Sustainable Development Goals

Home , Devi Sridhar, Global Day of Action

GOALS DEVELOPMENT SUSTAINABLE

our world Transforming Transforming

SUSTAINABLE DEVELOPMENT GOALS | TRANSFORMING OUR WORLD HERMES SDG ENGAGEMENT Aiming to generate outcomes that beneﬁ t people, the planet and investors, through investments aligned with the UN SDGs

We are committed to supporting the UN SDGs and engage with businesses to encourage their adoption. It is our belief that the enduring success of companies is intertwined with that of the economies, communities and environments in which they operate.

Visit www.hermes-investment.com

The value of investments and the income from them can fall as well as rise and you may not get back the original amount invested. For Professional Investors only. Issued and approved by Hermes Investment Management Limited which is authorised and regulated by the Financial Conduct Authority. Registered address: Sixth ﬂ oor, 150 Cheapside, London EC2V 6ET. Telephone calls will be recorded for training and monitoring purposes.

Hermes.indd0005957_SDG_Engagement_Fund_Press_276x210.indd 1 1 03/06/201910/04/2019 22:0113:58 CONTENTS 3

Contents

FOREWORDS 20 What to expect from the new champions Where action by national governments on SDG 8 The 2030 Agenda: our answer to the naysayers implementation is lacking, can others fill the void? By María Fernanda Espinosa, By Adriana Erthal Abdenur President, 73rd session, United Nations General Assembly 24 Human development and the SDGs 10 Cooperation can change everything UNDP’s Human Development Report turns 30 next year. By Achim Steiner, Administrator, We reflect on how it can continue to help global development United Nations Development Programme (UNDP) in a landscape dominated by the SDGs. By Pedro Conceição

27 Upwardly mobile INTRODUCTION With the right policy interventions, developing countries can stimulate educational and economic mobility. 12 Globalism on trial By Ambar Narayan and Roy van der Weide By Fred Carver, Head of Policy, United Nations Association – UK 30 Inclusive economies To be sustainable, economies must allow all people to benefit from development. By Dirk Willem te Velde UNIVERSAL GOALS 33 Multilateralism under threat 16 Countering populism The SDGs came out of and rely on multilateral enterprise. Transformation is the only response to populism. The SDGs The efforts of some to sabotage the multilateral institutions are the roadmap. By Jonathan Glennie pose a real threat. By Louis Charbonneau

SUSTAINABLE DEVELOPMENT GOALS 2019 4 CONTENTS

36 Resilient institutions Bribery and corruption divert money away from development. 84 Although the Global South pays the highest price, the Global North is not immune and is often a party to corruption elsewhere. By Patricia Moreira

39 The IMF, World Bank and SDGs The SDGs have required a thorough reassessment of the way the Bretton Woods Institutions operate. Are they still relevant, and what role should they play to advance the SDGs? By Pallavi Roy

42 Demographic dividends Policies based on an understanding of population dynamics will help countries achieve the SDGs. By Sang-Hyop Lee and Andrew Mason

SUSTAINABLE ECONOMY

44 From crisis to growth A decade on from the global financial crisis, most economies still show their scars. Has the global economy recovered, and how well equipped is it to attain the SDGs and inclusive growth? By Valerie Cerra

48 A Green New Deal If done right, the Green New Deal offers a blueprint for 55 action to combat climate change. By Edward B. Barbier 52 A new economy for all With levels of inequality rising across the world, we need a new approach for people and planet. By Katherine Trebeck

55 A new business case How can companies embed sustainability into their operations while also delivering ongoing returns for their investors? By Robert G. Eccles

60 Unequal under the law Too many countries enshrine different legal rights for men and women. Why is this, and how can we rid legal systems of this long-standing prejudice? By Phumzile Mlambo-Ngcuka

62 Fair tax for development Recent high-profile tax avoidance and evasion cases suggest an urgent need for international tax reform. By Martin Hearson

66 Filling the finance gap The evidence shows that public funding for the SDGs is well below what is needed. Private investment can help fill the gap but isn’t a substitute for public funds and isn’t compatible with all development needs. By Vanessa Fajans-Turner

SUSTAINABLE DEVELOPMENT GOALS 2019 CONTENTS 5

NATURAL RESOURCES

88 Aligning SDG and climate action Perhaps the biggest threat to the 2030 Agenda is climate change. The SDGs will be unattainable if climate change is not urgently addressed. By Liu Zhenmin

92 A positive way out The SDGs address the challenges brought about by today’s global economy. Moving from a linear to a circular model will contribute to achieving the Goals. By Ellen MacArthur

94 Making every drop count Increasing levels of water stress are pitting the demands of business against individuals and country against country. By Maria Helena Semedo

98 Feeding the world 52 How can we produce enough food for an ever-expanding population without causing irreversible environmental 69 Responsible investment means action and damage? By Florencia Montagnini and Kjell E. Berg accountability The initiative between Climate Action 100+ and Royal Dutch 102 Natural development Shell has demonstrated the potential power of investors. All How nature-based solutions can help deliver the SDGs. asset owners committed to responsible investing must exercise By Andrew Steer and Fiona McRaith shareholder power in support of the Paris Agreement and the SDGs. By Adam Matthews and Rory Sullivan POLITICS OF SUSTAINABILITY 74 Supporting a healthy population Sustainable development and healthy populations go hand in 106 Making the case for human rights hand. How can countries across the development spectrum Without a step change in action to protect human rights, we ensure their health systems deliver healthcare for all? will not achieve the SDGs. By Michelle Bachelet By Devi Sridhar and Lauren McGivern

78 Health before intellectual property Is current patent law incompatible with promoting wellbeing 60 for all? By Hu Yuan Qiong

81 Training the next generation How can we adapt apprenticeships for 21st-century labour markets? By Viktoria Kis

84 Revitalising trade In the face of barriers and protectionism, the multilateral trade rulebook needs to be revised to ensure that it can deliver its full development potential. By Mukhisa Kituyi

86 Moving people, moving minds The rise in anti-immigration sentiment in parts of the world highlights the policy challenge: to ensure migration generates clear benefits for countries both sending and receiving migrants. By Costanza Biavaschi

SUSTAINABLE DEVELOPMENT GOALS 2019 6 CONTENTS

110 The right to learn Access to quality education remains an elusive dream for THANK YOU TO OUR SUPPORTERS millions of children and young people across the Middle East and North Africa. How can we transform this dream into UNA-UK thanks the following organisations for their reality? By Henrietta Fore generous support for Sustainable Development Goals, without which its publication would not be possible: 112 Partnerships for resilience Humanitarian aid is the developed world’s laudable yet Article 25 109 unsustainable response to natural disasters. We need to transfer these skills and expertise to bring resilience to the Fiat Chrysler Automobiles 58-59, 96, 124 most at-risk countries. By Mark Lowcock Hermes Investment Management 2, 72-73 115 Fragile development Are the SDGs fit for purpose to enable sustainable International Seed Federation 101 development in fragile contexts? By Susan L. Woodward Islamic Corporation for the 32, 51 118 Migration to advance human development outcomes Development of the Private Sector The Global Compact for Migration, signed in Marrakech in December 2018, lays the ground for international migration Liechtenstein Bankers Association 64-65 governance. By Cécile Riallant Medicines for Malaria Venture (MMV) 19 120 Time to act We need to reset civic participation and drive grassroots Prince Sultan Bin Abdulaziz 23 leadership for the Sustainable Development Goals. International Prize for Water By Lysa John RBC Global Asset Management 7 122 About us The role of UNA-UK

118

SUSTAINABLE DEVELOPMENT GOALS 2019 HNW_NRG_A_Bleed_Mask

Helping clients thrive and communities prosper

As a purpose-led organisation we believe that how we work is just as important as what we do.

At RBC Global Asset Management, we help our clients meet their financial goals by delivering sustainable, long-term value creation through active stewardship and the full consideration of relevant environment, social and governance (ESG) factors.

Visit global.rbcgam.com or email us at [email protected]

To learn more about how we measure our impact see: https://www.rbc.com/community-social-impact/ Provided by RBC Global Asset Management (UK) Limited, part of RBC Global Asset Management. RBC Global Asset Management (UK) Limited is authorised and regulated by the Financial Conduct Authority. This is not a solicitation to buy or sell any security or other financial instrument or to participate in any investment strategy and should not be construed as tax or legal advice. ®/™ Trademark(s) of Royal Bank of Canada.

RBC.indd 1 04/06/2019 23:16 SUSTAINABLE DEVELOPMENT GOALS 2019 8 nationalist sentiment The GlobalGoalsare thekey to addressing thechallengeswe face, from climate changeto rising our answer to the naysayers 2030 Agenda: The FOREWORD

By María Fernanda Espinosa, The structural causes of these inequalities, equally. We have reaffirmed that we President, 73rd session, meanwhile, are yet to be addressed. I often cannot overcome the challenges we face United Nations General Assembly refer to the 2030 Agenda as something very – or leverage the opportunities we have – close to a ‘global Green New Deal’. The without harnessing the full potential of all am delighted to present the 2019 missing element is a vision for reshaping the world’s people. edition of Sustainable Development Goals: global governance. We cannot push back against those ITransforming our world. The overarching And we must also contend with the risks questioning the value of multilateralism theme for my presidency of the General posed by the climate and environmental without delivering on this commitment. Assembly has been ‘making the UN crisis, by narrow nationalism and extremism, From soaring inequality to human rights relevant for all’, and I commend the United and by the rapid transitions we are abuses, the factors fuelling xenophobia, Nations Association – UK for producing undergoing in demography and technology. extremism and unilateralist rhetoric are all this publication. It serves to communicate This is our operating context. So we must addressed by the 2030 Agenda. the work of the UN to a broad global ensure that we use every opportunity we The best way to demonstrate that audience, and to convey fresh thinking and have to turn the tide. This July’s High-Level multilateralism works is to generate, through perspectives to policymakers in New York Political Forum (HLPF) on Sustainable the SDGs, tangible benefits to people’s lives. and around the world. Development is an important milestone as It is our answer to the naysayers. It is the In 2015, world leaders made a promise: we prepare for key meetings this September: hope we can offer to the disillusioned, the to free the human race from the tyranny of ●● the HLPF under the auspices of the reassurance we must give to those who have poverty and want, and to heal and secure General Assembly (SDG Summit), lost faith in our capacity to deliver. our planet. They also pledged to leave no attended by heads of state and We must use the key meetings this year to one behind as we seek to build a safer, fairer government; review the evidence we have gathered and and more sustainable world. The 2030 ●● the Secretary-General’s Climate Action identify the most transformative next steps Agenda for Sustainable Development and Summit; to be taken by stakeholders from all sectors. its 17 Goals (SDGs) are our action plan for ●● the High-Level Meeting on Universal And we must draw up clear plans on how to making this promise a reality. Health Coverage; put them into practice. We are now approaching the end of the ●● the High-Level Dialogue on Financing first cycle of implementing the SDGs, and for Development; and Eleven years to deliver, six days to make the final decade for delivering them. We ●● the High-Level Midterm Review of the it count have made commendable progress on issues plan of action for small island developing We have just 11 years to keep the promises such as extreme poverty, child mortality, states. we made through the 2030 Agenda. We unemployment and access to electricity. In have just 11 years to avoid the worst our efforts to catalyse further action, we These meetings cannot be talking impacts of climate change. The six days must not lose sight of these gains. They shops. States must not go through the from 23 to 28 September 2019 must put us must be part of our narrative so that our motions. They are a crucial opportunity on the right track. stakeholders know: progress is possible. not just to make progress on the Goals, This is the moment to make strategic But deep challenges and disparities but also to push back against the challenges choices together. We cannot succeed continue to exist. A staggering half of the we face. unless we massively scale up partnerships. world’s population still lacks access to Not as an afterthought, but as an integral proper sanitation, healthcare and social Strengthening multilateralism: making part of our plans. We must move forward protections. It is still the case that if you are the UN relevant by delivering for all our long-standing discussions on how we a woman, an older person, a person with The adoption of the SDGs marked a high engage with those on whom we rely, on disabilities, a refugee or migrant, from a point for multilateralism. They were the those who are counting on us. Political rural, minority or indigenous community, or product of the largest and most inclusive leaders must inspire the ambition and from a small-island developing state, then consultation in UN history. Similarly, their multifaceted contributions of their societies: you are less likely to have benefited from achievement needs to involve all of society. youth, civil society, environmentalists, our efforts to date, and more likely to suffer The commitment to ‘leave no one behind’ indigenous peoples, the private sector, local discrimination, exclusion or abuse. means engaging stakeholders, as well as governments – all those who have a stake in reaching the most vulnerable. the 2030 Agenda. Children playing before school starts in a The future of humanity – and of our I urge heads of state and government to remote village in the Oriente rainforest, Ecuador. rules-based international system – rests accelerate their efforts to drive progress, Reducing child mortality is an aspect of the SDGs on this commitment. Through it, we and rally others. Every meeting this year where significant global progress has already been achieved. In Ecuador, the infant mortality rate was have acknowledged that the gains of the is an opportunity to make our vision for almost halved in the period 2000-2014 past seven decades have not been shared humanity a reality. Let’s use them.

SUSTAINABLE DEVELOPMENT GOALS 2019 10 FOREWORD

Cooperation can change everything A more integrated, holistic approach to sustainable development must be the focus for the UN in 2019

By Achim Steiner, Administrator, United As these examples demonstrate, 2018 was poorest and most vulnerable, and threaten Nations Development Programme (UNDP) another remarkable year for the UN. It was livelihoods. a year of reform and transition to allow the UNDP is the largest implementer of his year is a turning point for the UN System to provide even better results climate action in the UN System. We will world. It simply must be. We have to the communities we serve. For UNDP, continue to provide this long-standing Tjust over 10 years to set the world on it was a year that marked the emergence of expertise while working to double our a more peaceful, equitable and sustainable a modern, results-oriented, next-generation support for the integrated implementation path, with an international community organisation, which achieved its highest of the nationally determined contributions working together to tackle climate change. programme delivery in five years – even (NDCs) at the heart of meeting the Paris At this time of fluidity in the international while powering the repositioning of the UN Agreement. Our work in over 140 countries system, when isolationist sentiment is Development System. This involved several aims to reduce emissions and increase growing, it is more crucial than ever to elements, not least the emergence of a new resilience to the impact of climate change. work in an integrated way on development. generation of Country Teams, designed with The world’s leading climate scientists The reasons are simple. They are the same the main purpose of accelerating progress on from the UN’s Intergovernmental Panel reasons that we hold on to the ideals of the the SDGs. on Climate Change say that we only have United Nations and the sentiments conveyed Our concrete results were largely achieved until 2030 to stop the planet warming above in the UN Charter. The only way to navigate by listening closely to the needs of the 1.5°C. After that, it may be impossible through this pivotal decade is to successfully developing countries, their communities and to reverse the effects of climate change. work together. This spirit of cooperation our Member States. This feedback has also Recognising that time is running out, UN will be critical if we are to achieve all 17 guided UNDP’s Strategic Plan 2018–21. This Secretary-General António Guterres has Sustainable Development Goals (SDGs) sets out a vision for the continued evolution convened a crucial Climate Action Summit by 2030. of UNDP over the next four years, given in September. He has asked world leaders to The UN System plays a key role in driving the changing development landscape and bring concrete plans – not mere speeches. the essential sustainable development that the evolving needs of our partners to achieve allows so many to build a brighter future. the 2030 Agenda. UNDP’s new ‘integrator’ 2. Inequality The concrete results achieved by the mandate at the country-level will also help Inequalities – between and within countries UN every day clearly show the power of to streamline UN services and platforms to – are on the rise. Today, 42 individuals cooperation and engagement. But what does accelerate progress on the SDGs. UNDP own as much wealth as the poorest 3.7 this actually look like? itself is launching new ‘Accelerator Labs’ in billion people. High levels of inequality are The UN is striving to eradicate poverty 60 developing countries in 2019 to identify detrimental to economic growth, undermine in all its forms and dimensions. In 2018, and quickly scale up local solutions – in poverty reduction, increase political and 31 million people had better access to basic renewable energy, for instance – which can social tensions, and drive instability and services – from water to energy to finance further support the SDGs. conflict. – through support provided by UNDP, the For 2019, I have set out three priorities Much of UNDP’s work on poverty UN’s development arm. It is essential for the for UNDP. This guidance aims to make eradication and implementation of the UN to not merely be reactive but to build UNDP work even better, as part of a more SDGs focuses on reducing inequalities, be resilience to shocks and crises. Much of the integrated, holistic approach with both our they between men and women or between UN’s work centres on accelerating critical UN and other multilateral partners. people with disabilities and others. Bridging structural transformations for sustainable the inequality gap is enshrined in the 2030 development. Last year alone, 21 million 1. Climate change Agenda and its central pledge to ‘leave no people were registered to vote, 48 per cent We are facing more and more extreme one behind’. of them women; while four million people weather events, droughts, floods, rising sea UNDP is pushing forward new ways living in (or recovering from) crisis got a job levels, diminishing polar ice, ecosystem to consider how we measure inequality to or improved their livelihood through UNDP collapse and declining crop yields. These re-articulate human development for today’s engagement. will impact communities, particularly the world. We need new metrics that take a long-

SUSTAINABLE DEVELOPMENT GOALS 2019 FOREWORD 11

term view to go beyond GDP and beyond averages, to allow us to design better policies to tackle inequality.

3. Migration UNDP brings a central perspective and approach to the issue of migration: that of sustainable development. Our focus is on tackling the drivers and root causes that lead people to leave their home countries. These include poverty, inequality, climate change, conflict and poor governance. Such work is critical given global instability. There has been a 300 per cent rise in the number of major conflicts since 2010, while such conflicts caused a record 70 million people to be displaced from their homes in 2018. UNDP’s work on migration is also linked to change and inequality. By addressing the root causes and drivers of migration, we can help to ensure that people do not decide to leave, or are not forced to leave, their homes.

Results through collaboration The UN’s long-term engagement to support countries on their sustainable development pathways has generated deep-rooted trust in governments and in the local populations we serve. Our dedicated staff, with nuanced local expertise, work where many other actors do not want to tread. UNDP itself works in 170 countries, identifying both key risks and opportunities for the entire development community. It could not achieve such results without the critical cooperation of its multilateral partners. In this respect, UNDP will continue to actively listen and to seek direction from key partners to both inform and direct our work. Organisations like the United Nations

Association – UK also have a key role to play Saad © UN Women/Joe in informing the public, policymakers and beyond about the work of the UN. and how the SDGs can accelerate progress Women from a Moringa cooperative meet up on the Political commitment to cooperation and on the 2030 Agenda to address the biggest Tristao Islands in Guinea. The cooperatives, set up with grants from UN Women, provide training to women in engagement are critical to achieving the international challenges of our time. rural communities, teaching them how to farm Moringa SDGs. When we come together, the results There is no time left for indecision, nor trees and sell the leaves to international markets as a on the ground are there for all to see. In for being overwhelmed by obstacles. There is medicinal and dietary supplement this respect, this publication provides a clear only time for courage and to come together added-value with its new, innovative and as part of a stronger multilateral system. timely insights from leading experts in their We may only have a decade to change from the front, in a spirit of cooperation, fields. The contributors shed light on both the world. However, the people that are the to forge a more peaceful, fairer and more the results achieved through multilateralism United Nations can be relied upon to lead sustainable world.

SUSTAINABLE DEVELOPMENT GOALS 2019 12 INTRODUCTION

Globalism on trial Can the current global system deliver the Global Goals?

By Fred Carver, Head of Policy, The positivity of these pieces and the United Nations Association – UK possibility of this agenda itself poses questions. Firstly, given all these synergies, it eading through the submissions to would appear that the path to implementing this, perhaps the most exciting and the SDGs should be clear and enticing to Rhopeful edition we have yet produced policymakers. Why then does it feel that, of Sustainable Development Goals (SDGs), nearly a third of the way through the 15-year what stuck out was the multiple virtuous timescale of the agenda, progress has been feedback loops that are created as a result of intermittent and patchy? synergies between the Goals. Why do 1.5 million people die from The SDGs were designed to capture the vaccine-preventable diseases each year? Why interconnectivity of various factors that are our seas full of plastic? Why have nearly influence, strengthen or hamstring our three quarters of our insects died in the desire to live life in the ‘larger freedom’ course of the last human generation? Why promised by the UN Charter. When the is measurable inequality greater now than it Goals were adopted in 2015, critics said that has been at any previous point in our history? there were too many of them, and that their Why is the social status of one’s parents as scope was too broad. But now, as they bed influential today as it was 50 years ago in in, their value in describing the ecosystem of determining a person’s future? And why, in development has become apparent. the midst of this ‘second gilded age’, is one So Liu Zhenmin (page 88) tells us how person in ten malnourished? climate action (SDG 13) is vital to good Secondly, the SDGs envisage a brighter health, affordable energy, responsible future for humanity delivered by means of an consumption and life below water (SDGs interconnected global polity. This vision is 3, 7, 12 and 14). Devi Sridhar and Lauren clearly articulated in the inspirational words McGivern (page 74) tell us how good health of Lysa John (page 120) and María Fernanda in turn drives decent work (SDG 8). Espinosa (page 8). But it’s sometimes hard This interconnectivity means actions to square this hopeful, internationalist have effects on multiple parts of the agenda. outlook with the vision of the world we Florencia Montagnini and Kjell Berg (page receive through popular media: societies 98) tell us how preventing soil erosion turning inwards, international cooperation verge of delivering its greatest success? Or is the vision of success itself illusionary? Do the critics of our global system, who appear to Is there a risk that our global system might collapse, become more mainstream and influential by the day, have a point? rejected, just as it is on the verge of delivering its greatest These are existential questions for this success? Or is the vision of success itself illusionary? system and the SDGs represent perhaps the last chance of comprehensively answering them. On page 55, Robert is vital to achieving four goals. Costanza faltering, fear of ‘the other’ increasing, Eccles articulates how a more far-sighted Biavaschi (page 86) tells us how 11 goals and the rules and norms that make up our understanding of financial returns could relate to migration. Ambar Narayan and Roy global system being more honoured in the both realise the SDGs and provide returns van der Weide (page 27) tell us how four breach than the observance. for the private sector. goals cannot be achieved without seriously Is there a risk, then, that our global system But if our current institutions and considering intergenerational fairness. might collapse, rejected, just as it is on the processes cannot deliver the SDGs, this

SUSTAINABLE DEVELOPMENT GOALS 2019 INTRODUCTION 13 © Ahmad Al-Basha/AFP/Getty Images © Ahmad Al-Basha/AFP/Getty suggests the problems we face are more globally recognised and respected human A child looks out at buildings damaged in an air strike fundamental and systemic. Is globalism, rights (including, as they must, economic in city of Taiz, Yemen. The failure of the international community to end the war in Yemen demonstrates some or perhaps capitalism itself, incapable of rights) as argued by Michelle Bachelet of the failings of our global system, particularly when delivering meaningful change that truly does (page 106) and Hu Yuan Qiong (page 78)? it comes to abuse by the powerful of the voiceless leave no one behind? Or is the centrality of growth within our As Jonathan Glennie argues (page 16) economic system part of the problem? be to transition to a steady state, or even to there needs to be, at bare minimum, a Should we instead measure the efficacy embrace degrowth (although none of the transformation in how our system works: of our economy in terms of its ability to pieces in this publication goes that far). who it works for, and who it is answerable to. deliver wellbeing, as argued by Katherine Others have argued for a ‘doughnut A transformation, then, but to what? Trebeck (page 52) or human development, model’: the economy must provide enough Could an economy still based upon growth as argued by Pedro Conceição (page 24)? to meet the social needs of the world’s become sustainable and deliver the Goals Should the economy even grow? Valerie population (as identified by the SDGs) but if it embraced a Green New Deal, as Cerra (page 44) argues that it needs to, it must not overproduce to the point where Edward Barbier (page 48) argues? How but many have argued that the only way to it exceeds planetary boundaries or exhausts about if it existed within a framework of make our economy truly sustainable would any of our finite resources. Dame Ellen

SUSTAINABLE DEVELOPMENT GOALS 2019 14 INTRODUCTION

MacArthur’s (page 92) vision of a circular economy is valuable here. The SDG doughnut Whatever form this transformation takes, it will need to win over the critics of our current global system if it is to achieve the SDGs. Populism has had the effect it has had by LOGICAL CEIL ECO ING successfully marrying the real grievances of SD G 6 those for whom our global system has not G and d 1 D tive istr 3 S ra ib delivered with the anxieties of those whose ne ut e ive historical privilege is being eroded. This eg e R c is a coalition which can powerfully oppose SDG o 1 n o things, including the institutions charged 17 2 2 m 1 SDG SDG y with delivering the SDGs. But it is harder SDG G 16 D 3 for populists to promote an alternative SDG S agenda without revealing the deep fissures PRODUCTIVITY SDG 10 SHORTFALL SAFE OVERSHOOT

between those two groups – one cannot SDG S

4 D simultaneously provide redress to the 9 G

T SDG

SDG 1

h SDG losers of historical injustice and protect the 8 1 e 5

primacy of the winners. s 7 a S SDG But populism’s inability to provide better fe O N CIA IO answers than those of the SDGs should not a L FOUNDAT ty nd ni S j a afford us any comfort. Across the world, D us m 5 G t s hu 1 millions of people clearly feel that the global pace for G 1 SD system is not responding – or listening – to 4 their needs and aspirations. The absence of viable alternative agendas does not change that sentiment or solve the problems caused by the resultant alienation. Adapted from Kate Raworth’s ‘Doughnut of social and planetary boundaries’ (2017) www.kateraworth.com/doughnut The SDGs need to capture imaginations and inspire dreams. In part this will come from better communication: consistently global agenda for civil society, for industry reform to include the public and civil making the argument that the Goals exist and for the people of the world, it must be society. We are hoping to achieve a radical to create a better world for all – as we do their agenda. redistribution of influence in global affairs in this publication. The fact that this year’s On page 20, Adriana Abdenur tells us by means of listening to the voices less High-Level Political Forum will focus how civil society can be empowered without heard. We will start by taking a global to-do on ‘Empowering people and ensuring state actors shirking their responsibilities. list, written by the people and civil-society inclusiveness and equality’ – with a specific This is a vital first step. But as the UN Civil organisations of the world, to the UN’s 75th focus on SDGs 4 (quality education), 8 (decent Society Forum argued last year, this must be anniversary celebrations next year. work), 10 (reduced inequalities), 13 (climate just the start of a journey towards ‘people- But what we will not do is rewrite the action), 16 (peaceful and inclusive societies) centred multilateralism’ – a reimagining SDGs. The Global Goals already describe and 17 (global partnerships) – will help. of our global system as an interconnected the world we want. They already provide In part this will come from telling network of all the world’s individuals and the tramlines that any process of global stories and finding words that resound: groups. Such a network would answer transformation must follow if it is to have be it in Forest Whitaker’s advocacy, Greta neither to the petty self-interest of narrow any hope of influencing the breadth of Thunberg’s activism or the creativity of the nationalism nor to the grandiose self- stakeholders required for change. But a Extinction Rebellion’s staged ‘die-ins’, like interest of oligarchical transnationalism, but mobilisation of those inspired by the SDG the one illustrated on our front cover. would instead reflect all the world’s voices. vision of a better world could change the But above all, what people are That is why UNA-UK has launched politics of those stakeholders, and of the demanding is a stake, a say, in the the ‘Together First’ initiative. This seeks international institutions themselves. conversation. There is a limit to how to make our global institutions fit for the This internal revolution to capture the inspired people can be by other people’s mid-21st century and beyond, by widening agenda on behalf of the people provides our dreams. If we want the SDGs to truly be a the conversation about global governance best chance to achieve the SDGs.

SUSTAINABLE DEVELOPMENT GOALS 2019 THE SDGS 15

End poverty in all its End hunger, achieve forms everywhere food security and improved nutrition and promote sustainable agriculture p54 p100

Ensure healthy Ensure inclusive Achieve gender lives and promote and equitable quality equality and well-being for all education and empower all women at all ages promote lifelong and girls learning opportunities for all p76 p83 p61

Ensure availability Ensure access to Promote sustained, and sustainable affordable, reliable, inclusive and management of sustainable and sustainable economic water and sanitation modern energy growth, full and for all for all productive employment and decent work for all p97 p47 p57

Build resilient Reduce inequality Make cities and infrastructure, within and among human settlements promote inclusive countries inclusive, safe, and sustainable resilient and industrialisation and sustainable foster innovation p50 p108 p91

Ensure sustainable Take urgent action Conserve and consumption and to combat climate sustainably use the production patterns change and its oceans, seas and impacts marine resources for sustainable development p93 p90 p105

Protect, restore and Promote peaceful and Strengthen the means promote sustainable inclusive societies of implementation use of terrestrial for sustainable and revitalise the ecosystems, sustainably development, provide global partnership manage forests, combat access to justice for for sustainable desertification, all and build effective, development and halt and reverse accountable and land degradation and inclusive institutions halt biodiversity loss at all levels p103 p38 p41

SUSTAINABLE DEVELOPMENT GOALS 2019 © Emanuele Cremaschi/Getty Images Transformation istheonly response to populism. The SDGsare theroadmap Countering populism SUSTAINABLE DEVELOPMENT GOALS 2019 16 UNIVERSAL GOALS UNIVERSAL GOALS 17

Demonstrators take part in ‘No Salvini Day’ in Milan, Italy, protesting against what they view as inhumane government policies on immigration. The surge in populist leaders around the world threatens the SDGs

in some of the world’s largest countries. This is not to mention all the populist movements not actually in power but influencing the Also in this section political landscape. Populism is always harmful, leaving behind societies that take generations to heal. Normally, it is the already Non-state actors 20 marginalised, either socio-economically or ethnically, that are most damaged by Measuring human populism’s deluge of rhetoric and real-life political upheavals. And the line between development 24 rhetoric and actual violence, which tends to require demonising the intended victim Economic mobility 27 first, can be worryingly thin. On the other hand, it is not hard to see A fair economy 30 populism’s appeal. The future is always uncertain, but in today’s world a number of factors make it more precarious than anyone Threats to can remember. The financial crash in 2008 multilateralism 33 destroyed confidence in the political classes paid to manage the economy. Meanwhile, The scourge continued rapid technological advance makes it hard to know what is around the corner of corruption 36 for one of the ingredients of any successful society – decent jobs. Add mass migration to The Bretton the mix for the perfect storm. Woods Institutions And people often do have every right to be and the SDGs 39 angry or worried. Whether they have been excluded from the progress seen in the 20th century or benefited from it, they now see The role bleaker futures for their children. of demographics 42 Populist leaders promise rapid change for those that want it, or a return to some kind of glorious past for those that don’t, evoking images in the human psyche that bear little By Jonathan Glennie, independent writer and relation to reality. Sometimes they offer both. researcher on international cooperation Change is either too fast or not fast enough, depending on the flavour of populism taking he rise of populism in recent years, advantage of people’s thirst for opportunity on left and right, has raised concerns and wellbeing. Tabout a new era of divisiveness. This is But while populists are criticised for the main electoral strategy of populist parties, offering simple solutions, the same criticism defined not so much by common policies as could be levelled at those non-populists (we by a common political playbook: divide the could call them liberal globalisers, or small-c public and discredit opponents. conservatives) that have held power over According to some estimates, the number the last few decades. They have overseen, in of populists actually in power around the many countries, increasing inequality and world has quintupled since 1990, including threats to the natural world. Their failure

SUSTAINABLE DEVELOPMENT GOALS 2019 18 UNIVERSAL GOALS

to deal with the fundamentals of inequality core of the SDGs. It becomes a political their way, probably the easy bit. Now we and unsustainability is the basis on which position in an era when fake news competes need the vehicles, the fuel and the drivers. populism now thrives. with fact for the public’s attention. Science And that is where those of us engaged Neither group has the answers to today’s is with the SDGs, and that makes them at with the SDG effort need to step up our complex questions. So who does? least somewhat more likely to prevail. game. Because although transformation It is almost ironic that, in this most Crucially, they go way beyond principles. is implied by the SDGs, there are still too uncertain and divided of eras, the world One common source of despair is simply many parts of the international development also has in its hands, for the first time, a the gigantic size of the task ahead. And ecosystem that don’t quite get it. We say we comprehensive plan to deal with pretty indeed anyone who thinks they have all the want radical change, but don’t seem to quite much all the major challenges it faces. answers to this complex global situation grasp what that means. Sure, it’s only a piece of paper signed in is kidding themselves and probably many Some cling to a kind of comfort blanket of a building surrounded by flags, and it others. But we have quite a lot of them. seeing the SDGs as just an extension of the doesn’t change the real-world politics Millennium Development Goals: MDG+. raging outside. But there is, nevertheless, a Basic principles This agenda was good while it lasted but the roadmap to a more equal, sustainable future, This is the time for cool heads, for clear world has moved on fast. Anything that sets supported (at least formally) by all the principles and for remembering the basics. out to paper over the cracks again or stick countries in the world. While we keep working on what we don’t plasters on wounds – anything, in short, know, let’s implement what we do. Focus that resists a holistic and transformational The SDG roadmap on women’s rights. Invest in clean energy. approach – is going to lose out to populism. Agenda 2030, the document which presents Increase spending on public health and Small-c conservatism, rolling with the Sustainable Development Goals education, on public water and housing. inequality and unsustainability, is not an (SDGs) to the world, is neither populist nor conservative – it is inclusive and transformative. The SDGs should be fully integrated into national We are so used to the main aspects of the SDGs by now that we forget how powerful manifestos, not left in the hands of foreign ministries, they are as part of a real-world response to only to be discussed at UN forums. The SDGs only both populism and small-c conservatism, the precursor of populism. work globally if they are implemented nationally The SDGs do what both populists and small-c conservatives fail to do: ●● they are holistic, not bitty; Reduce irresponsible consumption. Act on option. Populism is a wrong turning. ●● they are inclusive, not divisive; threats to climates, oceans and forests. Transformation is the only way forward. ●● they are ambitious, not defeatist; These policy directions are now so well We have the roadmap in the SDGs, the ●● they are based on evidence and data, not known as to be almost glib. But perhaps perfect counter to populism. But most soundbites; we didn’t anticipate the threat they would politicians are still only coming to them ●● they are internationalist, not nationalist, be under, not in politics (we always knew half-heartedly. Why haven’t they embraced linking the struggle for equality and political will would be hard to mobilise) but them? The SDGs should be fully integrated dignity in one country to the struggles in in theory: actually having to win the battle into national manifestos, not left in the all countries; again on these basic policy facts. hands of foreign ministries, only to be ●● they comprehend natural resource The SDGs in 2019, then, play a role that discussed at UN forums. The SDGs only constraints and the importance of their authors perhaps did not anticipate. work globally if they are implemented conserving the natural world; Not only are they a vision for a better nationally, in North and South. Sometimes ●● they are grounded in the principles of world. They are now also a bulwark against it seems that the private sector is more at human rights, which one might argue is attempts to backslide not only on promises home with the SDGs than the political now a foundational aspect of our global made, but on scientific facts accepted, classes. This has to change. human culture, something to which and on proven fiscal and social policies Things are beginning to fall apart in we can all refer, however different and backed by hard evidence and accepted by many parts of the world, always related divided we appear. acclamation in September 2015. to equality: either the thirst for it, or the So having this roadmap matters. But a backlash against it. How countries respond The focus on evidence and data, which roadmap is only a small part of reaching a will define the 21st century. There is no perhaps in previous times would have destination and, annoyingly for all those point just rallying against populism. We seemed simply a parenthesis, is the solid who worked so hard to set the SDGs on have to rally for something better.

