewhat faster, or somewhat slower emigration than they have currently. The answer depends upon who is migrating: young people in search

Photo: Logan Abassi UN/MINUSTAH Abassi Logan Photo: of an education, unskilled workers in search of a job, or skilled workers looking to use their talents. The evidence suggests that the more students the better, especially if they then return. Unskilled workers may well send back more in remittances than they would make at home. But the emigration of skilled workers may already be excessive. Recent evidence finds that for many of the poorest countries emigration rates are already beyond the point of peak benefit: these countries are haemorrhaging their scarce talents. The most severe effects are for fragile states emerging from conflict. During conflict they haemorrhage their most capable people. Post-conflict, they desperately need them to return but cannot compete with the lifestyles of the rich world. Emigrants considering return face a coordination problem: return would be less alarming were others to return as well but there is currently no mechanism for facilitating coordinated return. Skilled and motivated people are the fairy godmothers in any society: they The brain drain can potentially be brain drain is well-understood, the benefit ordinary people. As the fairy reinforced by a motivation drain. Many motivation drain has yet to be quantified godmothers increasingly shift from poor poor societies are beset by opportunism: but its analytic foundations have been set societies to rich ones, they themselves teachers don’t show up for work, nurses out by Nobel Laureate George Akerlof. benefit, but I question whether we should steal drugs, policemen extract bribes. Finally, emigrants send remittances regard this as a triumph of social justice. Those who are motivated to do their jobs home. While this is helpful for the l PAUL COLLIER is a Professor of Economics properly can stick out as an relatives left behind, the average and Public Policy at the Blavatnik School of uncomfortable minority. Emigrating to remittance is only around US$1,000 per Government and Director of the Centre for the societies in which norms are more year. Workers would usually produce Study of African Economies at Oxford functional can be an attractive option for more than this if they were to stay home, University. From 1998-2003, he was Director of such workers, but cumulatively this is so there is often a net loss to the economy. the Research Development Department of the self-reinforcing: the more who leave the In trying to weigh up these disparate World Bank. He is the author of Exodus: How less attractive it is to stay. Whereas the effects it is clear that having some Migration is Changing Our World (2013).

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educated abroad), Gambia (63%), Sierra HOT TOPIC Leone (53%), Mozambique (45%), Liberia (45%), Kenya (38%), Uganda (36%), Rwanda (26%), Guinea Bissau (24%), and Migration and Afghanistan (23%). You might suspect that such high emigration among educated people has led to stagnation or decline in the share of development: who bears skilled workers. You’d be wrong. In the low-income countries with the highest levels of skill emigration, the stock the burden of proof? of skilled workers left behind is going up, not down. Even after you exclude the migrants, the prevalence of both Justin Sandefur responds to Paul Collier’s article on the secondary and tertiary education more impact of migration on developing countries than doubled! This simple fact is often lost in fretting over a “brain drain”. I suspect many people reading this in walls and tear apart families. If you think Sceptical readers will rightly note that the Europe or North America share Professor the prosecution has met that burden of counterfactual here is unclear: maybe Collier’s scepticism about skilled proof, here are three reasons to reconsider. residents’ education would’ve been even migration. You are not racist or higher without emigration. There’s good xenophobic. You are concerned about the 1. Empirically, the alleged “brain drain” reason to think the opposite. The plight of the global poor, and you welcome from poor countries does not exist. opportunity to join the diaspora is a key diversity in your community. But you Prof. Collier worries that while China wins motivation for pursuing higher education. worry that maybe Collier’s right. Maybe the from an emigration “brain gain”, Haiti and Multiple studies looking at natural fate of your university-educated Haitian other small, poor countries lose out to experiments from Cape Verde, to Fiji, to neighbour down the street, earning a good “brain drain”. So let’s have a look at the Nepal, have all found that new migration salary and sending her kids to good numbers. opportunities led to more investment in schools since moving to the UK, is a Based on research by economists schooling not only for migrants, but for distraction from, and maybe even a Frederic Docquier and Abdeslam people who didn’t end up migrating as well. hindrance to, reducing poverty in Haiti. Marfouk, I compiled a list of the ten low- Before we begin, it’s important to note income countries with the highest rates of 2. Emigration is not an alternative to other that we’re not really debating whether the skilled emigration. They are: Haiti (84% of drivers of development, it is a cause. rate of skilled emigration from Freetown secondary school graduates living overseas Perhaps you feel letting poor people move to London or Port-au-Prince to Miami is in an OECD country circa 2000 – though to better opportunities is a distraction too fast or too slow. We’re really talking this exaggerates a bit, by counting Haitians from the real work of promoting about whether to deport your neighbour. development within the geographic Or whether to refuse her a visa in the first borders of poor countries. Rather than place, and consign her and her family to a “We’re really talking about migration, we need more aid, more future of low wage employment, bad whether to deport your investment, and better governance in poor schools, and preventable disease “back countries. where they came from.” That is the policy neighbour... or consign her Consider Haiti again. The World Bank’s proposal on the table for your and her family to a future bilateral remittance and migration consideration. of low wage employment, matrices show that the 670,000 adult My argument is that the burden of proof Haitians living in the OECD sent home here should be heavy, and it should rest on bad schools, and about US $1,700 per migrant per year. the shoulders of those who would build preventable disease...” That’s well over double Haiti’s US$670 per

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the end of their summit in June in which they stated, amongst other things, that the protection and efficient use of trends natural resources is vital for sustainable development. ■ In July, 2015, the leaders of system and price volatility in view to developing and According to the declaration, the BRICS countries (Brazil, global commodity markets, introducing cutting-edge the G7 countries will strive to Russia, India, China and South the development of the real technologies, and providing improve resource efficiency, Africa) issued a declaration at sector of the economy training for engineering and which the leaders “consider the conclusion of the Seventh becomes particularly relevant. technical personnel and crucial for the competitiveness BRICS Summit highlighting It stressed the “importance of managers”. of industries, for economic the importance of industrial intensifying cooperation of growth and employment, and development as a fundamental industrial production ■ Leaders of the G7 countries, for the protection of the source of growth. The Ufa capabilities, establishing (Canada, France, Germany, environment, climate and Declaration emphasized that, industrial parks and clusters, Italy, Japan, the United planet”. in the context of the unstable technology parks and Kingdom, and the United The newly created G7- global financial and economic engineering centres, with a States) issued a declaration at Alliance on Resource Efficiency BUSINESS MATTERS Where is best for female entrepreneurs? Nurturing

The 2015 Female Entrepreneur - TOP TEN COUNTRIES an industrial ship Index ranks the United United States 82.9 States as the top country for cluster in female entrepreneurs. Since Australia 74.8 last year’s Index, the United United Kingdom 70.6 Nigeria Kingdom, Denmark and the Denmark 69.7 Netherlands have climbed into the top five, displacing Sweden, Netherlands 69.3 The Panteka Market is a France and Germany. In Latin France 68.8 dynamic industrial cluster America, Chile outperforms the Iceland 68.0 in Yola, in north-eastern rest of the region and ranks at Sweden 66.7 Nigeria, writes Daniel place 15. Barkley. Hundreds of Finland 66.4 The 2015 Index shows that Source: The Global Entrepreneurship craftsmen, artisans, welders more support is needed to Norway 66.3 and Development Institute and blacksmiths work in the enable female area to turn Yola’s discarded entrepreneurship development significant changes in order to regions. Europe can improve metal and alloys into worldwide. Analysis of the reduce barriers for female the capacity of women to everything from deep results indicates that there are entrepreneurs. recognize good opportunities to freezers to automobile spare systematic gaps around the The Index combines variables start a business in the area parts. world in terms of how well that measure individuals and where they live, and Latin Clustering is the countries support women’s institutions in a composite index America can improve its export phenomenon whereby aspirations to start high- in order to capture the multi- focus so that female firms from the same growth-oriented firms. dimensional aspects of female entrepreneurs have more industry gather together in Assessing everything from entrepreneurship development. customers outside their home close proximity. Economists ecosystems to the aspirations of Data comes from sources such as country. Sub-Saharan Africa can explain clustering as a individuals, the Index gives the Global Entrepreneurship improve women’s access to bank means for small companies each country a ranking score Monitor, the World Economic accounts and financial training to enjoy some of the from 0 to 100. Forty-seven out Forum, the World Bank, UNESCO programmes, while East Asia economies of scale usually of the 77 developed and and the International Labour can make improvements in the reserved for large ones. developing economies included Organization. realm of skill perception – By sticking together, firms in the Index still score below 50 The analysis reveals whether women believe they are able to benefit from points – an indication that these opportunities for improvement have the required knowledge such things as the countries must pursue within several geographic and skills to start a business. neighbourhood's pool

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will collaborate with responsible has been slow businesses taking on “Too many companies businesses, small and and too many still focus on environmental, social and still focus on short-term medium-sized enterprises, and short-term financial gain governance issues, and this is financial gains and just other relevant stakeholders to rather than their long-term a total change compared to 15 react when they are hit by advance opportunities offered impact on people and nature, years ago,” said executive bad news about human by resource efficiency, promote the head of the UN Global director, Georg Kell. rights abuses in their supply best practices, and foster Compact told the Thomson “But progress has been chains or environmental innovation. The G7 leaders Reuters Foundation in an slow and there is still a long scandals.” acknowledged the benefits of interview in July. way to go,” said Kell, noting According to Kell, the collaborating with developing The Compact, which that the Compact would like demand for ethical countries on resource- celebrates its 15th anniversary many more of the world's corporate leadership is efficiency, including through this month, is the world's roughly 50,000 publicly listed bigger than ever due to the innovative public private largest voluntary corporate companies to join. continued erosion of public partnerships. sustainability initiative, with Only about 10% of its trust in institutions and the more than 8,000 members members are “truly cutting- “overwhelming evidence” ■ Progress in making from over 150 countries. edge” in thinking about the that man-made global companies more “There has been a truly longer-term implications of warming threatens the environmentally and socially global, silent revolution of their business operations. survival of our planet.

Panteka Market, Yola, Nigeria.

Normally, when private markets fail, some form of government subsidy or tax

Image: Economics on the Move the on Economics Image: relief is applied to remedy the problem. However, so far, none of the Panteka enterprises have received any government assistance that could facilitate technological upgrading, expand market access or improve basic infrastructure. Economics On The Move, a California-based non- governmental organization, is partnering with the Panteka Market Association to accelerate the transformation of Panteka of expertise and skilled constrain market transactions liquefied metal into earthen firms by expanding demand workers; its easy access to to face-to-face encounters. molds, a technology developed through advertising, and components and raw The Panteka Market cluster hundreds of years ago. improving quality and materials; and its information could enjoy increasing returns The issues faced by Panteka increasing productivity by channels (both formal ones from new capital and scale up firms are formidable and introducing modern and informal ones like production but the absence of compelling. Clustering machinery. everyday gossip in reliable electricity to power facilitates industrialization but l DANIEL BARKLEY is neighbourhood bars). modern machine tools limits does not guarantee it. Without executive director of Economics Clustering of similar kinds the ability to expand capacity the implementation of a On The Move, a non-profit of enterprises is especially and improve productivity. For comprehensive strategy that organization that uses industrial important in north-eastern example, many of the ornate resolves Panteka’s market and corporate tours to teach Nigeria where poor gate designs on display at failures, its firms are likely to principles of economics to infrastructure and weak some of Yola’s upmarket remain in their current pre- youth in underserved information systems often homes are made by pouring industrial stage. communities.