SUSTAINABLE DEVELOPMENT GOALS 2019 SDG 3.3 BY 2030, END EPIDEMICS OF AIDS, TB, MALARIA Medicines Help us for Malaria Venture build and partners have a healthy world developed and delivered for all Join new medicines for malaria the fight that have saved the lives to end of 1.9 million people malaria

Defeating Malaria Together www.mmv.org

MMV.inddMMV-Ad_UNA_UK_210x276_20190514.indd 1 1 04/06/201915/05/2019 22:1514:16 Where actionby nationalgovernments onSDGimplementation islacking,can othersfillthe void? champions new the from expect to What SUSTAINABLE DEVELOPMENT GOALS 2019 20 UNIVERSAL GOALS

By Adriana Erthal Abdenur, with nationalist federal governments, could The expectations are, in part, a result Coordinator, Peace and Security Division, compensate for the failings of Member of the visibility of successful cases. Igarapé Institute State commitments. The international Where national leadership is lacking community cast a wide net seeking out or unwilling, a broad array of non-state genda 2030 is in trouble. The ‘new champions’ for the 2030 Agenda. actors and subnational governments has rare political consensus that led The attention granted to these ‘non- stepped up. This has led to a wave of Ato the adoption of the Sustainable traditional’ actors was, understandably, a optimism that some of the world’s most Development Goals (SDGs) four years response to the mistakes committed during complex challenges can be met through ago has become fractured. In many the period of the Millennium Development a combination of grassroots ingenuity, countries, even when the state has the Goals (MDGs). The MDGs’ agenda corporate social responsibility and capacity to implement the Goals, political remained excessively state-centric and decentralised government. will has fallen behind the commitments largely failed to localise its achievements. Non-state actors have also become made in 2015. relevant actors in key UN processes related In other contexts, nationalist leaderships From abstract to reality to Agenda 2030. For example, in some openly attack multilateralism – including By underscoring the role of non-state countries, non-governmental organisations the United Nations – as irrelevant, or even actors, the 2030 Agenda recognises that (NGOs) have assumed a vital role in the worse as a threat to national sovereignty. states’ capacity to reach targets is limited. monitoring of SDG implementation, Across a wide spectrum of countries, It also acknowledges that civil society and including by submitting inputs into the protection systems are being weakened the private sector frequently play a role in voluntary national reviews. rather than reinforced, levels of wellbeing filling those gaps, and that they can bring These success stories have been are falling, and inequalities are rising. unique capabilities to the table. Often amplified by instances in which non-state As economist Diane Elson has noted, non-state actors are better able to translate actors and subnational governments seem these trends indicate that in addition to the abstract goals into concrete reality for to proactively ‘fill the shoes’ of the federal the challenge of leaving no one behind by people on the ground, whether through state. These stakeholders often possess or reaching the most vulnerable populations, Agenda 2030 faces the additional challenge of preventing governments from “pushing many even further behind”. Often non-state actors are better able to translate This dual challenge requires a broad the abstract goals into concrete reality for people cross-sectoral engagement. Indeed, although Member States were the on the ground, whether through innovative service protagonists during the SDG negotiations, delivery or more sustainable consumption the process raised expectations of engagement by non-state actors. In addition to the intergovernmental innovative service delivery or more can tap into evidence-based knowledge of sessions that shaped the goals were sustainable consumption. the local context and identify real needs global consultations, hearings, high-level Likewise, subnational governments and demands. panels and side events that underscored were largely left out of the MDG agenda, In many parts of the world, NGOs have the need to incorporate non-state meaning that the goals often remained greater capillary reach than the federal state actors. Likewise, the Addis Ababa abstract planning instruments rather into the targeted populations and can better Action Agenda acknowledged the role than translated into concrete reality at a identify the needs of the most vulnerable of the “diverse private sector” and of local level. One of the ‘new ideas’ behind groups. Think tanks, research centres and “incentivising changes in financing as well Agenda 2030 was precisely that by tapping universities are also vast repositories of as consumption and production patterns to into these previously overlooked pools of knowledge about what works and what support sustainable development”. knowledge, capacity and resources, the does not in areas as varied as social services, Alongside this attention to non-state international community could make SDG infrastructure and climate action. actors was a surging belief that subnational implementation both more effective and NGOs sometimes promote grassroots government, sometimes acting at odds more credible. models of sustainable development that are more cost-effective and inclusive than Driving SDG implementation their top-down, government-designed As many national leaders pull back from global public Since 2015, the pressure for these counterparts. They can also work goods, some surprising ‘new champions’ have emerged. Climate activist and Swedish teenager Greta Thunberg new champions to help drive SDG effectively through networks that cut meets Pope Francis at the Vatican implementation has only increased. across the silos of government, in ways that

SUSTAINABLE DEVELOPMENT GOALS 2019 22 UNIVERSAL GOALS

are closely aligned with the cross-cutting In June 2017, the New York Times This is particularly true because private- nature of the SDGs. In a number of editorial board gleefully proclaimed sector actors have overwhelming incentives countries, civil society has come together in its opinion pages that subnational to favour short-term gains over long-term through coalitions aimed at promoting governments in the US and elsewhere were strategies, which are at the heart of an effective SDG implementation. compensating for “Mr. Trump’s Climate effective strategy for SDG implementation. Stupidity” – a claim relevant not only to This tension is also present in public– Innovative funding the Paris Agreement but also to SDG 13, private partnerships, which are often held The private sector, too, can bring its own on climate action. up as combining the best of both worlds. added value to SDG implementation. Yet they can also replicate some of the Not only are companies and corporations Managing expectations tensions in the private-sector approach to themselves an important source of While there is reason for optimism that investments. funding, they also offer innovative funding these new champions can catalyse action More broadly, shifting central instruments, including via social impact around the SDGs and provide resources for responsibility for planning, coordination, investments. their implementation, the expectations are resources and implementation away from The private sector encompasses an sometimes overblown. the state to non-state actors makes those entire range of services and products, from financing tools to consumer goods. These must be taken into account in strategies for Money is not a panacea for poverty and exclusion. SDG implementation, and some companies have heeded the call to make their offerings Sometimes SDG implementation depends far more on more sustainable. policy transformation than on a surge in investments Innovative technologies that are useful in SDG implementation, from communications to transport, are often First, the assumption that civil society, processes more vulnerable, especially the result of private-sector initiatives. At the private sector and subnational where state budgets are being slashed the intersection of civil society and the government can solve the world’s at the expense of the most vulnerable private sector, philanthropic organisations increasingly complex problems is populations. In many parts of the world, have dispersed billions of dollars to address unrealistic. There are constraints to what including much of Latin America and the social issues of the agenda and are these actors can accomplish, especially in areas of Africa, the ongoing weakening of sometimes willing to make ‘big bets’ in contexts where state backing is inadequate social protection systems has left non-state tackling particularly tricky issues in health, or, even worse, oppositional. actors and subnational governments alike education and other areas. They, too, are Civil-society organisations frequently scrambling for basic resources. Against this necessary actors given the $2.5 trillion lack sufficient resources even for backdrop of social services backsliding, funding gap in achieving the SDGs. institutional survival, let alone for scaling- efforts by civil society and the private up sustainability efforts. Both civil society sector are ancillary at best. Localising the SDGs and the private sector can fall prey to the The SDG agenda is moving more Subnational governments have also silo effect, especially if they have a long slowly than it should, but it remains a become the object of unprecedented high track record of specialised action and a powerful global narrative and a much- expectations. Provinces and cities are much poor one in cross-sectoral coordination. needed framework. As more populist and better positioned to localise the SDGs Excessive reliance on the private sector nationalist leaderships emerge, Member than federal bodies. But assumptions also carries its own set of risks, some of States pull back from global public goods. are sometimes made that they can also them stemming from the conflicts between Within this scenario, the role of the compensate for failing global regimes. a profit-based logic and that of sustainable new champions in implementing the 2030 Perhaps the most salient example of the development. Agenda is vital, but expectations should resulting optimism is the role expected of While some corporations have pledged be managed. Their successes, where they such actors in compensating for political hefty commitments to Agenda 2030, any occur, should be celebrated and promoted, reversals in the Paris Agreement on climate talk of ‘unlocking’ trillions in private but these achievements should not be spun action, in particular President Donald financing overstates the impact of these into justifications for the minimal state. Trump’s announcement that the United resources. Money is not a panacea for Allowing this to happen would be worse States would withdraw from the accord. In poverty and exclusion. Sometimes SDG than failing to ‘leave no one behind’ – it the wake of this decision, city and provincial implementation depends far more on would exacerbate the trend, already too governments have been praised for picking policy transformation than on a surge in common, of pushing the most vulnerable up where states have slacked off. investments. even further behind.

SUSTAINABLE DEVELOPMENT GOALS 2019 PSIPW 9th Ad 276x210mm_Final.indd 1 2/11/2018 10:19:53 AM PSIPW.indd 1 08/06/2019 19:44 © Roslan Rahman/AFP/Getty Images SUSTAINABLE DEVELOPMENT GOALS 2019 24 UNIVERSAL GOALS UNIVERSAL GOALS 25

Human development and the SDGs UNDP’s Human Development Report turns 30 next year. This is a moment both for celebrating the report’s impact, and for reflecting on how it can continue to help global development in a landscape dominated by the SDGs

By Pedro Conceição, Director, How does human development relate to UN Development Programme’s the SDGs? Human Development Report There are many links between the human development approach and the 2030 eople,” began the first Agenda. But it is worth noting up front Human Development Report that the two are fundamentally different “P(HDR), “are the real wealth things. The Sustainable Development of nations”. That 1990 report marked a Goals (SDGs) are a globally agreed tool turning point in the global development for assessing development progress. debate. Human development, meanwhile, is a During the second half of the 20th philosophy – or lens – for considering century there were growing concerns about almost any development issue one can think the tyranny of gross domestic product of. In other words, the SDGs provide (GDP). Many decision-makers seemed a development destination. Human to believe that economic growth and development allows one to design the route wellbeing were synonymous. But those who to get there. understood what GDP actually measures Two characteristics of the approach disagreed. Their arguments were well make it particularly suitable for designing encapsulated in Bobby Kennedy’s now the policies that nations need to achieve famous speech in which he noted that GDP the SDGs. “measures everything in short, except that First, the SDGs are ‘integrated and which makes life worthwhile”. indivisible’. And so, though the goals Thirty years later global development are discrete, the policies for achieving stands at another milestone. The 2030 them need to recognise the interlinkages Agenda is an opportunity to end poverty, between the different areas. The human protect the planet and ensure lasting development approach stresses the peace and prosperity. Can human importance of integrated thinking and the development thinking inspire a new ‘joined up’ nature of development. For generation of analysis, measurement and instance, when trying to make it easier decision-making to revolutionise global for someone to find work, one also needs development once again? to think about that person’s health, other responsibilities (at home, for example), education, access to transport, freedom to Singapore ranked ninth in the 2018 Human take a job (particularly for many women), Development Index, one of only two Asian countries in and so on. the top 10 – Hong Kong being the other. It ranked higher than all G7 countries bar Germany, with Canada at 12, Second, while all nations have agreed USA 13, UK 14, Japan 19, France 24 and Italy 28 on the importance of the SDGs, it is for

SUSTAINABLE DEVELOPMENT GOALS 2019 26 UNIVERSAL GOALS

each nation to pursue the goals according SDGs relate directly to the HDI: poverty, if all the SDGs are achieved. Old concerns to their own priorities. And so any broad health, education and work, for example. will continue. New ones will emerge. And development approach will need to Others – such as peace and hunger – relate the HDR has an important role to play in be flexible if it is to be useful to many indirectly. And if the HDI is moving in the ensuring we keep one eye on the horizon, countries. Human development can be right direction, it is rather likely that those even if most attention is focused on the next thought of as broad as – or broader than – SDGs are progressing too. 11 years. the 2030 Agenda. It is an approach that can This is not to say that the HDI should For example, this year’s HDR will be be applied in different places, by different replace those targets and indicators. about inequality. An emerging theme people and in different ways to tackle It cannot. But the index can offer a suggests that although many countries different issues. rough indication of whether a nation is are making progress in closing key progressing against many of the SDGs. development gaps, new fissures are Measuring and communicating progress Finding other summary measures – to opening just as quickly. The SDGs comprise 17 goals, 169 targets sketch a fuller picture of progress towards In many countries today, for example, and 232 indicators. Some commentators see the 2030 Agenda – is undoubtedly a the gap between rich and poor children the quantity of targets as a weakness. Others challenge given the diversity of goals has closed when we look at whether they argue it is a necessary reflection of the and targets. But work we are planning at have access to primary education. But complexity of life. Whatever one thinks, the UNDP might help. differences between these children are number of indicators undoubtedly makes it difficult to readily summarise a nation’s overall progress against the 2030 Agenda. Global development will not, of course, grind to a Indeed, it is often argued that one reason for GDP’s dominance in political debate is halt in 2030 even if all the SDGs are achieved. Old that it provides a ‘one number’ measure of concerns will continue. New ones will emerge. progress that captures public attention. The Human Development Index (HDI) The Human Development Report has an important role provides an alternative single-number to play in ensuring we keep one eye on the horizon measure, capturing progress in three basic dimensions of human development: health, education and living standards. It It is fair to say that the HDI has not widening when we consider the quality of enables cross-country comparisons similar evolved as dramatically as the world’s that education, or whether they have access to – but broader than – those provided by development challenges have over the to other schooling, such as early childhood GDP. Mahbub Ul Haq, the father of the past 30 years. Some of the challenges the education. HDI, recognised the convening power of a planet is grappling with are new, such as These ‘new’ inequalities will have single number: “We need a measure of the understanding what the rise in artificial lifetime consequences, particularly given same level of vulgarity as GNP – just one intelligence might mean for the labour the rapid technological changes that are number – but a measure that is not as blind force a decade from now. And some already impacting labour markets. It is to social aspects of human lives as GNP is.” global challenges are more urgent than 30 important that we pay attention to them But the HDI has also attracted criticism. years ago: the frightening pace of climate now. It is also important that we get ahead This is primarily because – as with almost change being the most obvious example. of the curve to see what important gaps all composite indicators – it is impossible Indeed, the natural environment will emerge in the next decade, even if they to avoid rather arbitrary weighting when is a crucial component of the 2030 are not included in the SDGs. combining component indicators measured Agenda. But neither the HDI, nor our The 2030 Agenda and the SDGs – in different units: life expectancy (in years other composite indicators of human with their universal call to action to end of life), income (in purchasing power) or development, touch on environmental poverty, protect the planet and ensure that education (in years of expected and actual concerns. We intend next year to all people enjoy peace and prosperity – schooling). If this is problematic for the investigate how environmental – and other foreshadow a better world that the human HDI, built from just four indicators, then – considerations could be included within development approach is helping to build. imagine the uproar if one tried a similar a composite development index. But the story of global development approach with the SDGs’ 232 indicators. will not end in 2030. It is our job to Is there a middle ground? There might Looking to the future ensure that human development thinking be a case for using the HDI as one of a The development world is rightly focused will continue to shape the global very few measures to summarise progress on the SDGs. But global development will development landscape for the rest towards the 2030 Agenda. Many of the not, of course, grind to a halt in 2030 even of the 21st century.

SUSTAINABLE DEVELOPMENT GOALS 2019 UNIVERSAL GOALS 27 © Majdi Fathi/NurPhoto via Getty Images via Getty © Majdi Fathi/NurPhoto Upwardly mobile Economic mobility is still largely the preserve of high-income countries. With the right policy interventions, developing countries can stimulate educational and economic mobility

By Ambar Narayan, Lead Economist, Poverty between an individual’s position on the Reducing this inefficiency will raise the and Equity Global Practice, World Bank, income or education ladder with his or her stock of human capital and thereby stimulate and Roy van der Weide, Senior Economist, parents’ position. The stronger this link, the economic growth. Development Research Group, World Bank less mobile (and intergenerationally fair) a Since the waste of human capital tends to society is. be concentrated toward the bottom of the common aspiration for people The ability to move up the economic distribution, the growth brought about by everywhere is to live in a society that ladder, irrespective of the socio-economic mobility-promoting policy interventions Aoffers a fair chance of success to all, background of one’s parents, contributes tends to be of an inclusive nature. where one’s life prospects are not tied to the to reducing poverty and inequality, and The global study finds that for large parts socio-economic status of one’s parents. arguably helps boost economic growth of the world’s population, individual socio- To see how the world has fared by this by giving everyone a chance to deploy economic success is still too closely tied to yardstick of ‘intergenerational fairness’, our their talents. the success of one’s parents, and that there is recent World Bank study analyses economic When mobility is low, it means that mobility across generations for individuals individuals are not operating on a level born between the 1940s and the 1980s in playing field. This is not only unfair but Palestinian youths practise parkour in Gaza City. The 148 economies that comprise 96 per cent also leads to a waste of human capital, as poorest regions of the world have the least economic mobility and there is little prospect that this generation’s of the world’s population. Intergenerational talented individuals may not be given the economic status will be better than their parents’ relative mobility measures the relationship opportunity to reach their full potential. without fundamental changes to policy

SUSTAINABLE DEVELOPMENT GOALS 2019 28 UNIVERSAL GOALS

a clear divide between the high-income and Students wearing 1970s-style school uniforms developing world. There is no sign that this at the Naksan ‘art village’ in Seoul. Investing in education is the key to creating intergenerational gap is closing. In large parts of the world, mobility, as South Korea has demonstrated particularly the developing world, economic mobility (or equality of opportunity) is stagnating. The social status of one’s parents (including China and India) illustrate. Lower is as influential today as it was 50 years ago in relative mobility is associated with higher determining a person’s future. inequality, as the two tend to reinforce The poorest regions of the world – sub- each other. Breaking this vicious cycle Saharan Africa and South Asia – are also requires the state to play a proactive role in the least mobile. Average relative mobility promoting inclusion: reducing inequality of of these two regions and of Eastern Europe opportunities for individuals born into vastly and Central Asia has not improved since different circumstances. the 1950s generation, in contrast with Policy interventions to narrow opportunity the gradual improvements seen for other gaps need to start early in life by targeting developing regions and high-income maternal health and early childhood, since economies. Indeed, 13 of the 15 least mobile gaps that emerge then are difficult and costly countries are either in Africa or South Asia. to close over time. As children get older, the Some of the highest levels of mobility are education system must focus on closing gaps found in Western Europe, Canada, Australia in access and learning between the ‘haves’ and Japan. Overall, lack of mobility (or and ‘have-nots’ (as reported in the World high inequality of opportunity) tends to be concentrated in the poorer areas, which hampers the prospects for convergence with Public policy has a vital richer areas over time. role to play in providing a Investing in children level playing field, so that If the world does not alter the way it invests in its children, particularly those coming every child … can reach from less advantaged backgrounds, there is his or her full potential little reason to believe that this assessment will be different in 10 years’ time. This prospect makes the Sustainable Development Development Report 2018, Learning to Realize Goals (SDGs) an even bigger challenge: most Education’s Promise). Mobility in education notably the eradication of extreme poverty tends to be higher in countries that invest by 2030 (SDG 1), providing inclusive and more public resources in education relative equitable quality education (SDG 4), and to the size of their economy and where this with lower relative mobility. Redistributive reducing inequality within and between spending is more effective and targeted at transfers and tax credits to poor families countries (SDG 10). Public policy therefore disadvantaged children. can help enhance their human capital has a vital role to play in providing a level The fiscal system has a key role in investments. playing field, so that every child regardless promoting mobility by reducing the gaps Economic mobility also depends on the of parental background can reach his or her in starting points for individuals (direct functioning of markets that determine full potential. redistribution) and mobilising resources job creation and earnings. If economic Which policies can improve to finance ‘equalising’ public investments. opportunities do not keep pace with intergenerational fairness in developing Doing so without imposing too high a cost the expectations of citizens with rising economies? Importantly, policies that on economic efficiency requires increasing education levels, societies may come under promote economic growth are good for progressivity and broadening the tax base growing stress. mobility, since growth increases the size through less distortionary means – such as Weak labour markets are important of the economic pie and generates greater property, wealth and inheritance taxes – and reasons why income mobility is lower in resources for public investments. strengthening tax compliance. many middle-income economies – including But higher growth may not necessarily Lower tax revenue and a smaller share several in Latin America and the Middle East lead to higher relative mobility, as the of direct taxes in total revenue (or a less – than would be expected given their levels experiences of several emerging economies progressive tax structure) are associated of educational mobility. Improving labour

SUSTAINABLE DEVELOPMENT GOALS 2019 first’ to high-income status before investing first’ tohigh-income statusbeforeinvesting mobile society, orthatthey must‘grow countries cannotaspiretobecome amore intergenerational mobilityasthey getricher. a greaterchancetoproactivelyincrease in less-developedcountries,they have resources availablethangovernments more-developed countrieshavemore To theextentthatgovernmentsin Creating afairer society women andyouthtolabourmarkets. ease theaccessoflagginggroupsincluding protect workersagainstdiscrimination,and creation andcompetitionamongemployers, markets wouldrequirepoliciestoenhancejob But this does not mean that developing But thisdoesnotmeanthatdeveloping investments in human capital development. investments inhuman capitaldevelopment. reached high-incomestatus,because ofrising Asia –startedimprovinglongbefore they developing countries–mostnotably inEast this view:educationalmobilityin some opportunities. Historicalexperiences support mobility byinvestingmoretoequalise of developmentcanraiseintergenerational capita income). level ofdevelopment(asmeasuredbyper in educationirrespectiveofthecountry’s strongly positiveeffectonrelativemobility share ofgrossdomesticproduct)hasa relative tothesizeofeconomy(asa data, higherpublicspendingoneducation in policiestoraisemobility. Intheglobal This suggests that countries at any stage This suggeststhatcountriesatanystage countries. reduce theirincomegapswithhigh-income reduction indevelopingcountries and economic growthandaccelerate poverty mobility asasocietycanthushelp stimulate inherited privilege. rewards morecloselytoabilityratherthan efficiency bymatchingresourcesand human capitalstockandimproveeconomic productivity ofaneconomybyexpandingits progress aresharedmoreequitably. time wherethegainsfromeconomic inequalities tocreateafairersocietyover countries canhelpreduceentrenched Mobility-enhancing policies in developing Mobility-enhancing policiesindeveloping Achieving higher intergenerational Achieving higherintergenerational Such policiescanalsoincreasethe SUSTAINABLE DEVELOPMENT GOALS 2019 UNIVERSAL GOALS 29

© Ed Jones/AFP/Getty Images © Zhou Haijun/VCG via Getty Images from development To besustainable, economies must allow allpeople,notjustaprivilegedfew, to benefit economies Inclusive SUSTAINABLE DEVELOPMENT GOALS 2019 30 UNIVERSAL GOALS

UNIVERSAL GOALS 31

Fish farming in Huai’an, China. Productivity latecomers to industrialisation. Social and improvements in food production were one of the physical infrastructure are also crucial in the factors that contributed to China’s economic early stages of industrialisation, as is the role transformation, which in turn helped more than 850 million lift themselves out of poverty of the state. However, it is essential that states must be able to combine economic growth with human development and social mixing of social and economic measures is transformation in an interactive way. crucial in sustaining progress and achieving Poverty eradication and employment the Sustainable Development Goals creation are the objectives and means in (SDGs). development, in the way Amartya Sen describes development as freedoms in Economic development for social progress economic, social and political rights. There is no doubt about the importance of economic progress for poverty reduction. Not all growth is equal The rapid reduction, indeed halving, in The pattern of growth matters a lot. global poverty over the past few decades Economic transformation is necessary has been due to economic growth and to enhance the quality of growth, create transformation, particularly in China. jobs and reduce poverty. As continuous, China’s achievement can be attributed to and sometimes remarkably fast, economic improved agricultural productivity and growth has become more usual in much of the creation of special economic zones the developing world over recent decades, that promote manufactured exports and attention has shifted to the pattern, quality create jobs. Consequentially, real wages and resilience of that growth. in manufacturing are currently growing Issues of concern include the sectoral at more than 10 per cent a year, which is and social distributions associated with providing opportunities for such activities the aggregate increases in gross domestic elsewhere. product, the low-growth elasticity of A clear example of economic progress extreme poverty in many countries (ie coinciding with social progress is extreme poverty does not fall by as much as Bangladesh. The country has now become one might expect as growth rises) and the the second-largest garment exporter in the weak capacity of the most dynamic sectors world, despite the sector there only starting to generate sustained increases in productive in the late 1980s. The last three decades employment. have also coincided with rapid poverty Much of the growth since the late reduction in Bangladesh. The garment 1990s, especially in sub-Saharan Africa, sector offers one direct route out of poverty has been the result of high commodity for the rural poor who have migrated to prices generating higher incomes within urban areas. This has required investments an economic structure that retains many in rural roads, attracting and spreading the features established several decades ago. appropriate skills, and facilitation of credit. Other sources of recent growth include The sector has created some three million buoyant urbanisation and the expansion jobs for women. Clearly the health, skills of a service economy serving new upper By Dirk Willem te Velde, Principal Research and human development of workers are and middle classes, without any prior Fellow, Overseas Development Institute crucial in the success of garment firms. transformation of staple agriculture or the emergence of a sizeable manufacturing conomic development lies at the heart Social and economic progress sector. of progress on the global development Taking a long view of the progress of This pattern of growth is highly skewed Egoals. But some paths are more developing countries over the last two and non-inclusive. Poor countries have been inclusive than others, and economic centuries, Deepak Nayyar points to the getting economic growth but not economic development is often rooted in social symbiotic links between economic and transformation (as seen in the East Asian progress. In responding to today’s major social progress. The spread of education tiger economies), or growth with depth. challenges, the sequencing, timing and has provided a basis for development in Moving to a different pattern of growth,

SUSTAINABLE DEVELOPMENT GOALS 2019 32 UNIVERSAL GOALS

which combines quality economic progress, ICD: OUR ROLE IN FINANCING SMALL AND MEDIUM job creation and social progress, is essential. ENTERPRISES (SMEs) TO ADVANCE PROGRESS AND PROSPERITY Creating socio-economic links Responding to today’s major challenges such as economic and climate crises or Invest Engage Impact digital transformations also requires the right prioritisation of economic and social challenges. For example, safeguarding the welfare of the poorest during global economic and financial crises is important. Enhancing consumption opportunities and addressing credit constraints of the poorest during economic crises can often be effective ince its inception in 1999, ICD’s SDG 1 (poverty), SDG 2 (agriculture), SDG demand-side interventions. Indonesia’s committed investment exceeded 3 (health), SDG 4 (education) and SDG 5 social protection scheme is often mentioned $3.1 billion to address SMEs’ funding (gender equality). as a useful example that could protect the S One of the most successful private- requirements through local and regional poorest during crises. sector development initiatives from ICD financial intermediaries or the ‘channels’ Moreover, it is often the poorest and can be seen in the recent scaling-up of the approach. women who suffer most from environmental Business Resilience Assistance for Value- Due to the record size of operations, degradation such as water scarcity, so adding Enterprises (BRAVE) programme ICD found SMEs quite agile and dynamic in Yemen. overcoming climate and natural challenges in adapting to unstable environments and BRAVE started its operations in January can also be done in a way that supports the tough situations. Therefore, SMEs in fragile 2017, and aims to enhance the resilience poorest. On the flip side, poverty and lack contexts remain beneficiaries of ICD’s of the SMEs in vital sectors against of productivity and innovation can lead to support, which brings not only economic the impacts of the ongoing conflict, in lack of investment in green technology and development, but also social cohesion, less collaboration with development partners practice. The right type of transformation inequality and higher resilience to their including the Islamic Development Bank communities. that provides quality jobs in smart, urban, (IsDB) and the Small and Micro Enterprise As of 2018, 29 out 54 ICD Member connected centres (as opposed to urban Promotion Service (SMEPS, a subsidiary Countries (MCs) are classified as fragile sprawl) would tackle poverty and climate of the Social Fund for Development in (54%). The Organisation for Economic Yemen) along with unique international challenges at the same time. Co-operation and Development (OECD) donor partnerships. Finally, today’s digital transformation defines fragility as the state’s exposure to The preliminary impacts showed that will only serve society if the process is risk and its ability to cope or mitigate those the programme helped 266 enterprises transparent and inclusive. A risk is that risks across economic, environmental, stay in business, creating 800 direct the ‘platform economy’ could concentrate political, societal and security dimensions. jobs and improving access to healthcare technologies and data in the hands of The fragility context is important for ICD services to 600,000 people. The for several reasons. First, it has significant the few, allowing them to dominate an programme’s second phase was launched impact on poverty and economic growth, entire economy. This risks hollowing in December 2018 with a $9 million grant affecting the most vulnerable population out the labour market, favouring a few from the Yemen Transition Fund and a segments. Second, it acts as a roadblock further $32.24 million from the Women skilled workers while also needing lots for MCs to achieve the SDGs. More than Entrepreneurs Finance Initiative. of low-quality and low-pay work. Digital 80% of the world’s poorest will be living in transformation can be a success for fragile contexts by 2030. everyone, but it requires that the workforce The SDGs were first integrated into the be equipped with the right skills and that ICD approach in 2017, and the corporation the benefits are spread evenly. has pledged to concentrate its investments into a number of specific targets: including History shows us that to tackle today’s SDG 7 (energy), SDG 8 (jobs and financial challenges and achieve the SDGs, we need inclusion) and SDG 9 (industry and to consider the combination of social and infrastructure), while engaging with economic progress. It is not possible to SDG 13 (climate action) and SDG 17 achieve one in a sustained way without the www.icd-ps.org (partnerships) in order to impact on other, although in the short term one can lead the other.

SUSTAINABLE DEVELOPMENT GOALS 2019 UNIVERSAL GOALS 33 © UNICEF/UN061403/Dejongh Multilateralism under threat The SDGs came out of and rely on multilateral enterprise. The efforts of more powerful nations to flex their muscles and sabotage the multilateral institutions pose a real threat to the SDGs

By Louis Charbonneau, United Nations threat as never before. One of the clearest compromise their mandates in the name of Director, Human Rights Watch dangers is the unpredictable administration protecting them. of US President Donald Trump, but that he network of multilateral institutions is not the only threat. Other countries that oversees everything from states’ are trying to weaken key international Mothers waiting with their newborn babies at a progress toward the Sustainable organisations and make them docile. There maternity health centre in the village of Nassian, T Côte d’Ivoire. The US administration has cancelled its Development Goals (SDGs) to the daily is also an internal risk: above all, that leaders contribution to the UNFPA, which provides vital health distribution of humanitarian aid is under of these multilateral organisations will services for mothers and children around the world

SUSTAINABLE DEVELOPMENT GOALS 2019 34 UNIVERSAL GOALS

The risk Trump posed to the United the backdrop of her request to open an Limiting the court to situations in which Nations system was clear from the moment investigation in Afghanistan that might touch cooperation by states is guaranteed would he set foot in the White House on 20 on US conduct. all but neuter its mandate. The perception January 2017. Within days, media reports But the Trump administration does not that the judges took this approach in the emerged about a draft executive order calling have a monopoly when it comes to attacking face of US pressure is damaging to the for crippling cuts to US funding for UN international organisations. Russia has worked ICC’s credibility as an independent judicial agencies and programmes. The proposed hard to discredit the Organisation for the institution. cuts were so severe that they would have Prohibition of Chemical Weapons (OPCW), Hobbling the ICC would have severe made it difficult for the UN to continue the guardian of the Chemical Weapons consequences. SDG 16 (strong institutions) numerous peacekeeping, humanitarian, Convention based in The Hague, due to its includes the crucial objective of “access to vaccination and other essential programmes investigations into chemical weapons in Syria justice for all”. ICC judges – and the court’s around the world that preserve countless and the poisoning of a former intelligence states parties – need to see the importance lives on a daily basis. agent and his daughter in Salisbury, UK. of overcoming problems with cooperation That executive order never made it out the As the US withdraws from more UN as part and parcel of delivering on the door, but the rejection of multilateralism has agencies and haphazardly decreases its court’s mandate, not a reason to refrain from continued in other ways. Trump’s aggressive financial contributions, China is working acting. There is real work to be done to speech at the 2018 UN General Assembly hard to fill the vacuum by boosting its strengthen the ICC. But moving away from praised sovereignty and independence over leverage and influence across the UN. It those ambitions risks sending a message to “global governance”. His administration is already the UN’s number two financial the many victims of serious crimes that the has worked hard to gut funding to the UN and other international organisations in a way that’s scarcely precedented for the US, the UN’s biggest financial contributor. It is no surprise that in a world of sovereign states, Congress has worked to undermine the powerful countries routinely try to strong-arm administration’s more radical ideas, but Trump has not given up. institutions to make them more compliant As under George W. Bush, the Trump administration has used a clause in a congressional funding bill to block the contributor. China’s assertive approach to international community is not willing to do already appropriated US contribution to the UN brings risks. It has tried to sabotage its part to make access to justice more than the UN Population Fund (UNFPA), which the functioning of the UN’s human rights an empty promise. provides vital maternal and child health mechanisms in Geneva and New York Fear of provoking Trump and risking services around the globe. But some of the and has used its influence within the UN precious US financing has in some Trump administration’s moves were beyond Department of Economic and Social Affairs ways paralysed UN Secretary-General what one would expect from conservative to curtail access to the UN premises for António Guterres, who has made avoiding Republicans. When Trump ended all US selected non-governmental organisations. Its confrontations his top priority. Guterres has financial support to the UN Relief and prime target is human rights groups like the chosen the path of least resistance, avoiding Works Agency for Palestine Refugees in the World Uyghur Congress, which highlights public criticism of Member States, whether Near East (UNRWA), it was a move that the persecution Uyghurs face at the hands of it is Russia, China, the US, Saudi Arabia or even raised eyebrows in Israel. the Chinese government. Syria. This approach is a deliberate strategy. Trump’s hawkish national security adviser, Some of the external threats were One European ambassador told me Guterres John Bolton, is a hardline unilateralist who predictable. It is no surprise that in a world of considers the fact that he has remained on never hid his contempt for the UN and sovereign states, powerful countries routinely cordial terms with the Trump administration other international organisations. He was try to strong-arm institutions to make them his single biggest success after two and a half the architect of a campaign against the more compliant. But there is a risk of real years in office. International Criminal Court (ICC) under damage that will not be easy to undo. Placating Trump’s White House means George W. Bush that ultimately petered out. At the ICC, a panel of judges rejected avoiding explicit criticism even of its most The Trump administration mounted a fresh Bensouda’s request to open a formal egregious abuses. Even when confronted attack, threatening retaliatory steps should investigation in Afghanistan. They found with the situation of thousands of migrant the ICC pursue investigations of US or allied that moving ahead would have limited children being separated from their parents citizens. The administration made good on prospects for success – most likely a nod in at the border as many of them sought to one of its threats by revoking ICC Chief part to the Trump administration’s increasing claim asylum, Guterres’ condemnation of the Prosecutor Fatou Bensouda’s US visa, against attacks on the ICC. practice pointedly didn’t mention the Trump

SUSTAINABLE DEVELOPMENT GOALS 2019 UNIVERSAL GOALS 35 © China Daily CDIC/Reuters Daily © China

administration. That undermines the UN’s rights abuses underlie many of the world’s Celebrations in Urumqi, commemorating the 60th credibility and sends a message to minorities conflicts and crises. Those conflicts and anniversary of the founding of the Xinjiang Uyghur Autonomous Region. China has used its influence within persecuted by their own governments that crises are also a major impediment to the UN system to stifle protests about the mistreatment they are on their own. China’s Uyghurs say sustainable development, and ending of the Uyghurs they feel abandoned by Secretary-General impunity for the abuses that fuel them is Guterres. While he has repeatedly praised essential. Justice is not a can to be kicked Beijing’s controversial ‘Belt and Road down a distant road. protect their groups’ mandates. It may be Initiative’, he has refused to publicly condemn How can the world’s multilateral costly and provoke retaliation, but it is the their policy of rounding up a million Turkic institutions survive the current threats? best way to ensure that the organisations Muslims in Xinjiang and confining them to First, countries that believe in the UN and built to stop atrocities in the wake of two ‘political re-education’ camps. other international organisations should find world wars can survive in the 21st century If UN Member States are to succeed ways to support their key programmes that as they survived through the Cold War and in meeting the SDGs, justice and human protect rights and justice. When the US cut genocide in Europe and Africa. rights should be at the core of all of them, off funding to the UNFPA and UNRWA, Institutions like the UN and the ICC may not just a single one about the rule of law. European and other governments stepped not be perfect, but they are worth preserving Accountability and the rule of law are in to provide vital financial support to help and improving. If the international essential for durable political and economic overcome funding shortfalls. Some countries community is serious about laying the stability, but also to meet the daunting have spoken out publicly in support of the groundwork for improving the lives of people challenges of ending poverty, tackling ICC, but more voices are needed. around the world and achieving the SDGs, climate change and addressing inequality Second, leaders of international these institutions need to be healthy, effective within and between states. Serious human organisations should stand up to bullies and and independent.