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The water – energy – food – health nexus

The Global Water Partnership is an Ursula Schaefer-Preuss wants a development agenda, where sustainable growth international network open to organizations water-secure world where the has become increasingly imperative to address both within and outside the water community, climate change and the needs of billions of including government institutions, United productive power of water is people without access to basic services. Let me Nations agencies, non-governmental harnessed and its destructive elaborate further on these linkages, including organizations, civil society groups and the force is minimized with reference to agriculture and nutrition, private sector. Our vision is for a water secure closely linked to this theme. world. A water secure world harnesses the The importance of water for agriculture productive power of water and minimizes its and energy for food and nutrition as well as URSULA SCHAEFER-PREUSS is an economist who destructive force. It is a world where every has been engaged in the field of development policy for health – in terms of both benefits and risks person has enough safe, affordable, clean water for more than 35 years. She is Chair of the Global – is recognized now as never before. Yet links to lead a healthy and productive life. Water Partnership, which was founded in 1996 by between and among the water, agriculture, There is increasing global recognition and the World Bank, the United Nations Development energy, food/nutrition, and health Programme (UNDP), and the Swedish International acceptance that the water-energy-food-health Development Cooperation Agency (SIDA) to foster communities are weak, with serious nexus is at the core of the post-2015 integrated water resource management. implications for the effectiveness of efforts to

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People gather to get calorie-dense, nutrient-poor foods which are Millennium Development Goals (MDGs) in water from a huge deepening the emerging epidemic of obesity the water area. The Joint Monitoring well in the village of Natwarghad in the and chronic diseases in countries undergoing Programme for Water Supply and Sanitation western Indian state economic growth and rapid urbanization. 2014 reports that, today, 116 countries have of Gujarat. Broader access to safe drinking water and met the MDG target of access to improved sanitation, as well as more nutritious and sources of drinking water and 77 countries diversified diets, can accelerate progress in have met the target of improved sanitation. reducing water-borne diseases, malnutrition There is also growing recognition that if we and diet-related chronic diseases and wish to manage water resources effectively, then infections. Improved nutrition and by that we must approach this together in an health, in turn, can reduce poverty for the 1.4 integrated manner. And we have reached a lot billion people living on less than US$1.25 a already. From the relevant 2012 United Nations day. A greater focus on the role of women in survey, it can be seen that of 134 countries, 82% agriculture – as potential mediators of have embarked on reforms to improve the household and individual food, and nutrition enabling environment and integrate security and health – as well as on the approaches to water resources management. allocation of food within households - could This decade has witnessed the emergence of accelerate improvements in the nutrition and new and modified paradigms. The Green health of vulnerable household members, Economy/Growth and the Water – Energy – including women, infants and young children. Food Nexus have become subjects of Making a difference to the lives of the rural international debate, reinforcing the need for poor (and this is just as valid, in principle, for an integrated approach. But the conceptual the lives of urban poor) requires: attractiveness of paradigms is not enough. They l Taking a systematic view of how water, must be applicable in a fast changing world. agriculture, energy, health, and nutrition Despite tangible progress, many issues interact globally, nationally, and locally; addressed in this decade remain unsolved. l Addressing gaps in our knowledge of these Evidently, major shifts in both policies and relationships (for example, by developing conceptual approaches to water and all relevant metrics that better capture the multiple sectors closely interlinked with water are called burdens of water/agriculture-associated for in order to reach a more desirable future disease and that show the benefits of safe and limit calamities that can otherwise be water/food-based nutritional solutions; foreseen. l Developing a strong body of evidence based The message emerging from the current on rigorous research to help decision-makers international debates on setting the SDGs in choose options and evaluate trade-offs related 2015 is one of urgency for the world to act to to health and nutrition interventions; and prevent water crises. The size of todays water l Fostering effective approaches in security challenge should not be improving nutrition and health that cross underestimated. sector boundaries. We in the Global Water Partnership strongly It is evident that taking into account believe that the SDGs should set new strategies negative effects of climate change and not in motion governing the way we live and interact well-coordinated sector interventions can with our environment to ensure there will be even be more harmful for the affected enough water to support development and population, mainly the vulnerable. future generations. Global sustainability is, improve health and nutrition. These need to In my position as Chair of the Global Water fundamentally, about our ability to influence the be tackled through an integrated approach. Partnership and being closely linked to the future of our freshwater resources and the Agricultural intensification, for example, challenges of a water secure world, I would like future of humanity. We recognize this is a can lead to water pollution and/or to focus on this year which marks the end of complex undertaking. Good management of disruptions to ecosystems and to the further the ‘International Decade for Action, “Water both natural and human induced water spread of agriculture-associated diseases and for Life”, 2005-2015’. It offers a wonderful problems requires a broad set of stakeholders to the development of new ones. Agriculture opportunity to analyze the impact that the engage in long-term collaboration. This is also could do a better job of providing access to Water Decade has had on improving water about the importance of integrated approaches nutritious food products and high-quality management and in what way ensuing for energy, water, food, and health. This is about diets to supply essential micronutrients for thinking has continued to change our water stewardship of water resources for the greatest poor and marginal groups, particularly perception and to address the main issues of good of societies and the environment. young children and women. Agriculture the post-2015 Sustainable Development Goals. Stewardship is a public responsibility, requiring policies could contribute to re-directing the No doubt the Water Decade proved to be dynamic, adaptable, participatory and balanced nutrition transition, i.e., the changes in diets helpful in a number of respects, namely with planning and, at the end of the day, it is all about toward increased consumption of cheap, regard to accelerating the achievements of the coordinating and sharing.

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BREWING WATERSHED? Photo: Tom Parker / OneRedEye / Parker Tom Photo:

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At SABMiller, our purpose is to bring refreshment Prosper, we aim to tackle the issues that are most and sociability, improve livelihoods and help build material for our business at a local and international local communities. level. We believe strongly that if we are successful in We have a proud beer heritage. Our brewmasters putting Prosper at the heart of our business, we can make beers our consumers love by truly secure our long-term success and make a sustainable understanding local tastes. That’s why we believe the and measurable difference to the communities and value in beer for us and our communities is local. We ecosystems in which we operate. Our biggest know that by helping the businesses in our value contribution to the Global Goals will come from chains – and their local communities – to grow, our our core business, not from philanthropy or business will grow too. corporate social responsibility on the side. When they prosper, so do we. We call these shared imperatives because we do Our sustainable development strategy, Prosper, is not face these challenges alone, and nor can we solve aligned with many of the themes contained in the them alone. Prosper broadens our focus beyond the new Sustainable Development Goals (SDGs) to be direct impact of our own business and what we do launched later this year by the UN – the Global Goals, within our fenceline, to how we can drive change as they are starting to be known. Unlike the MDGS, across our value chain and beyond. We have set these new goals will explicitly recognize the role of ambitious targets and are committed to listen, the private sector in addressing global challenges. learn and collaborate to shape, deliver and scale Through five shared imperatives outlined in local solutions. ➤ Water is a vital ingredient for brewers. Anna Swaithes, Director of Sustainable Development at SABMiller plc, shows how her company regards it as part of a broader global challenge

Checking beer in process at Onitsha brewery in Nigeria.

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Photos: Tom Parker / OneRedEye ➤ l 63.8% of our lager volumes. completed intensive water risk assessments, covering l reach 3.5hl/hl by 2015. produce one hl of lager, surpassing our target to l milestones of which we are proud, including: risks with those that share them. and we are creating partnerships to tackle these building a detailed understanding of water risks optimizing our own water use. But we are also have the water it needs. Brewery by brewery, we are local communities, ultimately our business will not that if we on don’tsecuring waterwork resources for ensuring we have supplies for the future. We know deserts to cities – we face diverse challenges in breweries in diverse locations – from jungles to that is managed and used as efficiently as possible. our part to ensure a reliable, clean supply of water and population growth means that we need to play driven by climate change, the growing middle class access to safe, clean water. Increased water scarcity, communities and ecosystems share uninterrupted have ‘A Resilient World’ where our business, local 20 We used an average of 3.3 hectolitres (hl) of water to We achieved US$117m in annual savings through Forty-six breweries across 21 countries have Mak Over the last year, we have reached some Water is a vital ingredient in brewing and with One of our shared imperatives is our desire to ing It of beer and 1.8 litres of water per litrel of soft drink. water risks. communities through partnerships to tackle shared l years to come. By 2020, our water-related target is to: at 2.5 hl/hl. with our Yatala brewery in Australia leading the group regions, use less than three hl of water per hl or beer, and, already, 18 of our breweries, across all five of our discharge. We will continue to reduce our water use use, the less we have to pump, treat, heat, cool and chemical and effluent cost savings. The less water we water efficiency has delivered additional energy, financial value this drives for the business. Improving the roof 22 times. water to fill London’s Wembley football stadium to 2008 efficiency rates, equivalent to saving enough used 23 billion litres less water than we would have at used by each part of the brewery. Last year alone, we principle that put a true dollar value on the water operational processes, and developing a ‘user pays’ target a year early, largely by focusing on improving and 2015 was a significant challenge. We met this water and energy-efficiency initiatives. Further reduce water use to 3.0 litres of water per litre Secure the water supplies we share with local But we have set ourselves stretching targets for the We now have a better understanding of the Improving water efficiency by 25% between 2008 in Lusaka, Zambia. Irrigation equipment makingit_19_pp18-21_SABMiller.qxp_version 3 20/08/2015 10:53 Page 21

Female employees lift crates at the Lusaka brewery in Zambia.

l Have programmes in place to mitigate shared countries to build AquaFunds. These financial tools water risks for our key crop origins at risk. gather investments from water users and direct the Across Africa, some of our breweries already face funding towards conserving ecosystems that filter water supply challenges, from availability to quality. and regulate water supply while providing an But water is more than an operational or even an effective model of payment for ecosystem services. environmental issue. Water scarcity limits prosperity In Colombia, the Bogotá AquaFund has funded and growth for thousands of communities and 65 projects to date – eight of which have been millions of people worldwide. Tackling the root directly funded by our Bavaria business – resulting causes of water stress will require all sectors of society in 7,800 hectares being set aside for conservation to work collaboratively and at scale. and protection; 1,255 hectares of intensive cattle SABMiller has been investing in partnerships to ranching land being converted to environmentally secure water for our business growth and for the friendly practices, and 554 springs being isolated water users around us. For example, in South Africa and protected. We are now exploring opportunities we have taken a lead role in the ambitious public- to apply the model in Africa. private Strategic Water Partners Network, which is Within our business, we are encouraging leaders part of the Water Resources Group (WRG). In and operators to look beyond tackling water stress collaboration with other partners, we have created a solely within our operations to more collaborative platform for the government and the private sector to external efforts. Beyond SABMiller, we need to work together to develop policy-level solutions to engage and incentivize more effectively the many address pressing water resource challenges. These small businesses that operate alongside us, to include a focus on infrastructure challenges. Given encourage them to step up to the challenge and the success of this approach in South Africa, we have recognize that, although their individual impact is funded a WRG partnership in Tanzania and are a small, collectively they can make a material leading WRG partner in India. difference. And we need to work with other big We also work at a local watershed level to address businesses, with governments and with civil society local water scarcity and quality issues by talking about to ensure that the many initiatives in a given their root causes. In Latin America, we and The watershed are joined up and working in a cohesive Nature Conservancy are working together in three manner.

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Greening industry, saving water www.istock.com/Elhenyo Photo: in North Igor Volodin introduces a Africa programme to demonstrate the Green industry is an approach that realizes benefits of adopting best available the potential for industries to decouple techniques, cleaner production economic growth from excessive and technology, and appropriate increasing resource use, thereby reducing pollution and generating additional environmental management revenues. It foresees a world where and accounting practices industrial sectors will minimize waste in every form, use renewable resources as input materials and fuels, and take every possible precaution to avoid harming workers, communities, climate, or the environment. Green industries will be creative and innovative, constantly developing new ways of improving their economic, environmental and social performance. Enterprises in developing countries IGOR VOLODIN is Deputy to the Director of the and countries with economies in transition Environment Branch at the United Nations are facing numerous challenges in their Industrial Development Organization. effort to maintain or increase their competitiveness on the local market and access to international markets with good-quality products, comply with Demonstration project highlights environmental standards and reduce operational costs. In order to assist companies in dealing with such challenges The effectiveness of the TEST were identified, of which 76% US$17m in energy, water, raw and to direct them towards the “green approach has been have been implemented, materials and increased industry” paradigm, the United Nations demonstrated in the 43 14% retained for further productivity, corresponding Industrial Development Organization participating companies technical and economical to a portfolio of around (UNIDO) designed a specific methodology, through the implementation investigations and only 10% US$20m of private sector the Transfer of Environmentally Sound of a large number of discarded. Approximately investments in improved Technology (TEST), which exists as both an resource-efficiency measures 54% of the total identified processes and cleaner and cleaner technology measures had a return on technology. These integrated approach and a global investments. The benefits of investment of less than half a investments do not include programme. TEST at the management and year, with the rest equally end-of-pipe solutions, which TEST combines the essential elements strategic levels have resulted split among measures with a in some companies have also of tools like Resource Efficiency and in the adoption of new vision payback period of between been launched in order to Cleaner Production, Environmental and policies by top six months and one and a achieve full environmental Management Systems and Environmental management, as well as in half years, and between one compliance with national Management Accounting, and applies the implementation of and a half and four years. laws. The total annual water management systems (e.g. In the three countries and energy savings are, them on the basis of a comprehensive ISO 14001) that integrate the involved, the project respectively, 9.7 million cubic diagnosis of enterprise performance. As a environmental dimension. identified total annual metres and 263 gigawatt result of the customized integration and A total of 765 measures savings of approximately hours. implementation of these tools and their

22 MakingIt elements, the key output is the adoption of TEST initiative with the financial support of A core objective of the MED TEST best practices, and new skills and the Global Environment Facility (GEF) and initiative was building national capacity. This management culture, as well as corporate the Italian government to promote the was achieved by extensive training and a social responsibility, enabling the company transfer and adoption of cleaner technology technical assistance programme that targeted to carry on the improvement journey in industries in three countries of the six national institutions and service providers towards sustainable entrepreneurship. Southern Mediterranean region: Egypt, and 30 local professionals, in addition to the The first TEST pilot programme was Morocco and Tunisia. staff of the 43 demonstration companies. As a launched in 2000 in the Danube River Basin. The project aimed to demonstrate the result, a network of local resources is now Since then, TEST has been replicated in effectiveness of introducing best practices engaged in promoting the TEST approach several regions worldwide within industrial and integrated management systems in and will be able to extend the experience hot spot areas, contributing to the terms of cost reduction, productivity gained to other industries in the region. prevention of the discharge of industrial increase and environmental performance. The active participation of the staff of the effluents into international waters (rivers, A pool of 43 manufacturing sites – mostly demonstration companies in the training lakes, wetlands and coastal areas) and small and medium-sized enterprises – and in the implementation of the project thereby protecting water resources for future across seven industrial sectors in Egypt, ensures the sustainability of all identified generations. Morocco and Tunisia actively participated actions at company level, as well as that of In 2009, UNIDO launched the MED in MED TEST during 2010-2011. newly developed projects. Some examples of water savings

Egypt Morocco Tunisia

n EL-NILE SOFT DRINKS COMPANY (Crush) n BOYAUDERIE DE L’ATLAS is a n COMPANY CAP-BON – SCAPCB produces different types of soft drinks for the local company in the agro-food sector, processes fresh tomatoes. The company market: Hi-Spot lemon, Crush orange and Sport specialized in the production of salted joined the MED TEST programme in cola. The company joined MED TEST to identify and tubular casings in various calibres. order to identify possibilities to increase opportunities for increasing resource efficiency It joined MED TEST in order to identify efficiency in resource management and and productivity, reduce pollution loads so as to opportunities for resource efficiency productivity, reduce the pollution costs comply with environmental legislation and (water and energy), water recycling, and minimize investments and minimize investment and operating costs of the recovery of production waste, and operational costs of the used-water planned wastewater treatment plant. minimization and treatment of liquid processing plant. Water costs are being reduced by more than effluents. Water costs have been cut by 44% by 85% as a result of the installation of new Clean-in- Energy savings represent 26% of the the retrieval of 50,000m 3 of well-water Place (CIP) technology, good housekeeping, and annual energy bill, while the water costs that was previously discharged, and its preventive maintenance measures and process reduction amounts to 48% of the annual reuse for the pre-washing of fresh water recycling. The new CIP unit uses Electro bill. The latter will be achieved through tomatoes; the optimization of water Chemical Activation technology that dramatically recycling wastewater from the calibration sprinkling on conveyor belts used for reduces water, energy and chemicals and soaking processes, optimizing the tomato washing; and the installation of a consumption during the cleaning and disinfection washing of floors and crates, and better water tank with a 300m 3 capacity which of bottles and bottling equipment, as well as monitoring of water consumption per has allowed for a more efficient increasing productivity due to a reduction in time production unit. distribution and a more economical use needed for cleaning. of drilling water. n CERAMICA DERSA produces ceramic n ATEF EL-SAYED TANNERY joined the MED tiles of various designs and patterns. n TEINTURERIE FINISSAGE TEST project to identify opportunities for The company joined the MED TEST MÉDITERRANÉENNE (TFM) specializes increasing resource efficiency and productivity project in order to identify opportunities in textile dyeing and finishing. TFM was and reduce pollution loads to minimize for effective use of resources (heat, water, among the first companies to implement investment and operating costs of the planned electricity and chemicals), reduction of the MED TEST project in order to wastewater treatment plant. production costs, recovery of solid waste improve productivity, resource efficiency Water costs will be reduced by 30% through and minimization of waste water and waste minimization, and ultimately the application of good housekeeping effluents. to reduce waste treatment costs. measures, implementation of a monitoring and All the effluents are now recycled on TFM consumes water at the average controlling system for water consumption and site. They are collected in a decantation rate of 650m 3 per day. The company will the recycling of pickling bath. The latter pit, filtered, and reused for cleaning and be able to reduce the cost of water by measure reduces the salinity of discharged within the process (watering). Dyes and 56% thanks to the installation of a wastewater, and will achieve a 15% reduction in enamel residues are recovered, filtered treatment and recycling system for water costs and lead to a reduction in chemical and reused within the first treatment wastewater, which subsequently will be use of 23 tons per year. layer of the tiles. reused in the process at a rate of 80%.

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IS WATER

The global certification leader DNV GL – businesses in different sectors, was from the secondary sector, including Business Assurance, in cooperation with conducted in December 2014 and producers of metals, machinery, food, the United Nations Industrial investigated the importance of water plastics, electrical goods and chemicals. Development Organization (UNIDO) and issues and the way companies deal with The tertiary sector companies provide supported by the international research them, together with the initiatives services including electricity, gas and institute, GFK Eurisko, has investigated the implemented by DNV GL – Business water supply, construction, wholesale water management approach adopted by Assurance customers. and retail trade, and transport. companies in Europe, North America, Just over half of the companies in the The full ViewPoint survey: Is Water South America and Asia. The survey, survey use water in their production the Next Carbon? can be read online at involving 1,907 professionals from process. The majority of companies are www.dnvgl.com

43.9% of the companies have undertaken water KEY INITIATIVES management initiatives in the last 5 years.

27.4% Actively 21.8% 20.6% track water Have Invest in water usage specific goals efficient devices on water and equipment management

KEY DRIVERS Why companies undertake initiatives.

29% Compliance 24.4% 22.4% $ with laws and Economic Internal policies regulations reasons

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How companies profit from managing water issues, and what is preventing more progress.

MAIN BENEFITS MAIN OBSTACLES

27.2% ? 21.1% Compliance with Lack of management laws and regulations awareness

17.2% 24.5% Lack of financial $ Financial savings resources

17% 16.5% ! Decrease of environmental Lack of return accidents on investment

4 STEPS TO A MORE EFFICIENT Companies should... WATER MANAGEMENT

1. 2. 3. 4.