SUSTAINABLE DEVELOPMENT GOALS 2019 36 UNIVERSAL GOALS

Resilient institutions Bribery and corruption divert money away from development. Although the Global South pays the highest price, the Global North is not immune and is often a party to corruption elsewhere

By Patricia Moreira, Managing Director, is often thought of as a ‘third-world destabilising phenomena like the rise of International Secretariat, Transparency problem’, institutions in the Global North anti-establishment parties and the spread of International play an important role in the corruption fake news. cycle, and are therefore an essential part of As the receiving end of much of the he Sustainable Development Goals the solutions. world’s illicit financial flows, as well as (SDGs) are ambitious: to end poverty, the origins of many multinational bribery Tprotect the planet and ensure that all Strong democratic institutions scandals, the Global North ultimately has people enjoy peace and prosperity. Taken Transparency International’s research an enormous effect on the extent to which together, they are a framework to address makes clear the link between the successful high-level corruption impacts the lives of the most pressing challenges of our time. control of public-sector corruption and the poorest and most vulnerable members Corruption represents a major obstacle to strong democratic institutions, such as an of our global community. achieving these goals. independent judiciary and a functioning The developed world may experience In July this year, Goal 16 of the SDGs system of checks and balances within fewer major public-sector corruption (peace, justice and strong institutions) will political systems. crises, but its institutions have to be able be among six Goals reviewed in depth at the If we compare the results of our 2018 to respond and adapt when they do occur. High-Level Political Forum on Sustainable Corruption Perceptions Index (CPI) with Greater resilience in key areas would have a Development at the United Nations measures of the quality of democracy, we see significant impact on achieving SDG 16. General Assembly. SDG 16 is a vital target that countries with healthier democracies for the global anti-corruption movement, as have public sectors that are less corrupt. 1. Financial markets it includes commitments to fight corruption, Looking at the Economist Intelligence The recent money-laundering crisis in increase transparency, tackle illicit financial Unit’s Democracy Index, for example, we Nordic and Baltic states has embroiled flows and improve access to information. see that not a single ‘full democracy’ scores banks in countries with some of the The failure to achieve these commitments below the halfway point in the CPI. least corrupt public sectors in the world, will undermine not just SDG 16, but according to the CPI. In recent years, all of the Goals. It will adversely affect Preventing a vicious cycle whistle-blowers and leaks of banking data human development and the wellbeing of Robust and effective integrity systems analysed by investigative journalists have individuals and communities around the in public-sector institutions are essential revealed multiple schemes to secretly funnel world. In this sense, the SDGs are not just for ensuring that the actions of corrupt corrupt money into Europe. These illicit a challenge: they represent an enormous individuals do not undermine society’s trust funds went towards bribing politicians to opportunity. in the entire system of governance. downplay human rights abuses, or were The United Nations estimates that In countries where corruption has laundered for buying luxury property or corruption, bribery, tax evasion and related deeply eroded public trust, we have seen access to elite schools. illicit financial flows deprive developing populist leaders take advantage of outrage Up to €200 billion of suspicious countries of around $1.26 trillion per to drive forward an agenda that threatens transactions passed through the Estonian year. This has recently been reinforced by fundamental rights and freedoms. This, in branch of Danske Bank, Denmark’s biggest research from the International Monetary turn, can lead to an undermining of the very lender. Deutsche Bank, Swedbank and Fund showing that corruption reduces democratic institutions that are the best Nordbank have also been caught up in global tax revenues by $1 trillion annually. controls available against corruption. scandals. Money laundered through these Reducing corruption is an important Even in established democracies, mechanisms often originates in tax fraud component of the sustainable development corruption can undermine citizens’ trust and embezzlement, which deprives the agenda, and one that all state parties have an and provoke reactions like abstention country of origin of vital revenue for state obligation to address. Although corruption from elections, or contribute to other services like education, healthcare and

SUSTAINABLE DEVELOPMENT GOALS 2019 UNIVERSAL GOALS 37 © Darrin Zammit Lupi/Reuters Zammit Lupi/Reuters © Darrin

infrastructure. This is money that could company ownership. The list of politically Protestors call for Malta’s police commissioner to fund much of the SDGs. connected individuals revealed to own resign due to his failure to find the killers of the journalist Daphne Caruana Galizia. She was murdered after For countries in the Global North, luxury property in Dubai seems to grow accusing Pilatus Bank of facilitating corrupt political achieving SDG 16 – and particularly target longer on a monthly basis. activities and money laundering 16.4 to “significantly reduce illicit financial Opacity in company ownership and arms flows, strengthen recovery and compounds the problem by allowing the return of stolen assets, and combat all forms corrupt to remain anonymous in bank Success in these areas requires not only of organised crime” – means closing the transactions or property purchases. A regulation but resources. Authorities tasked regulatory loopholes that allow the corrupt recent study by our coalition partners with supervising both the financial sector to hide and launder their ill-gotten gains. in the United States found that it takes and real-estate markets have to be able to Authorities need to adapt quickly to prevent less personal identification to establish a function effectively and keep pace with more of these so-called ‘laundromats’ for company there than it does to acquire a criminals and the corrupt, or they will lurch dirty money from operating. To achieve membership card at a public library. from crisis to crisis. The more authorities this in Europe, we urgently need to see To tackle this problem, governments are under-resourced, the more the victims of anti-money laundering supervision at the around the world must ensure they corruption – ordinary people whose public EU level. fully implement their commitments on services are undermined – will suffer. beneficial ownership transparency: in other 2. Real estate and company ownership words, revealing who really benefits from 3. Foreign bribery Real estate in cities from London to a company. G20 countries in particular Resources for fighting corruption are Toronto to Dubai has also been shown to should be leading the field in this area especially important for combating bribery be highly susceptible to money laundering. by making their high-level principles on by multinational corporations. One of the In the last decade, almost CAD10 billion beneficial ownership transparency a reality. most shocking examples exposed in recent worth of property in the Greater Toronto Unfortunately, Transparency International’s years is the massive foreign bribery scheme Area was bought by companies with cash, latest assessment of their progress found carried out by the Brazilian construction much of it bypassing statutory anti-money that most were falling well short of their conglomerate Odebrecht. This involved laundering checks on sources of funds and targets. about $788 million in bribes to government

SUSTAINABLE DEVELOPMENT GOALS 2019 38 UNIVERSAL GOALS

officials and political parties in at least 12 countries. By distorting the playing field Promote peaceful and inclusive and reducing the quality of service delivery, societies for sustainable international bribery has an enormous impact on our ability to achieve all the development, provide access to other SDG targets, such as those aimed justice for all and build effective, at improving access to education and accountable and inclusive healthcare, eradicating poverty, achieving institutions at all levels gender equality, improving climate governance and building sustainable cities. Yet our research shows that enforcement Bribery incidence (% of firms experiencing at least one bribe payment request), 2016 against foreign bribery is lacking among most signatories to the Organisation for Economic Co-operation and Development (OECD) Anti-Bribery Convention and four major exporters in Asia. Together, these countries account for more than half of the world’s exports, meaning that the majority of world trade is susceptible to insufficient anti- bribery oversight. OECD countries must ensure that their law enforcement agencies are equipped to investigate and prosecute companies when they pay bribes abroad. They also need to be better at cooperating No data 0% 10% 20% 30% 40% 50% >60% and sharing information with authorities in

Source: World Bank other countries.

Target 16.5: Substantially reduce bribery and corruption in all their forms Missing targets These are just a few areas where the North can help stop the global corruption cycle. Of Share of women who experienced physical or sexual violence by an intimate partner course, they must not neglect the integrity of in the last 12 months, 2016 their own political systems either. Because corruption severely undermines development, our view at Transparency International is that SDG 16 should be reviewed every year by the United Nations, and that this annual review should include the Goal’s progress indicators. As yet, there is no source or methodology to calculate the progress indicator for target 16.4: a reduction in the total value of inward and outward illicit financial flows. Nor is there an official indicator for measuring the return of confiscated proceeds of corruption to their rightful owners. Such concrete targets could be a powerful No data 0% 10% 20% 30% 40% 50% 60% >70% tool in guiding institutions in the Global Source: Institute of Health Metrics & Evaluation (IHME) North towards more active responses to the

Target 16.1: Significantly reduce all forms of violence and related death rates everywhere corruption risks they are known to face. If Indicator 16.1.3: Proportion of population subjected to (a) physical violence, (b) they were to make greater strides towards psychological violence and (c) sexual violence in the previous 12 months effectively combating corruption, we would come closer to building a fairer, more peaceful and prosperous world for all.

SUSTAINABLE DEVELOPMENT GOALS 2019 UNIVERSAL GOALS 39 © Shynar Jetpissova/World Bank Jetpissova/World © Shynar The IMF, World Bank and SDGs The SDGs have required a thorough reassessment of the way the Bretton Woods Institutions operate. Are they still relevant, and what role should they play to advance the SDGs?

By Pallavi Roy, Lecturer in International and 169 targets. These were meant to terms of facilitating the implementation Economics, Centre for International Studies replace and carry on the unfinished agenda of the MDGs. They are also closely and Diplomacy, SOAS University of London of the eight Millennium Development involved in partnering with the UN in the Goals (MDGs). The two Bretton Woods he 2030 Agenda for Sustainable Institutions (BWIs), the World Bank Construction of Intumak Dam on the Nura River, Development has been crystallised and the International Monetary Fund Kazakhstan, part of a new generation of World Bank water projects. Large dams came to symbolise what into concrete form through the 17 (IMF), were considered close partner T many saw as the failings of the World Bank, a narrow Sustainable Development Goals (SDGs) organisations by the United Nations in focus on economy, with a debt burden attached

SUSTAINABLE DEVELOPMENT GOALS 2019 40 UNIVERSAL GOALS

implementation of the SDGs. However, UN agencies like the UNDP, UNIDO, are ultimately transferring financial resources their role (particularly that of the IMF) in UNESCO, UNCTAD or the UNFCCC with the hope of repayment in some form or implementing the MDGs came under close that are working closely on the SDGs have a other. Hence they need to look at how and scrutiny, and was criticised by the UN and very clear socio-economic mandate and are where repayments will be coming from. This civil society organisations. To be fair to not unrelentingly growth focused. But most does not mean they can ignore growth. But, the IMF, while this criticism is not entirely importantly it is the governing structure of equally, it does not rule out their interest in lacking in merit, the MDGs were not as the BWIs that differentiates them from the issues of social value, borne out by their close closely aligned with their mandate as some universe of UN organisations. involvement with the SDGs. The BWIs’ of the SDGs are. The World Bank, which Most UN organisations are either under earlier mistake was to believe that all it took has a treaty-based relationship with the UN, the purview of the UN Economic and Social to tackle broader issues of social development has been working relatively more closely Council (ECOSOC) and UN General were higher rates of growth. with the UN as an implementation partner Assembly or report to them. The BWIs Both the IMF and World Bank have for both the MDGs and SDGs. But it too are only nominally under the ECOSOC’s undergone visible changes in the years since does not escape criticism. purview. They have independent governing the MDGs. And this change is strengthened structures and are not substantively by the SDG’s better alignment with the Facing a backlash answerable to either the ECOSOC or the IMF’s and World Bank’s mandates: both The objections against both the BWIs are UN General Assembly. broadly at the levels of the five pillars on similar grounds: their focus on an almost canonical growth-first paradigm over other goals such as inclusion and environmental sustainability. The BWIs have been some of The SDGs should provide a way for the BWIs to deliver the strongest proponents of globalisation; both the Global Goals and their own remits as responsible promoting capital flows, liberalisation and privatisation, and are now facing a lenders… it is possible to pursue social development backlash from governments and civil-society alongside the maintenance of financial stability organisations alike. Their ability to impose conditionalities on countries who have few alternatives for financing has also led to Decision-making within the BWIs’ of people, prosperity, planet, peace and questions of whose side they are really on. governance structures lies with the developed partnership, and more specifically with Essentially, the logic of a multilateral economies, especially the US and Western respect to those SDGs related to ending financial order should be to help developing European economies, while that of the UN poverty, reducing inequality, providing countries catch up with developed ones, agencies more closely reflects the multilateral decent work, building strong institutions so that bargaining power is more evenly UN structure. In fact, there is a historical and climate change. For instance, some of distributed. That has clearly not been the controversy around the BWIs’ governance the recent work done by the IMF has been case: developing countries have ratcheted up structure: namely, a failed early attempt by on reducing inequality. There is recognition debt at an alarming pace and convergence the ECOSOC to integrate the IMF and of the fact that high and sustained levels of with developed nations has slowed. For World Bank as specialised UN agencies. inequality have a pronounced negative some, it is ironic that the BWIs are being effect on social cohesion and are inimical made to revisit their aims through the SDG Attaining a balance to growth. framework. The SDGs should, however, provide a way The World Bank has moved closer to To state the issue another way: the BWIs for the BWIs to deliver both the Global SDG 13 on climate action with its recent are mandated to help countries achieve Goals and their own remits as responsible announcement that it will no longer invest economic growth. This has normally meant lenders. This is because the way the SDGs in projects involving fossil fuels. Both BWIs a narrow definition of growth in terms of are structured means that it is possible to have significant anti-corruption agendas macroeconomic management (like debt pursue social development alongside the and are already engaging with SDG 16 on sustainability) in the case of the IMF, and a maintenance of financial stability. This is building strong institutions. The Goals deregulation-based framework in the case a key balance to attain. The issue is not focused on eradicating poverty (SDG 1), of the World Bank – for instance through about maximising returns: the BWIs aren’t providing decent work (SDG 8), or building its work through the ‘ease of doing business’ looking for that either. Instead, they need sustainable industry (SDG 9) fit easily into survey. This is why the BWIs have at times to rule out interventions that have a high the ambit of the BWIs. been at odds with many UN organisations financial return but are socially damaging. Issues of taxation pricing are critical whose focus on growth is more tempered As lending institutions with shareholders, to ensuring practical solutions for and less rigid. they have to be financially responsible, as they environmental sustainability. Here, the BWIs

SUSTAINABLE DEVELOPMENT GOALS 2019 UNIVERSAL GOALS 41

can be called upon to work on these in line with the environmental SDGs: 6, 7, 12 and 13. Gender equality (SDG 5) is also a critical Strengthen the means focus area for both. of implementation Playing a critical role and revitalise the But to consider the IMF and World Bank as partners only for specific SDGs is not global partnership for doing justice to the range of capabilities sustainable development they possess or how these complement the work of UN agencies. Indeed, the UN Goal 17 seeks to strengthen global partnerships to support and achieve the system has recognised this. The BWIs have ambitious targets of the 2030 Agenda, bringing together national governments, a critical role to play in the ‘financing for the international community, civil society, the private sector and other actors. The targets and indicators attached to the goals recognise that for many Least Developed development’ agenda. Countries (LDCs), share of global merchandise, Foreign Direct Investment (FDI) and The IMF has embarked on a series of remittances are just as important as Official Development Assistance (ODA). studies that outline what the financing gap is for funding the SDGs. This recognises the In 2017, net ODA totalled $146.6 billion in 2017, a decrease of 0.6 per cent from 2016 in real terms. ODA as a share of donors’ gross national income (GNI) remained low, at fact that achieving the SDGs will require 0.31 per cent. In LDCs, debt service as a proportion of exports of goods and services significant investments by developing increased for five consecutive years – from a low of 3.5 per cent in 2011 to 8.6 per countries and need careful planning and cent in 2016. foresight. For instance, according to an The developing regions’ share of world merchandise exports declined for two IMF study the increase in average additional consecutive years: from 45.4 per cent in 2014 to 44.2 per cent in 2016. annual spending to achieve some key SDGs by 2030 is 15 percentage points of GDP for Share of global merchandise and service exports from least developed countries, the average low-income developing country. 2001–2016 (percentage)

This is a huge ask for developing countries, 1.2 1.12 1.06 so the competencies of the World Bank and 1.0 0.91 0.92 the IMF are being mobilised to address this 0.8 financing gap. 0.65 0.58 0.76 0.74 Along with the United Nations 0.6 0.62 Department of Economic and Social Affairs, 0.48 0.4 0.45 0.48 which provides capacity-building support 0.2 to countries for the SDGs, the IMF and the 0.0 World Bank can play a key role in country- 2001 2004 2007 2010 2013 2016 level uptake and monitoring through their Service exports Merchandise exports programming experience and strong in- country presence. Volume of foreign direct investment (FDI), ODA and personal remittances ﬂows, The BWIs’ involvement in both finance 2007–2016 (billions of current US$) and development means that they have a Low-income countries 40 critical function to fulfil in terms of meeting the SDGs. Complementarities also exist with 30 the UN agencies responsible for working on the SDGs. Thanks to external and, to some 20 extent, internal pressure, it would be safe to say that the BWIs are no longer holding on 10 to the orthodoxy of a growth-first approach 0 over projects that deliver social value. As 2007 2010 2013 2016 ‘owners’ of the SDGs, it is important for the FDI inﬂows Personal remittances received ODA

UN agencies to provide the correct nudge The sum of foreign direct investment (FDI), ODA and remittances by international to the BWIs. But the BWIs have also come migrants to low-income countries grew from $41.2 billion in 2007 to $68.5 billion in 2016. Remittances, which grew from $6.8 billion in 2007 to $19.9 billion in 2016, tend to be the around to acknowledging that a broad-based most reliable, least volatile, source of income shared prosperity is the key to ensuring Source: The Sustainable Development Goals Report 2018, UN global stability.

SUSTAINABLE DEVELOPMENT GOALS 2019 42 UNIVERSAL GOALS © VCG via Getty Images via Getty © VCG Demographic dividends Policies based on an understanding of population dynamics will help countries achieve the SDGs

By Sang-Hyop Lee and Andrew Mason, Known as the ‘demographic dividend’, it Taking advantage of the opportunities and Senior Fellows, East-West Center is a period during which the proportion of responding to the new challenges presented working-age people is increasing relative to by the demographic transition require rogress toward achievement of the the rest of the population. In these countries, forward-looking policies that take account Sustainable Development Goal the proportion of children is declining of population dynamics. Implementing P(SDG) targets is closely linked to because of low fertility, and the proportion of policies to promote economic growth and demographic trends. Although developing elderly people is still small. This economically respond to the social protection needs countries around the world are at various favourable period can contribute to the of a changing population are also critical stages in their demographic transition, creation of the necessary savings, productive to addressing high levels of economic most of them are experiencing a time that conditions, financial and social institutions, inequality. Hence, the success of the 2030 is particularly conducive to economic and social protection systems to accelerate Agenda for Sustainable Development, which development. progress towards the SDGs. pledges that no one will be left behind, is

SUSTAINABLE DEVELOPMENT GOALS 2019 UNIVERSAL GOALS 43

have experienced this unique opportunity to and Pacific Ministerial Declaration on Graduates attend a job fair at Tianjin University Sports Arena, China. China and other East Asian realise higher standards of living and lower Population and Development). countries are compelling examples for the development rates of poverty. benefits of the ‘demographic dividend’ This process is beginning in Africa, Key policy options where it will relieve the pressure created The changing dynamics of population by very young populations. East Asian have important implications for sound countries provide the most compelling and sustainable public policy. As child strongly bound to anticipating and planning evidence, as they have achieved many of dependency declines, families and for the effects of the demographic transition the central elements of the SDGs, such governments alike can increase their that will unfold during the SDG period. as poverty reduction and expansion of investment in each child without increasing education and health. In many countries overall spending. Better child health and The evidence of Southeast and South Asia, and Latin more education will lead to higher incomes, If we are to deliver on the SDGs, it is America, age structure will be favourable for so that national economies can continue to crucial to promote evidence-based policies. several more decades. grow and important social programmes can Building reliable and comparable data In addition to the demographic dividend, be sustained. linking population change and socio- the demographic transition has also created Jobs are critical at every stage of the age economic development is a precondition for favourable conditions for another powerful transition. Policies should draw a wide analytical work. National Transfer Accounts dividend. Known as the ‘gender dividend’, range of the population into the workforce, (NTAs) represent a new set of tools that it results from the increase in female including young adults, women and the reveal the age dimension of an economy, elderly who can still work. Policy options showing how populations at each age for the labour market could include: produce, consume, save and share resources. Policymakers need to increasing the mandatory retirement age; In all countries, children and the elderly varying pension benefits so that early consume more than they produce. In a think ahead about how retirement is neither encouraged nor country with a large share of children, their growing elderly discouraged; and improving flexibility for working-age adults are devoting so much of employers to hire part-time workers, which their production to the basic needs of their populations will be may be especially attractive to women and many children that too little is left to invest supported in the future the elderly. in their children’s education or to save and Governments should create an economic invest for their own future. environment that encourages high rates of During the early stages of demographic labour-force participation, which implies saving. In addition to providing retirement transition, people have fewer children overcoming discriminatory barriers against income for individuals, high saving supports and are living longer. As a result, the women that exist both inside and outside investment that leads to higher wages and a working population makes up a relatively of the labour market. The National Time more productive workforce. One priority is large proportion of the population, Transfer Accounts (NTTAs) provide a to ensure that financial institutions provide compared with a small elderly population framework for assessing the magnitude of attractive and secure long-term investment and a shrinking population of dependent the gender dividend. They also allow us to opportunities in the context of low inflation, children. This change in population age measure changes in gender specialisation so that money saved today will retain its structure ushers in a period of accelerated in economies over time, the hidden care value tomorrow. economic growth called the ‘first economy, and progress toward gender The beneficial period of the demographic demographic dividend’. equality (itself a specific SDG – Goal 5). dividend will be followed by a period of With fewer children in the population, By providing a framework for population ageing. This will pose new families and governments also have more understanding the impact of changing age social and economic challenges that can resources to care for and educate each structures and women’s roles on national impede progress towards the SDGs. child, and invest in the economy and economies, the NTAs and NTTAs Policymakers need to think ahead about standards of living. The earlier investments allow us to fully integrate population how their growing elderly populations on health, education and physical capital dynamics into sustainable development will be supported in the future without can help the nation maintain long-lasting planning. This has become more crucial overburdening those of working age or economic growth, achieving the ‘second with the adoption of the 2030 Agenda sacrificing economic growth. demographic dividend’. for Sustainable Development, as well as The goal should be to establish public The NTAs project provides ample the regional development agendas (the programmes that provide some basic level evidence on the first and the second Montevideo Consensus on Population and of security but that can be sustained in the demographic dividends. Many countries Development, Agenda 2063, and the Asian years ahead.

SUSTAINABLE DEVELOPMENT GOALS 2019 44 SUSTAINABLE ECONOMY

From crisis to growth

A decade on from the global financial crisis, most economies still show their scars. Has the global economy recovered, and how well equipped is it to attain the SDGs and inclusive growth?

By Valerie Cerra, Assistant Director, Stability for development their development path and weakening their Institute for Capacity Development, Developing and emerging economies have ability to achieve development goals. In International Monetary Fund (IMF) had more frequent and severe crises and fact, it is a major reason why these countries recessions than advanced economies. The historically have not been able to converge en years have elapsed since the global permanent output loss associated with these to the income levels of advanced economies. financial crisis rocked the world, adverse events sharply deterred long-term Sustained economic growth is critical Tsending more than half of countries growth, knocking the countries back from for meeting many of the Sustainable into recession and dragging down global economic growth for the past decade. The crisis had lasting effects in most countries even after their recessions ended. A decade later, the level of output remains far below the pre-crisis trajectory by an average of around 10 percentage points. The crisis left other scars too. Debt and inequality rose in many affected countries, and trust in institutions eroded. The aftermath of the crisis witnessed rising political polarisation and populist pressure for policy changes such as trade protectionism that inadvertently further reduced growth and social welfare. The scarring pattern of the global crisis is very similar to earlier episodes of crises and recessions, from countries as diverse as Japan and Sweden to those that went through the Asian crisis. In fact, historical data shows that following recessions and crises, countries do not fully recover to their pre-crisis trends.

Countries need to be mindful of the role of macroeconomic and financial stability in avoiding major economic distress

SUSTAINABLE DEVELOPMENT GOALS 2019 SUSTAINABLE ECONOMY 45

Development Goals (SDGs). High growth, education (SDGs 2, 3 and 4). Therefore, especially in China and India, has helped lift to achieve the 2030 SDG targets, more than a billion people out of poverty countries need to be mindful of the role of since 1990 (related to SDGs 1 and 8). macroeconomic and financial stability in Improvements in material living standards avoiding major economic distress that can are also directly associated with advances in permanently set them back from this path. health and education and can provide the basis for productive work (SDG 8). Financial fault lines Also in this section Higher output also increases the The financial sector is an integral part of a economic base for raising tax revenue from modern economy, channelling household which governments can finance spending savings into loans that enable firms to invest in to build resilient infrastructure (SDG 9). socially beneficial projects. Financial inclusion Green New Deal 48 This includes ensuring the availability of can create opportunities for everyone to take water and sanitation (SDG 6), affordable a stake in improving the future. clean energy (SDG 7) and resilient Economic inequality 52 and sustainable cities (SDG 11). Public A Gilet Jaune or Yellow Vest walks past a mural to resources are also required to provide social the cause in Paris, France. The recession and austerity programmes that followed the 2009 financial crisis have Sustainable business 55 services that ensure nutrition, health and spawned numerous protest movements worldwide Gender equality 60

Tax reform 62

Funding the SDGs 66

Active investment 69

Healthy populations 74

Intellectual property and medicine 78

Apprenticeships 81

Fixing trade 84

Positive migration 86 © Kiran Ridley/Getty Images Ridley/Getty © Kiran

SUSTAINABLE DEVELOPMENT GOALS 2019 46 SUSTAINABLE ECONOMY

The global financial crisis demonstrated discretionary fiscal stimulus. This policy to build in several systemically important the importance of maintaining a healthy, reaction was able to stop the bleeding and countries in the sovereign, corporate and stable financial system. Financial innovation prevent a deeper depression. non-bank financial sectors, raising medium- brought a proliferation of complex financial In addition, emerging and developing term risks. instruments in advanced economies, and countries had improved their policy space Higher debt levels and financial credit grew rapidly prior to the crisis. Risks prior to the financial crisis. They had vulnerabilities may weaken the ability of were distributed across the financial sector reduced their debt levels and introduced public and private sectors to weather the in non-transparent ways that were difficult stronger frameworks for macroeconomic impact of any future adverse shocks. These to assess. This contributed to a breakdown management. This enabled them to create growing vulnerabilities also limit the space of trust among financial institutions and buffers against the adverse financial and for fiscal and monetary policy to respond to amplified the general public’s mistrust in the trade spillovers hitting them from the crisis any materialisation of the downside risks. economic order. originating in advanced economies. What needs to be done? History, including the experience of the Robust, steady growth is needed to advance well on global financial crisis, taught us that robust, steady growth is needed to advance well on a development path. Countries should aim to rein back a development path. Countries should aim the rise in public and private financial vulnerabilities to to rein back the rise in public and private financial vulnerabilities to ensure a stable ensure a stable macroeconomic environment macroeconomic environment. Given the elevated risks to the outlook, they should restore fiscal, financial and foreign reserve Over a decade of reform, new regulatory Most countries inevitably are susceptible buffers to respond to any spillovers from an standards and supervisory practices have to external events from which they have no increasingly interconnected world. strengthened financial systems, reducing control, such as fluctuations in commodity Governments should foster higher leverage, curtailing shadow banking and and other international trade prices or a and more inclusive growth and identify raising capital cushions and liquidity. Going slowdown in global trade. But the lesson is sustainable ways of financing their key forward, financial regulation needs to strike that countries can help protect themselves development goals, including through the right balance in promoting a vibrant by building policy buffers and resilience improved revenue collection. They should financial sector that will fund projects with during good times. That allows them to act gradually reduce debt to create space to uncertain returns, while preventing excessive swiftly to address financial and economic respond to the next downturn. Spending can risk-taking that leads to financial distress. distress as soon as it arises. be better targeted to promote social inclusion and environmental sustainability, such as by Policies matter Current indicators and outlook reallocating resources from environmentally The good news is that policies can help. Looking ahead, the growth forecasts for unfriendly energy subsidies to priority Evidence shows that macroeconomic many countries have weakened. The investments in infrastructure and public policies can influence the speed of economic IMF’s April 2019 World Economic Outlook services. Countries should also promote recovery, helping to regain some of the projects growth of the global economy deeper and more inclusive financial markets lost ground from recessions and financial to decline to 3.3 per cent in 2019 from a while safeguarding financial stability. crises. Monetary and fiscal stimulus, real recent peak of close to 4 per cent in 2017. Strong institutions can boost investor depreciation, foreign aid and more flexible Downside risks abound, particularly related confidence and public trust and improve exchange rate regimes can spur a rebound. to mounting trade tensions and heightened policies for economic stability and growth. In advanced countries suffering from uncertainty, and could further lower Thus, countries should build capacity recessions associated with banking crises, incentives to invest. of their economic institutions, improve fiscal policy has been particularly effective in Analysis in the IMF’s Fiscal Monitor shows governance, and enhance coordination with boosting growth during the recovery. that public and private debt has increased global partners. These efforts could help During the 2008 crisis, advanced- to near historical peaks in many advanced, countries progress towards the SDGs with country policymakers reacted very quickly emerging and developing economies. strong, inclusive growth. to shore up the financial system. They In some cases, this is raising concerns introduced unconventional monetary over fiscal sustainability and pushing up The views expressed in this paper are those of policy and undertook unprecedented borrowing costs. According to the latest the author and do not necessarily represent the financial operations with domestic and IMF Global Financial Stability Report, views of the IMF, its Executive Board, or IMF foreign financial institutions, along with financial vulnerabilities have continued management.

SUSTAINABLE DEVELOPMENT GOALS 2019 SUSTAINABLE ECONOMY 47

Ensure access to affordable, reliable, sustainable and modern energy for all

Share of the population with access to electricity, 2016 (percentage)

100% From 50% up to 100%

From 10% up to 50%

Under 10% 20 countries with largest deﬁcits in electricity access

From 2000 to 2016, the proportion of the global population with access to electricity increased by almost 10 percentage points, reaching 87 per cent. Substantial gains in access rates were achieved in rural areas, in part due to off-grid solar electricity. Still, access rates to electricity in rural areas (at 76 per cent) are much lower than in urban areas (97 per cent). The largest deficits in electricity are found in sub-Saharan Africa where the access rate is 43 per cent. The outlook for electrification shows that the world is not yet on track to achieve universal access by 2030.