Set Measure their Conduct Define a roadmap specific water footprint a water impact to water usage goals assessment reduction and improvement

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KEYNOTE HOWINDUSTRY CAN ADDRESS CRITICAL WATER-RELATED CHALLENGES Increasing industrial production will lead to increased water use, with potential impacts on water quality. In certain areas, where water use for industrial production is not well-regulated or enforced, pollution could increase dramatically. The Water Management Unit at the United Nations Industrial Development Organization and John Payne of John G. Payne and Associates Ltd consider how industry can use water for increasing economic activity without degrading the environment

The scope of water-related challenges across Moreover, large companies and SMEs are faced the industrial spectrum is a function of scale. with different water sustainability issues The OECD Environmental Outlook to 2050 depending on whether they operate in predicts that global water demand for developed or developing countries. manufacturing will increase by 400% from 2000 In developed countries, the emphasis is to 2050, which is much larger than any other mainly on efficiency measures to conserve sector. Most of this increase will be in emerging water resources that already exist. For economies and developing countries, with developing countries, however, the priority for implications for water supply, allocation and industry is to gain and secure access to water quality. Large corporations, often multinational supplies that are reliable, which is often a or global, have made considerable progress in challenge in water-stressed areas. evaluating and reducing their water use and Various possibilities for water efficiency are that of their supply chains. Small and medium- available for each of these situations, sized enterprises (SMEs) are faced with similar depending on the progress of industrial water challenges on a smaller scale, but have development and the business climate. fewer means and less ability to meet them. Sustainable industry may be achieved by ➤ MakingIt 27 makingit_19_pp26-31_keynote_version 1 20/08/2015 10:41 Page 28

➤retrofitting old facilities and plants, or by and wastewater challenges it has been possible building new ones specifically designed for to ensure continuity of traditional industry efficiency and, in some locations, interlinked in groupings threatened with closure on eco-industrial parks. environmental protection grounds, such as Bran Sands on Teesside in the United Kingdom Water and wastewater in eco-industrial parks and Villers-Saint-Paul in France. Industrial parks have existed for some time in both developing and developed countries. Most Challenges are created by formal planning processes, but The shape and form of industry’s plans and some have grown organically. They provide actions and the degree to which they are competitive advantages for the businesses executed are conditioned by prevailing national within them and also social, economic and and local regulatory regimes, as well as by environmental benefits beyond the confines. certain trade- and investment-protection Usually, industrial parks separate a collection of agreements. Collisions of policy with regard to factory premises from domestic habitation and water in different sectors – for example, the other activities. However, this does not apply water-energy nexus – lead to functional trade- universally. For example, the China-Singapore offs in water use. Suzhou Industrial Park in China combines over Balancing the requirements of sustainability 60 Fortune 500 companies with a current against the conventional view of industrial residential population of 600,000 people. mass production creates a number of Eco-industrial parks ensure effective conundrums for industry. This stand-off can management of water and effluents, together only be resolved by effecting trade-offs and with liquid and solid materials recovery. They: changing paradigms. Water use is central to l permit ‘tailored’ water supply, effluent these dilemmas. collection, and treatment that maximizes the On the largest scale, the challenge of use and reuse of available water and other globalization is how to spread the benefits of materials; worldwide industrialization equitably and l aid the optimization of processes to reduce without unsustainable impacts on water and carbon footprints and ensure compliance with other natural resources. While UN-Water has regulations; and proposed a ‘dedicated global goal for water’ with l enable the whole water cycle to be linked with targets designed to be tailored to the contexts successive steps in the value chain of the and priorities of each country, the reality of processes and products of industries in the national and local politics in regulating water, park. as well as geography, will involve compromises. A good example is the Shanghai Chemical Industry’s priority is to maximize Industrial Park, which groups chemical production, rather than water efficiency and companies working in chlorine chemistry and conservation. Even in the case of improved has an integrated water, wastewater and solid water efficiency, there may be a rebound effect waste services operator, Sinofrench. where the water savings obtained are reinvested At the conception stage, industrial parks to increase production. Therefore, though the bring the full benefits of specialized design, process may be more efficient, total water use pooling best available technology, risk may not decrease. In parallel, industry seeks to reduction and risk sharing in ways that be either self-supplied or to obtain water from optimize future technical performance and public supplies at the lowest price possible, provide security for investors. At the operational neither of which encourages water efficiency, stage, they provide the benefits of a committed though the value of water to industry may be and specialized operator with high levels of high. Moreover, cost-benefit drives water operation and management skills, rigorous efficiency as it relates to maximizing company quality control procedures backed by on-site profit, rather than optimizing water use. Within laboratories and often with an additional industries, water hotspots can be identified that research and development facility. present the highest risks and highest In some cases, the provision of specialized opportunities. effluent treatment to preserve a country’s The business case for water efficiency specialized industry has been the reason for frequently requires a financial trade-off. The creating a park. The Tuzla Organized Leather common problem is the internal rate of return. Industrial Zone Project in Istanbul is an Investment in efficient water treatment example. In other cases, by integrating water technology or cooling processes may have 28 MakingIt makingit_19_pp26-31_keynote_version 1 20/08/2015 10:41 Page 29

longer payback periods than the immediate They include command-and-control (carrot returns of alternative short-term investment in and stick) methods of policy, regulation, production. Moreover, low (or non-existent) enforcement and incentives. Manufacturing as water prices do not encourage investment in a point source of pollution is a good target. In water efficiency, which may have other drivers, the past, these methods focused on technology such as water allocation restrictions or the need and performance ignoring preventive to apply for water management permits. On the approaches and resource efficiency. Second, upside, in the long-term, investment in bottom-up approaches come from industry as it sustainable technology provides extended reacts to government approaches, a company’s savings. Conversely, it may be less expensive to own internal policies, customer demand and pay the fine for pollution than to pay for better public pressure. The industry approach is more water treatment. Managers have to see and hands-on and applied, and often dependent on make the business case to offset shareholder technology and engineering to deliver results and stakeholder pressure. However, it is and meet needs. Corporate and managerial incumbent upon the political and legal buy-in is necessary to enable industry to authorities to develop appropriate produce the deliverables. incentives for industries (standards, Intersecting these top-down and bottom-up permissions, prohibitions, fines, charges, etc.) actions are initiatives from intergovernmental with objectives to align business decisions with agencies which, acting as intermediaries, the public interest. provide guidance, targets and expert advice. Directly related to the debate over water Other players include non-governmental efficiency are predicaments arising from the organizations and academia that contribute introduction of new water technology. There are certain specialties at various levels. many good ideas and innovative approaches. Policy for sustainable industry has four main There are even technological solutions instruments: developed for niche applications, such as the Regulatory and control mechanisms usually removal of specific contaminants, which may target water abstractions and effluent struggle for acceptance outside the mainstream discharges, and include legislation, standards issues of more effective and efficient overall and licensing. On the upside, they can promote water treatment. But it can be difficult bringing best available techniques/technology and the new technology from concept to laboratory to polluter-pays principle, which encourages pilot scale and to full commercial manufacturers to recycle. On the downside, the implementation. Investors with venture capital standards may not keep up with technological are looking for the best bets and industrial progress, yet industry requires predictable managers are looking for reliability and track regulation to enable long-term planning and record; neither of these views is conducive to investment in order to accommodate change. moving innovation forward quickly. Economic or market-based instruments can include monetary penalties for non-compliance Water sustainability and charges for water withdrawals and Thoughtful policy and regulation combining wastewater discharge. To promote integrated compliance and incentives may provide a water resources management (WRM), prices can balance between supporting the needs of be influenced through taxes and royalties and industry versus overall economic results, quantity may be regulated through tradable social benefits and the environment. permit systems for water which currently exist Additionally, the application of sustainable in only a handful of countries. Credit and measures requires assistance, education and trading schemes can be introduced in finance. In this respect, agencies such as developing countries through industry the United Nations Industrial initiatives and projects. In such countries, it Development Organization (UNIDO), may be possible to apply water sustainability can act as intermediaries and provide a approaches to specific industry sectors in a necessary stimulus, particularly in similar way to those proposed for climate developing countries and countries with action. Similarly, such sector approaches would economies in transition. run the risk of targeting high polluters, as Actions to improve water sustainability in opposed to the full value chains of supply and industry commonly originate from one of two demand involving these and other industries. directions. First, top-down approaches are Fiscal instruments and incentives are those initiated by government at various levels. comprised of public expenditure, subsidies ➤ MakingIt 29 makingit_19_pp26-31_keynote_version 1 20/08/2015 10:42 Page 30

Relative water footprints of various industry sectors Raw material production Suppliers Direct operations Product use/end of life

Apparel

High-tech/Electronics

Beverage

Food

Biotech/Pharma

Forest products https://creativecommons.org/licenses/by/2.0/ / Craig Christopher Photo:

Metals/Mining

Electric power/Energy

Blue water footprint – Volume of surface and groundwater consumed as a result of the production of a good or service. It is the amount of water abstracted from groundwater or surface water that does not return to the catchment from which it was withdrawn. Green water footprint – Volume of rainwater consumed during the production process. This is particularly relevant for products based on crops or wood. Grey water footprint – An indicator of freshwater pollution that can be associated with the production of a product over its full supply chain. It is the volume of water that is required to dilute pollutants to such an extent that the quality of the water remains above agreed water quality standards.

Source: Morrison, J., Morikawa, M., Murphy, M. and Schulte, P. 2009. Water Scarcity and Climate Change: Growing Risks for Business and Investors. Boston, Ma, USA, Ceres.

➤ and taxation that can affect cost-benefit awareness can influence water use and analyses in industry and change the ‘business- pollution. Support programmes aimed at SMEs as-usual’ status. Taxation can drive technology could improve resource efficiency and recycling. change and conversely tax exemptions can apply to specific products that are more water Industry reaction efficient. There is an increasing trend, The efforts of governments need a corresponding particularly in developed countries, to abolish response reaction from industry to effect subsidies that distort the price of water below its improvements in water use and efficiency. full cost. It is recognized that inefficiencies in For the application and success of sustainable water use are the result of users, including water initiatives, they must be referenced to industry, who do not pay the full cost. Funds of baseline evaluations. A Water Footprint various sorts are available to support sustainable Assessment (WFA) accounts for the direct and manufacturing and environmental subsidies indirect use of freshwater in industry. WFAs can encourage innovative water technology. apply to the supply chain as well as to the SMEs with limited access to commercial production process. Most companies have a financing could receive preferential loans supply chain water footprint much larger than funded by environmental taxes. their operational one, and it may be more cost- Voluntary action, information and capacity- effective to shift investment in sustainability in building based on information instruments, that direction. More than 80% to 90% of a such as product data and labelling reporting, company’s footprint, and most of its water risks, could have a water efficiency or pollution may be beyond its direct operations. The component. Eco-labelling and consumer analysis may also include water use downstream 30 MakingIt makingit_19_pp26-31_keynote_version 1 20/08/2015 10:42 Page 31

Irving Pulp and from where the product was produced then chains and industrial clusters in economic zones Paper Mill, Saint John, New purchased or used to the point of its disposal. to maximize the use of available water resources Brunswick, Water footprinting also changes the concept of and reuse of wastewater. These are moves towards Canada. water use to incorporate consumptive water use closed-cycle manufacturing. with withdrawals, and the focus from complying with discharge standards to managing the grey Green industry water footprint from an ecosystem perspective. UNIDO is actively promoting a Green Industry Notwithstanding, the WFA methodology has initiative that is directly applicable to water shortcomings and its relevance is being efficiency. The initiative has two components: questioned in different situations. greening existing industries and creating new Water stewardship concerns how a company green industries. The former involves helping performs and behaves in terms of its operations enterprises to improve resource productivity and supply chains. Stewardship means being and environmental performance, while the proactive in conservation, restoration and latter helps establish new operations delivering management at the watershed level and balancing environmental goods and services, such as internal and external action. Communication with pollution control technology and equipment, other stakeholders in the same watershed and and waste management and resource recovery. engagement in forums is essential. At the plant level, approaches include cleaner production and l A version of this article was originally zero discharge and associated technologies, life- published in Water for a Sustainable World, the cycle management and eco-design. At the industry 2015 edition of the United Nations World Water level, there are sustainability initiatives for supply Development Report. MakingIt 31 makingit_19_pp32-33_debra-tan.qxp_version2 17/08/2015 17:25 Page 32

China’s water pollution prevention and China and bring it to the “new norm”, an imperative. The plan has tailored action to control action plan – the “Water Ten Plan” “ecological civilization”, with an ambitious tackle water pollution in rural areas, as is finally here. Commentary across the new economic model. Whether China can well as urban areas. board points to the fact that the Water Ten get there is another question. But for now, There is no doubt that all industries Plan is stricter than expected. The fact that at least, there is a plan in place. and agriculture will be affected but tasks/ actions in the plan are designated to One of the key points to note is that the especially those industries located along different departments from various new plan recognizes the geographical the seven key rivers and in urban areas. ministries has also received positive mismatch in water resources and arable Since most of China’s population and feedback. There is consensus too that the land, and acts accordingly. Water Ten industry (and hence the industrial plan has a new focus on water treatment actions show that the dire groundwater pollution) are clustered around 1) Beijing, and the potential upsides in the wastewater situation (from severe pollution to over- Tianjin and Hebei, 2) the Yangtze River and sludge markets, with bullish extraction) in the north of the country is Delta and 3) the Pearl River Delta, it comes recommendations for listed companies well-acknowledged. A series of measures, as no surprise that these areas face tighter along the whole environmental and water across the board, prioritize groundwater compliance deadlines. However, given the value chain. protection. enormity of the problem, protecting water Less obvious is which sectors will be hit sources will remain an uphill struggle most by the plan. The English summary Water scarcity despite the new targets set. masks tough measures outlined within the Since pollution exacerbates water scarcity, Perhaps the question at this point is ten action points. Already the Chinese water-scarce regions are also prioritized. not ‘whether China has the political will to press is saying that it will lead China to the Beijing, Hebei and Tianjin, in particular, stomach a costly clean-up of industrial “new norm”. Indeed, a circular economy face stricter targets all round for municipal and agricultural pollution of its drinking plan following hot on the heels of the and industrial water, as well as wastewater water sources’ but ‘what happens if this is Water Ten Plan might be a not-so-subtle management and reuse. These three not done’. Since maintaining stability is an way of telling us where the top brass provinces also face tighter deadlines even more cherished mantra than food intends to take China. compared to the rest of the country, security, there is little room to manoeuver. How serious is China? Very. If you underscoring the urgency of their plight. haven’t caught the drift yet, it is all about Other geographical areas of focus that have un-siloing. To solve water issues effectively, been singled out with tighter deadlines are the government has to plan a coordinated the Yangtze River and the Pearl River strike across the board – to prevent and Deltas. control pollution from agriculture, Actions and targets laid out in the industrial sectors, municipal water and Water Ten Plan basically boil down to the rural water. It also needs to rein in water protection of water sources – both use. Therefore, the Water Ten Plan is not groundwater and surface water. For one plan but an “umbrella plan” that ties in surface water, the focus is on China’s seven other plans, policies and standards that key rivers: the Yangtze, Yellow, Pearl, have wide-ranging and game-changing Songhua, Huai, Hai and Liao Rivers. For impact across sectors. many cities in China, groundwater is their This umbrella plan forms part of a only water source. Protecting drinking remarkable vision that will transform water sources (be it ground or surface) is

Tough love: China gets serious about water pollution Debra Tan outlines China’s new plan to fight industrial and

agricultural pollution of its drinking water sources Bank Development Asian Photo:

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Industrial water use where the sector is concentrated, amount to In reality, the high cost of installing and A nod to rampant pollution exacerbating a triple-whammy hit. operating wastewater treatment equipment existing water scarcity is clear in the push The plan is actually tougher than many will likely mean that some smaller factories to ‘restructure’ both the composition of had expected, closing old loopholes caused with thin profit margins may be forced to industrial sectors and of crops grown. As by a mismatch in standards. These close or merge with others, leading to expected, heavily polluting and water- standards vary from sector to sector and it consolidation within some industries. The intensive industries have been singled out is important to note here that, in the past, fact that over 90% of the textile factories are for compliance and upgrading. some industrial processes were not small medium size enterprises makes this Agricultural water use is also targeted. subjected to any industry specific sector particularly vulnerable. The combination of the use of standards. Previously businesses could be But it is not just the textile sector. Six new wastewater discharge permits and new fully compliant despite discharging industrial pollution discharge standards, stricter industrial standards will hurt some untreated wastewater into water sources. including petroleum refining and industries, even without rate hikes. So, on top of the impending water and petroleum chemistry, are in force as of 1 July Investment in wastewater treatment plants wastewater tariff hikes, these new and/or 2015. Watch out for crackdowns on illegal means not just upfront capital expenditure, more stringent industrial standards will activities, such as secret groundwater but annual operational costs, as well. Only hurt. discharge, and the use of fake environmental those with a long term commitment to the impact assessment approvals and sector will remain. Wastewater monitoring data. The simultaneous anti- Across China, textiles, dyeing and Factories will have to treat wastewater to corruption campaign mounted by the finishing, and pulp and paper industries higher standards or face high violation current administration should go hand-in- will be hardest hit. Textiles, dyeing and fines under the amended environmental hand with a pollution crackdown. finishing is the only industry singled out for law. Also, parties responsible for the Someone said recognizing a problem is action across all key target areas. Moreover, pollution violations could go to jail for halfway to solving it. The recognition of key new stricter standards and tighter deadlines offences. This means it will no longer pay to stumbling blocks by the plan is another in the Yangtze River and Pearl River Deltas, pollute. indicator of China’s seriousness in tackling pollution. Overlapping and unclear responsibilities between ministries have resulted in poor enforcement and mismatched standards. These disparate responsibilities, which could have hampered pollution prevention and control, are addressed in the new plan with tasks designated to different ministries. Now, under the new plan, each action has a ‘lead ministry’, which takes primary responsibility, and ‘supporting ministries’, which will have to work with the lead ministry to get the job done. That said, coordination between departments will still require much effort. We remain cautiously optimistic that this will ensure the proper execution of the policies. l This article is an edited and abridged version of Debra Tan’s original review, “Water Ten: Comply or Else”, published by www.chinawaterrisk.org

Water quality test at the Shahu Water Supply Plant in Gao’an City, Jiangxi Province.

DEBRA TAN is the director of China Water Risk, a non-profit initiative designed to help investors, businesses and individuals understand and mitigate risk around water.

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SunWater is a project to build an affordable solar water pump for farmers earning US$2-a- day farmers. It aims to transform small-plot agriculture, create new water markets and significantly increase incomes to raise bottom- of-the-pyramid families out of poverty. To break out of the poverty cycle, poor farmers in Asia and Africa need to grow cash crops to increase their income. Cash crops are crops above and beyond the farmers' needs, but growing them is a challenge. Many farmers pump water by hand or carry it in buckets from a village pond to their crops. Not only is this a slow and physically grueling task, but often the shallow wells and seasonal rains mean farmers can't grow crops in the dry season. Farmers need a reliable, low-cost water pumping system to grow the extra food they need to make profits. Diesel pumps are one option, but they use diesel fuel, which is expensive, break down often and blow carbon into the atmosphere. Diesel pumps cost Paul Polak talking US$500 to buy and usually require an about affordable expenditure of around US$700 a year for fuel technology design for and maintenance. Over a three year span, the developing countries at PopTech 2008. costs can reach US$2,600. Electric pumps are another option. They’re cheap, but they use grid power, which is unreliable in many developing countries, meaning that most farmers who have an electric pump have to have a back-up diesel An affordable pump. Electric pumps can alternatively be powered with solar energy, but current systems can cost US$5,000 or more, which puts them out of the reach of poor farmers. water pump The SunWater design, instead of having several solar PV panels, uses flat mirrors to reflect more sunlight onto a single solar panel, thereby boosting the power output of that system using panel by a factor of 10. SunWater is creating a pressurized irrigation system that brings water to a one-hectare plot solar power for a cost target of US$2,900. This cost includes well drilling, water storage, tubing, installation and the solar pump itself. The In this interview (right) Sunwater whole system will be cheaper than buying just the panels and pump in the current solar- project leader, Paul Polak, explains powered systems. The much lower cost means the ideas behind the project farmers will be able to pay off the loans they use to purchase the system in less than two years. Plus, there will be no fuel to buy. Between November 2014 and June 2015, SunWater ran a field test with 11 installed units in Gujarat, India, which confirmed the viability of the technology and markets. Farmers using the solar water pumping and irrigation system showed that, by growing high-value, off-season cash crops, incomes can be improved by as much as 80%.

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PAUL POLAK leads the SunWater project team. He is internationally known for fighting poverty using business and technology, and is the author of the book, Out of Poverty. He founded the non-governmental organization, International Development Enterprises, and has sold one million foot-powered treadle pumps to farmers in the developing world.

the benefits to be provided to more and To make it work we have to minimize the more people. energy requirements of crop irrigation. Our team has also found that solutions We will accomplish this by applying a are more successful if farmers own the systems approach for optimizing the series pump. When a poor village receives a free of water flow components from the water water pump, it almost always falls into supply to the irrigated crops. The critical disrepair and disuse because there’s no design tasks include: ownership of it, even when water is one of l The well filter and screen must be their key problems. But when a poor designed to reduce drawdown. farmer buys his own pump the results are l The solar panel array, mirror vastly different: it stays well-maintained, concentrators, and pump mechanism must it is used as effectively as possible, and be optimized to produce pressurized water creative ways of extending the benefits to using the sun's energy. the farmer are found. If we want to solve l The water distribution system must be long-term problems in a long-term way optimized to increase the crop production the poor need cost-effective solutions per unit of irrigation water applied.