XXFrom 2000 to 2016, the proportion of XXIn 2016, three billion people (41 per cent of the world’s XXThe share of renewables in final energy the global population with access to population) were still cooking with polluting fuel consumption increased modestly, from electricity increased from 78 per cent to and stove combinations 17.3 per cent in 2014 to 17.5 per cent in 87 per cent, with the absolute number of 2015. Yet only 55 per cent of the renewable people living without electricity dipping share was derived from modern forms of to just below one billion renewable energy

2000 2016 41% 55% 78% 87%

Source: The Sustainable Development Goals Report 2018, UN

SUSTAINABLE DEVELOPMENT GOALS 2019 48 SUSTAINABLE ECONOMY

A Green New Deal If done right, the Green New Deal offers a blueprint for urgent action to combat climate change

By Edward B. Barbier, Professor, Spending plans Department of Economics, and Senior A good place to start are the various green Scholar, School of Global Environmental stimulus plans enacted by major economies Sustainability, Colorado State University during the 2008–09 Great Recession. During that turbulent time, I was asked ne of the surprise policy by the UN Environment Programme to developments in the United States construct a Global Green New Deal: a plan Ohas been the revival of the concept to rethink the world’s economic recovery. of the ‘Green New Deal’. My UNEP report was published in 2010 Representative Alexandria Ocasio- by Cambridge University Press as A Global Cortez and Senator Edward Markey have Green New Deal: Rethinking the Economic introduced a resolution in Congress calling Recovery. It included a comprehensive review for such a Green New Deal for the US. It of green stimulus plans, examining what asks for massive government spending over worked and what did not in terms of lasting the next 10 years to shift the US economy efforts to green economies. I believe that away from polluting industries, embrace this review offers several important lessons green infrastructure and produce 100 per for any decarbonising strategy. cent of energy from renewables. In the For starters, it is important to be realistic. process, the Green New Deal aims to create Rather than setting an arbitrary target such jobs and boost the economy. as going 100 per cent renewable – which Although lacking in specifics, the core would take decades – a Green New Deal objective of the Green New Deal is clear. should be built on three critical objectives: The US government should invest heavily ●● how much public spending is needed over the next decade in cutting carbon over the next five years to kick-start the emissions across the economy, from transition to an economy less reliant on electricity generation to transportation carbon; to agriculture. ●● what these public investments should If designed correctly, such a plan for entail; decarbonising the American economy could ●● how to pay for this initial five-year plan. play a significant role in achieving several Sustainable Development Goals (SDGs), For example, during the 2008–09 New Deal requires a five-year plan of public including affordable clean energy (SDG 7), recession, major economies spent typically spending totaling around five per cent inclusive and sustainable growth (SDG 8), between one and two per cent of their gross of GDP. For the US, based on 2017 US resilient infrastructure and green innovation domestic product (GDP) on green stimulus. GDP (purchasing power parity) of $19.4 (SDG 9), and more sustainable patterns of More than 60 per cent of the stimulus went trillion, this amounts to a down payment of consumption and production (SDG 12). to improving energy efficiency, with an aim $970 billion. Above all, a workable Green New Deal to create much-needed jobs in hard-hit Two types of spending are key. First, is a blueprint for achieving urgent action sectors such as construction. Clean energy there needs to be more public support to combat climate change and its impacts did receive a boost, especially in Asian for green innovation by the private sector. (SDG 13), for the United States and many economies and the US, but there was no Such support includes: research and other economies. lasting impact on reducing greenhouse gas development subsidies; research grants To be successful, any Green New Deal emissions globally. and partnerships; public investments needs to draw on the lessons from past In contrast, to be effective in promoting in research facilities; and protecting efforts to ‘green’ economies. low-carbon and green growth, a Green intellectual property.

SUSTAINABLE DEVELOPMENT GOALS 2019 SUSTAINABLE ECONOMY 49 © Pascal Rossignol/Reuters © Pascal

Second, public support and investments transition to clean energy, such as phasing Erecting a windmill turbine in Graincourt-lès- may also be critical for other bottlenecks out fossil-fuel subsidies and taxing carbon. Havrincourt, France. The attempts at green stimulus during the 2008-2009 recession indicate there is a to green growth. These include: developing Implementing these reforms will provide minimum scale and duration needed to yield a lasting ‘smart’ electrical grid transmission to the incentives for long-term investments benefit: a Green New Deal would require a five-year plan integrate renewables; combining municipal in low-carbon energy and for reducing and spending of around five per cent of GDP planning and transport policies to foster dependence on fossil fuels. The drop in more sustainable cities; and investing in emissions accompanying any tax on carbon mass transit systems, both within urban would also reduce the price tag of any can also generate additional health and areas and in new major transport networks. Green New Deal, as it would speed up the environmental benefits, boost green sectors transition to a greener economy. and stimulate economy-wide green growth. Pricing reforms Pricing other pollutants and excessive Because such policies will save or raise But spending alone will not decarbonise resource use through taxes, charges, tradable revenues, these funds can help finance the economy. There is a need for permits, payments for environmental key government-led investments for the complementary pricing reforms to services and other market mechanisms green transition. This could go a long way

SUSTAINABLE DEVELOPMENT GOALS 2019 50 SUSTAINABLE ECONOMY

towards paying for a Green New Deal. For example, Resource for the Future calculates that, for the United States, a $20 tax per Build resilient tonne of carbon could reduce US emissions by 11.1 billion tonnes between now and infrastructure, promote 2030. It could also raise $970 billion – the inclusive and sustainable amount needed for a five-year Green New Deal for the United States. industrialisation and The revenues raised could also be foster innovation allocated to other spending priorities for a successful transition. They could be used to raise the minimum wage, provide payments Research and development expenditure (% of GDP), 2015 or retraining for displaced workers, and reduce burdens for vulnerable households affected by the green transition.

Network effect There is good news, too, on the costs of promoting clean energy. The high costs today of reducing carbon emissions through some low-carbon technologies could fall quickly if the right policy is adopted. In particular, expenditures targeted at clean energy research and development will lead to lower costs and wider adoption, 0% 0.5% 1.5% 2.5% 3.5% 4.5% as the technology becomes more familiar, No data 0.25% 1% 2% 3% 4% innovation spreads, and production scales Source: World Bank up. The rapid fall in solar panel costs and SDG Target 9.5: Enhance scientific research, upgrade the technological capabilities of their widespread installation is one example industrial sectors in all countries, in particular developing countries, including, by 2030, encouraging innovation and substantially increasing the number of research and development of this effect occurring. workers per one million people, and public and private research and development spending There is also a network – or ‘chicken and egg’ – effect, where increasing demand Share of the population using the internet, 2017 for a clean-energy technology or product fosters related innovations that lower cost. For example, purchases of electric vehicles will stimulate demand for charging stations, which once installed will reduce the costs of running electric vehicles and further boost demand. This suggests that subsidies for purchasing electric vehicles or public investment to spread charging stations can kick-start this network effect, but can be safely phased out once the effect takes hold. Urgent action on climate change and attaining other critical SDGs may require a ‘green push’. If designed correctly, No data 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% and if accompanied by the right price reforms and incentives, the Green New Source: World Bank

Deal could be that impetus. The type of SDG Target 9.C: Significantly increase access to information and communications policies and investments adopted, and the technology and strive to provide universal and affordable access to the internet in least developed countries by 2020 decision as to how to pay for them, could ultimately determine the success of any Green New Deal. Source: Our World in Data

SUSTAINABLE DEVELOPMENT GOALS 2019 ICD helps private sector businesses to finance projects by providing a wide range of Sharia compliant services

www.icd-ps.org

icd_ps

ICD/ISDB AD_checked.indd 1 04/06/2019 23:10 T With levels ofinequality risingacross theworld, we needanew approach for peopleandplanet A new economy for all Lead, theWellbeing Economy Alliance By sources. It is embedded in the scripts of many sources. Itisembedded inthescriptsofmany doing thingscanbefoundacross arangeof notion ofwellbeing,inallitsdimensions. ideas areincreasinglycoalescingaround the people andsustainabilityfortheplanet. These key ideas:qualityoflife,flourishing forall different termsmightbeusedtodescribethe SUSTAINABLE DEVELOPMENT GOALS 2019 52 This shared vision for a better way of This sharedvisionforabetterway of Katherine Trebeck, Knowledge andPolicy familiar theworldover, even though (SDGs) speaktoanagendathatis SustainableDevelopmentGoals he SUSTAINABLE ECONOMY no onebehind’. captured bytheoverridingmantra of‘leave out inthe17SDGs,andperhaps isbest about whatreallymatterstothem. Itisset conversations withpeopleallover theworld can beheardloudandclearindeliberative brains react.Perhapsmostimportantly, it from neuroscienceaboutwhatmakesour from psychologyabouthumanneedsand content. Thisvisionechoesinevidence in researchfindingsaboutwhatmakespeople the scholarshipofdevelopmentexpertsand First Nationscommunities.Itcanbereadin religions. Itiscontainedintheworldviewsof

in theother. Intheworst-casescenario, how shiftsinonespherehaveconsequences they interactwiththeenvironment, and conceptualisations ofdevelopment, how nature ofpeople’s opportunitiesand a conversationabouttheinterconnected Taking thissystem-wide viewpointenables that itisthoseleftbehindwhoaretoblame. interactions, whichdoesthe‘leaving’–not system, ourcollectiveinstitutionsandtheir ‘Leave noonebehind’impliesthatitisthe included, thatnooneismarginalised. This isacalltoensurethateveryone An economy thatleaves peoplebehind

A homeless man in Brooklyn, New York. Income world. The gap between the real incomes But if one peers beneath the symptoms, inequality has been getting more extreme over the last of people in the Global North compared it becomes apparent that the root cause decade. In the US, 81 per cent of the population is in an income bracket which experienced flat or declining to those in the Global South has expanded of so much of this is directly due to how income over this period by approximately three times since 1960. the economy is currently and proactively Taking the broader definition of poverty designed. Our economic system does not adopted by Peter Edward’s ‘ethical poverty sufficiently account for nature, is blind these interactions can spark spirals that line’ (identifying the income threshold to distribution of resources, and elevates devastate lives, threaten human rights and below which life expectancy rapidly falls, measures of progress that encompass undermine peace. currently $7.40 a day) as many as 4.3 billion perverse incentives (such as short-term The systemic nature of these processes people live in poverty. profit and GDP at the expense of human means that it is inadequate to keep plastering Those GDP-rich economies that most wellbeing). over “wounds caused by inequality by epitomise the current economic model The system is not broken: it is doing what building more prisons, hiring more police provide some of the starkest evidence it was set up to do. The roots of inequality and prescribing more drugs” (as Danny that the prevailing system distributes and environmental breakdown are found Dorling puts it in his book Injustice: Why inadequately. The McKinsey Global in a heady mix of institutions, processes Social Inequality Still Persists). Expenditure and power relations that shape allocation on such items is a grave testament to the of risk and reward. Decisions taken over failure to help people flourish and enjoy Those who reap most of many years by successive governments have quality of life. This tally is even higher when resulted in: inadequate minimum wage one looks at the expenditure necessitated by the rewards of this system levels and inadequate social protection; environmental breakdown – cleaning up after are also those putting the different rates of tax on income compared to climate-change-induced flooding or storms, capital; relatively low rates of top income tax treating asthma exacerbated by toxic particles planet in most danger (particularly in the UK and US compared in the air, and buying bottled water when to other OECD countries, and compared rivers and streams are polluted. to previous levels); loopholes inserted in Of course, such expenditures are the Institute reports that 81 per cent of the US legislation that enabled tax avoidance; preserve of those fortunate enough to have population is in an income bracket which undermining of unions’ scope to collectively the resources to spend. Environmental experienced flat or declining income over bargain and fight for workers’ pay and breakdown hits those without such the last decade. The figure is 97 per cent conditions; narrow ownership of many firms; resources the hardest due to their increased in Italy, 70 per cent in Britain and 63 per and corporate governance that fixates on vulnerability. People’s ability to escape from cent in France. People living in GDP-rich short-term profit. sources of toxicity and risk is determined countries are struggling to get by. In the The same system dynamics are seen in by whether they can command access to UK, for example, the use of food banks has the links between inequality and uncontaminated, safer land and food sources, risen dramatically in recent years. environmental impact. These links arise or if they are among the great numbers of Those who reap most of the rewards of through: the pressure to consume status those who must make do with what is left. this system are also those putting the planet items to maintain the appearance of wealth; The vulnerability of those who are least in most danger. On climate change, figures the consumption patterns of the richest; to blame reflects the unequal distribution published by Our World In Data show that the way inequality undermines collective of power, resources and opportunity: the richest countries (high and upper–middle efforts to protect environmental commons; economic resources are as unequally shared income countries) emit 86 per cent of global and the break that inequality exerts on pro- as the impact resulting from plunder of CO2 emissions. In the UK, emissions are environmental policies. natural ones. strongly correlated with income, while in the These structures are deliberate, even US, the richest 10 per cent have a carbon though the side effects may not be. Although An unequally shared harvest footprint three times that of people in the they stretch back many decades (centuries One of the best-regarded authorities on poorest 10 per cent of incomes. even), they can be dismantled and designed economic inequality is the World Inequality differently. Report. The 2018 publication revealed Rebuilding the system that in recent decades income inequality, It is not unusual to hear people who are Building a wellbeing economy measured by the top 10 per cent’s share concerned about the state of the world The patterns highlighted above suggest of income, is getting worse in almost all pointing to the levels of inequality. They that while the vision might be to leave no parts of the world. Statistics compiled by cite the lack of sufficient job quality, bemoan one behind, today’s reality is that some Credit Suisse show that the richest one per the plunder of the planet and declare that might be too far ahead – hoarding economic cent own as much wealth as the rest of the the economic system is ‘broken’. resources and doing much damage to

SUSTAINABLE DEVELOPMENT GOALS 2019 54 SUSTAINABLE ECONOMY

natural ones. This arrangement is a construct that reflects political decisions and choices by enterprises. A wellbeing economy can be built that would deliver good lives for people from the beginning, rather than requiring so much End poverty in all its effort to patch things up, to cope and recover forms everywhere after the damage is done, and to redistribute what is unevenly shared. A wellbeing economy can be achieved by reorienting goals and expectations for business, politics Share of population living in poverty by national poverty lines, 2017 and society. A wellbeing economy is one that is regenerative, that is cooperative and collaborative, and that is purposeful. It will have equal opportunity at its core: not simply by meekly redistributing as best one can the outcomes from an unequal economic system, but by structuring the economy so that better sharing of resources, wealth and power is built in. For example, it would entail: ●● regenerated ecosystems and extended global commons; ●● a circular economy serving needs rather than driving consumption from No data 0% 10% 20% 30% 40% >50%

production; Source: World Bank ●● people feeling safe and healthy in their communities, mitigating the need for Share of global population with access to basic resources, World vast expenditure on treating, healing and Improved water source fixing; ●● switching to renewables, generated by 80% Electricity local communities or public agencies wherever possible; Improved sanitation facilities ●● democratic economic management (in

terms of power, scale and ownership); 60% ●● participatory, deliberative democracy with governments responsive to citizens; Clean cooking fuels and technologies ●● purpose-driven businesses with social and environmental aims in their DNA, using 40% true-cost accounting; 0% ●● economic security for all, and wealth, 1990 1995 2000 2005 2010 2016 income, time and power fairly distributed, rather than relying on redistribution; Source: World Bank (World Development Indicators) ●● jobs that deliver meaning and purpose Source: Our World in Data and means for a decent livelihood; ●● recognising and valuing care, health and academics laying out the evidence base, are emboldened to step away from the education in the ‘core’ economy outside businesses harnessing commercial activities constraints imposed by a 20th century vision the market; and to deliver on social and environmental goals, of ‘development as GDP’. Instead, they must ●● focusing on measures of progress that and communities working together not for embrace a new agenda for the 21st century – reflect real value creation. monetary reward, but following the innate an economy geared up to deliver human and human instincts to be together, to cooperate ecological wellbeing. This work bodes well A growing movement is forming around and collaborate. Such efforts will be made for the creation of a world in which no one is the idea of such an economy. It comprises so much easier as pioneering policymakers left behind.

SUSTAINABLE DEVELOPMENT GOALS 2019 SUSTAINABLE ECONOMY 55 © Hemis/Alamy Stock Photo Stock © Hemis/Alamy A new business case How can companies embed sustainability into their operations while also delivering ongoing returns for their investors?

By Robert G. Eccles, Founding Chairman, nosed capitalists. It was largely false and focused on the material environmental, Sustainability Accounting Standards Board played off of stereotypes on both sides. social and governance (ESG) criteria that and Visiting Professor of Management The world has changed. Research create both downside risk and upside Practice, Säid Business School, by academics, companies and investors opportunity. University of Oxford continues to mount, showing that Here the non-profit Sustainability there is no inevitable trade-off between Accounting Standards Board (SASB), or many years the prevailing belief sustainability and financial returns. In

was that companies and investors who fact, sustainability can actually contribute A textile workshop in Narayanganj, Bangladesh. Fair cared about sustainability were helping to superior financial performance for labour practices and good governance of supply chains F can make a major contribution to SDG 1 (no poverty) to make the world a better place but were both companies and investors. The key as well as SDG 8 (decent work). Until the Rana Plaza giving up financial returns. This framing to demonstrating this is moving beyond a tragedy in 2013, most businesses sourcing textiles from pitted the tree huggers against the hard- broad notion of sustainability to one more Bangladesh had turned a blind eye to working conditions

SUSTAINABLE DEVELOPMENT GOALS 2019 56 SUSTAINABLE ECONOMY

founded by Jean Rogers in 2011 and for SDGs. We published our results in The environmental social impacts on assets and which I was the Founding Chairman, has Relationship Between Investor Materiality operations are less important. made an important contribution. It has and the Sustainable Development Goals: A For SDG 1 (no poverty), the human identified – for 77 industries organised Methodological Framework. What we wanted capital issue of fair labour practices and into 11 sectors – the material ESG issues to find out was whether the ESG issues the leadership and governance issue which affect financial performance. This that matter to investors could contribute of supply chain management are very information is publicly available for free in to achieving the targets of the SDGs that important. However, the business model SASB’s ‘Materiality Map’. matter to the world. We found substantial and innovation issue of environmental social The map identifies which of 26 ESG evidence that this is indeed the case. impacts on assets and operations and the issues are ‘material’ for these 77 industries. We also found a great deal of variation. leadership and governance issue of accident The issues are organised into the categories Some sectors (for example, food and and safety management are much less so. of environment (six), social capital (seven), beverage, healthcare, and extractives and human capital (three), business model mineral processing) have much more Five-step process and innovation (five) and leadership impact on the SDGs as a whole than others So what does this mean for a company that and governance (five). The definition of (such as financial services, services and wants to make as much contribution to the materiality is ‘what matters to investors’. transportation). For financial services, it SDGs as it can while also providing returns In a world of systemic risks coming from climate change, resource scarcity, income inequality and global supply In a world of systemic risks coming from climate change, chains, mainstream investors have come to recognise the value and relevance of resource scarcity, income inequality and global supply ESG. A rigorous academic study Corporate chains, mainstream investors have come to recognise Sustainability: First Evidence on Materiality by Mozaffar Khan, George Serafeim and the value and relevance of environmental, social and Aaron Yoon of Harvard Business School governance issues used SASB’s work to show that companies performing well on the material ESG issues for their industry had superior financial should be noted that this is just the direct to its shareholders? This can be done performance, measured in both accounting impacts of the sector, not the much greater through the following five-step process. metrics and stock returns. impacts it has through how it deploys First, the board of directors needs to capital. publish a ‘Statement of Purpose’. In this, Material issues and the SDGs Some industries have more impact on the board articulates its intergenerational While this addresses the false myth that a given SDG than others. For example, view of the company’s role in society. If sustainability is the same as philanthropy, it biotechnology and agricultural products are the board believes the company’s only role also begs the question of whether companies high for SDG 3 (good health and wellbeing) is to provide steady short-term returns to are making the world a better place, such as while others, such as consumption and shareholders, it should simply say so. It can seen through the lens of the 17 Sustainable services, are low. There are SDGs for make that judgement as the board. This is Development Goals (SDGs). This is which the private sector as a whole can have the ‘purpose is profit’ perspective. what the world cares about, as opposed to substantial impact. The total impact across But if it believes the company has a what investors care about. Yes, investors all sectors is high for SDG 12 (responsible broader role to play in meeting the needs of increasingly care about the state of the world consumption and production) and SDG an identified set of stakeholders (it can’t be in which they must earn returns for their 14 (life below water), but much less so for all of them) and that in doing so it enables beneficiaries. But do material ESG issues for SDG 4 (quality education). For the latter, the company to provide long-term returns, investors have any relationship to the SDGs? the public sector will have to do most of the it should identify who these stakeholders This is a critical question, since it is heavy lifting. are and the time frames under which it expected that the private sector needs to Some of SASB’s material issues have more will evaluate the impact of the company’s invest $2.5–3.0 trillion per year for the 2030 of an impact on a given SDG than others. decisions on these stakeholders. This is the goals to be met. For example, the environmental issues of ‘profit through purpose’ perspective. To address this question, Professors energy management and fuel management Second, senior management needs to Gianni Betti and Costanza Consolandi of are very important for SDG 7 (affordable identify what it regards as the material the University of Siena and I mapped all and clean energy). But the social capital ESG issues of interest to shareholders of the material issues for each of SASB’s issue of access and affordability and the and then map these to the targets of the 77 industries to the 169 targets of the business model and innovation issue of SDGs. SASB can be used as a guide, but

SUSTAINABLE DEVELOPMENT GOALS 2019 SUSTAINABLE ECONOMY 57

ultimately each company needs to make this determination for itself. No company can address all the SDGs, or even all targets within one or two SDGs. Any company, Promote sustained, inclusive no matter how large, has limited resources, and sustainable economic so it must therefore have a clear focus on growth, full and productive where it wants to have impact. Third, senior management needs to employment and decent communicate externally, such as through work for all an integrated report. The report should set out the company’s material issues, the SDGs Share of young people (aged 15-29) not in education, employment or training and the targets for which they are relevant. It should also set goals on all of these and report on the company’s ESG and impact performance. ESG performance is about a company’s activities and operations, and can be reported on from data generated inside the company. Impact performance is about the externalities the company is creating in the world and requires data from outside the company to put ESG performance in context. For example, there is more positive impact from a wind farm in a region of coal-fired utility plants than one in a region No data 0% 5% 10% 15% 20% 30% 40% 50% 60% 70% 80% of hydropower. Impact measurement and reporting is still in its infancy but the work Source: World Bank of the Impact Management Project can be Earning inequalities are still pervasive: Youth were three times more likely to helpful here. men earned 12.5 per cent more than be unemployed than adults in 2017 Fourth, the board of directors needs to set women in 40 out of 45 countries with data senior executive compensation so that it is aligned with the goals and metrics derived in the third step. If senior management is Adults 4.3% only evaluated and rewarded on financial performance, it is unlikely that these other objectives will be achieved. It is Youth 13% also likely that management will be more focused on the short term. Fifth, senior management and the board need to engage with shareholders and other stakeholders Real GDP per capita growth for LDCs in on the company’s statement of purpose and the period 2010-2016 was only 0.6 per cent higher than the world average its commitments to the SDGs. Through 61 per cent of all workers 2005–2009 2010–2016 engagement, the company will learn were engaged whether it is meeting the expectations in informal of those on whom its own long-term 61% employment sustainability depends. in 2016 Are these steps hard to take? Not in any 5.7% 2.3% technical sense. The challenge is in breaking out of the prevailing ideology of short-term Although there has been global improvement in labour productivity and unemployment profit maximisation. While that may reward rates, more progress is needed to increase employment opportunities for young people, reduce informal employment and address the gender pay gap current management, it is only taking money away from future generations of Source: The Sustainable Development Goals Report 2018, UN management and society as a whole.

SUSTAINABLE DEVELOPMENT GOALS 2019 58

FIAT CHRYSLER AUTOMOBILES

Fiat Concept Centoventi: affordable, modular, electric mobility

FCA welcomes and supports the SDGs in their ambition to achieve a more sustainable world. By focusing on our environmental, social and governance commitments, we continue to search for new and creative ways to contribute to advancing the SDGs on both the global and local levels

he automotive sector is changing, Fiat Concept Centoventi, the ABC of cars: Modular design and it’s changing fast. This poses Affordable But Cool The Fiat Concept Centoventi is inspired by continued challenges within the At the 2019 Geneva International Motor Show, Italian design and embodies the Fiat brand’s industry to develop technologies that we revealed the Fiat Concept Centoventi ‘less is more’ concept. This means eliminating Taddress consumer expectations, driven by (meaning 120 in Italian), to celebrate the 120th everything unnecessary and complex; providing a growing demand for safety, convenience, anniversary of the Fiat brand. more space for people; more attention to the affordability, mobility-as-a-service and The Fiat Concept Centoventi represents environment and the community; a tailor-made connectivity. our expression of a more sustainable mobility battery range and more attention to the brand’s At Fiat Chrysler Automobiles (FCA), we experience: it features affordable electric DNA in terms of values, look and feel. have been working on a personal mobility mobility technology with a range that is approach that meets customer needs while extendable from 100 km to 500 km via a Designed on demand: striving to minimise the impact on the modular and replaceable battery system, useful ●● It is a ‘blank canvas’ that can be customised environment. During 2018, we invested for long trips. This concept projects the brand to fit the owner’s personal taste or needs at approximately €3.5 billion in research and into the future, ‘democratising’ everything any phase of its life. development at 46 R&D locations around appealing and trendy: ‘The ABC of cars: ●● The exterior can be ‘dressed’ by the the world. Affordable But Cool.’ customer using the ‘4U’ programme, with 59

FIAT CHRYSLER AUTOMOBILES

a choice of four roofs, four bumpers, four wheel covers and four external wrappings. ●● The interior can be chosen from among the 120 add-ons and the space adapted according to customers’ needs. ●● Various parts of the interior are created on the ‘plug and play’ principle. The dashboard has small holes into which a variety of add- ons, of any shape and function, can be fitted, thanks to the patented interlocking mounting system. ●● The passenger seat can be easily replaced by a toddler’s seat, a basket, a PC docking station or just removed to give more room history, and the first real example of affordable By promoting eco-friendly driving, we help inside the car. mobility for all. our customers to try to reduce the impact of ●● The seats are innovative, too, with a bare To celebrate the brand’s 120th anniversary, their vehicles during their usage phase. back structure made from eco-sustainable Fiat launched the new 500 Family 120th at materials. the 2019 Geneva International Motor show. Fiat Chrysler Automobiles (FCA) is a global automaker that ●● Some basic accessories can even be Available in selected European countries, these designs, engineers, manufactures and sells vehicles in a portfolio produced using a 3D printer at home. special edition versions of the 500, 500X and of exciting brands, including Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep ,Lancia, Ram and Maserati. 500L represent the most connected 500 family ® It also sells parts and services under the Mopar name and This concept car brings an affordable ever. FCA’s responsibility to foster innovation operates in the components and production systems sectors family-oriented brand’s approach to mass is also represented by this model range, which under the Comau and Teksid brands. mobility into the near future, disrupting the opens up a new chapter in terms of connectivity entrenched ideas of electric technology with that, according to Fiat, must always be simple, For more information regarding FCA, please visit ingenuity and versatility. ‘democratic’, safe and user-friendly. www.fcagroup.com The Uconnect 7” HD LIVE system, for Fiat 120th anniversary example, allows customers to stay connected The Fiat brand’s tradition is to stand out from the to the information they want and need, while crowd, as the original Fiat 500 did in the 1950s. remaining focused on the road and engaged in It sparked an industrial and cultural revolution, driving. Uconnect offers an additional function going beyond the traditional boundaries in that encourages eco-friendly driving through looks, design and engineering to become a awareness campaigns and software tools like UNA-UK thanks Fiat Chrysler Automobiles for its masterpiece unlike anything else in automotive eco:Drive. generous support for this publication

The new 500 Family 120th 60 SUSTAINABLE ECONOMY © UN Women/Ryan Brown © UN Women/Ryan Unequal under the law Too many countries enshrine different legal rights for men and women. Why is this, and how can we rid legal systems of this long-standing prejudice?

By Phumzile Mlambo-Ngcuka, discriminatory laws and lack of legal with ‘second class’ citizenship. Children Under-Secretary-General, United Nations protection, often in complex, intersecting can be left stateless when their mothers are and Executive Director, UN Women ways. This puts them at strong risk of being unable to pass on their nationality to them, left behind but, conversely, provides a direct especially when children cannot acquire their ne of the areas where we have the route to change. World Bank analysis this fathers’ nationality. As adults, they may not greatest potential to accelerate year has shown that a typical economy be able to get paid work, move freely, open Ogender equality and women’s gives women only three-quarters of the a bank account, own or inherit property or empowerment is in tackling laws that legal rights of men, but that where there fully participate in society. discriminate against women and girls. There was reform, more women worked and were Discriminatory laws can also exacerbate is both scope and incentive for improvement. better paid. inequalities in families by affecting the extent Discrimination in law is commonplace. Legal discrimination affects women to which women can make choices and It can take the form of different standards and girls of all social classes and contexts, exercise agency. Discriminatory personal for women and men in passport application, leaving them vulnerable to a wide spectrum status laws impede equality in marriage, the transfer of nationality to a child or of human rights violations. For example, divorce, inheritance and parental authority foreign spouse, participation in court lower levels of gender equality in national and responsibilities. These shortfalls often proceedings, receipt of inheritance or choice laws are associated with fewer girls enrolled overlap with gaps in other rights, such as the of employment or marriage partner. Often in primary and secondary education, doing right to be protected from various forms of these laws reflect long-standing exclusion of skilled work, owning land and accessing violence, the right to food security, and girls’ women and girls from the spaces where laws financial and health services. They are also right to an education. are designed, implemented or studied. The linked with more women facing domestic, On the other hand, laws that promote result has been to normalise – and legitimise family and sexual violence. gender equality can yield multiple dividends – gender inequality. When a state allows gender discrimination for women and societies. When women can More than 2.5 billion women and in its nationality laws, it is implicitly inherit on an equal basis with men, mothers girls around the world are affected by endorsing the notion of women as inferior, can then better invest in the education of

SUSTAINABLE DEVELOPMENT GOALS 2019 SUSTAINABLE ECONOMY 61

UN Women’s ‘Gender Road Project’ is a 124-mile road project that stretches between the townships of Batchenga, Ntui and Yoko, Justice for all? in central Cameroon. In an impoverished area, where women have limited access to land or ●● Women do not have the same rights as men to apply for a passport in 37 countries finance, the project teaches them financial and and travel outside their home in 16 countries. entrepreneurial skills and improved farming techniques, and facilitates their access to public ●● Nearly 40 per cent of countries have at least one constraint on women’s property services and land rights rights. ●● In 35 of 187 countries, widows are not granted the same inheritance rights as widowers. ●● 38 countries prevent daughters from inheriting the same proportion of assets as sons. ●● 65 countries restrict women from working in mining. Women also face job restrictions their daughters. This in turn can increase in industries such as manufacturing (47 countries), construction (37 countries), energy the average age of marriage, because girls (29 countries), agriculture (25 countries), water (26 countries) and transportation who stay in school are less likely to marry (19 countries). early. Avoiding early marriage can limit early childbirth and widowhood, with Source: World Bank, Women, Business and the Law 2019: A Decade of Reform substantial physical and socio-economic benefits. Instead, girls are better able to look forward to decent work and a sustainable future income. The McKinsey Global Institute recently estimated that women’s equality in wages and labour force Achieve gender equality participation could increase global gross domestic product by up to $28 trillion by and empower all women 2025. This is an opportunity that we cannot afford to miss. and girls

A need for universal action Law reform more broadly, and the repeal or An estimated 650 million One in three girls aged 15 to 19 had been subjected revision of discriminatory laws specifically, girls and women today were to female genital mutilation in the 30 countries married in childhood where the practice is concentrated, compared to is inherent to the achievement of gender nearly one in two around 2000 equality. This is itself a requirement for realising the transformative ambitions of the 2030 Agenda for Sustainable Development. 650 Yet progress in eliminating discriminatory million laws has so far been uneven. That is why we 1 in 3 want universal action now. Globally, in 2017, an estimated To this end, UN Women, the African 21 per cent of women between Union, the Commonwealth, Inter- 20 and 24 years of age reported 3 x Parliamentary Union, Organisation that they were married or in an Internationale de la Francophonie and informal union before age 18. Rates of child marriage have Secretaría General Iberoamericana have continued to decline around the Women spend about jointly issued a strategy to fast-track Southern Asia world. In , a girl’s three times as many the repeal of discriminatory laws in 100 risk of marrying in childhood has hours in unpaid dropped by over 40 per cent countries. This will address the legal needs domestic and care since around 2000 of over 50 million women and girls between work as men 2019 and 2023, building on existing related programmes and partnerships and sharing platforms, resources and technical expertise. Gender inequality continues to hold women back and deprives them of basic rights and Together, we have the potential to achieve opportunities. Empowering women requires addressing structural issues such as unfair social norms and attitudes, as well as developing progressive legal frameworks that gender equality in the law and more equal promote equality and prosperous societies. To get there will take strong political will, dedicated Source: The Sustainable Development Goals Report 2018, UN investment and strategic partnership.