Photo: Kris Krüg – Krüg Kris https://creativecommons.org/licenses/by/2.0/ Photo: they can own instead of handouts on a Giving away the system will be ineffective sporadic basis. in the long run; farmers must invest in the Why solar-powered pumps? How effective do you really think the pumps in order to create the motivation Solar-powered pumps don’t use diesel fuel, project will be? that ownership brings. To do this, a they rarely break down, and when they do This matters on a large scale – we think we commercial company will be established they can be repaired easily. This system has can install one million of our pumps in first in India and then in Africa. The very low operating costs compared to a India in the first 10 years. This will reach business model will integrate solar- diesel pump. Plus, they don’t create carbon 50 million people, raising millions of them powered pumping systems with a package emissions. out of poverty. In addition, through future of services including financing (lease to own Why are you using mirrors? extensions of the core technology, there or loan), support for design, installation and The single biggest cost in the system is the will be the potential to turn millions of operation/maintenance training, and farm solar panels. One panel can be several farmers into energy entrepreneurs, advisory services to enhance farming hundred dollars or more. A mirror is a few bringing solar electricity, household enterprise profitability. dollars and is widely available. By using a lighting, and cell phone charging to How is the proposed technical solution mirror to shine extra sunlight onto the millions of rural households that will different from currently available panel, we are increasing the energy output never connect to the grid. All this, plus technologies? for a tiny fraction of what it would cost to we’ll reduce carbon emissions by replacing The pump will be much cheaper than buy another panel. Calculations show we the diesel pumps with clean solar pumps. available options, but it's not just the pump can get the energy we need to run the We feel this is the kind of game-changing that will make this work. We're using our pump with a set of these mirrors, saving project that can make a difference. collective field experience with small plot thousands of dollars in the process. Can you share more information about irrigation in Asia to create an end-to-end Why don’t you give these away for free? what these pumps are for and how you system specifically designed to help poor Charity is a wonderful, and often plan on making this work? farmers irrigate their crops. We are taking a necessary, act of giving that will always There are two key components to this zero-based design approach to the problem, have a place in the world. However, long project: develop and field test cost-effective improving the whole process of irrigating term solutions to large problems need to solar powered pressurized irrigation crops with no limiting preconceptions. scale up rapidly and be able to support systems and establish a commercial It’s worth noting that solar powered themselves. That means a commercial enterprise to promote their adoption by pumping systems with water delivery enterprise. If the solution is profitable it farmers in India. similar to five horsepower engine pumps can generate the resources needed to Pumping surface or groundwater for are being promoted in India, but they reach hundreds of millions of people. irrigation is energy intensive and require subsidies of up to 86% to make SunWater will help farmers make more traditional photovoltaic (solar) powered them attractive. Subsidies are costly and money, which will drive interest in other irrigation systems can’t compete with practically impossible for small plot farmers buying their own pump, enabling fossil fueled surface irrigation systems. farmers to obtain.

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COUNTRY FEATURE Tunisia

Economic reforms to consolidate democracy

Tunisia, the birthplace of the Arab Spring, is on Parliamentary leaders of the country’s regime s stagnant economic model, its way to becoming the first genuine major political forces have stated that the characterized’ by rent-seeking, corruption, democracy in the Middle East and North Africa new government must undertake wide- administrative barriers and numerous region. After overcoming a deep political crisis ranging structural reforms during the next obstacles to local and foreign trade and and adopting a consensual constitution, five years in order to stimulate the economy investment. A recent report by the World Tunisia celebrated fair parliamentary and (increase productivity and investment), Bank, titled “Unfinished Revolution”, presidential elections between October to promote regional development and create describes the Tunisian economy as December 2014. In a regional landscape employment. “performing below its capacity, with marked by civil strife, sectarianism and They have also stressed that Prime Minister persistent unemployment, low productivity, military intervention, Tunisia stands out as a Habib Essid s cabinet, in office since February misallocation of resources, weak structural role model for peaceful democratic change. 2015, should’ prioritize a number of economic change and feeble export performance”. One of the most positive signs is that all reforms. The main priorities for the economic Despite a partial economic recovery major political actors share a common view. reform agenda are the investment code, the recorded in 2012 and 2013, 2014 saw a They believe that now that the political public-private partnerships framework, the downturn. In December 2014, the Tunisian demands of the Jasmine Revolution – a taxation system, the banking sector and the Central Bank raised concerns about the low democratic constitution and individual and integration of the informal sector into the economic growth rate recorded during the civil liberties – have been achieved, the national economy. year, and limited the growth forecast in 2015 government should focus on the people’s The general objective of the reforms is to only 3%. Moreover, a slow recovery in the socio-economic demands. perceived to be the dismantling the old industrial and tourism sectors will reduce the Photo: Simon Blackley Simon Photo: Photo: www.istock.com/Franck Prevel www.istock.com/Franck Photo:

36 MakingIt makingit_19_pp36-39_CF_tunisia.qxp_print 20/08/2015 10:59 Page 37 Photo: Arne Hoel / World Bank World / Hoel Arne Photo:

options for creating new job opportunities, Revolution began – poverty rates stand at 26 leading to a persistence of social tensions. and 32 percent respectively, according to the At a glance Improving the labour market will be a major World Bank, compared to just 8% in the capital challenge. Unemployment has dipped slightly and northern coastal region. Most investments Head of state: Beji Caid Essebsi, leader of the after a peak rate of more than 18% was reached in the country have been targeted on the coast, Nidaa Tounes party, won the country’s first in 2011. However, it still remains at 15.2%, leaving the interior cursed by poor democratic presidential elections in December representing 600,000 jobless people. The high infrastructure. The economic activity of only 3125 rates of unemployment amongst graduates, three coastal cities, namely the capital, Tunis, Government: A coalition, led by Prime Minister particularly in the central and southern regions Sfax and Sousse, accounts for 83% of Tunisia’s Habib Essid, composed of Nidaa Tounes, which are considered to have been one of the main GDP. These three cities together host 92% of won the largest number seats in the October 3125 elections; Ennahda; the Free Patriotic Union; and reasons behind the popular uprising of 2010- all industrial firms in the country. Afek Tounes. 11. According to the African Development The current effervescence in the social and Population: 21,:93,865 ;3125< Bank, the challenge is to develop a productive economic arenas indicates that there cannot be Percentage of total population living in urban sector with a higher added value capable of a consolidated democracy without the areas: 79% ;3125< absorbing the 60,000 university graduates formation of a more inclusive economy. Civil Main industrial sectors: textiles and clothing, joining the job market each year. society and politicians – from liberal and leftist agro-industry and mechanical, electrical and One of the two major cleavages that the to Islamist ideological orientations – agree that electronics industries (including automotive and government has to face is the existing disparity economic restructuring is necessary to achieve aeronautics components). The three sectors between the economic elite and, according to inclusive growth combining more account for 86% of the country’s export firms, and more than 76% of jobs in industry (3124, African recent figures provided by the Minister of employment, a better regional balance and a Economic Outlook) Social Affairs, the two million people living in more egalitarian distribution of wealth and Main exports: textiles, agricultural products (olive poverty. The other is the imbalance in income. This, they also agree, can be achieved oil, citrus, vegetables), phosphates and chemicals, economic activity taking place in the through good governance in the framework of mechanical and electrical goods, hydrocarbons Mediterranean coastal areas compared with a free market economy regulated by the state. GDP composition by sector: agriculture: :%, that in the rest of the country. Poverty rates l By Rosa Álvarez Fernández, a specialist in industry: 41%, services: 72% (3124) provide a clear indicator of the divide. In the Middle East and North Africa regional politics, Internet connections for 55% of population in north-west and centre-west regions – where the currently based in Tunis. 3124, up from 38.6% in 3119 (ITU)

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COUNTRY FEATURE Tunisia

‘Participating in the global economy is an opportunity, not a constraint’ Interview with YASSINE BRAHIM, Minister of Development, Investment and International Cooperation

Will the Essid cabinet essentially be a when I say security, it is not just in terms Second, even if in Tunisia we talk a government to enact structural reforms, of the security forces and army but also in lot about environment and green as the major political parties have terms of education, culture and the social economy, it is at a step back compared demanded? equilibrium between cities and regions. to even some regional countries like Exactly. First of all, we have the After the Revolution, we already had a Morocco. We will also have incentives opportunity to have a bit of stability, we kind of zoom-in on the poorest regions of and encouragement and strong public- hope. We are in an international the country. Our existing policies, private partnership projects on waste environment where terrorism is quite especially the investment code and the management and environmental tough but, politically speaking we have fiscal and tax incentives, will be clearly topics. Renewable energies will be a stabilized with the elections of the targeted. It is happening at a good time priority for the future. president and the parliament for five because the more developed regions on Also, we will look more to Africa as a years, and we are able to start real reforms, the coast, and the largest cities, like Tunis, market and at the way to develop more and can now put the economy and the Sfax and Sousse, are starting to have the cooperation with African countries, social reforms as priorities for the same problems as European cities, either bilateral cooperation or country. because we have strong development, multilateral cooperation with European What major changes do you think will urbanization and pollution problems, like countries. We will think about all Asian take place in the Tunisian economy over any classical north Mediterranean city. countries as well because we think of the next five years? This stress and pressure will naturally Tunisia as a hub to develop more The direction is quite clear. We are a small mean that there will be more interest in exchanges. We need as well to country in terms of size, with a the interior regions. That is the first concentrate on enhancing our population of 11 million people, but we direction. relationship with Algeria – as investor in are very well-positioned in the centre of Tunisia and as a market for Tunisia and the Mediterranean. Historically, what has international companies. Algeria is the made Tunisia successful has been its YASSINE BRAHIM was Minister of Transport largest market in North Africa. and Equipment in the transitional government openness. We are an open country, able to formed in early 2011. He resigned in June to Overall, Tunisia will see reforms in have many citizens of the world visiting become general secretary of the newly education, health care, incentives and the us, because we represent the history of founded, secular, liberal Afek Tounes party. In investment code, and in tax and customs the 2014 legislative election, Afek Tounes won humanity. We had so many civilizations in eight seats, including Brahim himself who was in order to make the country more open Tunisia, and so we had so many people elected to represent the coastal city of Mahdia. and closer to international standards in wishing to come to Tunisia. That is why In February 2015, Afek Tounes agreed to terms of doing business. We consider security is so important, and confidence participate in a unity government, and in Prime that participating in the global economy Minister Habib Essid’s cabinet, Brahim became in the fact that the Tunisian government Minister of Development, Investment and is an opportunity for Tunisia, not a can handle security is important. And International Cooperation. constraint.

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What is the new strategy to foster becoming too important, it means your paying less tax will have an impact on tax domestic and foreign investment? tax and laws are not appropriate, so you revenue, but very quickly more people will Investors were waiting for political need to progressively reduce bureaucracy be incorporated in the system. We are a stability and we have it. Now we need to and bring taxes down. If you bring taxes small country, so my party’s idea is to have some signals of positive decisions in down, the people paying taxes will benefit bring taxes and customs duties down and terms of reforms. They need to see the from it and the people who don’t pay taxes then we will see that the situation will get public-private partnership law voted in will be encouraged to come into the better. I hope that I will be able to the Assembly. They need to see a new system. In fact, at the beginning, people convince the other political parties, the investment code more open than the last partners in my government, to go in that one, and then they need clarity – whether direction. they have incentives and less complex The highest rates of unemployment are laws. I am quite confident about Tunisian amongst young graduates. How will the investors. The international ones will government address this? look at security issues, but this is quite a “Tunisia will see reforms In my opinion, we need Tunisia to become regional topic. Terrorism is a fact we have a country of investment, with more around the world. There is no one day in education, health care, projects, and to make Tunisia a without a terrorist attack in the world, competitive country. We need to have a from Asia to the USA. So, they need to be incentives and the discussion with our friends from the confident in the Tunisian state’s ability to investment code, and in European Union about how to make be able to handle this, like any well- Tunisia more competitive in terms of structured and well-managed country. tax and customs in order productivity, to have maybe a little more The economy of some regions depends to make the country more flexibility in terms of delivery times, and heavily on parallel trade and activities. to also be able to bring in some more How is the government going to integrate open and closer to experts and international managers, so as the informal sector into the national international standards in to have a transfer of knowledge and economy? expertise. If you have a parallel market that is terms of doing business.” l Interview by Rosa Álvarez Fernández.