SUSTAINABLE DEVELOPMENT GOALS 2019 62 SUSTAINABLE ECONOMY

Fair tax for development Recent high-profile tax avoidance and evasion cases suggest an urgent need for international tax reform

By Martin Hearson, Research Fellow, their positions in the global economy and International Centre for Tax and the interactions between their tax systems Development and those of other countries, are also not captured by national-level aggregate e can’t meet the Sustainable indicators. Development Goals (SDGs) The last ten years have seen a huge growth Wwithout taxation. To bridge the in awareness of two problems related to SDG financing gap, developing countries those interactions: tax evasion by wealthy will need to tax more and better. The donor individuals who hide their income in tax community has already stepped up its efforts havens, and tax avoidance by multinational to support them, committing to double its companies that move their taxable profits to collective provision of technical assistance on low-tax jurisdictions. Estimating the amounts taxation between 2015 and 2020. lost is difficult, but most attempts to do so This new attention on taxation is a positive highlight that developing countries are more development, but it does carry with it some vulnerable. Fixing this problem is an essential risks. Tax is primarily integrated into the part of any package to increase tax revenues SDGs through target 17.1, to “strengthen in developing countries, and it requires domestic resource mobilization, including cooperation among states. These concerns are particularly important through international support to developing The rules of international tax cooperation at a time when donor countries – most of countries, to improve domestic capacity for have been designed by and for developed them members of the Organisation for tax and other revenue collection”. countries over the past century, and there are Economic Co-operation and Development Measuring this using the ratios of tax good reasons to question their suitability for (OECD) – are investing in much-needed revenue to national income and to total developing countries. Tools designed to help technical assistance for developing countries. government revenue, as has been decided developed states prevent tax avoidance and There is a risk that such assistance may within the SDGs framework, is dangerous. It evasion can make life harder for developing encourage the adoption of tools that are not focuses on the quantity of tax raised and not countries. They are not always targeted in developing countries’ best interests. how it is raised. Yet how tax is raised is where at the biggest problems facing them, not Certainly, the OECD’s position as the many of the risks and benefits are most always appropriate to their more constrained dominant institution of international tax significant: from exacerbating inequality to administrative capacity, and they contain cooperation seems inconsistent with efforts encouraging or discouraging investment. Tax within them a bias in favour of developed to design institutions that meet developing can also help to reduce inequalities within countries’ interests. According to a press countries’ needs. This has been borne out and between societies (SDG 10), support release by a group of finance ministers from repeatedly. An example can be seen in new stronger and more accountable political francophone developing countries, “the rules that require companies to disclose a institutions (SDG 16) and – as in the case global tax system is stacked in favour of country-by-country breakdown of their of environmental taxes – steer economic paying taxes in the headquarter countries of financial information to tax authorities, behaviour in a more sustainable direction transnational companies, rather than in the which can be used to detect potential (SDGs 12 to 15). countries where raw materials are produced. instances of abusive tax planning for further Structural constraints on developing International tax and investment treaties investigation. Multinationals are only countries’ abilities to raise revenue, including need to be revised.” required to disclose this information to their

SUSTAINABLE DEVELOPMENT GOALS 2019 SUSTAINABLE ECONOMY 63 © Andrew Biraj/Reuters © Andrew home countries. However, the developing Developed countries did not support any Ship-breakers in Chittagong, Bangladesh. A recent countries in which they invest are forced to action that would undermine the dominant report by the Tax Justice Network uses the case of British American Tobacco to highlight ways the international go through a series of steps to obtain them, position of the OECD, a group of 36 tax system allows inequitable distribution of revenue. making it exceedingly difficult to access wealthy democracies. As another example, According to TJN, methods used by BAT will deprive information that the OECD itself recognises four years into the SDG period, there is six developing countries, including Bangladesh, of an estimated £540 million between now and 2030 to be useful. still no agreement on how to incorporate tax matters into the measurement of SDG Contentious subject target 16.4 on “illicit financial flows”. but remains an important vehicle to take Because their interests do not always align, Many developing countries, alongside up developing countries’ concerns. Second, taxation has been a contentious subject in campaigners, consider tax avoidance by the OECD has begun to open up, creating the relationship between developed and multinational companies to be a major new bodies in which developing countries developing countries during the SDG contributor to such flows. But this view is can participate on an equal footing. Third, process. At the Third United Nations not shared by the home countries of those there are signs that developing countries Financing for Development summit in Addis multinationals. are beginning to work together to shape Ababa in 2015, geared around filling the SDG There are three reasons to believe that the decisions made by these institutions. financing gap, debate over the institutional this situation might change in the future. The Group of 24 developing countries has arrangements for international cooperation First, there is already a United Nations been actively promoting its own vision in in tax matters proved so divisive that it body with a remit to design international current discussions at the OECD over the jeopardised the outcome of the summit. instruments that better suit developing taxation of digitalised business models. This Developing countries acting through countries’ needs. The Committee of Experts development is not before time: to meet the the Group of 77 wanted a stronger role on International Cooperation in Tax Matters SDGs, we need international tax rules that for the United Nations in tax cooperation. plays second fiddle to the OECD for now, better reflect developing countries’ needs.

SUSTAINABLE DEVELOPMENT GOALS 2019 64

LIECHTENSTEIN BANKERS ASSOCIATION

Shaping the future by integrating the SDGs

Funding the SDGs exceeds the capacity of public funds – mobilising private wealth will be critical

he record-breaking summer of 2018 has clearly poverty have been combined in a single agenda. It aims to shown that climate change is taking place and achieve an all-round improvement of the future: the future that measures are urgently needed. However, of our planet. “No one shall be left behind”, emphasised our society is facing major challenges from then UN Secretary-General Ban Ki-moon when adopting Tan environmental, social, technological and political the SDGs. perspective. We are the first generation to destroy our The holistic dimension of this sustainability approach planet, and we are the last that can save it. We must shows that new ways of thinking and acting are urgently all fulfil our social and corporate responsibilities and necessary. Only then can a compromise be reached contribute to a sustainable future. between sustainability and development. But the true The financial sector, and banks in particular, can and test is yet to come – namely implementation. The UN can Simon Tribelhorn, must play a central role in the necessary transformation only achieve these goals if all actors play their part: states, CEO, Liechtenstein process, mobilising and channelling the financial businesses, local communities and each individual person. Bankers Association resources needed. The question will soon no longer be, ‘why sustainable?’, but rather, ‘why not?’. A question of allocation The inclusion and mobilisation of private wealth is UN SDGs are key crucially important for reaching the SDGs. According In 2015, the UN adopted Agenda 2030, with the backing to the consulting firm PwC, the annual global investment of all Member States. The core components of this agenda volume required to achieve these goals is some are 17 Goals for sustainable development, the SDGs. For US$7 trillion. Currently, only one seventh of this amount is the first time, sustainable development and combating financed by public funds. 65

LIECHTENSTEIN BANKERS ASSOCIATION

This means a substantial portion must and an interest in changing the environment come from the private sector. Enough capital and society for the better. Millennials are not would be available in principle, given that just interested in short-term performance, but ABOUT THE even just the assets managed by institutional also in the question of whether their money is investors around the world amount to about being invested in a meaningful and responsible LIECHTENSTEIN US$83 trillion. Private investments and way. And they are the same generation for BANKERS ASSOCIATION investments by institutional investors could whom use of digital technologies is a matter of accordingly be employed worldwide to end course in everyday life. Established in 1969, the Liechtenstein hunger, ensure education, promote health Digitalisation and sustainability are thus Bankers Association (LBA) is the and wellbeing, secure access to affordable more than just trends, they are integrated domestic and international voice of and clean energy, support innovation and issues that financial firms absolutely have to the banks operating in and out of infrastructure projects, and fund climate come to grips with in order to survive in the Liechtenstein. It is one of the country’s protection measures. marketplace in the longer term. Neither is most significant associations and Asset owners will therefore be critical for more pertinent than the other, for both will plays a key role in the successful a more sustainable future. Their preferences substantially determine the industry agenda development of the financial centre. ultimately decide how capital is channelled into over the next few years. Member interests are pursued in the economy. At present, there is no commonly Interestingly, digitalisation and accordance with the principles of agreed definition as to when an investment can sustainability are increasingly behaving like sustainability and credibility. be considered ‘sustainable’. twins. Progressive digitalisation will simplify As a member of the European The taxonomy that is currently being many things. On the one hand, it will help Banking Federation (EBF, developed under the leadership of the European us to automate processes, reduce costs and www.ebf.eu), the European Commission aims to overcome this lack of achieve positive economies of scale. On the Payments Council (EPC, www. comparability and the inherent uncertainty by other hand, the fact that the effective impact europeanpaymentscouncil.eu) and establishing an EU-wide classification system. of an investment or portfolio (in terms of ESG the European Parliamentary Financial It will be essential that we get this right. With factors) was difficult to quantify and measure Services Forum (EPFSF, www.epfsf. a robust and workable taxonomy, banks was an obstacle for a long time. org) the Liechtenstein Bankers and other stakeholders will be better able to With the help of digitalisation, this will Association is a member of key enhance awareness, to deliver on investors’ be much easier and effective in the near committees at the European level and preferences and to improve investment advice future. The availability of a comparable data plays an active role in the European and suitability. set will allow asset managers to translate the legislation process. Furthermore, in order to overcome the data into financial investment metrics. Thus, Since 2017, the LBA has also been a challenges we are facing and to achieve the the ongoing digitalisation of the financial member of the Public Affairs Council SDGs by 2030, a coordinated approach across industry is undoubtedly playing an increasingly (PAC, www.pac.org) with offices in sectors and cooperation between the public important role. Sustainability is the what, Washington and Brussels. Since April and private sector is needed as never before. while digitalisation – and especially blockchain 2018, it has also been a member of This includes blended finance as a critical tool technology – will in future heavily influence and the international network Financial that can mitigate early-entrant costs or project facilitate the how. Centres for Sustainability (FC4S, risks, helping re-balance risk-reward profiles www.fc4s.org). for pioneering investments and unlock those In a nutshell trillions – and as a result close the funding gap. This all demonstrates that there is a need for action, information and education. The financial Registered in the EU Transparency ‘Next-Gen’ plays an important role industry plays an essential role. It is apparent Register with number: According to the Global Impact Investing that to overcome these obstacles, leadership at 024432110419-97 Network (GIIN), to which 1,300 impact the top of every financial institution is needed, investors belong, the volume of impact-related driving change and accepting responsibility – for investments has more than doubled in recent ourselves and for future generations. years to an estimated US$502 billion. This It is important that sustainability is increase is primarily attributable to millennials. embodied in the corporate culture and at the Currently, approximately 75 per cent of strategic level. The tone must come from the millennials take into account ESG principles top. Ongoing digitalisation opens up new when investing. In addition, about 460 opportunities to tackle all these issues, be it billionaires will pass on roughly US$2.1 trillion to having correct data available, everywhere at the next generation over the coming 20 years. anytime; new educational tools; innovative This means that high net worth individuals, and business and working models; or more UNA-UK thanks the Liechtenstein Bankers in particular the young generation, will also play sustainable financial products and services. Association for its generous support a major role. This generation is less motivated It will also enable us to reach out to new- for this publication by material wealth, being more driven by values generation clients via innovative channels. with alldevelopment needs but isn’tasubstitute for public fundsandisn’tcompatible below whatisneeded.Private investment can helpfillthe gap The evidence shows thatpublic fundingfor theSDGsiswell gap finance the Filling SUSTAINABLE DEVELOPMENT GOALS 2019 66 SUSTAINABLE ECONOMY

M Addis Ababa Action Agenda financing Addis AbabaAction Agendafinancing deadline, countrieshaveyetto fulfil their 10 yearstogobeforetheGoals’ 2030 private resources.Butwithjust over mobilisation oflarge-scalepublic and By By Development SolutionsNetwork (SDSN) Director for SDGFinancing, UNSustainable Vanessa Fajans-Turner , Managing requires the sustained requires thesustained Development Goals(SDGs) eeting theUNSustainable

Seven-year-old Edeline Jean stands on vulnerable populations. Official financing increase their budget outlays significantly the foundation of the new earthquake- and flows with SDG impacts include official to achieve the SDGs, significantly hurricane-resistant building at Caimite National School, Haiti, which was funded by UNICEF. development assistance and other official outstripping their current and potential Although there are many examples of private flows. domestic revenues. These countries’ public investment in the education sector, The remainder of SDG financing financing needs are between $300 billion its utility is constrained by the need to put investors before ‘clients’ flows come from private or blended SDG and $528 billion per year between now and financing. Private SDG financing includes 2030, or approximately 40 to 50 per cent of private development assistance from their GDP. commitments, while many lack the scale of individuals and charities, and other private The IMF concluded that even if LICs resources necessary to achieve the Goals. flows (the main subject of this article). increased their tax-to-GDP ratios by five Filling this financing gap will require a Other private SDG flows refer to all percentage points of GDP within the broad range of interventions: not only SDG-related financing at market terms next 10 years, they would still only be increased public and private investments, from private-sector resources. These able to finance one third of the additional but also public service improvements, include international bank and bond $528 billion that they will need to spend in regulatory changes, transfers to vulnerable lending and, notably, direct investment. 2030 to fund the core work of achieving populations and behavioural changes. Blended finance is a hybrid category that the SDGs. Each of these intervention categories is critical for SDG success. Yet in the face of domestic resource mobilisation As private markets comprise the largest parts challenges, static or declining aid levels, rising debt burdens and increased trade of the economy in most countries, unlocking their tensions, policymakers have increasingly resources to fill development financing gaps targeted private finance as among the most promising areas for funding growth. is widely viewed as essential At the UN Financing for Sustainable Development Forum in April 2019, the UN Secretary-General, President of refers to philanthropic, public or official Given the size of the remaining the General Assembly and President of development finance deployed to mobilise financing gap, most SDG financing efforts the Economic and Social Council all private capital for development purposes. emphasise resource mobilisation rather emphasised the importance of unlocking than assessing resource needs. While more and better-aligning private capital for Assessing SDG financing needs this is hugely important, SDG financing SDG advancement. Although the limited availability of data needs assessments provide critical data and As private markets comprise the and standardised criteria make SDG needs guidance to policymakers, investors and largest parts of the economy in most assessments difficult, the world’s estimated donors. Needs assessments can facilitate countries, unlocking their resources to financial needs for achieving the SDGs are greater alignment between investment fill development financing gaps is widely between $5 trillion and $7 trillion a year. policies, financial flows and financing needs viewed as essential. However, so far the Having found approximately $3 trillion to enable and incentivise financing for quantity of private capital invested in and so far, we need an extra $2 trillion to $4 the areas with the greatest needs and the aligned with the SDG agenda has been trillion a year between now and 2030. potential for social returns. limited. These are both for reasons that While an objectively large figure, this investors can rectify and others that they, amount constitutes just a small fraction Mapping private finance to SDG needs alone, cannot. of the $87 trillion in gross world output, Just as financing needs assessments according to figures from the International are important for optimising SDG SDG financing flows Monetary Fund (IMF). resource plans, so too are reviews of There are multiple categories of SDG For the world’s 31 low-income countries financing sources’ compatibility with financing, the sum of which includes all (LICs), which have the furthest way to the development needs they are mobilised outlays of both public and private domestic go, and 51 lower middle-income countries, to meet. and international funds for Goal-related the SDSN estimates that the SDG funding The SDGs include multiple provisions purposes. gap is between $1.4 trillion and $3 trillion for access to merit goods and public Public SDG financing includes all per year. goods, as well as to protection from SDG-related budget or state-owned In late 2018, the IMF and SDSN found natural monopolies. These entitlements enterprise funding for capital and operating that the world’s 59 poorest countries face are traditionally provided with public expenditures, as well as for transfers to a particular challenge: they will need to financing, given their recognition as

SUSTAINABLE DEVELOPMENT GOALS 2019 68 SUSTAINABLE ECONOMY

fundamental rights to which all people set them apart. Given LICs’ particular The UN Conference on Trade and should have access regardless of ability need for external financing, it follows that Development’s World Investment Report to pay, and the tendency of the market to SDG-aligned flows would predominantly 2015 estimates that a single type of profit- under-provide or under-regulate them. target LICs. This is not the case for either shifting cost developing countries around There are many examples around the official or foreign private financing flows, $100 billion a year in lost annual revenues, world of private investment in these types of though limited data make it difficult to though additional research must be done goods and services, notably in the healthcare draw conclusions about corresponding in this area to produce more data and and education sectors. Acute shortages of levels of domestic private investment and estimates. public and official funding in these areas philanthropy for development. The world agreed upon an ambitious, mean the trend is likely to increase. Yet the The Organisation for Economic Co- urgent and achievable agenda in 2015 to impact and utility of private finance in these operation and Development (OECD) which leaders committed political and areas is constrained by its prioritisation of reports that LICs, which are home to financial capital. To achieve this goal, the returns over access, and its accountability to over 70 per cent of the world’s population, UN has challenged the world to shift the investors over ‘clients’. received just 20 per cent of official scale of the SDG financing conversation Recognising this, there are multiple development assistance in 2017, taking from billions to trillions. The magnitude pillars of the 2030 Agenda with which in only $29 billion of the $147 billion of this mandate and the persistent SDG private finance and public–private financing allocated as aid for that year. funding shortfall have focused stakeholders partnerships are well aligned. These include infrastructure funding for roads, rail, power and fibre-optic networks. The Global To improve our understanding of where and how to focus Infrastructure Hub estimates that Africa financing mobilisation efforts, more research is needed on alone will require $3.3 trillion to meet its SDG infrastructure goals by 2040, most of the country-level funding needs to achieve the SDGs which will be spent on road and electricity network construction. Governments and international groups Similarly, a 2018 OECD report on on matters of funding quantities, like the G20 have taken many steps to private philanthropy for development found sometimes at the expense of funding facilitate increased private investment in that philanthropic flows also skew away qualities, particularly with regard to how infrastructure projects, but so far there from the world’s poorest countries: just financing sources and incentives align with has been no significant growth in private one third of private development assistance the 2030 Agenda. investment levels. As the UN’s 2019 Report funds go to LICs and 67 per cent to There is no question that private capital on Financing for Sustainable Development finds, middle-income countries, in which only 22 has a significant role to play in filling the the public sector “still largely dominates per cent of the world’s population resides SDG funding gap. But its mobilisation infrastructure spending in low and middle- (high-income countries are not eligible for should be as a complement to public and income countries, accounting for 87 to 91 development assistance funds). official financing flows, not a substitute per cent of infrastructure investments”. Private investment flows – and foreign for them. To improve our understanding Private investment in unregulated natural direct investment (FDI) flows in particular of where and how to focus financing monopoly sectors can also endanger SDG – are similarly concentrated outside the mobilisation efforts, more research is progress by driving prices up and wages poorest countries. Only five per cent of needed on the country-level funding needs down in the absence of competition. Since total international private capital flows for to achieve the SDGs. The SDSN is doing 1990, the average wage share of world gross developing countries go to LICs. this needs assessment work as co-chair of product has fallen from 57 to 52 per cent, Finally, the geography of financial flows an SDG costing group initiative it launched largely due to market concentration. This matters as much for what flows out as with the IMF, OECD and World Bank as has exacerbated income inequality and for what flows in. As the percentage of co-chairs and leaders. undermined SDG progress. FDI in developing countries has grown As UN Secretary-General António relative to those countries’ gross domestic Guterres neatly put it when opening the Geographic targeting of development product (roughly tripling since the 1980s), April 2019 Financing for Development finance the significance of FDI as a source for tax Forum: “Policy frameworks are key While all countries have significant areas revenue has also grown. to reducing risks, creating an enabling for improvement and face their own However, pervasive profit-shifting by business environment, incentivising unique challenges in achieving the SDGs, private investors has cost countries tens investment in public goals, and aligning the shortfall that LICs face between their – even hundreds – of billions of dollars, financial systems with long-term sustainable domestic revenues and SDG resource needs hitting poor countries hard. development.”

SUSTAINABLE DEVELOPMENT GOALS 2019 SUSTAINABLE ECONOMY 69 © Adriano Machado/Reuters © Adriano Responsible investment means action and accountability The initiative between Climate Action 100+ and Royal Dutch Shell has demonstrated the potential power of investors. All asset owners committed to responsible investing must exercise shareholder power in support of the Paris Agreement and the SDGs

By Adam Matthews, Director, Ethics Over 320 investors, collectively representing of the Parties to the UN Framework and Engagement, The Church of England $33 trillion in assets, now support the Convention on Climate Change (COP24) Pensions Board and Co-Chair, Transition Climate Action 100+ (CA100+) initiative. in Katowice, Poland in December 2018, Pathway Initiative (TPI), and Rory Sullivan, This is an investor-led engagement to ensure investors managing similar size of assets Chief Technical Advisor, TPI the world’s largest corporate emitters of greenhouse gases (GHGs) take necessary Relatives and friends hold a vigil in Brumadinho, ustainable Development Goal (SDG) action on climate change. Brazil for the victims of the Vale tailings dam collapse. Following the disaster, investor action coordinated by 13 calls on us to take urgent action to Similarly, investors have also supported TPI resulted in the International Council on Mining and combat climate change and its impacts. stronger policy action by governments. Metals agreeing to set up an independent panel to set S safety standards for tailings facilities Investors are responding to this challenge. During the most recent Conference

SUSTAINABLE DEVELOPMENT GOALS 2019 70 SUSTAINABLE ECONOMY

called on world governments to achieve the emissions reductions of the magnitude to make bold statements on carbon Paris Agreement’s goals and to accelerate envisaged by the Paris Agreement will performance knowing that they are debating private-sector investment in the low-carbon require considerable capital investment by on their terms and that investors are transition. both the public and private sectors. unlikely to be able to properly hold them to The drivers for action are about more account. Actions as well as words than the investment case. Asset owners have It has not been straightforward for This unparalleled coordination and responsibilities to their beneficiaries and to asset owners to assess whether company mobilisation by investors is beginning to wider society. Ultimately, asset owners not strategies sufficiently address the climate have a credible impact as investors back only need to provide pensions to retirees risks that are embedded in business models, words with concrete actions. Perhaps but must also ensure that they have not or whether companies are positioning the most striking example has been the harmed the world these individuals will themselves appropriately for a low-carbon December 2018 joint statement between retire into. Asset owners, therefore, need economy and to meet the goals of the Paris the oil and gas major Royal Dutch Shell to take a long-term perspective on climate Agreement. and institutional investors operating under the banner of CA100+ and the European Institutional Investors Group on Climate Asset owners occupy a privileged and influential role in Change (IIGCC). The joint statement was the first time that investors had come the investment system. Through their commitments and to a common position with an oil and gas actions on climate change, they can drive change through company about the nature of their transition to a Paris-aligned future. the system and in corporate practice and performance The statement committed Shell to reduce its ‘net carbon footprint ambition’ by around half by 2050, to lock the ambition change, and its implications for their assets It has also been difficult for asset owners into rolling intermediate targets, to link and liabilities. to demonstrate to their own beneficiaries, these targets to executive remuneration, and Asset owners also occupy a privileged clients and stakeholders that their to publish annual reports on progress. Shell and influential role in the investment interventions are making a meaningful also committed to review its membership of system. Through their commitments and contribution to the goals of the Paris industry associations that lobby on climate actions on climate change, they can drive Agreement – or that they are effectively change-related issues, to check that this change through the system and in corporate managing the risks and opportunities lobbying aligns with Shell’s stated support practice and performance. It is a uniquely presented by the transition to a low-carbon for the goals of the Paris Agreement. important position that is beginning to economy. These outcomes could not have been demonstrate what can be achieved. achieved without the support of investors Since the joint statement with Shell, Clear objectives in CA100+ and IIGCC. The process further agreements have been reached These issues are important. If they are and outcomes have also shown that it is by investors with major coal producer addressed well, they have the potential to possible to align the long-term interests of Glencore on capping its coal production, unlock far greater capital and support for institutional investors with a company that and with HeidelbergCement and a range the Paris Agreement. Investors – both the needs to manage an ambitious multi-decadal of other German companies to review asset owners at the top of the investment transition – in effect turning an oil and gas their corporate climate lobbying. Other chain and their investment managers – need company into an energy provider. corporate commitments are expected in the to recognise that these are, fundamentally, coming months as investors ramp up their questions of corporate and societal The role of asset owners engagement. governance. Asset owners such as pension funds have However, asset owners have faced How do boards ensure that companies been at the forefront of these efforts. There challenges in delivering on this leadership are run in the interests of their investors/ are various reasons for this. Some relate role. Corporate disclosures on climate owners? How do we – investors, to the investment risks and opportunities change practice and performance remain governments, stakeholders and so on – presented by climate change. inconsistent and incomplete. The ensure that companies are run in a way that The transition to a low-carbon economy consequence is that it is often not clear to aligns with the short and long-term interests may affect company cash flows and profits. investors what the transition to a low- of society? Energy-intensive sectors, fossil fuel- carbon economy looks like for individual Ultimately, companies should be clear based industries and high GHG-emitting companies or for key energy-intensive about their: sectors may see assets stranded. Delivering sectors. This has allowed companies ●● purpose (what they are and what they

SUSTAINABLE DEVELOPMENT GOALS 2019 SUSTAINABLE ECONOMY 71

Figure 1. Carbon intensity pathways (emissions from operations, direct and indirect, plus from use of sold products) for nine of the top ten oil and gas companies, versus low-carbon benchmarks

80 /MJ) /MJ) 2 70 /MJ) 2

20 Intensity of energy supply (gCo of energy Intensity intensity of energy supply (gCO of energy intensity 2 2 CO

CO 10

0 2015 2020E 2025E 2030E 2035E 2040E 2045E 2050E

Exxon Chevron Shell BP

Total ConocoPhillips EOG Resources Occidental

Eni Paris Pledges 2°C Scenario Beyond 2°C Scenario

want to achieve); For companies in high-impact sectors, TPI allows asset owners to hold ●● goals (their objectives and targets, and TPI evaluates the quality of companies’ investment managers to account for the how these are to be measured); management of the most significant GHG companies held in their portfolios and for ●● strategy (how they are going to deliver emissions associated with their business. the actions being taken by the investment on their purpose, objectives and targets It also assesses how these companies’ managers to reduce the emissions from – both the actions they will take to planned or expected future carbon these companies. Importantly, TPI also deliver on their goals and the investments performance compares to international allows beneficiaries and other stakeholders they will make to ensure the goals are targets and national pledges made as part of to hold asset owners to account for their delivered); the Paris Agreement. investments and for the effectiveness of ●● main risks to their purpose, goals, strategy This allows investors to clearly and their engagement with companies. – and how these are to be managed; and unambiguously identify those companies Ultimately, if asset owners want ●● performance against their objectives and whose current and expected future investment markets to take responsible targets. emissions align with the Paris Agreement. investment seriously, then asset owners As TPI data are updated annually, they must start by demonstrating their own Transition Pathway Initiative allow companies to be held accountable commitment to responsible investment, and The Transition Pathway Initiative (TPI) is for the delivery of the goals they set for then driving this through the investment an asset owner-led initiative co-chaired by themselves. chain. Through aligning their investments the Church of England Pensions Board and Figure 1 (above) presents an example with the goals of the Paris Agreement, and the Environment Agency Pension Fund. It from TPI’s recent analysis of the oil and using their unique position as owners of has been established to enable investors to gas sector. TPI has prepared similar analysis the companies to drive change in corporate hold companies to account for the goals that for many of the other high-emitting sectors behaviour, asset owners can play a key role they set themselves and for the actions that such as auto, electricity, steel, aviation and in enabling society to meet the challenge of companies take to deliver these goals. cement. SDG 13.

SUSTAINABLE DEVELOPMENT GOALS 2019 72

HERMES INVESTMENT MANAGEMENT Shareholder engagement on health and wellbeing

There are challenges and opportunities in the global health and wellbeing sector

f the 17 global Sustainable Development of women were obese in 20163 – representing a threefold Goals (SDGs) for 2030 set by the United increase since 1975, according to the World Health Nations (UN) General Assembly in 2015, Organization (WHO). We are therefore engaging with food SDG 3 includes arguably some of the most and beverage companies around their marketing practices Ochallenging milestones to reach. and the nutritional characteristics of their portfolio. SDG 3 relates to health and wellbeing. Despite the Aligned with these issues is the structural issue of overall population leading a healthier lifestyle than it healthcare provision itself. One matter is the serious did ten years ago,1 non-communicable diseases are on shortage of basic medical provisions and services in the rise, costing trillions in treatment. Many of these developing countries. The WHO reports that, while diseases are avoidable. Similarly, infectious diseases over 80% of medical supplies are donated to emerging Kimberley Lewis, remain a significant challenge, even those for which markets, only 10-30% of them are actually being put Director, Engagement, cures exist. to use. It also reveals that many of these donations Hermes EOS According to the UN: “Overcoming disease and are either malfunctioning or incompatible with local ill health will require concerted and sustained efforts, power systems.4 To that end, we engage with medical focusing on population groups and regions that have equipment companies around their market access been neglected.”2 strategies in the knowledge that simply donating old kit We recognise that businesses need healthy does not help address the core problem. workforces to maintain and enhance productivity These examples are just the tip of the iceberg. levels; they also of course need thriving consumers. To Different societies are contending with rising and ageing that end, we believe there is much that all businesses populations and the repercussions for labour markets and can do to promote healthy behaviours and support the need for companies to make accommodations for mental resilience, from encouraging healthy lifestyles what are now commonly multi-generational workforces. to establishing disease prevention and treatment The challenges are daunting, and the solutions multi- programmes. There is also of course a significant faceted, yet we maintain that all companies have a role to responsibility on those companies in the healthcare play and can make a difference. Will Pomroy, industry – to consider the overall global health burden in Director, Engagement, Hermes their R&D and pricing strategies. Some challenges may Investment Management present commercial opportunities; others might not, but a broader duty towards society remains. THE IMPORTANCE OF TARGET 3.7 Challenges to address As an SDG-focused investment manager we believe we are in a strong position to help address some of the Within SDG 3 is Target 3.7, in which the UN calls challenges faced. for “universal access to sexual and reproductive One of the core challenges when combating health-care services, including family planning, illnesses is the declining efficacy of some medicines. It information and education, and the integration is absolutely necessary that new varieties of antibiotics of reproductive health into national strategies and antivirals are introduced to treat drug-resistant and programmes”.5 conditions; however, these new drugs are in short supply This is an issue with relevance to all countries and R&D directed towards developing replacements but, of course, particularly pertinent to those appears to be decreasing – we are thus pressing in lower-income countries where access to pharmaceutical companies to maintain investment in modern contraception remains difficult. This those areas of paramount importance to society. lack of access has significant repercussions Obesity is a major cause for concern on a global for gender equality and ultimately economic scale. Even though it is a non-communicable disease, development. its contribution to conditions such as heart disease and diabetes is undeniable. Worryingly, 11% of men and 15% 73

HERMES INVESTMENT MANAGEMENT

Access to birth control significantly increases a woman’s independence and earning power

With the SDGs at the front of our mind, we expect that meeting SDG 3 by 2030 is going to be an uphill battle, but feel that for forward-thinking companies and investors, there are clear opportunities to create value and have a positive impact on individuals’ health and wellbeing. Equally, we believe that increasing access to and usage of effective contraceptive devices is critically important. In its absence, many, if not most, of the other goals will remain difficult to achieve. Of course, will alone is not sufficient, and the challenges are significant. Collaboration between public, private and third-sector actors is essential – something we, as an investor, are familiar with through our long history of engaging with investee companies.

1 Hermes SDG Engagement Equity Fund Annual Report 2018: www.hermes-investment.com/uki/insight/equities/sdg- engagement-equity-2018-annual-report/ 2 https://sustainabledevelopment.un.org/sdg3 3 “Obesity and overweight,” published by the World Health Organization on 16 February 2018. © Alex Treadway/Getty Images Treadway/Getty © Alex 4 World Health Organization, cited in “Rage against the busted, medical machines,” by Nahid Bhadelia. Published by NPR on 8 Making a difference A healthcare consultation in Nepal. Access to birth control September 2016. ●● In the United States, half of pregnancies are unplanned is one of the single greatest 5 https://unstats.un.org/sdgs/METADATA?Text=&Goal=3&Targ and four in ten of these are the result of poorly used determinants for women’s et=3.7 contraception.6 health, also bringing profound 6 www.guttmacher.org/fact-sheet/unintended-pregnancy-united- states ●● Worldwide in 2015, 12% of married or in-union women benefits for gender equality 7 www.un.org/en/development/desa/population/publications/pdf/ are estimated to have had an unmet need for family and economic capacity. In the least developed countries, the family/trendsContraceptiveUse2015Report.pdf planning. The level was much higher, 22%, in the least unmet need for contraception 7 developed countries. is estimated to be 22% The value of investments and income from them may go down as well as Whether in the most or the least developed nation, up, and you may not get back the original amount invested. unplanned childbirth impacts mental (and possibly physical) well-being. Importantly, access to birth control Issued and approved by Hermes Investment Management Limited (“HIML”) significantly increases a woman’s independence and which is authorised and regulated by the Financial Conduct Authority. earning power and in turn narrows gender inequality and Registered address: Sixth Floor, 150 Cheapside, London EC2V 6ET. income gaps. Initiatives that raise awareness of the benefits of universal access to contraception, and developing partnerships to provide this access in a culturally sensitive way, have the potential to tap into significant latent demand and even transform gender equality. We believe there are likely commercial opportunities for private sector companies to explore, as well as opportunities to share knowledge, networks, connections UNA-UK thanks Hermes Investment Management and ideas for the wider good. for its generous support for this publication I deliver healthcare for all? increasing, how can countries across thedevelopment spectrumensure theirhealthsystems can Sustainable development andhealthy populationsgohandinhand.Butwithpatientdemandever healthy a populationSupporting University ofEdinburgh Global HealthGovernance Programme, McGivern, StudentResearcher, By SUSTAINABLE DEVELOPMENT GOALS 2019 74 as allpeoplehaving accesstothehealth Organization (WHO)hasdefined UHC coverage (UHC).TheWorld Health journey towardsachievinguniversal health are undergoingintensivereforms inthe Around theworld,manyhealth systems health landscapehasbeentransformed. coverage shouldbeuniversal,theglobal Development Goalsassertedthathealth n thefouryearssinceSustainable Devi Sridhar,Director, and Lauren SUSTAINABLE ECONOMY

prevented or treated. prevented ortreated. are dyingfromconditionsthatcould be countries (LMICs).Thesearepeople that each yearinlow-andmiddle-income systems couldsaveovereightmillion lives It isestimatedthathigh-quality health Why dohealthsystems matter? strengthening healthsystems. that thisrequiresadequatefinancingin can leadtoeconomicgrowth–and that investinginhealthypopulations by theWorld Bankhasalsodemonstrated subjected tofinancialhardship.Research services theyneed,withoutfearofbeing Furthermore, user fees deter use of services, Furthermore, user feesdeteruseofservices, – incurredcatastrophichealthexpenditures. over 10percentoftheworld’s population budget onhealth). more than10percentoftheirhousehold catastrophic healthexpenditures (spending the proportionofhouseholdsfacing payments byusers,andthelower lower thepercentageofout-of-pocket government spendingonhealth,the Generally, thegreaterlevelof better financialprotectionforusers. spending onhealthalsotendtoprovide Health systems with higher public Health systemswithhigherpublic In 2010, more than 800 million people – In 2010,morethan800million people–

A nurse examines a woman in a Mon village clinic, healthcare financing in developing ●● Increased efficiency of tax collection – Burma. A trained health professional attending childbirth countries. In India, for example, user Indonesia’s simplification and enforced is directly correlated to maternal survival rates. Maternal mortality is highest in sub-Saharan Africa where only charges account for more than 70 per cent collection of its tax system resulted 59 per cent of births are attended. The global average is of total health expenditure. in enhanced revenues and significant almost 80 per cent benefits for government spending, What is domestic resource mobilisation? with health spending benefiting Domestic resource mobilisation is the disproportionately. especially among the poor, causing millions process by which countries generate funds ●● Revenues from natural resources – to forgo needed healthcare. from domestic resources to provide for The Papua New Guinea Sustainable The health sector is an important their people. Domestic finances are now the Development Program collects revenues source of economic growth – good health dominant source of health funding in most from the country’s biggest mine into a is not just a consequence of economic countries, accounting for 51 per cent and fund used for development programmes, development, but can also help to be a 70 per cent of health spending in middle- including health. driver of it. Investing in health generates and high-income countries respectively. In ●● Big corporation taxes – Gabon has employment, increases productivity contrast, domestic funding has declined in implemented a specific 10 per cent tax on and innovation, and fosters stability by low-income countries from 30 per cent to mobile phone companies, the revenues protecting countries from the economic and 22 per cent, while external aid has increased from which are earmarked for the social impacts of diseases. Notwithstanding from 20 per cent to 30 per cent. national health insurance fund to finance the ethical imperative to provide equal healthcare for those who cannot afford to access to high-quality health services around contribute. the world, achieving UHC can help to Good health is not just a ●● Excise taxes (‘sin taxes’) – these already promote economic growth. exist on tobacco and alcohol in most consequence of economic countries, and some nations have taken How are health systems financed? development, but can also them further: France’s tax on soda in 2012 Global spending on health has changed raised $250 million for its national health significantly in the past two decades, help to be a driver of it service. with a general trend towards increased ●● Tax hypothecation – Djibouti and domestic public financing and a decline Guatemala earmark all revenues from in external financing. In 2016, the world The WHO has estimated that 85 per tobacco taxes for health. spent approximately $7.5 trillion on health, cent of the cost of meeting the SDG health representing close to 10 per cent of global targets in LMICs can be met with domestic For countries that cannot achieve UHC GDP. However, significant disparities resources. However, if further progress is to – even using all their available resources remain in the way health systems are funded be made towards UHC, governments must – external international support should across the globe. maximise the resources they make available be provided. But, as Mcintyre, Meheus & There are four major health financing for health. Mandatory pre-payment Røttingen have argued, care must be taken models. The first is taxation, upon which mechanisms form a strong core of domestic to ensure that these funds are provided in the UK’s National Health Service model healthcare financing. addition to, rather than in place of, domestic (the Beveridge model) relies. It is a tax- However, these are often based on government funding for health. funded system, reliant on mandatory taxes, which can be difficult to collect in pre-payment mechanisms (general taxes) to low-income countries with large informal Future key risks provide services to the entire population. sectors. Furthermore, targets aimed There are a number of challenges facing The second is social health insurance, at increasing the share of government healthcare systems. which forms the basis of Germany’s spending on health – such as the Abuja In the past decade, urban centres Bismarck model. This relies on household target for African governments to allocate have become the dominant habitat for premiums and payroll taxes to provide at least 15 per cent of government resources humankind. It is estimated that by 2030, services to those enrolled. to health – can result in reallocation of almost five billion people will live in The third is private health insurance, resources between sectors at the expense of urban areas. Furthermore, the proportion whereby individuals take out healthcare other important social services. In countries of people aged 60 and over continues to insurance policies from private organisations. where all sectors are under-financed, this is increase. The combination of urbanisation This model is used in the United States and not a sustainable option. and ageing populations has led to a shift Switzerland, among others. Elovanio and Evans’ 2017 study outlines towards chronic and non-communicable Fourth, user fees (out-of-pocket examples of five methods countries have diseases – such as diabetes, cardiovascular payments) can form a large share of used to raise new domestic resources: disease and cancer – as increasing causes of

SUSTAINABLE DEVELOPMENT GOALS 2019 76 SUSTAINABLE ECONOMY

death. This must be reflected in the global health agenda, which still includes a strong focus on communicable diseases. The growing phenomenon of antimicrobial resistance represents a Ensure healthy lives formidable threat to human health and the and promote well-being ability to respond to infectious diseases. Deaths from drug-resistant infections are for all at all ages projected to reach 10 million annually worldwide by 2050. Population displacement also creates a host Under-5 deaths fell between 2000 and 2016 Maternal mortality ratio has declined by 37 per cent since 2000 of challenges to social, political and health 2000 systems. UNHCR estimated the refugee 9.9 population to have reached unprecedented mill levels at 21.3 million refugees worldwide in 2016 2015. Such substantial levels of displacement 5.6 37% mill have placed considerable strain on health services around the world, particularly in countries receiving large numbers of refugees. Births attended by skilled health personnel increased globally Finally, climate change poses a significant 303,000 women 2000-2005 2012-2017 threat to population health, both directly around the world died and indirectly. Consequences of climate due to complications change include: food insecurity and poor during pregnancy or childbirth in 2015 nutrition due to decreased crop yields; increased infectious disease outbreaks and the resurgence of vector-borne diseases 62% 80% 2016 1.5 billion following extreme weather patterns and 2015 displacement; and increased morbidity and 1.6 billion 2010 2 billion mortality from heatwaves and exposure to HIV incidence rate for women of reproductive holes in the ozone layer. age in sub-Saharan Africa is 10 times higher than the global average In 2016, 1.5 billion people were Working towards resilient health systems reported to require mass or individual HIV incidence per treatment and care for neglected In conclusion, adequate funding of 1,000 uninfected people tropical diseases, down from 1.6 health systems can result in better health billion in 2015 and 2 billion in 2010 3.0 outcomes, financial protection from bankruptcy, and general economic growth. The world is not on track to end 2.0 As countries move towards UHC, there is malaria by 2030 increased focus towards domestic finances 1.0 to fund health systems, and away from less 216 million cases of malaria in 2016 sustainable options such as external aid. 0.0 The plethora of challenges facing 2005 2016 Global HIV rates declined from 0.40 210 million cases health systems in the future – including to 0.26 per 1,000 uninfected people of malaria in 2013 urbanisation, ageing populations, between 2005 and 2016 antimicrobial resistance, mass migration and Source: The Sustainable Development Goals Report 2018, UN climate change – places great importance on the ability of health systems to act under pressure. during a crisis; and reorganise if necessary. the private sector, non-governmental It is therefore crucial that countries Health systems should not only transform organisations, civil society and communities develop resilient health systems. A to improve during times of crisis, but also to provide an integrated vision of quality resilient health system is one that is able continually evolve in normal times to build healthcare. Providing access to health to prepare for and effectively respond to long-term resilience. To do so, health services is not enough. To improve crises; maintain its core functions when a systems must partner with non-health outcomes, health systems must ensure that crisis hits; be informed by lessons learned sectors (such as education and agriculture), good quality of care remains at their core.

SUSTAINABLE DEVELOPMENT GOALS 2019 TOGETHER FIRST A GLOBAL SYSTEM THAT WORKS FOR ALL

SHARED PROBLEMS

Climate change. Weapons proliferation. Cybercrime. Terrorism. Pandemics. The major risks we now face are global. Viable solutions depend on global cooperation. And it cannot be left to states alone.

The job of coordinating the global response needs to be based on a truly global partnership which includes civil society, business, parliamentarians and leaders at all levels if it is to be successful.

SHARED SOLUTIONS

In 2019 and 2020 Together First is leading a global initiative to:

• Identify workable ways to address global risks through broad-based global consultations • Produce a ‘to-do’ list for the international community by prioritising the leading ideas • Mobilise our diverse network to make these solutions a reality

COUNTDOWN TO 2020 – OUR OPPORTUNITY TO ACT

The UN’s 75th anniversary must be the starting point of a global governance transformation. Together First is campaigning for the September 2020 world leaders’ summit to discuss, agree and initiate the reforms we urgently need, based on an inclusive action plan.

ABOUT US

Together First is a rapidly growing network of global citizens, civil-society organisations, practitioners, business leaders and activists from all over the world.

We are committed to fair, open and inclusive solutions to improve our shared ability to address global catastrophic risks. We are driven by the urgent need to expand the boundaries of political possibility.

PLEASE JOIN US! We are actively looking for NGOs, think tanks, individuals, partners and donors to join us:

www.together1st.org

We are grateful for the support of the Global Challenges Foundation 78 SUSTAINABLE ECONOMY

Health before intellectual property Is current patent law incompatible with promoting wellbeing for all?

By Hu Yuan Qiong, Legal and Policy Advisor, curbing the options for patients with limited Access Campaign, Médecins Sans Frontières purchasing power. Beyond HIV/AIDS, in recent years the ustainable Development Goal high prices of medicines backed by patent (SDG) 3 aims to ensure healthy lives monopoly have been denting health budgets. Sand promote wellbeing for all. As For hepatitis C, a new generation of oral an integral part of this, it sets the target treatment with direct-acting antiviral (DAA) of providing access to affordable, effective medicines offers new hope to sufferers. Yet, and quality medicines and vaccines. It also the World Health Organization estimates affirms the role of using the flexibilities that in 2016 there were still 68.9 million contained in the Agreements on Trade- people worldwide infected with hepatitis C Related Aspects of Intellectual Property who lacked access to DAA treatment. Rights, or the TRIPS agreement. This is a treaty agreed in 1994 and administrated by the World Trade Organization. The The current market- treaty says that intellectual property (IP), especially patents, should not be used to driven model incentivises hinder the provision of medicines for all. pharmaceutical Yet nearly two decades on from the 2001 Doha Declaration on TRIPS and Public companies to focus on Health – reaffirming the treaty’s principles – lucrative markets many patients around the world still face restricted access to life-saving treatments for communicable and non- One of the reasons hindering access to communicable diseases. DAA is the monopoly strategy deployed by There are several examples of the pharmaceutical companies. In 2014, Gilead pharmaceutical market failing patients launched its blockbuster DAA medicine around the world. The earlier generation of Sofosbuvir at $1,000 per pill for a 12-week antiretroviral medicines treating HIV/AIDS treatment. The high price compelled a few saw a remarkable fall in price, caused by high-income countries including Switzerland competition from generic medicines on the and the UK to ration the provision of global market since the early 2000s. Sofosbuvir in their national treatment at Roche’s monopolistic strategy, which However, generic competition on the programmes. included applying for additional patents newer generation of HIV/AIDS medicines The high prices of cancer treatment have on the same medicine to prolong market has been more difficult to establish. This also triggered protests in both high- and exclusivity. is because more and more countries are low-middle income countries. In 2017, more granting patents on newer medicines, than 100 civil-society organisations from Conflicting obligations even after they have acceded into the South Africa, Malaysia, the UK, France, For 25 years, the requirement for countries TRIPS framework. The current market- Brazil, the US and Zambia came together for to make patents available for medical driven model incentivises pharmaceutical a global day of action against pharmaceutical products under the TRIPS agreement has companies to focus on lucrative markets, company Roche. Protestors were angry caused heated debate. Patents provide a set

SUSTAINABLE DEVELOPMENT GOALS 2019 SUSTAINABLE ECONOMY 79 © Gavi/2016/Kate Holt © Gavi/2016/Kate of exclusive rights to the holder to prohibit The International Covenant on Economic, Babies receiving the life-saving Ebola vaccine in Sierra anyone from using, selling, producing, Social and Cultural Rights (ICESCR) Leone. The TRIPS agreement achieved its purpose of reducing prices and increasing access to early importing or offering to sell a product, is a multilateral treaty that includes the generations of antiretroviral drugs for treating HIV/AIDS technology or the process of making a right to health. A Human Rights Council but has failed with newer generations. It is essential product without the consent of the patent resolution issued in 2009 confirmed that that access to the Ebola vaccine is not impeded holder in countries where the patent is it is the responsibility of states to provide granted, for at least 20 years. all medicines needed to realise the right their obligations under these two distinctive This then raises the question of TRIPS’ to health. There is therefore a question to legal frameworks. Generally, there are weak impact on the right to health under human member states of ICESCR who are also mechanisms available to solve conflicts rights law. signatories of the TRIPS agreement to weigh between these international laws.

SUSTAINABLE DEVELOPMENT GOALS 2019 80 SUSTAINABLE ECONOMY

At the UN level, a couple of official governments to use the TRIPS flexibilities. of bargaining with the pharmaceutical documents and statements issued by the In 2017, the Malaysian government issued a industry to get affordable medicines for Committee on Economic, Social and compulsory licence on Sofosbuvir, allowing their citizens. They bemoaned a lack of Cultural Rights and the Sub-Commission generic (and much cheaper) versions of transparency about companies’ price-setting on the Promotion and Protection of Human the drug to be produced locally. This is strategies and about the comparative prices Rights attempted to affirm that when despite Sofosbuvir still being under patent in of the same medicine in other countries. IP law hindered states in fulfilling their Malaysia by manufacturer Gilead. Pharmaceutical companies are able to set obligation under ICESCR, those states A recent article published by the British prices for different markets based on their should be considered as failing to comply Medical Journal also reviewed examples in own assessments. Their ability to do this is with their core obligations under the right which the threat of the use of compulsory mostly supported by their market monopoly to health. Later documents also affirmed licences led to considerable price reductions status, underpinned by patents and other the importance for states to use TRIPS’ in lifesaving medicines. To achieve SDG 3, related strategies. However, some critical flexibility to protect public health and fulfil many more countries will need to use legal elements are still missing. This is because their core human rights obligations. measures such as these to prioritise health of disagreements over transparency on the However, the human rights perspective over patents. costs of clinical trials, an important factor was not reflected in the discussions under influencing price-setting in the current the framework of the TRIPS agreement. A way forward? model. With the current resolution as a Even the Doha declaration does not use There are a few areas where we need starting point, every government that has human rights language in its framework breakthroughs at the international level to signed up to ensuring access to affordable (apart from recognising the need to protect pursue a genuine global collaboration and to medicines for all should therefore press public health and affirming the right to refocus policy. for further and more comprehensive use the full flexibilities under TRIPS to transparency in the pharmaceutical sector. protect public health). There are also no 1. Alternative R&D model for medicines authoritative interpretations reconciling the The pharmaceutical industry argues that 3. Supporting and using public health two frameworks to determine the level of patents are essential to recoup its investment safeguards under the current patent priority when conflicts arise. on research and development (R&D), system The problem is exacerbated by the further encouraging new innovation on medicines. There is ample evidence establishing the liberalisation of trade at the global level. IP This argument has faced severe criticism, essential role of securing public health rules on medical products in bilateral and as evidence shows that R&D investment safeguards in patent law to protect access regional trade agreements often go beyond decisions under the current business model to medicines. It is therefore critical that the minimum requirements of TRIPS. The are chiefly determined by the prospect the public health value of using TRIPS continued lack of clarity about the priority of of taking a drug to market rather than by flexibilities remains firmly stated at the states’ obligations under trade agreements, unmet health needs. international policy agenda. IP treaties and human rights treaties needs Discussions on the need to establish an This is especially true in light of the to be looked at more seriously in the light of alternative model have therefore focused on explicit indicator set up under SDG 3 SDG commitments. Without the insurance the need to develop a health-driven approach related to the use of TRIPS flexibilities of non-interrupted provision of affordable to R&D. This must be backed with a publicly for health. Political pressure to hinder medicines, the achievement of SDG 3 targets accountable financial, production and countries’ use of these legal and policy will be substantively harmed. delivery mechanism, so that the cost of R&D mechanisms would have a detrimental effect is delinked from a medicine’s final price. A on achieving SDG 3. Challenging TRIPS flexibilities highly valuable medical innovation will only Over the past two decades, national be sensible if all patients who need it can 4. Refocusing on human rights governments have used compulsory licences access and afford it. The conflicts between states’ obligations and other flexibilities enshrined by the under human rights law and trade law must TRIPS agreement to enable and improve 2. Unlocking the dark room of pricing be resolved. The collective obligations access to affordable medicines for their In May 2019, a heated discussion on the under Agenda 2030 can only be achieved citizens. Recently, however, the use of these current challenges facing public health if we put the human right to health at the flexibilities has been challenged in trade authorities around the world took place centre of the debate. The core obligation negotiations. Industry has argued that at the 72nd World Health Assembly of states to provide timely, uninterrupted, countries should scale down their use of in Geneva. The Assembly resulted in a affordable and sustainable access to flexibilities, or not use them at all. milestone resolution on price transparency medicines should be a higher priority But practical examples continue to show on medicines. Health ministers and officials than providing patent protection on new the importance of retaining the right for voiced their experiences and frustrations medical products.

SUSTAINABLE DEVELOPMENT GOALS 2019 © Jason Cohn/Reuters labour markets? How can we adapt apprenticeships for 21st-century generation next Training the

I requirements of 21st century economies. A requirements of21stcenturyeconomies. A apprenticeships needtoadaptthe the workplace. ensuring thatlearningmeetstheneedsof apprenticeships asapowerfulmeansof Today’s policymakerscontinuetolook Co-operation andDevelopment (OECD) for Skills,Organisation for Economic By manufacturing to services inthe widereconomy apprenticeships for new sectors, reflecting from theshift and craft occupations, many countries have developed apprenticeships were traditionally focused ontrade at atraining facility inWest Virginia, US.Although

Ironworker apprentices practise theirwelding skills To realisetheirfullpotential, Viktoria Kis,Policy Analyst, Centre the next generation of craftsmen. the nextgenerationofcraftsmen. Hammurabi requiredartisanstotrain n ancientBabylon,theCodeof SUSTAINABLE ECONOMY SUSTAINABLE DEVELOPMENT GOALS 2019

81 82 SUSTAINABLE ECONOMY

few decades ago it might have been enough Offering an apprenticeship involves various matters – it is the greatest cost incurred for apprentices to learn a narrow set of costs for an employer: apprentice wages, by employers. It is desirable to allow for technical skills. Today, successful transition supervisor wages, and the costs of material apprentice wages to vary across sectors into a first job is not enough. Graduates of and equipment. These are counterbalanced and occupations, as the costs of offering apprenticeships must also have the capacity by benefits. The challenge is to design apprenticeships and the productive to continue learning throughout their schemes that ensure that benefits exceed contribution of apprentices vary greatly careers, as some jobs disappear, others are costs to employers, so that they are keen to across occupations. radically re-shaped and new ones emerge. offer apprenticeships. The length of an apprenticeship matters The popular image of an apprentice Some of the benefits can be reaped too – it needs to be long enough so that is often of a young man working in during the apprenticeship programme itself. employers can benefit from apprentices’ construction or manufacturing. This Already on day one, an apprentice can do productive work, but not so long that reflects the apprenticeship landscape in unskilled work: a restaurant will benefit apprentices become exploited some countries, where apprenticeships when its apprentice cook peels potatoes, for as cheap labour. Social partners like remain concentrated in trade and craft example. But at the initial stages apprentices employers’ associations and trade unions occupations. But as OECD economies spend much of their time learning, so are very well placed to guide decisions have witnessed a shift in employment employers typically make an investment. about the key features of apprenticeships. away from manufacturing and towards As the apprentice becomes more and Involving them in the design and services, a number of countries have more skilled, they can do more and more implementation of schemes is essential for developed apprenticeships in new sectors. skilled work, such as baking a soufflé. successful programmes. In Australia, more people now start non- Towards the end of the apprenticeship Policy efforts can focus on making it trade apprenticeships than those in trade programme, skilled apprentices can easier and cheaper for employers to offer occupations. In Germany and Switzerland, the most popular apprenticeship occupations include business and Reducing the burden associated with apprenticeships administration, sales and retail. can be particularly helpful in efforts to engage The challenge: benefits versus cost small and medium-sized enterprises In many countries, enthusiasm about the potential of apprenticeships has not translated into widespread use. One common contribute to production, but still cost apprenticeships. Building up infrastructure challenge is how best to engage employers less than skilled workers. This period is that underpins apprenticeships can be and ensure that they offer sufficient training essential, as it helps employers recoup their very effective. This may include creating places. Often governments try to solve this initial costs. organisations that help match apprentices problem through financial incentives, but An additional benefit often comes at to companies, support employers with this can be ineffective. the end of the apprenticeship programme: administrative tasks or offer targeted A better approach is to focus on the way in employers can select apprentices who training to apprentice supervisors. which apprenticeship schemes are organised, work well and recruit them as employees. In Australia, group training organisations as their content, length and financial This way employers do not have to pay for fulfil these functions and, if necessary, arrangements affect both employers and job adverts or interview candidates. Former rotate apprentices between different firms. apprentices. The challenge for policymakers apprentices can also skip much of the In Norway, training offices supervise is to design schemes that are adapted to a introductory training that others would need. training firms, train supervisors and deal particular context. They need to recognise Retaining former apprentices also minimises with administrative tasks. Reducing the that the optimal design may vary depending the risk of making the wrong recruitment burden associated with apprenticeships can on the country, sector, occupation, firm type decision, as the employer already knows how be particularly helpful in efforts to engage or learner. One size won’t fit all. the person performs at work. small and medium-sized enterprises. A multi-year OECD study has focused These firms often lack dedicated human on what international experience and Shifting the balance resources departments and struggle to empirical research tell us about how to There are several ways of ensuring that cover the whole skillset targeted by the design apprenticeships that both work for apprenticeships bring sufficient benefits to apprentice’s curriculum. employers and are attractive to learners. In employers while also sustaining their quality Enhancing employers’ ability to manage this, it is important to focus on the dynamics so that they are attractive to learners. apprentices can also help them achieve of costs and benefits of apprenticeships to The design features of apprenticeship a favourable cost–benefit balance. In employers. schemes can be adjusted. Apprentice pay countries and sectors with a long tradition

SUSTAINABLE DEVELOPMENT GOALS 2019 SUSTAINABLE ECONOMY 83

Apprenticeships can offer a powerful learning Ensure inclusive and equitable environment, but their quality education and potential is often not promote lifelong learning fully exploited opportunities for all

of apprenticeships, firms have much An estimated 617 million tacit knowledge about how to meet the children and adolescents of primary and lower secondary twin goals of learning and production. school age worldwide Indeed, many employers were once – 58 per cent of that age apprentices themselves. 617 group – are not achieving minimum proficiency in 58% Building learning into productive work million reading and mathematics can benefit firms while delivering the same learning outcomes for apprentices. For example, after observing their supervisor, More trained teachers are needed for quality education an apprentice might practise the skill In 2016, only 34 by doing real work rather than doing Percentage of of primary trained education teachers per cent of primary who are trained simulations. Research found that between teachers in primary education schools in LDCs 100 had electricity 2000 and 2007, German firms who took this 85% 34% 80 approach halved the time apprentices spent 71% 61% on non-productive activities, increased the 60 share of productive work, and maintained 40 Less than 40 per training quality. cent were equipped The scope for learning through 20 with basic hand- 40% washing facilities productive work varies across occupations. 0 World Southern Sub-Saharan A would-be electrician must undertake Asia Africa substantial training before touching the Source: The Sustainable Development Goals Report 2018, UN wires. But whenever possible, learning should be integrated into productive Gross enrollment ratio in tertiary education activities. Rigorous assessments at the end of an apprenticeship can verify that learning North America was effectively integrated into – and not 80% replaced by – productive work. Apprenticeships can offer a powerful 60% Europe & Central Asia learning environment, but their potential Latin America is often not fully exploited. Tradition 40% & Caribbean East Asia & Paciﬁc matters, but it is not everything: schemes Middle East can be adapted to country contexts and & North Africa 20% South Asia apprenticeship know-how can be built up over time. Lessons from international Sub-Saharan Africa experience can help countries unlock 0% 1970 1980 1990 2000 2010 2014 apprenticeships’ potential. Source: World Bank

The opinions expressed and arguments employed Target 4.3: by 2030 ensure equal access for all women and men to affordable quality in this article are those of the author. They do technical, vocational and tertiary education, including university not necessarily reflect the official views of the OECD or of the governments of its member countries.

SUSTAINABLE DEVELOPMENT GOALS 2019 84 SUSTAINABLE ECONOMY © Luis Tato/Bloomberg via Getty Images via Getty © Luis Tato/Bloomberg Revitalising trade In the face of barriers and protectionism, the multilateral trade rulebook needs to be revised to ensure that it can deliver its full development potential

By Mukhisa Kituyi, Secretary-General, making and has boosted trade flows around trading system, they have brought to the United Nations Conference on Trade and the world. fore the need to revitalise global partnership Development (UNCTAD) It is therefore striking that the World in trade – especially considering global Trade Organization (WTO) norms commitments to do so under Goal 17 he multilateral trading system and disciplines have failed to preempt (global partnerships) of the 2030 Agenda provides a unique international the unilateral measures and resulting for Sustainable Development. The question Tregime that regulates the conduct of heightened tensions that have emerged remains how to achieve this goal. sovereign nations in trade policy. Its norms, among the world’s major trading partners principles and institutions have served over the past year. These moves have Debating the development dimension many of its member countries to overcome directly eroded the spirit of multilateral Mindful of the urgency of these systemic the so-called ‘prisoners’ dilemma’ in their trade cooperation, challenging the challenges, WTO members are currently strategic interaction with trading partners, legitimacy and integrity of the system debating various ways to ‘modernise’ where individually rational behaviour leads underpinning it. different aspects of the institution, including to collectively inefficient outcomes. This has While these trade tensions are a symptom its rule-making, transparency and dispute- helped increase international cooperation rather than cause of the diminishing settlement functions. One of the hot in multilateral market-opening and rule- relevance and effectiveness of the multilateral issues being debated is how to promote

SUSTAINABLE DEVELOPMENT GOALS 2019 SUSTAINABLE ECONOMY 85

Dock workers loading a cargo ship at Mombasa port, developing countries and based on the in responsibilities could be considered, we Kenya. The WTO rules surrounding the concept of principle of self-declaration of developing need to explore creative, pragmatic and ‘special and differential treatment’ in trade arrangements country status – is not well suited for the realistic ways to bridge the divergent views have proved problematic. Modernisation is needed for it to fulfil its purpose of promoting development economic realities of 2019. Indeed, the on differentiation, rather than seeking to share of developing countries as a group in redefine formally the development status of world trade rose from 28 per cent in 1995 countries. ‘development’ in the WTO through special to 45 per cent in 2018. So this school of For instance, even if developing country and differential treatment (SDT). Questions thought considers that some developing status is by self-declaration, developing have been raised around how SDT countries should be ‘graduated’ from SDT countries can still decide on a voluntary should be designed and applied within the and be treated in the same way as developed basis to opt out of the provisions of SDT architecture of multilateral trade rules and countries. or take additional commitments if they so disciplines, and who should be able to use Others have underscored the continued choose based on their capacities. A case-by- such flexibilities. relevance of SDT, given the persistent case approach on differentiation may prove Flexibilities in the form of SDT have divide that exists between developed and to be useful, rather than a one-size-fits-all allowed developing countries to temporarily developing countries. For instance, the approach, so developing countries can opt out of some of the most constraining average income per capita of developing contribute according to their capacity. WTO rules – from their domestic countries, while rising, represents still only Inspiration may be drawn from the perspectives. This was an instrument to one tenth of that of developed countries principle of ‘common but differentiated render trade integration economically, ($45,029), and in the case of LDCs just responsibilities’ in climate change socially and politically sustainable. SDT two per cent ($887). Moreover, in the negotiations. The principle is about the also served as an effective negotiating developing world, 736 million people, or 10 differential responsibilities of countries instrument, making negotiated outcomes per cent of the world population, continue themselves, rather than how countries acceptable to developing countries and to live in extreme poverty. are differentially ‘treated’ by others. In thereby increasing likelihood for consensus The question is intriguing, partly because the context of WTO, an innovative and in multilateral negotiations. different indicators depict different pictures. pragmatic approach to SDT was adopted Updating and modernising the principle If one looks at the aggregate figures, the in the Trade Facilitation Agreement. The of SDT to make it more effective, increased presence of some dynamic, large Agreement contains unique SDT measures operational and better adapted to new trade and populous countries is a fact. But their linking a country’s level of commitment realities is undoubtedly needed, especially as global presence masks the still modest level with their implementation capacity, the target 10.A of the Sustainable Development of individual incomes, and high poverty provision of capacity-building assistance and Goals calls for implementing “the principle levels in some cases. At the same time, capacity acquisition. of special and differential treatment for having high income per capita alone does It is yet to be seen how this highly developing countries, in particular least not free some of the ‘high-income’ countries sensitive issue of SDT will be addressed developed countries [LDCs], in accordance (like some small island or commodity- in the ongoing WTO reform debate. A with WTO agreements”. dependent states) of the constraints and sub-group of WTO members is engaged in On the other hand, a robust development vulnerabilities affecting their economies and new negotiations on trade-related aspects of dimension also requires effectively populations (such as geographical location, electronic commerce, while WTO members redressing the imbalances or inequities built natural endowments, income distribution or are preparing for the 12th Ministerial into existing WTO rules. These include the socio-political bottlenecks). Conference next year. Both these events Agreement on Agriculture, where developed In fact, the development status of will provide testing grounds on how the countries enjoy entitlements on domestic countries is not easily reducible to development dimension could be addressed support that LDCs and most developing some representative quantitative values, in the immediate future, including in the countries are not able to access. especially when that status affects rights and plurilateral context. obligations of countries in an international But if such reform is to materialise and Towards differentiation? agreement. ‘Development’ may be better result in an outcome that could be accepted The crux of the matter is whether current captured as a qualitative and holistic notion, as meaningful (and also fair, legitimate SDT provisions provide an excessive level constructed through history and social and sustainable), we will need to carefully of flexibilities to major large developing interactions, and indivisible from social, address the different perspectives of all countries with economic weight, political, environmental, human rights and affected countries. Only then can we discouraging them from opening up their human security dimensions. hope to achieve SDT reform that caters markets. for divergent development needs, policy One argument goes that the current Thinking outside the box priorities and the capacities of countries in a architecture of SDT – equally open to all Accepting that some form of differentiation balanced and equitable manner.

SUSTAINABLE DEVELOPMENT GOALS 2019 86 SUSTAINABLE ECONOMY

Moving people, moving minds The rise in anti-immigration sentiment in parts of the world highlights the policy challenge: to ensure migration generates clear benefits for countries both sending and receiving migrants

By Costanza Biavaschi, Associate Professor, growing occupations across countries of the policies aimed at increasing employment Department of Economics, Norwegian Organisation for Economic Co-operation rates, such as counselling and language- University of Science and Technology and Development (OECD). These studies training programmes, particularly for also demonstrate that migrants are by South–North migration. he 2030 Agenda for Sustainable no means a burden to public finances. We should see these as investments, Development recognises for the first However, migration can hardly provide the rather than costs, for the long-term Ttime that migration is an integral part definitive solution to the problems posed by prosperity of both immigrant and native of global sustainable development. No fewer an ageing workforce. communities. Policymakers can promote than 11 of the 17 Sustainable Development Opposition to migration has increased understanding of migration and greater Goals (SDGs) include targets and indicators in the last decade for two main reasons. social cohesion through information that are relevant to migration or mobility. The first is competition – real or imagined campaigns and policies that target poverty This is hardly surprising, as the total – for jobs in ever-shorter supply. Indeed, and inequality among the native population. number of people residing outside their according to figures from the OECD, In terms of the consequences on country of birth was 258 million in 2017, immigrants represented about a quarter developing countries, scholarly and policy compared with about 173 million in of entries into the most strongly declining debates have tended to swing back and 2000 (according to figures from the UN occupations in Europe (24 per cent) and the forth between pessimistic and optimistic Department of Economic and Social Affairs). US (28 per cent), as well as taking up almost views. Among the potential benefits from At the same time, the difficult economic half of the low-skilled jobs. migration, remittances have been singled conjuncture of recent years, associated with A second factor explaining much of the out as an effective instrument for poverty mounting political discontent and increased anti-migration hostility has to do with reduction. Their rapid increase in recent migratory pressures due to conflicts around concerns about the impact of immigration years, to reach three times the size of the world, has made migration the subject of on urban neighbourhoods and the official development assistance, is therefore heated debate in developed and developing availability and quality of public services, generally greeted with enthusiasm. countries alike. especially in healthcare and education. But migrant-sending countries are also This is understandable, as while understandably worried about the loss of migration is intertwined with economic Effective integration human capital from emigration, with its growth and development, it is certainly not While not all these worries are founded, potential to hinder development. However, universally beneficial. Nor is it necessarily the array of hostile narratives indicates empirical research on the ‘brain drain’ advantageous to any particular group of a growing need for policies that address has also emphasised that the prospect of the people involved. Like development, the real challenges posed by migration. moving abroad could provide incentives migration inherently produces a degree of Such policies should promote effective for educational improvement among the displacement and uncertainty. The question, integration, a greater understanding of the younger population, including those who then, is how to maximise its benefits. phenomenon, and social cohesion. remain. Developed countries often see migration Effective integration can be pursued in Setting pessimism and optimism aside, as a way to address labour shortages and several ways. For example, policymakers can these discussions often miss the complexity fiscal challenges arising from an ageing ease competitive pressures on the labour of different realities across the world. While population. Indeed, even though migration market. This can be achieved by devising the typical developing country might benefit is not predominantly demand-driven, policies that select migrants with skills that from migration, there is little doubt that immigrants are important actors in the most are complementary to those of the existing the developmental impact of migration is dynamic sectors of the economy. population. Employment is the single heterogenous and costs and benefits are Recent comparative studies show that most important determinant of migrants’ difficult to determine. So, for instance, the immigrants are over-represented in fast- net fiscal contribution. We therefore need brain drain can have a dramatic impact on

SUSTAINABLE DEVELOPMENT GOALS 2019 SUSTAINABLE ECONOMY 87 © Romeo Gacad/AFP/Getty Images Gacad/AFP/Getty © Romeo

countries that are particularly small or poor remittances amount to a substantial share Graduate nurses in Manila, the Philippines, attend an – such as Tonga, which is otherwise among of GDP. Achieving the SDG target of oath-taking ceremony, having passed their final exams. Health services in many countries, including the NHS in the largest recipients of remittances as a reducing transfer costs below three per cent the UK, recruit from the Philippines to fill skilled-labour share of gross domestic product (GDP) in would greatly contribute to this objective. shortages the world. Second, policymakers in the Global South can foster ‘brain circulation’ by promoting Maximising benefits temporary or return-migration programmes ought to be high on the political agenda How can developing countries maximise for high-skilled migrants. for decades to come. Appropriate national benefits from migration? The contribution Third, an increase in governmental policies can be put in place to this effect. that migration makes to national involvement with diaspora organisations But equally important, if challenging, are development comes through remittances, could enhance the positive spillover effects the cooperative efforts that we need at an investment, entrepreneurship, trade, return of migration at a local level, especially international level. Instead of being directed migration, as well as the promotion of in countries with large emigration rates. at merely reducing migration, such efforts social change. Yet, favourable conditions are Finally, effective social protection and should be geared toward channelling needed to set off a virtuous cycle. educational programmes, particularly if migration to the mutual advantage of First, a reduction in the cost of co-financed by migrant-receiving countries, sending and receiving countries. The remittances is paramount. These costs, could provide migrant-sending communities Global Compact for Safe, Orderly and which remain stubbornly high, are borne with new opportunities. Regular Migration, signed on 18 December by migrants and their families but also by Increasing the benefits from migration for 2018, represents a first step toward this goal. the home country as a whole whenever both developed and developing countries Many more are awaited.