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In the latest of a series about remarkable companies, Making It looks at a Brazilian company converting sugarcane into plastic Braskem Thanks to its cheap, enduring, mouldable and versatile The company unveiled its initiative to produce green characteristics, plastic has entered every facet of modern polyethylene in 2007 and, in 2010, after improving the life. From food packaging to household products, to production process, it started to produce green cosmetics, toys, auto parts, pipes, footwear, clothing and polyethylene on a commercial scale. sports goods, it plays a vital role in making many parts of But just how exactly does Braskem manage to transform our lives more convenient. sugarcane into a seemingly unrelated thing like plastic? Most of the plastic used today is made from fossil raw First, sugarcane is crushed, fermented and distilled, materials such as oil and natural gas. According to one yielding the product called ethanol. Then, at the Braskem report, making 1,500 plastic bags from natural gas plant, the ethanol undergoes a dehydration process during consumes almost 33 pounds of fossil fuel and 58 gallons which it is transformed into green ethylene. The green of fresh water, and produces some 15 pounds of solid ethylene goes through a polymerization and then an waste and 0.04 tons of CO2. extrusion process. The resulting green polyethylene has the same physical and chemical characteristics as conventional Green plastic plastic, so it can be processed using the same machinery. Since oil and natural gases won’t last forever, the current Braskem supplies its green polyethylene to manufacturers way of making plastic is not considered sustainable. A and convertors which use it to produce plastic products. Brazilian petrochemical company, Braskem, is providing To identify products that have green polyethylene in a new way to produce plastic on an industrial scale. It has their composition, and to help consumers to recognize pioneered the production of ‘green plastic’, also known as them, Braskem created the I’m green trademark seal. ‘green polyethylene’, from a common agricultural crop – Today, the I’m green seal can be found on products from sugarcane. 19 companies, including big corporates such as Nestlé, Headquartered in São Paulo, Brazil, Braskem is the Johnson & Johnson and Walmart. leading producer of thermoplastic resins in the Americas and the world’s largest producer of biopolymers. Its annual Reducing greenhouse gas report for 2013 states that it manufactured 16 million “The green polyethylene has an outstanding metric tons of products, attaining gross revenue worth environmental performance. In 2007, Braskem conducted US$22bn. Founded in 2002, it has 36 industrial plants a ‘cradle-to-gate’ study to compare the eco-efficiency of spread across Brazil, the United States, Argentina and I’m green polyethylene with conventional fossil-sourced Germany, and employs 8,000 workers worldwide, among polyethylene. The study showed that producing them 340 scientists and researchers in its two innovation polyethylene from fossil sources generates two times and technology centres. Each year, the company invests a more carbon dioxide than producing the same amount total of US$80m in research and development. of I’m green polyethylene. Braskem’s green plastic helps “For Braskem, progress means sustainable growth. reduce greenhouse gas emissions in its production Taking oil out of plastic production is one step forward. process,” said Jorge Soto. We strive to discover new processes and solutions to “Producing green plastic is also resource efficient. make our products more sustainable, and therefore All waste materials generated during the processes are make the world more sustainable,” said Jorge Soto, the re-used, for example, filter cake and wastewater are later company’s Sustainable Development Director, in an used as natural fertilizer, reducing the need for chemical interview with Making It magazine. fertilizer, and bagasse – the fibrous matter that remains At its Triunfo Petrochemical Complex in the state of after sugarcane stalks are crushed to extract their juice – Rio Grande do Sul in the south of Brazil, Braskem now is used to generate bioelectricity, reducing the use of produces 200,000 tons of green polyethylene each year. fossil resources,” added Soto.

40 MakingIt Besides greening the production process, Braskem also keeps eye on its product’s life cycle. Since plastic litter is such an enormous problem across the globe, Braskem tries to ensure that its sugarcane- plastic has a green end. Soto says, “It is not biodegradable or compostable but like resins made from petrochemicals, green polyethylene is a recyclable material and in fact can be recycled normally using the processes in use today. Since green polyethylene is not bio-degradable, the CO 2 captured during the sugarcane cultivation process remains sequestered during the plastic’s entire life cycle.” The company has discovered ways to transform recycled plastic waste into small-sized items of furniture. It has also been developing initiatives with environmental engineering companies to create a new post-consumer cycle for its plastic products. “Our main focus within our biopolymer range is renewability and recyclability. We believe that there is more value in re-using products made from our polymers rather than bio-degrading them,” said Marco Jansen, Braskem’s Renewable Chemicals Commercial Director Europe and North America, in an interview with Plastics News .

Sugarcane – a renewable resource Braskem’s strategy of producing plastic from sugarcane also takes into account making use of the local renewable resource. Brazil has the ideal climate for growing sugarcane, and there is almost no need for irrigation of the crop. In fact, it is the world’s largest sugarcane producer, harvesting almost 600 million tons of sugarcane in the year 2013-14. According to Braskem, to produce one ton of green polyethylene, only about 27.5 tons of sugarcane is needed, indicating that the country has an abundant renewable resource from which to produce plastic. Asked whether growing more sugarcane for green plastic would use more agricultural land that could be used for food crops, Jansen replied, “Sugarcane does a lot with a relatively small portion of land. It requires less than one quarter of the land used for corn, one eighth of the amount for soybean production, and one thirty-fifth of the land for cattle ranching. Sugarcane ethanol production currently occupies 4.6 million hectares of farmland, which is only around 1.5% of Brazil’s arable land. Yet from this small portion of land, Brazil has been able to replace almost 40% of its gasoline needs with sugarcane ethanol, while also exporting ethanol to other continents.” “This means that on the one hand, there is more than enough land available in Brazil for sugarcane expansion, without encroaching on other economic activities, while, on the other hand, producing sugarcane polyethylene is an ideal solution to reduce dependency on oil and maximize resource efficiency. And, in the long run, it improves the carbon balance. This all chimes with Braskem’s commitment to preserve nature resources, to provide an alternative for people looking to reduce their carbon footprint, and to create a green economy by adopting renewable and sustainable technologies.” l Interview by ZHONG Xingfei

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POLICY BRIEF

over other types of economic instrument (e.g. education, place-making, or Ecological enterprise community enterprise) to be inconclusive, given that there are many examples of failure too in terms of high- zones: next generation cost per job created, no significant local employment impact or a shift of value from the public purse to private industrial strategy or landlords via increased land values, such as in Colorado, USA, and Salford, UK, respectively. The process of policy fool’s gold? mobility is important in explaining why EZs remain politically popular: the spread of a neoliberal idea to remove the dead hand of the state and unleash market forces to tackle unemployment; and ill- By PHILIP MONAGHAN, director of the of social mobility? Or that EZ policies will conceived state implementation whereby Infrangilis research agency, and author of the also help to tackle climate chaos? a policy label is adopted without proper books, Sustainability in Austerity and How Local consideration for clear definition or Resilience Creates Sustainable Societies Triumph of neo-liberal policy over evidence special measures. Another explanation is There appears to be an inverse pyramid of the confusion caused to policymakers by Enterprise zone (EZ) policy deploys evidence to support the case for the contradictory think-tank studies about spatially targeted fiscal and deregulatory blanket application of EZs, whereby a lot of the success of different types of EZ policy incentives for development such as tax theory is stacked on top of little evidence. regimes, which do not make relief, planning simplification, or removal Yes, there is compelling evidence to recommendations that are relevant and of social rights. There are estimated to be suggest that different versions of EZs do lead to policy improvement. over 3,500 EZs in 130 countries in the contribute to growth or regeneration, for developing and developed world, which example in Shenzhen, China, the Isle of Can an enterprise zone be ecological? account for more than US$200bn in Dogs/Canary Wharf, and Indiana in the Compared to their high-carbon cousins, exports and directly employ at least 40 USA. Yet a distillation of various studies by as an emergent phenomenon there is million workers. An examination of the Infrangilis finds the rationale for EZ policy sparse empirical studies on the impact of history of EZ theory shows that the policy EEZs. Despite this, a global mapping idea has been around for centuries and exercise by Infrangilis suggests that they continues to thrive in different forms to are on the rise: there are already 52 EEZs the present day, the types of which vary in “...enterprise zones have in operation, spanning 23 countries in terms of purpose and application: Africa, Asia, Europe, the Middle East, emerging in the 1800s to take advantage of evolved again to accelerate Latin America and North America. port routes (e.g. Hong Kong), and low-carbon growth in the Examples range from the A19 ultra low resurfacing in a new form during the guise of ecological enterprise carbon vehicle corridor in north-east 1970s to reverse city decay (e.g. the Isle of zones... But what evidence is England and New York’s solar Dogs in London). More recently, in the empowerment zone, to Chittagong’s low 2000s, EZs have evolved again, to accelerate there that they will deliver carbon garment export processing area in low-carbon growth in the guise of lasting benefits for local Bangladesh and Cape Town’s Atlantis ecological enterprise zones (EEZ) (e.g. New communities in the form of green manufacturing zone. York’s solar empowerment zone). But what However, there may be inherent evidence is there that EZs deliver lasting social mobility or that they will contradictions for an EEZ between benefits for local communities in the form help to tackle climate chaos?” unabated growth and abated emissions.

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POLICY BRIEF

A woman rides past a Yingli Solar logo on a wall outside Yingli Solar, in the Chinese city of Baoding, Hebei province. Photo: Reuters/Petar Kujundzic Reuters/Petar Photo:

In the case of Baoding, in Hebei province, may be inappropriately selected, non- These insights highlight the China, the economic boom from its solar complimentary, fail to build trust and importance of better understanding the panel industry means its carbon intensity create unnecessary competition. For potentially signification contribution of – the amount of emissions per unit of instance in England, UK, 15 of its 24 EZs EEZs to next generation industrial Gross Domestic Product – appears to be have an explicit focus on exploiting some strategy around the world, especially in higher than peer city equivalents. Baoding form of green technology, ranging from terms of helping to make a big shift to may not actually be a ‘green’ EZ because marine energy to electric vehicles; and, in inclusive and sustainable growth. while it is manufacturing low-carbon November 2014, the then Secretary of Consequently, the next phase of products, in the absence of a decarbonized State for Communities and Local Infrangilis’ work aims to: understand why national power grid, it is doing so in a Government, Eric Pickles, proposed plans and how the policy is being transferred in carbon-intensive way. for a second wave of EZs. But without different contexts, identify good (and bad) It has also been suggested there may be clarity on a British vision for national practice examples from around the globe; limitations to what a city can do by itself green growth which dovetails with local and distil a set of practical when it comes to green growth, because development plans, it is unclear whether recommendations for the benefit of the without a national strategy for EEZs, they this is gold dust or fool’s gold. policy community.