SUSTAINABLE DEVELOPMENT GOALS 2019 88 NATURAL RESOURCES © Andrew Renneisen/Getty Images Renneisen/Getty © Andrew Aligning SDG and climate action

Perhaps the biggest threat to the 2030 Agenda is climate change. The Sustainable Development Goals, from poverty eradication and ending hunger to conserving biodiversity and peace, will be unattainable if climate change is not urgently addressed

By Liu Zhenmin, Under-Secretary-General for rise to well below 2°C above pre- severe disasters and threaten livelihoods. Economic and Social Affairs, United Nations industrial levels. Climate change, caused Mozambique, Zimbabwe and Malawi by greenhouse gas (GHG) emissions, recently witnessed one of the worst he ambitious and transformative acts as a threat multiplier, threatening or tropical cyclones on record to affect the 2030 Agenda for Sustainable reversing the progress we make towards Southern Hemisphere. The catastrophic TDevelopment, including the the 2030 Agenda and the SDGs. Or, to put consequences demonstrate the vulnerability interconnected 17 Sustainable Development it another way, combating climate change and exposure of countries to shifting Goals (SDGs) is a universal call to end and achieving sustainable development are weather patterns. Long-term environmental poverty, enhance peace and prosperity intrinsically linked: the attainment of one impacts from climate change, including and protect the planet. In the same year depends on the other. ocean acidification and ecosystem it was launched, 2015, countries adopted The rise in sea levels, shifts in weather degradation, will further erode food, energy the historic Paris Agreement. Its aim is to patterns and more extreme weather events and water security. These in turn can trigger address the increasing risks from climate such as heatwaves, droughts, floods and or exacerbate displacement, social upheaval change by limiting global temperature storms will intensify the risk of more and violent conflicts.

SUSTAINABLE DEVELOPMENT GOALS 2019 NATURAL RESOURCES 89

Magaro, Mozambique, where the bridge across the livestock are a significant contributor to Lucite River collapsed during Cyclone Idai. The storm, global warming. Furthermore, sustainable one of the worst on record to hit Africa, provided a stark reminder that all development has to take account of agriculture practices can improve the climate change resilience of ecosystems and reduce the vulnerability of rural populations to climate These changes will affect the poorest impacts. and most vulnerable people the most, The restoration and protection of particularly in small island states, mega- forests, degraded lands and coastal zones Also in this section cities and rural areas. The impacts of that is envisaged in SDGs 14 and 15 also climate change will aggravate existing increases the adaptive capacity of socio- vulnerabilities and generate new challenges. ecological systems to climate impacts and The SDGs, from poverty eradication and sea-level rise. Climate action should thus be Circular economy 92 ending hunger to conserving biodiversity integrated into every SDG. and peace, will be unattainable if climate change is not urgently addressed. When Enhanced climate action Water stress 94 we consider any of our global challenges, Similarly, climate action can reinforce we must therefore consider the impact of progress on the SDGs. Mitigation policies No hunger 98 climate change. are expected to have positive impacts, particularly for SDG 3 (good health and Nature-based Rapid global response wellbeing), SDG 7 (affordable and clean The Intergovernmental Panel on energy), SDG 12 (responsible consumption development 102 Climate Change Special Report on Global and production) and SDG 14 (life below Warming of 1.5°C stresses the urgency of water). The transition towards low-carbon action on climate change. Due to GHG or no-carbon societies is a priority area emissions, the world has already warmed for maximising synergies between the by 1°C, affecting people, ecosystems and initiatives. We can cut GHG emissions livelihoods. A warming of 2°C would lead while simultaneously boosting the to significantly worse global and regional competitiveness of the economy, promoting impacts than a 1.5°C rise. These include a growth and employment. 10cm higher rise in sea levels this century, Reducing fossil-fuel combustion in exposing an additional 10 million people to accordance with the 1.5°C goal is also coastal flooding, saltwater inundation and an important component of tackling air freshwater shortages. Coral reefs would pollution. The World Health Organization virtually be lost. estimates that the harmful effects on health A rapid global response, including a far- of breathing polluted air – including stroke, reaching transition in all aspects of society, lung cancer, heart disease and asthma – kill is therefore urgently needed. If we are to seven million people every year. The cost to stay as close as possible to the 1.5°C goal, the global economy in lost labour income is global emissions of carbon dioxide need to therefore significant. decrease by 45 per cent by 2030 and reach Enhanced climate action could thus net zero by around 2050. improve health and save millions of Due to the interconnectedness of the lives (SDG 3) and also bring significant issues, efforts to advance the SDGs can also economic benefits (SDG 8). However, such accelerate progress on the Paris Agreement, win-win outcomes may not arise without and vice versa. Many of the impacts of deliberate efforts to advance the joined-up climate change affect the agricultural implementation of both agendas. To avoid sector and threaten to reverse gains made the risk of trade-offs between stringent in ending malnutrition. Shifting to more climate mitigation strategies and poverty resilient, productive and sustainable reduction, the transition to a climate- agriculture and food systems is crucial for friendly economy needs to be sustainable, improving food security (SDG 2). But it also just and inclusive. contributes to climate change mitigation as This stresses the need for climate action GHG emissions from human activity and to go hand in hand with the pursuit of the

SUSTAINABLE DEVELOPMENT GOALS 2019 90 NATURAL RESOURCES

Agenda for Sustainable Development (held from 1 to 3 April 2019 in Copenhagen) and the 2019 Climate Action Summit of the UN Secretary-General (to be held on 23 Take urgent action to September in New York) mark important opportunities to align the climate and SDG combat climate change processes. They are also key moments in and its impacts raising ambition and stimulating action from stakeholders at the global, regional and country levels. Progress by country towards the Paris Agreement targets The 2030 deadline will determine our pathway to climate change. Now just a decade away, it underlines the urgency of action if we are to stay as close as possible to the 1.5°C target. Both the 2030 Agenda and the Paris Agreement define time- bound and specific global targets, are

Close collaboration between international organisations, countries, Critically Highly 1.5°C Paris Agreement Insucient Insucient Insucient 2°C Compatible Compatible Role Model the private sector and civil

Source: Climate Action Tracker society is needed to step

Green Climate Fund (GCF) signed pledges for Initial Resource Mobilisation, 2015-2018 up our climate action

World $10.2 billion United States $3 billion Japan $1.5 billion United Kingdom $1.21 billion grounded in scientific knowledge, recognise France $1.03 billion the importance of multi-stakeholder Germany $1 billion Sweden $581 million implementation and acknowledge that there Canada $277 million is no one-size-fits-all approach. But, most Norway $271 million Switzerland $100 million importantly, both initiatives appreciate that $0 $2 billion $4 billion $6 billion $8 billion $10 billion they can be deeply complementary to each Source: Green Climate Fund (2018) other at various levels. We therefore need to The Green Climate Fund (GCF) is a global fund created to support lower-income countries in plan all our action to advance progress on the climate mitigation and adaptation. The US, under the Obama administration, committed to contribute $3 billion to the GCF and paid $1 billion. Subsequently, the Trump administration has SDGs in the context of climate action and withdrawn from the Paris Agreement. Under the agreement, advanced economies formally concentrate on maximising the co-benefits. committed to mobilise at least $100 billion per year by 2020. The next round of contributions will be confirmed at a pledging conference scheduled to be held in October 2019 In September this year, heads of state and government will gather at the United Nations for a series of critical high-level meetings. The SDG Summit in particular SDGs. But time is running out. Current our efforts to reach the SDGs in tandem will provide an important setting to review pledges under the nationally determined with the Paris Agreement. the global response to the entire 2030 contributions are not sufficient to meet Ultimately, it is governments that have the Agenda, including climate action, and to the aim of limiting global temperature primary responsibility for defining policies shift the focus towards the next phase of rise to 1.5°C above pre-industrial levels. and systems that promote the achievement of implementation. Close collaboration between international the SDGs and climate goals in a transparent, In this sense, it will also provide a valuable organisations, countries, the private sector accountable and inclusive way. The Global integration of the climate and sustainable and civil society is needed to step up our Conference on Strengthening Synergies development agendas by aligning SDG and climate ambition and action and combine between the Paris Agreement and the 2030 climate action at all levels.

SUSTAINABLE DEVELOPMENT GOALS 2019 NATURAL RESOURCES 91

Make cities and human settlements inclusive, safe, resilient and sustainable

XX91 per cent of the urban population worldwide were Number and proportion of the urban population living in slums, 2000 and 2014 breathing air that did not meet the World Health (millions and percentage) Organization air quality guidelines value for particulate matter (PM 2.5) 150 80 117 128

60 172 204 152 189 91% 312 40 807 116

46 0.5 197 20 0.6 332 103 61 XX More than half were exposed to air pollution levels at least 883 2.5 times higher than that safety standard 0.01 0.8 0 0.01 0.8

Oceania World Europe and Australia and New Zealand Latin Americathe Caribbean and Sub-Saharan Africa 2 Northern America Central and SouthernLeast Asia developed countries 3 1 Eastern and South-Eastern Asia Landlocked developing countries Northern Africa and Western Asia 2000 2014

0 Urban population growth is outpacing improvements in slum conditions. Despite a 20 per cent reduction (from 28.4 to 22.8 per cent) in the proportion of the urban x2.5 population living in slums during the 15-year period 2000 to 2014, the total number rose from 807 million to 883 million over this period

Proportion of the municipal solid waste generated that is collected, 2001–2015 (data from 214 cities/municipalities in 103 countries) (percentage) XXAn estimated 4.2 million people died as a result of high levels of ambient air pollution Sub-Saharan Africa 43 Central and Southern Asia 67 Eastern and South-Eastern Asia 72 Northern Africa and Western Asia 74 Latin America and the Caribbean 80 4.2 Europe and Northern America 90 million Australia and New Zealand 94

World 74

0 20 40 60 80 100 Many cities around the world are facing acute challenges in managing rapid urbanisation – from The safe collection, removal, treatment and disposal of solid waste are among the ensuring adequate housing and infrastructure to most critical services in the urban environment. In sub-Saharan Africa, less than half support growing populations, to confronting the of all municipal solid waste generated is collected, with adverse effects on the health environmental impact of urban sprawl, to reducing of residents. Even when waste is collected, it is often not treated and disposed of in a vulnerability to disasters sustainable and environmentally sound manner

Source: The Sustainable Development Goals Report 2018, UN

SUSTAINABLE DEVELOPMENT GOALS 2019 92 NATURAL RESOURCES © Aaron Josefczyk/Reuters Josefczyk/Reuters © Aaron A positive way out

The SDGs explicitly address the challenges brought about by today’s fast-growing and rapidly changing global economy. Moving from a linear to a circular model will contribute to achieving them

By Ellen MacArthur, Founder, The Ellen of resources which are mostly finite. Better International Resource Panel’s latest report MacArthur Foundation recycling or efficiency measures can only Global Resources Outlook 2019, 50 per cent delay the inevitable – not prevent it. of the world’s greenhouse gas emissions are he level of ambition of the Having lifted billions out of poverty and due to extractive activities – both industrial Sustainable Development Goals made material comfort a legitimate aspiration and agricultural. That’s before we even start T(SDGs) is humbling, to say the least. for all, the industrial engine is seeing to take into account the use-phase of our It entails a systemic, multi-stakeholder, obstacles on its horizon. The combination of products, buildings and infrastructure. all-encompassing shift: from the Industrial resource scarcity and severe negative impacts Focusing on achieving SDG 13 (climate Revolution-inherited, linear, extractive model makes it unreasonable to think we can carry action) requires looking beyond switching of take, make and waste, to one that shapes on extracting, consuming and throwing away. to renewable energy. A transformation in beneficial solutions. And while we might have come to realise materials management is also crucial. To get there, incremental improvements that there actually is no ‘away’, we still The way we make and use (or misuse) or simple tweaks to the existing model will have a lot of work to do to understand things lies at the heart of the issue, with not suffice. The economy as we know it relies the interconnectedness of the system. cascading impacts that are both physical and first and foremost on the transformation Consider for instance that, according to the societal. It’s about responsible consumption

SUSTAINABLE DEVELOPMENT GOALS 2019 NATURAL RESOURCES 93

Water flows out as a steel slab is cooled at a keeping materials in use will reshape industry Heavy industry might be an obvious steel mill in Farrell, Pennsylvania, US. Due to its and infrastructure (SDG 9). Regenerating starting point due to its inherent material inherent material and energy intensity, heavy industry is a logical starting point for the transition ecosystems, meanwhile, is key to a string and energy intensity. But circularity can also to a circular economy of goals, including but not limited to SDG be harnessed to re-invent the food system, 3 (health and wellbeing) and SDG 6 (clean to attain a regenerative model based on the water and sanitation). optimisation of nutrient loops. This makes and production, the term that forms the basis business sense, through the valorisation of SDG 12. It is often mentioned that the Scaling up efforts of agricultural by-products for high-value circular economy can make a particularly The economic benefits of the circular molecular extraction, energy production and credible contribution to that specific model are well documented, and one dramatically reduced needs for expensive and goal – by designing waste and pollution could potentially argue that there is ‘proof soil-damaging chemical fertilisers. out, keeping valuable materials in use, and of concept’. What is required now is We still need to ramp up efforts across a regenerating natural capital. And while we proper scale. variety of fields such as materials science, can wholeheartedly agree with this premise, Looking at the built environment, education, design and infrastructure we must also emphasise that circularity’s mobility and food in the context of Europe, investment. But the early signs of a transition positive impact naturally reaches beyond the Ellen MacArthur Foundation has are firmly in place, on the back of strong SDG 12, by virtue of the aforementioned demonstrated that the circular economy private and public-sector involvement. The interconnectedness. would also have significant beneficial circular economy model took a prominent Without going through a tedious impacts on the environment. Carbon place at the recent UN Environment Assembly, listing exercise, it’s not a stretch to see dioxide emissions would drop 48 per cent and features heavily in the sustainable how designing waste and pollution out by 2030 relative to 2012 levels. This is a consumption and production resolution significantly helps life on land, life below compelling figure, which makes a strong adopted by Member States in the closing water and urban environments (SDGs 14, 15 case for an accelerated transition to a plenary session – both clear acknowledgements and 11, respectively). Using the same logic, redefined notion of economic progress. of its transformative potential.

Ensure sustainable consumption and production patterns

Material footprint per capita XXGlobally by 2018, Material footprint is a measure of the amount of raw materials extracted for use within a country, measuring 108 countries had the footprint for biomass, fossil fuels, metal and non-metal ores, in tonnes per person per year national policies on sustainable consumption and 30 tonnes production Northern America 25 tonnes Northern Europe 20 tonnes XX93 per cent of the world’s 250 largest 15 tonnes China Eastern & South-Eastern Asia companies are South America now reporting on 10 tonnes World sustainability 5 tonnes Central & Southern Asia Sub-Saharan Africa 0 tonnes 2000 2002 2004 2006 2008 2010

Source: The Sustainable Development Goals Report 2018, UN Source: UN Statistics Division

SUSTAINABLE DEVELOPMENT GOALS 2019 94 NATURAL RESOURCES

Making every drop count

Increasing levels of water stress are pitting the demands of business against individuals and country against country. How can we relieve water stress and protect the human right to water?

By Maria Helena Semedo, people will face a 20 per cent decrease in Ensuring water security for millions of rural FAO Deputy Director-General for Climate the availability of freshwater resources. residents is vital to achieve the 2030 Agenda. and Natural Resources Dry areas tend to become drier, droughts Collectively, the world’s smallholder farmers tend to become more recurrent and severe, feed the world but individually face repeated ater is one of our most precious and coastal areas are more affected by risks of food insecurity and malnutrition. resources. It is universal, crosses seawater intrusion due to rising sea level. The Food and Agriculture Organization Wborders and nourishes all life. More frequent and intense extreme weather of the United Nations (FAO) works with Water is a human right – we cannot live events have major impacts on water supply countries and partners to create stronger without it. Yet with global population and food security, especially in already and more resilient rural communities, growth, environmental degradation, climate vulnerable rural areas. helping them to combat water scarcity and change impacts, changing lifestyles and Cyclone Idai, which recently struck expand livelihood opportunities. greater urbanisation, water risks becoming Mozambique, Malawi and Zimbabwe, Leaving no one behind requires increased more and more scarce as demand for it affecting over 2.9 million people, is an attention to sustainable water management increases. example. The fury of these events can in agriculture, increased investment in According to the United Nations World leave thousands of people without homes, water infrastructure and availability of safe Water Development Report launched in decimating their crops and cutting off access drinkable water for all. It calls for actions March 2019, over two billion people live in to safe water. such as water harvesting for irrigation, countries experiencing high water stress. By 2050, global water demand is expected to increase by 20 to 30 per cent, while supply Leaving no one behind requires increased attention will dwindle alarmingly. Water scarcity is a complex issue for to sustainable water management in agriculture, many reasons. An increase in the number increased investment in water infrastructure and of people on our planet and sweeping economic development is making water use availability of safe drinkable water for all grow twice as fast as compared to the last century. As the availability of fresh water Competition for water is a strong improved advisory services for water decreases, we also see an increase in water social stressor and can be a major driver management, and developing drought demand from the agricultural, industrial and of migration. An average of 25.3 million preparedness plans. energy sectors. people worldwide are displaced each year by Good decision-making relies on reliable This struggle for balance is one of our sudden disasters. and timely information. Since 1960, FAO greatest challenges. With this in mind, the Water scarcity also threatens food has been collecting, analysing and providing international community committed to a security and nutrition, leading to conflicts global information on water resources and specific Sustainable Development Goal and jeopardising livelihoods and ecosystems. agricultural water management through (SDG) on water. SDG 6 aims to ensure the Already, millions of family farmers in AQUASTAT, its global information system. availability and sustainable management of developing countries suffer from lack of AQUASTAT draws on national capacities water and sanitation for all. It underlines the access to fresh water. and expertise with an emphasis on Africa, urgency to better manage this key natural Agriculture is by far the most affected the Middle East, countries of the former resource to reach the aspirations of the 2030 sector in periods of drought, leading to Soviet Union, Asia, and Latin America Agenda for Sustainable Development. severe crop losses and reduced production and the Caribbean. It plays a central role Climate change isn’t making things that hit farmers and the rural population in monitoring SDG 6 and, in particular, any better. For every 1°C rise in global hardest. About 84 per cent of the economic indicators on water stress and water use temperature, it is expected that 500 million impact of drought falls on the sector. efficiency.

But the pendulum swings both ways: FAO, acutely aware of these challenges, Residents fill their containers with drinking water from agriculture suffers from water scarcity but promotes actions to produce more with a municipal tanker in New Delhi, India. Over two billion people live in countries experiencing high water stress is also a cause. Irrigated farming accounts less water and reduce losses in agriculture. for around 70 per cent of freshwater The positive effects of promoting water use withdrawals to produce approximately 40 efficiency, water recycling and rainwater per cent of the world’s food on only 20 per harvesting – combined with measures like and semi-arid regions of five countries cent of global cropland. selection of drought and salinity-resistant affected by climate shocks. Inspired by a Against this background, irrigated species and sustainable soil management similar programme implemented in Brazil, agriculture will remain important in the – can lead to wider benefits. They can this initiative aims to give access to safe future, when we have to produce around help tackle extreme poverty, hunger and drinking water to millions of people across 50 per cent more food by 2050 to feed a malnutrition, and climate change. the Sahel. The idea is to improve families’ greater population. Therefore, it is essential For instance, our ‘one million cisterns lives on a number of levels: to increase for food production systems to use less for the Sahel’ programme focuses on what they grow for nutrition and for water, and use it more efficiently. vulnerable rural communities in arid income, to improve health and, ultimately,

SUSTAINABLE DEVELOPMENT GOALS 2019 96 NATURAL RESOURCES

FIAT CHRYSLER AUTOMOBILES: LEADING BY EXAMPLE Actions and strategies SDG 6: Ensure availability and the quality and durability of the paint, must address water sustainable management of water while at the same time reducing water and use, agricultural and sanitation for all energy consumption and decreasing the environmental impact. production, food security ater scarcity is one of the This innovative technology, as well as and climate change in primary challenges facing an advanced water filtration treatment Wgovernments, communities, system, are some of the projects that an integrated manner businesses and individuals in many parts allowed the Goiana plant to win the of the world. Fiat Chrysler Automobiles National Water Agency Award (ANA). (FCA) sees water as one of the most The ANA Award, sponsored by the to build the resilience of millions of important natural resources to be Brazilian Ministry of the Environment, families, especially women. protected and aims to responsibly recognised the best initiatives that My home country, Cabo Verde, suffers manage our entire water cycle, especially contributed to the management and from a dry and unpredictable climate and, in water-stressed regions where sustainable use of water resources in Brazil. like many small island developing states, availability is critical to the surrounding Initiatives are taken also in India, limited access to fresh water. This exposes environment and population. FCA has where the Group has decreased water us to significant risks for the primary focused particularly on the adoption of consumption in manufacturing and other sector, especially agriculture. But despite technologies and procedures to increase activities by adopting the 5-R principles: the country’s arid climate, by adopting recycling and reuse of water and decrease Refuse, Reduce, Reuse, Recycle & Recover. innovative technologies such as desalination, the level of pollutants in discharged water. Near the Fiat India Automobiles (FIAPL) solar power energy, reuse of waste water for plant in Ranjangaon, Maharashtra, where agriculture and even fog harvesting, 90 per

we produce Jeep® Compass, our water cent of the population has access to potable conservation programmes have resulted in: water. This is an impressive figure. ●● an increase in the ground water table; Actions and strategies must address ●● an increase in the area under irrigation; water use, agricultural production, food ●● a reduction in the dependence on water security and climate change in an integrated supply from tankers during the summer manner. The FAO-led Global Framework months; on Water Scarcity in Agriculture (WASAG), As a result of improvements in 2018, ●● increased awareness among the launched during the UN Climate Change FCA reduced water withdrawal by 29% communities of water conservation and Conference in Marrakech in 2016, is compared with 2010. Projects to cut management. bringing together leaders in water and the quantity of water withdrawn led to agriculture to design such strategies. Last overall savings of about €2.5 million. The FIAPL plant has achieved “net water March, 47 countries adopted the Praia A 99% recycling water index resulted in positive” status. This means that FCA is Commitment. This is aimed at promoting 2.3 billion m3 of water saved. For 2020, harvesting more water than is being used, sustainable water management as a driver of FCA is targeting a 40% reduction in water by optimising consumption, recycling as development, maximising synergies across withdrawn per vehicle produced compared much as possible, and capturing rainwater the 2030 Agenda. They are designed to with 2010 and in 2018 achieved a global - thus delivering water back into the support farmers, providing improved access reduction of 38%. community. to financing, innovative technologies and FCA is addressing the water security These are only few examples of how sound water management practices. goal of the global 2030 Agenda in different FCA’s sustainability commitments are While this kind of political leadership countries and in different ways to serve the aligned with the inspirational principles is crucial, there is much more that can be communities where we operate. that drive the UN SDGs initiative. done, from modernising irrigation schemes At the Jeep Assembly Plant in Goiana, to improving water supply systems to in the State of Pernambuco, Brazil, the www.fcagroup.com supporting water data and information paint process was enhanced through the systems. The tools are all at our disposal. introduction of ‘primerless’ technology. We now need to take up the challenge, Here, where models of our iconic brand raise awareness and recognise that water is

Jeep® are produced, this process ensures limited. We all need to use it wisely to make every drop count.

SUSTAINABLE DEVELOPMENT GOALS 2019 NATURAL RESOURCES 97

Ensure availability and sustainable management of water and sanitation for all

Proportion of safely treated wastewater ﬂows from households, 2015 (percentage)

76%–100% 51%–75% 26%–50% 25% or less Insucient data or not applicable

Untreated wastewater from households degrades overall water quality, posing a risk to public health. It can contaminate drinking water sources and limit opportunities for safe and productive reuse of water. Preliminary estimates from household data in 79 mostly high- and high-middle-income countries (excluding much of Africa and Asia) show that, in 22 countries, less than 50 per cent of all household wastewater flows are safely treated

Of ficial development assistance (ODA) commitments and Level of water stress: freshwater withdrawal as a proportion of disbursements to the water sector, 2007–2016 (millions of constant sources, around 2014 (percentage) available freshwater US$ and percentage of total ODA)

13,500 9 Northern Africa & Western Asia 79 12,000 8 Percentage of total ODA Central &Southern Asia 66 10,500 7

Eastern & South-Eastern Asia 19 9,000 6

Europe & Northern America 11 7,500 5

Australia & New Zealand 4.1 6,000 4 4,500 3 Latin America & the Caribbean 3.5 3,000 2 Sub-Saharan Africa 3.4 Millions of constant 2016 US$ 1,500 1 Oceania 0.1 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 World 13 Commitments (left axis) Commitments as percentage of total ODA (right axis) 0 20 40 60 80 Disbursements (left axis) Disbursements as percentage of total ODA (right axis)

In 22 countries (mostly in Northern Africa and Western Asia and While total ODA committed and disbursed across all sectors steadily in Central and Southern Asia), water stress – defined as the ratio of increased between 2012 and 2016, the share of ODA commitments to freshwater withdrawn to total renewable freshwater resources – is water-related activities declined above 70 per cent

Source: The Sustainable Development Goals Report 2018, UN

SUSTAINABLE DEVELOPMENT GOALS 2019 98 NATURAL RESOURCES © Jake Lyell/Alamy Stock Photo Stock Lyell/Alamy © Jake Feeding the world

How can we produce enough food for an ever-expanding population without causing irreversible environmental damage?

By Florencia Montagnini, Senior to the greenhouse gases (GHGs) present to soil degradation. Soil erosion poses a Research Scientist, School of Forestry and in the atmosphere, possibly magnifying major threat to global food security and Environmental Studies, Yale University, temperature variations and affecting to the achievement of the Sustainable and Kjell E. Berg, Director, Formcell AB, the global climate. The use of heavy Development Goals (SDGs). Controlling Bioren Systems machinery compacting soils has led to soil erosion is linked to achieving SDGs increased soil erosion and loss of nutrients, 2 (on food security), 6 (on clean water ood production through industrial and has reduced the ability of roots to provision) and 15 (on curbing desertification farming, with heavy use of synthesised penetrate to greater soil depths to absorb and halting biodiversity loss). Ffertilisers, herbicides and pesticides, water and nutrients. The chemicals employed to eliminate or has led to detrimental impacts worldwide. The planet is losing about 0.3 per cent reduce the presence of weeds, insects and Carbon releases have significantly added a year of its capacity to produce food due pests also have a major adverse impact on

SUSTAINABLE DEVELOPMENT GOALS 2019 NATURAL RESOURCES 99

Tree nursery in Banfora Department, Burkina Faso. As Agroforestry systems (AFS) that combine population growth, land productivity in well as making extensive use of trees in agroforestry, trees and crops on the same land can increase agriculture and forestry must increase. If we Burkina Faso is part of the Great Green Wall project to curb the spread of desertification in the Sahel productivity in the short and long term, calculate based solely on monocultures, the and are also biodiversity friendly. AFS can sum of areas needed to achieve the SDGs help farmers as they seek to adapt to climate at current production levels exceeds what is beneficial insects, pollinator bees and birds. change, due to the ameliorating effects of available on the planet. This in turn affects consumable and other trees on air temperatures. Agroecological But with the appropriate combinations vegetation as well as surface water bodies and systems, which include AFS, are also more of trees, crops and livestock, agroforestry groundwater. The total number of insects resilient to hurricanes. Such systems can – a system that integrates forest and has plummeted by 60 to 75 per cent in the past 25 to 30 years, and nearly half of insect species are now threatened by extinction. So we urgently need to define more clearly The total number of insects has plummeted by 60 to the causes and impacts of using chemicals in 75 per cent in the past 25 to 30 years, and nearly half industrial agriculture, lawns and gardens. We need to investigate thoroughly the of insect species are now threatened by extinction effects on plant and animal life of the increasing use of genetically modified organisms (GMOs), which enable the create an opportunity to rethink land-use agriculture – can offer a range of goods, application of potent chemicals. The use of practices, to make land more resistant and benefits and services simultaneously. It can GMO crops, which are patented by mega resilient to the increased intensity and therefore provide nutritious food, renewable companies, has a negative impact on the frequency of storms and other disturbances. energy and clean water while conserving ability of farmers to use locally produced Sound agricultural management biodiversity. By allowing efficient, seeds. It has also displaced many of the – including agroecological practices, multifunctional land use, agroforestry original crop species and varieties that agroforestry, regenerative agriculture and supports ‘sustainable intensification’. indigenous peoples and their successors had conservation agriculture – can also increase AFS can make a significant contribution been planting and consuming for centuries. soil quality and decrease or halt soil erosion. to several of the Global Goals: SDG 2 (on This is a threat to genetic and species These techniques are being developed and hunger), SDG 5 (on gender equality), SDG diversity, and has serious consequences for promoted by the UN (including through 6 (on clean water), SDG 7 (on affordable, human health and cultures. its Food and Agriculture Organization) and clean energy), SDG 10 (on reducing several international, regional and local inequalities within and among countries), Reconciling agriculture with biodiversity institutions. SDG 13 (on climate action) and SDG 15 Can nature be part of human-dominated Recommended practices to maintain soil (on halting biodiversity loss). landscapes? Land has traditionally been quality include: And because of the interconnected nature spared to protect biodiversity. However, ●● adding organic matter; of the SDGs, AFS make contributions to the areas of land that are available for this ●● adding ashes from wood burning; achieving an even wider range of goals than purpose are often not large enough to ●● minimising soil disturbance (for example, immediately apparent, including SDG 1 (on sustain viable populations of wildlife. We practising ‘minimum tillage’); poverty), and SDG 3 (on good health and need a complementary strategy in human- ●● conserving soil and water; wellbeing). AFS can promote diverse SDGs dominated landscapes: land-sharing. ●● improving soil structure; simultaneously for an enhanced combined Reconciling farming and nature is ●● enhancing biological activity. contribution to the post-2015 sustainable possible in landscapes that truly share development agenda. space. The Aichi Biodiversity Target 7 of This can be accomplished by using the Convention on Biological Diversity integrative nutrient management (for Increasing sustainable food production expresses the need to provide the conditions example, composting, mulch farming, Neither a world free of hunger nor of for compatibility between biological planting cover crops), diversifying cropping poverty can be achieved by 2030 without diversity and production of goods and systems and using mixed production systems a substantial increase in capital flows in services for human society on the same such as agroforestry. agriculture and food systems. Public and land. In addition, we need to promote private, as well as domestic and foreign, biodiversity islands (pockets of protected How AFS can help achieve the SDGs investment must increase to reach these land in human dominated landscapes) to If the SDGs are to improve wellbeing for goals, particularly for the small-scale safeguard the sustainability of current plant large numbers of people in developing producers who grow about 70 per cent of and animal species. countries, then given current human the world’s food.

SUSTAINABLE DEVELOPMENT GOALS 2019 100 NATURAL RESOURCES

Increased funding for agriculture needs to include financing energy alternatives. This is especially true when people’s lives are in peril from health hazards caused by End hunger, achieve food inefficient cooking and heating devices, whose use accounts for nearly 50 per security and improved cent of roundwood (unprocessed timber) nutrition and promote consumption worldwide. A relatively modest expenditure to sustainable agriculture promote the use of more efficient cook stoves and alternative fuels would have a major impact on decreasing tree cutting, Stunting, wasting and being overweight Aid to agriculture in developing still affected millions of children countries totalled $12.5 billion in 2016, reducing GHG emissions, increasing carbon under age 5 in 2017 falling to six per cent of all donors’ sequestration and saving millions of lives. sector-allocable aid, from nearly In addition, safe water supplies for 20 per cent in the mid-1980s consumption and food production must be secured and promoted worldwide. 151 Several international programmes and million projects, non-governmental organisations and many academic and government entities $12.5 are conducting research for development 51 billion million 38 aimed at decreasing rural poverty and million hunger while maintaining landscape Stunting Wasting Overweight integrity and ecosystem services. These programmes work on topics such as: After a prolonged decline, world 1985 2016 ●● identifying the most suitable systems and hunger appears to be on the rise again. management techniques that can contribute Conflict, drought and disasters linked Target 2.A calls for enhanced to climate change are among the key international cooperation to improve to achieving SDGs in target regions; factors behind this reversal agricultural productive capacity ●● how to integrate the traditional Source: The Sustainable Development Goals Report 2018, UN knowledge of smallholders with scientific knowledge on environmental and Share of the population that is undernourished agricultural strategies to promote the This is the main FAO hunger indicator. It measures the share of the population that has a caloric intake which is insufficient to meet the minimum energy requirements necessary for a given most suitable systems for each situation; individual. Regional aggregations are based on World Bank regions and exclude high-income ●● how smallholders can access markets countries. They may therefore differ from UN FAO regional figures. for their products, allowing them to 40% capture more of their value, especially for

people who are socially or economically 30% marginalised; ●● how AFS and other sustainable food 25% production systems can be scaled up from local situations to regional and 20% international applications; Sub-Saharan Africa South Asia ●● how to ensure land tenure and ownership 15% (IDA & IBRD) for indigenous people that have used and World occupied lands for hundreds of years. 10% East Asia & Paciﬁc Middle East & North Africa 5% Latin America We must ensure these efforts are & Caribbean well supported. The risk to ecosystems worldwide from protecting monocultures 0% 1991 1995 2000 2005 2010 2015 2017 with high doses of potent chemicals is Source: UN Food and Agriculture Organization (FAO) clear. To be able to feed all the people, we must urgently switch to sustainable food production systems and practices.