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POLICY BRIEF

Bewareof thosewhowoulddotheworkforyou There is no shortage of development agencies Three keys to successful and private consultancies which say that they have identified the best practice and can provide you with a golden ticket to economic industrial policy in prosperity if you simply stand aside and let them get to work. Across the globe, industrial policies are being crafted, drafted and developing countries implemented by bi-lateral and multilateral development agencies which believe that what worked in Country A will work in Countries B-Z. At best, these programmes lead to an over-reliance on development agencies, as the By AMANDA JANOO, industrial policy analyst pressing socio-economic issues facing logic underpinning them is not embedded in their populations, such as high the local government and therefore lacks In recent years, we have seen the re- underemployment, poverty or economic sustainability. At worst, the programmes emergence of industrial policy, which can volatility. However, the majority of completely disregard the development broadly be understood as the molding economists are still peddling the same objectives of the country in question and are and directing of the economy by the state market-freeing policy prescriptions (e.g. simply based on the ideology or interests of in line with its societal objectives. trade liberalization, economic the implementing party. In both situations, However, despite industrial policy’s deregulation and privatization of state- developing country governments are once comeback and the acknowledgement of owned enterprises) which dominated again made spectators of their own economic the failures of the “free market”, “growth- development for the past three decades transformation, which defeats the point of first” approach to development, we have and which delivered disappointing industrial policy altogether. not yet seen many states breaking the societal outcomes. An industrial policy mould and implementing radically practitioner from a sub-Saharan African Beware roaming capital different economic policy agendas. What country recently expressed her frustration One of the greatest challenges facing then is inhibiting greater with the “industrial experts” who keep industrial policy in developing countries is experimentation and self-determination coming in and telling them to liberalize that the space to institute effective regulatory in industrial policymaking? And how can trade. “What is the point of more trade if or taxation policies is constrained by the developing countries move towards more we don’t produce anything?” she sighed allure of foreign direct investment (FDI), the successful and innovative industrial with exasperation. threat of relocation if their demands are not policies in the future? With a growing demand for industrial met and, perhaps most importantly, the idea As a way of stimulating debate, I suggest policy advice, economists are increasingly that they can never compete with the that there are three major obstacles that re-packaging the same “free market”, economic giants even if they try. This must be overcome in order to make “business enabling environment” approach only highlights the benefits of a industrial policy in developing countries agendas under the stamp of industrial globally fragmented production system, more successful: policy. The past three decades have suggesting that now countries can easily illustrated the strengths and weaknesses insert themselves into global value chains Beware bad economic advice of this approach and if developing without having to build their own One of the primary challenges facing countries wish to experiment with new competitive industries from scratch. industrial policymakers in developing policy prescriptions oriented towards new However, this argument denies the very countries is the constant bombardment of objectives they would be wise to learn important fact that, by “chasing FDI”, economic advice which simply replicates through trial and error, rather developing countries become passive past development failures. Most than depending on economic advice, recipients of the manias and innocent developing countries would like to utilize which derives from the same abstract, victims of the panics which characterize industrial policy to tackle the most outdated models. global business and financial flows. Due to

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POLICY BRIEF

their weak negotiating position, they are frequently exposed to high risks with little prospect of reward The success of industrial policy in developing countries will be greatly enhanced by

recognition of the wealth latent in their own Nath Paresh Illustration: national value chains and of their right and responsibility to limit foreign presence when it infringes on their capacity to build an economy which serves their populations’ needs. Industrial policy provides a unique opportunity for developing countries to assert greater self-determination over the shape and form of economic development and to pioneer new blueprints for the better world we envision. However, the space for innovative industrial policy is being constrained by external influences which come under the guise of benevolent economists, development agencies and transnational corporations. To enhance the success of industrial policy, developing country governments should strive to emancipate themselves from these influences so that they have the space to experiment and adapt their industrial policy programmes in a manner which serves the needs and desires of their society.

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Below: People’s Climate March, New York, USA, 21 September 2014.

access, I received very different answers from women compared to those that my Exploring climate change male research colleague received from men that he interviewed. People in Ladakh rely on water from from a gender perspective glaciers and melted-snow for daily consumption and irrigation. Changes in temperatures, combined with increased By VIRGINIE LE MASSON documented that women are part of demand for limited water resources, households and relationships from make water availability fluctuate What does gender have to do with climate which they cannot necessarily be dramatically. change? It’s a question I often hear when separated. Whatever impacts women will At one particular site, men did not raise engaging with practitioners and also impact those around them, albeit in any concerns about access water, yet policymakers. I am a researcher who different ways. This is why we must work almost all the women I interviewed said advocates for attention to gender to be on gender relations, rather than on that availability and access to water is one integrated in efforts to address climate women only. of their main daily challenges. Women change – in climate change mitigation, in Instead, I show that men and women are responsible for fetching water and for strategies to adapt to climate impacts, and across societies have different roles and irrigating fields, and therefore they have in negotiations towards a global climate perspectives, which make their relation first-hand knowledge of the availability change agreement. with their environment unique. For of water and how climate change is To answer that question, I tend to avoid instance, while conducting research in impacting this resource. using the mainstream argument that the Himalayan province of Ladakh in Differences in roles and status, and the women are more vulnerable to climate India, I realized that when asking local socio-economic context in which people change than men. Many studies have villagers questions concerning water live, also affect their different abilities to cope with extreme weather events. As part of other research in India, I talked to inhabitants of a low-income urban area in Gorakhpur, in the eastern part of the state of Uttar Pradesh in India, about how they cope with regular floods. Those who rely on growing and selling crops as their main source of income develop strategies to adapt to recurrent flooding. For instance, women farmers grow climbing beans or cucumbers on long sticks so that their crops are not destroyed even when flood waters up to two metres deep inundate fields for several weeks. In parallel, men selling food or clothes use a small cartwheel in order to place their business in strategic locations, safe from hazards, and to follow the crowd at different moments of the day. However, those strategies might be disrupted when people suffer from health problems that restrict their

Photo: istock/Andy Parker istock/Andy Photo: physical ability to look after their garden

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FURTHER READING Ahmed, Nafeez – New age of water wars portends ‘bleak future’ Davies, Wyre – Brazil drought: Sao Paulo sleepwalking into water crisis Greenpeace International – Hidden Consequences: The costs of industrial water relations helps us understand how pollution on people, planet and profit or go to the market, particularly when Hoekstra, Arjen – The water footprint of modern they do not benefit from social differences in access to resources and consumer society security from the state. In order to power between men and women Leahy, Stephen – Your Water Footprint: The Shocking Facts About How Much Water cope with the loss of income, people influence how populations interact We Use To Make Everyday Products take out loans that they can only pay and care for their environment. OECD – Tunisia: A Reform Agenda To Support back by selling their main asset, which Gender constructions – such as social Competitiveness and Inclusive Growth Polak, Paul – Out of Poverty: What Works When is often their plot of land. This is when norms, traditions and cultural aspects Traditional Approaches Fail gender becomes a key analytical lens. of the societies we grow up in – Stuchtey, Martin – Rethinking the water cycle: Although women are the primary influence who we are, how we interact How moving to a circular economy can preserve our most vital resource users of the land to cultivate crops, with each other and what roles we are men are those owning the title of the supposed or able to play in our land and therefore they decide if and societies. FURTHER SURFING for how much they want to sell it. In a I believe that only when we seriously http://lkyspp.nus.edu.sg/iwp/ – The Institute of context of poverty, owners – therefore listen to and integrate the perspectives Water Policy (IWP), a part of the Lee Kuan Yew School of Public Policy at the National men – are pressured by real estate of those we rarely hear from can we University of Singapore, is a research centre corporations to sell their land at a reconcile development progress and focused on water governance and policy cheap price, often bribed with gifts in the imperative to care for the http://markandfocus.com/category/water – Blog about the risks and challenges provided kind, such as alcohol. environment. by the world’s mega-trends A study by the World Health Beyond the question of gender http://water.jhu.edu – The JHU Water Institute: differences is the issue of gender solving the global water challenge through Organisation states that alcohol abuse innovation, education and collaboration is one of the main killers of young equality and access to power. Tackling www.allianceforwaterstewardship.org – men in India, and has severe gender inequalities is necessary to The Alliance for Water Stewardship operates a global water stewardship system, launched in repercussions on the social and family achieve sustainable development (not 2014 to promote and reward sustainable use of dynamics (e.g. domestic violence) and to mention to respect basic human water by users economic resources (e.g. reduced rights), and vice versa. www.brookings.edu/research/topics/tunisia – The Brookings Institution conducts wages, increased medical expenses, Only when we recognize differences independent research covering foreign policy, loss of assets). but challenge inequalities can we economics, development and governance There are countless other examples ensure that those who suffer from www.chinadialogue.net/topics/water – Chinadialogue is devoted to the publication of showing that attention to gender discriminatory laws or unfair high-quality, bilingual information, direct differences matters when working on economic practices will not further dialogue and the search for solutions to our disaster risk reduction and adaptation suffer from the adverse impacts of shared environmental challenges www.c-win.org – California Water Impact to climate change, and this is also true climate change. Only when we Network is a non-profit organization that for climate change mitigation. The confront gender imbalances can we advocates for equitable and environmentally European Institute for Gender create an enabling environment for sensitive use of California’s water www.recpnet.org – The Global Network for Equality reports that women and men those traditionally excluded from Resource Efficient and Cleaner Production living in Europe contribute differently power positions, to participate equally provides a comprehensive strategic framework in making decisions and creating to scale-up and mainstream resource efficiency to greenhouse gases. For instance, its and cleaner production activities 2012 study shows that more women policies that will affect their lives www.siwi.org – The Stockholm International use public transport but that men tend positively. Water Institute provides and promotes water- wise solutions for sustainable development to be more conscious about www.switchmed.eu – SwitchMed is an initiative purchasing energy-efficient cars. l VIRGINIE LE MASSON is a Research that supports and connects stakeholders to Women also more often declare Officer working for the Social Development scale-up social and eco-innovations in the Mediterranean themselves willing to choose low- and Climate and Environment programmes www.unwater.org – UN-Water is the United carbon practices and make changes in at the Overseas Development Institute, Nations inter-agency coordination their everyday lifestyles, like choosing London. She is also the gender focal point mechanism for all freshwater and sanitation- related matters a cleaner power supply. for the Climate and Development Attention to gender and gender Knowledge Network.

MakingIt 47 MakIndustryfor DevelopmentingIt A quarterly magazine to stimulate debate about global industrial development issues