SUSTAINABLE DEVELOPMENT GOALS 2019 101

INTERNATIONAL SEED FEDERATION Quality seed for a good harvest Seed choice and accessibility support the Sustainable Development Goals

ore than a year ago, my organisation – the progress. How can we do it if a vast number of the world’s International Seed Federation (ISF) – farmers are limited in their choice of seed, and excluded participated in a global forum on plants, from the benefits and advances the developed world has genetic resources, food and agriculture in enjoyed for decades? MKigali. It was an urgently needed debate, bringing essential In the European Union, improved varieties boosted contributions from plant breeders, policymakers and seed crop productivity for nine core arable crops by an average companies. But it was the voice of the farmers that stayed 20 per cent in 15 years, helping to deliver food to the with me the most, and further cemented my views on equivalent of an additional 100 million people. ISF’s strategy and ultimate goal: a world where the best The social, environmental and economic benefits By Michael Keller, quality seed is accessible to all. could be even larger in low-income countries. In Africa Secretary General, Seed is the most critical input for a good harvest and and Asia, 80 per cent of food is produced by smallholders International the first decision that farmers make when growing crops. for whom access to better, more resilient seed could be Seed Federation But – at a forum side event – a Rwandan farmer, Joseph transformative. Gafaranga, explained the immense difficulties faced by So what are the obstacles? In many low-income smallholders in accessing quality seed. In Rwanda, where countries, farmers have to deal with poor infrastructure, 75 per cent of the population relies on farming for a living, transport and lack of finance. In addition, their choice only 10 per cent have access to quality seed suitable for and access to improved varieties is compromised by a local conditions. In many other developing countries, the lack of adequate policies and regulations. This weakens situation is even bleaker. smallholder farmers’ access to the seed most suited to Given the urgency of sustainably producing enough their local systems, conditions and needs. food for a rapidly growing world population, the failure to get improved seed to more farmers is a gap we simply Eradicating hunger cannot afford. Implementation of transparent and predictable regulation could contribute to unlocking food production and to A gap we cannot afford the eradication of hunger and poverty in line with the Within the next 30 years, the world must produce 60 per Sustainable Development Goals. cent more food, even as climate change threatens any To create the right framework, public and private sectors must listen more to each other and find common ground at both the national and international levels. This is necessary in order to cross the bridges that none of us can cross alone. Some public-private collaborations have already delivered impressive results. Seed companies have collaborated with the International Rice Research Institute (IRRI) to produce rice varieties for Asian markets that yield more grain while also withstanding pests and disease, plus drought, floods and the other harmful effects of climate change. Elsewhere in the world, partnerships between research institutes and private companies led to the establishment of gene banks that will safeguard genetic resources, providing scientists with wider access to germplasm, which in turn help them to develop climate- resilient crops. Given the urgency of getting improved varieties to farmers who need it the most, collaboration at the local and global level cannot come soon enough.

UNA-UK thanks the International Seed Federation for its generous support for this publication 102 NATURAL RESOURCES © Mike Enerio © Mike Natural development How nature-based solutions can help deliver the SDGs

By Andrew Steer, President and CEO, and How times have changed. In less than Why this shift? The answer is simply Fiona McRaith, Research Analyst, World four decades, development leaders have that the evidence has piled up showing that Resources Institute (WRI) radically shifted their views – from a belief when nature is lost, so too are development that environmental protection was either prospects. Communities around the world o, of course we don’t have irrelevant or downright threatening to have been impoverished when forests or any environmental expertise. economic development, to a recognition that soils, mangroves or coral reefs, are lost. “NWe’re a development without environmental protection there is no Conversely, there are hundreds of examples institution.” So spoke a President of the chance for eradicating poverty or achieving demonstrating that when communities, World Bank in the early 1980s. the Sustainable Development Goals (SDGs). governments and corporations invest in

SUSTAINABLE DEVELOPMENT GOALS 2019 NATURAL RESOURCES 103

Bishan Park, Singapore. The river Kallang was restored from a concrete drainage channel to a bio-engineered river, improving its ability to manage surges and clean the water, as well as boosting biodiversity and creating Protect, restore and promote recreational space for the population sustainable use of terrestrial ecosystems, sustainably manage nature, development prospects rise. This forests, combat desertiﬁcation, and revolution in thinking is so profound that halt and reverse land degradation an entire profession has built up around it. and halt biodiversity loss Nature-based solutions have been found to be helpful in strategies to achieve virtually all the SDGs. The Earth’s forest areas continue to shrink, down from 4.1 billion Protect and restore hectares in 2000 (or 31.2 per cent of total land area) to about But what exactly does it mean to invest in 4 billion hectares (30.7 per cent 31.2% 30.7% nature? The starting point is protection: of total land area) in 2015 making sure that the valuable ecological 2000 2015 services provided by natural systems are not destroyed by thoughtless human activity. Global map of land productivity (land’s ability to support life), 1999–2013 Consider coral reefs, for example. Coral reef protection has many benefits for life below water (SDG 14), but a healthy coral reef also leads to increased fish stocks, which create fishing jobs and provide nutrition to local populations. More beauty and life underwater also attracts tourists, providing money and more opportunities. No wonder, then, that from Mexico to Indonesia, hotels, fishing communities, insurance companies and local governments are working together to try to protect the reefs. But in addition to protection is the powerful role of restoration: investing in Declining Moderate decline Stressed Stable Increasing No data the rebuilding of ecosystems that have been damaged by earlier human activity. For Average proportion of each freshwater, terrestrial and mountain KBA that is covered by protected areas, 2000–2018 (percentage) example, around two billion hectares of land – an area more than 80 times the size of the 60 Freshwater Terrestrial Mountain

UK – which were once forested now have 47.9 48 50 46 47 46 43.5 44 very little economic or ecological value. 42 43.4 42 40 Restoring the land – and bringing back 40 38 38 34 carbon from the atmosphere to the earth 32 in the form of richer soils, trees, bushes 30 and crops – can raise incomes, improve 20 nutrition, regulate water, increase resilience and help address climate change. 10 In Latin America, for example, a successful

0 2000 2005 2010 2015 2018 2000 2005 2010 2015 2018 2000 2005 2010 2015 2018 implementation of Initiative 20x20 – 20 million hectares of land restored by 2020 – will yield an estimated net present value of Areas critical to global biological diversity are known as key biodiversity areas (KBAs). They approximately $23 billion over 50 years. contain critical natural capital and ecosystem functions that support human wellbeing and enhance the resiliency of communities. The proportion of KBAs covered by protected areas continues to increase in all three types of ecosystem Healthy bodies and minds Source: The Sustainable Development Goals Report 2018, UN Investing in nature can help deliver almost

SUSTAINABLE DEVELOPMENT GOALS 2019 104 NATURAL RESOURCES

all of the SDGs. Take health (SDG 3). Even importance of getting our cities right cannot A growing number of governments are now, scientists are discovering new cures be overstated. Ensuring sustainable cities beginning to take these responsibilities for diseases from the deep seas and tropical and communities (SDG 11) will also need seriously. At the World Resources Institute, forests. In addition, natural systems help nature’s help. For coastal or flood-prone we have the privilege of hosting the purify water and produce clean, healthy air, cities – which is most of them – this may secretariat of the NDC Partnership, a leading to better health. Bioretention (natural take the form of green infrastructure such group of 95 countries and 20 international filtration) features, such as rain gardens and as permeable pavements, bioretention areas, institutions committed to implementing bioswales (landscaping features that are used parks, greenways, constructed wetlands and their commitments under the Paris to capture and convey surface water), have even green roofs. Climate Agreement with ambition and been shown to remove up to 90 per cent of China’s ‘sponge cities’ programme aims urgency. It’s encouraging to see how many heavy metals from stormwater, improving the to ensure that 80 per cent of urban surfaces governments are seeking to implement chemicals entering our groundwater reserves absorb and reuse at least 70 per cent of the nature-based solutions to climate change or surface bodies of water. rainwater that falls there. More than $12 in a manner that also helps deliver many Recent research also shows powerful links billion has been invested across 30 sites, and other SDGs. between access to nature and mental health the government hopes that this will spur and wellbeing. One research study showed private investment as well. An unprecedented opportunity that those living on a street with 10 trees felt The next 18 months are critical in seven years younger than those living on a Not so simple advancing this agenda. In September 2019 street with none! This all sounds easy, but it isn’t always. the UN will be hosting summits on the One problem is the way that human beings SDGs and on climate change – offering Feeding 10 billion sustainably make decisions. They (we) value the present an opportunity to demonstrate the To achieve a world with zero hunger (SDG much more than the future. Economists call interdependence of the Goals. In 2020, 2) we need fertile lands. Yet widespread this the ‘discount rate’: if an investor only leaders from all UN countries will gather erosion, compaction, nutrient loss and salinity are degrading lands and threatening food security. Protecting soils and associated Across China, natural solutions, such as mulching, ecosystems is therefore fundamental. Several countries – such as Korea, China erosion control and reduced tillage, have nearly doubled and those in the Sahel, like Niger – have on-farm water use efficiency. These projects have shown that even where land is profoundly degraded, restoration can bring back life benefited millions of people and have shown an overall and vitality. Most famously, the Loess economic return of more than 18 per cent Plateau in China, once a key stop along the Silk Road, was degraded from centuries of poor management, leading to falling considers a time horizon of five years or less in Portugal at the second UN Ocean incomes, widespread poverty and outward it often makes sense to cut down the forest Conference to make crucial decisions on migration. With restoration, 2.5 million or over-exploit the soil, even though in the crisis affecting the ocean. In Beijing, people were lifted out of poverty. In the following years yields and incomes will negotiators will gather to set targets and addition, 100 million tons of sediment that plummet. policies for biodiversity for the coming had been entering the Yellow River due to Another problem is that investors do not decade. And at the end of the year all UN erosion was eliminated, improving marine have to pay for the environmental damage nations will gather at the UN Framework life as well as water quality. they create. Others pay while the investors Convention on Climate Change Conference Across China, other natural solutions, make a quick buck and move on. This is of the Parties to sign up to higher ambition such as mulching, erosion control and why the role of government is so important. in their climate commitments. reduced tillage, have nearly doubled on- It’s their job to align the incentives These important decision-making farm water use efficiency. These projects facing private investors – whether major events will only be truly successful if the have benefited millions of people and have corporations or small-scale farmers – with narrative outlined above is communicated shown an overall economic return of more what is in society’s interest. In other words clearly. That is: done right, investing in than 18 per cent. the job of government is to internalise nature yields not only environmental environmental externalities, and even to benefits, but also huge gains in human Nature-based cities help lower the ‘discount rate’ through prosperity and quality of life. As such, it Cities will be home to 75 per cent of stable macroeconomic policy, education and can be an indispensable element in the global population by 2050, so the extension services. achieving the SDGs.

SUSTAINABLE DEVELOPMENT GOALS 2019 NATURAL RESOURCES 105

Conserve and sustainably use the oceans, seas and marine resources for sustainable development

167 countries ratified and implemented Marine protected areas (% of territorial waters), 2017 United Nations Convention on the Law of the Sea in 2015

167 Countries

Mean coverage of marine KBAs under protection increased between 2000 and 2018

50 44%

30% No data 0% 1% 5% 10% 20% 40% 50% 60% 70% 75% >80%

25 Source: World Bank Marine protected areas are areas of intertidal or subtidal terrain – and overlying water and associated flora and fauna and historical and cultural features – that have been reserved by law or other effective means to protect part or all of the enclosed environment

0 Proportion of global fish stocks within biologically sustainable levels

Open ocean sites show current levels 100% of acidity have increased by 26 per cent since the start of the Industrial Revolution 80%

60% CO2

CO2

CO 2 40%

CO2

20%

26% 0% 1983 1985 1990 1995 2000 2005 2010 2013 Source: FAO Fisheries and Aquaculture (FAOﬁsh) Not fully exploited Fully exploited Over exploited The expansion of protected areas for marine biodiversity, intensification of research capacity and increases in Target 14.4: By 2020, effectively regulate harvesting and end overfishing, illegal, unreported and ocean science funding remain critical unregulated fishing and destructive fishing practices and implement science-based management to preserving marine resources plans, in order to restore fish stocks in the shortest time feasible, at least to levels that can produce maximum sustainable yield as determined by their biological characteristics Source: The Sustainable Development Goals Report 2018, UN

Without a step change in action to protect human rights, we will not achieve the SDGs

By Michelle Bachelet, United Nations High equitable and sustainable development that The 2030 Agenda is a commitment to Commissioner for Human Rights puts people at its centre and is explicitly achieve greater international cooperation grounded in all human rights – including and a more equitable international order. he Sustainable Development Goals the right to development. It seeks to But above all it is a promise to people (SDGs) came into force on New achieve durable and truly inclusive previously locked out of development: the TYear’s Day in 2016 in a moment of development for all. marginalised, disempowered and excluded shared global hope. This was the world The commitment to ‘leave no one communities; the millions of women facing realising its need to fully address inequality, behind’ demands that we eliminate multiple forms of discrimination; racial, and to tackle the economic and social all the persistent, biting and systemic religious and caste minorities; indigenous turmoil that both threaten our planet and discrimination that leads to unequal, peoples; migrants; people with disabilities; undermine political and social harmony unsustainable development. This includes and the poor. within and among Member States. structural inequalities between social It is a detailed plan to end poverty, to The 2030 Agenda sets an ambitious groups, which frequently flare into conflict secure justice and the rule of law, to enable but attainable objective: a model of more and force people to flee their homes. the broadest possible public participation

SUSTAINABLE DEVELOPMENT GOALS 2019 POLITICS OF SUSTAINABILITY 107

Dalit women in India – the untouchable caste – meet environmental disasters, which devastate a representative from a microfinance community bank. basic infrastructure and exacerbate tensions Although untouchability was abolished by the Indian constitution and caste-based discrimination prohibited, and conflicts. Dalits still suffer social and economic exclusion, as well After many years in which under- as widespread violence nourishment and food insecurity have declined, the number of people counted as in decision-making, and to secure access to undernourished rose from 777 million in essential economic and social rights: food, 2015 to 815 million in 2016. This is mainly Also in this section health, education, water, housing, sanitation due to conflicts, as well as drought and other and others. climate-linked disasters. That equates to Its goals, targets and indicators are a 11 per cent of humanity: one out of every roadmap for realising the human rights nine women, men and children do not have Access to education 110 vision of freedom from fear and want. sufficient food. Some Member States have already made Young people are three times more Disaster response 112 tremendous progress towards this vision. likely to be unemployed than other adults. According to The SDG Report 2018, extreme Although more children are in school, less poverty has fallen to below 11 per cent of than half of all children and adolescents Fragile contexts 115 the world population. The proportion of worldwide meet minimum standards in families living on less than $1.90 per person reading and maths. Around the world, 93 per Safety of migrants 118 per day has fallen from almost 27 per cent in cent of children live in environments where 2000 to 9.2 per cent in 2017, with much of air pollution exceeds guidelines. this progress achieved in Asia. Since 2010, And economic inequalities continue to Concerted action 120 the proportion of children in school has risen grow. More wealth is being produced than from 63 per cent to 70 per cent. Maternal ever before, but is not being equitably shared. mortality in sub-Saharan Africa has fallen As the International Labour Organization by 37 per cent since the year 2000, and has pointed out, the labour share of GDP has mortality in children under five years old has been falling for 25 years. Oxfam has asserted been halved. that 82 per cent of all the wealth generated in And, according to the United Nations 2016 went to the richest one per cent of the Children’s Fund, South Asia has seen the global population, while the poorest half of largest decline in child marriage worldwide humanity saw no change in their income. in the last decade: a girl’s risk of marrying Inequalities affect all countries. Even in before her 18th birthday has dropped by prosperous nations, people feel excluded more than a third. from the benefits of development and And yet, overall, we are not on track for deprived of economic and social rights – 2030. leading to alienation, unrest and sometimes violence. Inequalities undermine peace, Tackling inequalities security, social progress and economic and Many countries are still very far from political stability. They fuel grievances, achieving gender equality, which is hatred, extremism and conflicts. They both a goal and a driver of sustainable threaten our opportunity to achieve development. Almost always, it is women sustainable, inclusive development. and girls who are furthest behind. Women’s If Member States are to deliver the inequality remains powerfully entrenched in 2030 Agenda, they must do more to tackle terms of political empowerment, economic inequalities of resources, income, power and opportunities, physical safety, equal pay and access to justice – and with respect to the individual freedom of choice. basic conditions for human dignity. When Conflicts are destroying people’s lives, they agreed to leave no one behind, this was hopes and ability to earn a decent livelihood their profound commitment. in the places they were born. Every day, 44,400 people are forced to flee their Accelerating change homes because of conflict or persecution. With just 12 years left, we need to Climate change is generating overwhelming step up the pace of change. A ‘business

SUSTAINABLE DEVELOPMENT GOALS 2019 108 POLITICS OF SUSTAINABILITY

as usual’ approach is insufficient. We need immediate and accelerated action, including stronger partnerships between stakeholders at all levels. Sometimes it takes great courage to be a political leader. Embarking on the necessary Reduce inequality within economic, social and political reforms may and among countries involve risking political capital, overturning entrenched interests by narrow elites and upsetting dominant groups. But ultimately it is at the national level where change must Annualised average growth rate in per capita real consumption or income, bottom take place. 40 per cent of population (%), 2017

Human rights and sustainable development have a mutually reinforcing relationship

The ethos of change is equally important. The human rights approach leads to development that is more powerful, sustainable and effective, because it promotes -10% -6% -2% 2% 6% 10% empowerment, inclusiveness and equal No data -8% -4% 0% 4% 8% opportunities. Source: World Bank Inequality is a human rights issue. And food, water, healthcare, education, Trends in the average economic inequality within countries by world region, 1988-2013 housing and access to justice are not just commodities, for sale to the few – they 50 Latin America & The Carribean are rights, to which all human beings are Sub-Saharan Africa 40 entitled. East Asia and Paciﬁc Middle East and North Africa within-country The 2030 Agenda is a vital opportunity 30 South East Asia Gini index Industrialized countries to realise the promise of the Universal Eastern Europe & Central Asia

Declaration of Human Rights and the with-country Average 20 Declaration on the Right to Development. 1988 1993 1998 2003 2008 2013 It explicitly recognises that respect for all Source: World Bank human rights – civil, political, economic, The Gini coefficient is a statistical measure intended to represent the income or wealth social and cultural – is central to the work distribution of a nation’s residents. A Gini score of zero represents perfect equality and a of constructing more equal, resilient and score of one is maximal inequality – one person has all the income, the others none sustainable societies. Human rights and sustainable Source: Our World in Data development have a mutually reinforcing relationship. This is evident in many of A recent analysis of the Human Rights calls for change in line with human rights the goals, especially SDG 10 on reduced Council (HRC) found that virtually all its standards. inequalities, and SDG 16 on peace, justice activities and outcomes could be understood As we move forward, I hope to see a and strong institutions. But it is also the as contributing to the overall aim of leaving greater sense of urgency, with renewed case in SDG 4 on quality education, SDG no one behind. The work of the human energy and commitment among all partners. 8 on decent work and economic growth, rights treaty bodies and special procedures Delivering the 2030 Agenda means all SDG 13 on climate action, and SDG 17 on of the HRC are no less important. They nations can thrive and we can promote partnerships. The work of the UN Human constantly draw attention to human rights the full potential of every human being – Rights Office is inseparable from this agenda. violations and abuses, and make specific ensuring that we truly leave no one behind.

SUSTAINABLE DEVELOPMENT GOALS 2019 109

ARTICLE 25 Architecture for good Help Article 25 design and build schools and hospitals where they’re needed most

he 2010 Haiti earthquake affected hundreds of thousands of lives and livelihoods. Just one example of the impact the devastation had during Tthis national crisis was at the Boisrond Tonnere School, in Port-au-Prince, which was reduced to rubble in a matter of seconds. The life-threatening danger posed by earthquakes can be mitigated substantially through design and construction. Well- designed buildings with seismically resistant construction can create safe spaces for people to live, learn and play. At Article 25, we are driven by the UN’s Universal Declaration of Human Rights – that everyone has the right to adequate, dignified shelter. As humanitarian architects, we are proud proactive signatories to the UN’s Article 25’s seismically resistant and climatically responsive design proposals Compact, and we frame our work within the UN’s Sustainable Development Goals. We By working collaboratively, Article 25 Back to the school in Haiti, and we are design and build schools, hospitals and homes uses the construction process for social good very proud to announce that the school we where they are needed most. too. We bring together skilled and unskilled designed and built reopened on the same site Our efforts bring us into the communities workers, and can influence contracts to ensure last September. The children can now enjoy we support in low-resource settings, who women are an integral part of the workforce. By an inspiring space to learn and play, safe in are often recovering from disasters and doing so we can double and sometimes treble the knowledge that these buildings have been conflict, and face some of the most complex the earnings of those who gain a new trade, designed to resist an earthquake of the same and deep-seated poverty challenges on the and they take a lasting legacy that helps their magnitude as that in 2010. We worked in planet today. families beyond our initial project. partnership with Outreach International, the local community in Port-au-Prince, and with the pro bono support of engineers Buro Happold and Max Fordham, to make this drawing board dream a powerful reality for these children.

This is a clarion call to all funders and prospective partners working to tackle the challenges set by the UN through the Sustainable Development Goals. Work with us to support vulnerable communities so that they become resilient, thriving communities. Together we can make design matter. Please get in touch: [email protected]. www.article-25.org or +44 (0)203 197 9800.

UNA-UK thanks Article 25 for its generous support for this publication

Before and after: The school was devastated by the 2010 earthquake. Students enjoy their new classrooms, 2018 110 POLITICS OF SUSTAINABILITY

The right to learn

Access to quality education remains an elusive dream for millions of children and young people across the Middle East and North Africa. How can we transform this dream into reality?

By Henrietta Fore, Executive Director, And in every society, education provides a UNICEF pathway to prosperity, and even peace. It’s a proven way to break down inequality, fight illions of children and young poverty and create avenues of opportunity people across the Middle East for young people – all of the ingredients Mand North Africa hoped that the needed for a better future for people and mass protests and political turmoil of 2011 societies alike. would usher in a new era. They hoped Across the Middle East and North Africa, that their calls for improved standards of at least 15 million children aged five to 14 are living, participation, education and job out of school, and nearly 11 million more are opportunities would finally be answered. at risk of dropping out. In particular, fighting They hoped that their demands for peace in Iraq, Syria and Yemen has reversed the and stability would be realised. Yet eight years later, their dreams for a more hopeful, inclusive and peaceful We must transform this future have largely been dashed – their hopes dimmed yet again by the years- legacy of hopelessness long conflicts in Iraq, Libya, the State of into one of hope, optimism Palestine, Syria, Sudan and Yemen. These drawn-out conflicts are not only and opportunity risking children’s lives and bodies, putting them in the line of fire and curtailing their progress made in access to education from access to necessities like food, medicine, 2005 to 2012, plunging regional enrolment water and sanitation. These wars are also rates to levels not seen since 2007. jeopardising their minds, spirits and futures Intense and indiscriminate attacks are by interrupting their education – one of killing and maiming children on their Students have to contend with outdated the greatest determinants of a child’s future way to school. Every step that children curricula and teaching methods that are opportunities. take can be a danger, bringing them into failing to encourage foundational learning contact with an unexploded ordinance – or and skills development. Pathway to prosperity predators looking to exploit or abuse them. Many leave school without the basic Education is not only the foundation of Schools are even being directly targeted skills or qualifications they need to pursue children’s futures. It can keep children or used for military purposes, a flagrant higher education or job opportunities. The out of the hands of predators, armed violation of international law. region’s youth unemployment rates are the forces and groups, and away from danger. For the lucky children who are able to highest anywhere, at approximately 31 per Schools are also a place where children continue with their education despite the cent in North Africa and 22 per cent in the can receive critical food, water, sanitation fighting, the challenge is also steep in terms Middle East. and healthcare. Schools provide stability, of the quality of the education they receive. As this region contends with protracted structure and routine – all counterbalances The region faces chronic and pervasive conflicts, it cannot risk leaving a generation to the loss, fear, stress and violence that the underinvestment in early childhood of children and young people with no children of conflict endure every day. development and overall education quality. avenues to fulfil their potential. We must

SUSTAINABLE DEVELOPMENT GOALS 2019 POLITICS OF SUSTAINABILITY 111 © UNICEF/UN0159073/Rfaat transform this legacy of hopelessness into to adopt creative and flexible learning Akram, aged six, looks at the destruction in west one of hope, optimism and opportunity. opportunities for children living in Mosul, Iraq. Across the Middle East and North Africa, at least 15 million children aged five to 14 are out of school, Adolescents and youth currently account for communities affected by crisis, including with a further 11 million at risk of dropping out nearly a quarter of the region’s population. via distance learning and by improving With the right education and support, they the portability of certification. Third, it can lend their hands to building a more requires ensuring a better match between to rage across the region. Adults must put prosperous and stable future for themselves the education and skills being acquired children first by putting peace first. In and their communities. and local job markets. Young people this, we call on all government leaders, the But unleashing the potential of this should not only be learning foundational private sector, civil society and humanitarian demographic dividend requires urgent and skills like reading, science and maths, but and development partners to help UNICEF significant action. also modern transferable skills like digital turn up the volume on this critical issue. First, it needs governments and donors communications, entrepreneurship and Together, we must help young people alike to increase investment in both the familiarity with green technology. across the region recapture the hope and quality of and access to education in the And finally, it requires putting an sense of purpose that has been tragically lost region. Second, it requires governments immediate end to the conflicts that continue over the past eight years.

SUSTAINABLE DEVELOPMENT GOALS 2019 112 POLITICS OF SUSTAINABILITY © UNICEF/UN0306047/De Wet © UNICEF/UN0306047/De Partnerships for resilience Humanitarian aid is the developed world’s laudable yet unsustainable response to natural disasters. We need to transfer these skills and expertise to bring resilience to the most at-risk countries

SUSTAINABLE DEVELOPMENT GOALS 2019 POLITICS OF SUSTAINABILITY 113

Brazilian military firefighters rescue children in short answer is by achieving the Sustainable Pemba, Mozambique, after the country was devastated Development Goals (SDGs). by Cyclone Idai. The firefighters were deployed by the government of Brazil to assist UN agencies in the post- To achieve the SDGs, the international Idai search, rescue and recovery operations system must do better to help governments tackle the root causes of chronic vulnerability. Humanitarian organisations, which are on the front lines during crises, These statistics are grim. Yet they would be have an important role to play, in part by far worse if not for humanitarian assistance. strengthening their links with development Thanks to donors and aid workers, the global professionals. humanitarian system is saving and protecting Tropical Cyclone Idai, which struck people on an unprecedented scale. The Mozambique in March, is a terrifying system is effective, not least thanks to the reminder to urgently accelerate development generous resources and thought leadership and strengthen community resilience. The by donors. cyclone wreaked havoc across the country From the Lake Chad Basin to Yemen, and in neighbouring Malawi and Zimbabwe. from Bangladesh to Syria, humanitarian Entire towns and villages were submerged. agencies are saving millions of lives every More than 1,000 people are reported dead, year. We often provide comprehensive although the real death toll may never be known. Three million people need urgent humanitarian assistance, food, clean water The international system and shelter. Early estimates put the recovery bill at more than $1 billion. It will take years must do better to help to reconstruct Beira city, home to half a governments tackle million people, and other towns and villages in the cyclone’s path. the root causes of Climate change has increased the number chronic vulnerability of massive cyclones like Idai, demonstrating the vulnerability of low-lying cities and towns. In all three countries, the storm packages of life’s essentials to the world’s damaged the harvest and will likely push up most vulnerable – from food and healthcare hunger in the coming months. to emergency education and protection, Climate change is an obvious risk especially for women and girls. We are multiplier, forcing people from their achieving real results in a coordinated, homes, driving up humanitarian needs and efficient way. threatening to set back fragile gains. The humanitarian system is more effective As an optimist, I argue that tackling than ever before and continues to improve. climate change provides an opportunity to Yet we also grapple with complex problems. accelerate development gains. Humanitarian As protracted crises become the norm, in agencies can provide a key contribution a context of pervasive inequality, and as to the efforts of national, regional and By Mark Lowcock, UN Under-Secretary- vulnerability becomes linked to climate international institutions to build resilience. General for Humanitarian Affairs and change, the number of people at risk seems One way is by providing needs and Emergency Relief Coordinator likely to increase. vulnerability analysis, putting the vulnerable This is happening while the world is at the heart of our response. he 150 million people around the becoming a better place for most. Infant world who need humanitarian and maternal mortality rates are dropping. Ready when crises strike Tassistance have a life expectancy Primary school attendance is up. And much Within hours of Idai hitting Beira, 24 years shorter than the rest of the world. of the world has experienced seven decades humanitarian workers rushed in to help the Their children are 10 times less likely to of peace. Mozambique government in search and reach their fifth birthday, and of those who So how do we close the gap for the rescue missions. We provided food, shelter survive, fewer than a third will graduate from millions of people whose development and survival kits, and the needs analysis for primary school. prospects continue to lag behind? The the immediate response and longer-term

SUSTAINABLE DEVELOPMENT GOALS 2019 114 POLITICS OF SUSTAINABILITY

planning. We set up cholera treatment and related vulnerabilities, including greater In Somalia, good practice has emerged centres and provided vaccines to hundreds investment in shock-responsive social from the 2016 drought response, when the of thousands of people to help contain the safety nets, such as insurance for the most government, development and humanitarian cholera outbreak. We rebuilt damaged vulnerable. organisations cooperated to stave off famine. disease surveillance systems, which were The UK, for example, committed Somalia’s 2016 National Development early casualties of the storm but should now to support families most affected by Plan explicitly recognises droughts, floods be fit for purpose in the future. droughts in northern Kenya, as part of the and displacement as drivers of humanitarian The UK government was among the first Kenyan government’s Hunger Safety Net need. Aid and development organisations responders to Cyclone Idai. It sent health Programme, which will then transition to are working together to reduce acute food and emergency response workers and forklift full government ownership and funding. insecurity by 2022, while increasing the trucks and other equipment to quickly get relief items to those in need. The UK is also a leading bilateral donor to the response, Partnerships that span UN agencies, the private contributing £36 million to help deal with sector, governments, academics and civil society the disaster’s aftermath and urging others to step up their responses at the conference on combined with innovative ways of maximising Cyclone Idai it co-hosted at the World Bank their capacity are crucial for resilience Spring Meetings in April. My colleagues David Beasley of the World Food Programme and Henrietta Fore of the This was included in the UK’s £160 number of vulnerable people who have United Nations Children’s Fund visited the million funding announced last year at the access to basic social services and reducing worst-hit areas days after the cyclone. They UN General Assembly to help countries the number of people affected by drought aptly summarised what needs to happen next: change to cleaner, greener energy systems, and floods. work with the government and its people to and support communities affected by These approaches are key to success build back better – houses, schools, health climate change. by 2030. centres, roads – to avoid the same level of Partnerships that span UN agencies, the devastation in the future. Progress, good practice private sector, governments, academics and The enormity of the task highlights Countries like Ethiopia, Niger and Nigeria civil society combined with innovative ways the need for national and international are establishing good practice in joint of maximising their capacity are crucial for organisations to work together. No single analysis. They are also engaged in better resilience. government, corporation or international joined-up planning and programming to The Connecting Business initiative body can do it alone. reduce vulnerabilities around food safety, (CBi), managed by OCHA and UNDP, Cyclone Idai was a stark reminder that displacement and climate change. is one example of how the private sector sustainable development cannot be achieved Diffa, in Niger, is the first place I visited in engages effectively in disaster risk reduction, through cycles of recurring disasters and this job. Diffa is the poorest region in Niger, preparedness, response and recovery. responses. The underlying vulnerabilities the poorest country in the world. Diffa has In Haiti, the CBi network GSMA – must be addressed. suffered from years of underdevelopment, which unites mobile operators worldwide The 2030 Agenda and the SDGs provide chronic drought, lack of food, violence and – helps national mobile operators and a common vision for humanitarian and the fallout of armed groups like Boko Haram. humanitarian organisations collaborate with development actors to do just that. But we It has also faced an influx of some 119,000 the government in preparedness planning. will only achieve the SDGs when crisis- desperate refugees from Nigeria. In many As such, the private sector is included from affected people are no longer left vulnerable. ways the challenges faced in Diffa exemplify day one. Soon after it was established, when Important steps in that direction include why humanitarian and development an earthquake struck, CBi sent out SMS the UN Secretary-General’s launch in responses must go hand in hand. messages to three million people telling them 2017 of the Joint Steering Committee to In Burkina Faso, Cameroon and Chad, what to do in case of aftershocks. Advance Humanitarian and Development we have undertaken joint needs analyses Given the devastating interplay of natural Collaboration. The Office for the with the governments and mapped out disasters, underdevelopment, climate change Coordination of Humanitarian Affairs plans to reduce poverty and hunger. The and protracted conflict, we must promote a (OCHA) and the UN Development goal is to enhance health, education, gender collective response that addresses the root Programme (UNDP) are both members. equality, access to clean water sanitation and causes and leads to sustainable development. Meanwhile in Southern Africa (and affordable and clean energy. These are the The challenges that lie ahead of us are elsewhere) comprehensive action must areas of highest vulnerability represented in immense. But so are the opportunities to address the root causes of food insecurity the first seven SDGs. influence positive change.

SUSTAINABLE DEVELOPMENT GOALS 2019 POLITICS OF SUSTAINABILITY 115 © UN Photo/JC McIlwaine © UN Photo/JC Fragile development Are the SDGs fit for purpose to enable sustainable development in fragile contexts?

By Susan L. Woodward, Professor, PhD professional development economists. in development finance for the World Program in Political Science, The Graduate This era ended about 40 years ago, with Bank and the International Monetary Center, City University of New York an international focus on what was called Fund resulted. a debt crisis, beginning around 1979. It here was a time when development replaced development economists with Women leaders greet the head of the oversight body policy was driven by pro- neoliberal economists – identified with for South Sudan’s peace accords, during his visit to a UN- development political movements what John Williamson called The run refugee camp in Malakal, South Sudan. The country T has been riven by a civil war that started only two years and their resulting government coalitions– Washington Consensus and the primary after it gained independence from Sudan in 2011. As part from the Soviet Union to India, Turkey role of markets rather than the state in of a former British colony, South Sudan is the focus of and Japan – and by the theories of serious economic outcomes. The dominant role particular development assistance from the UK

SUSTAINABLE DEVELOPMENT GOALS 2019 116 POLITICS OF SUSTAINABILITY

One can learn a lot about power relations environmental aspects and policies and one then definitively with a World Bank task in the international system with a study of that government policies had to design and force on failed states in 1995. Facing why the concept of a debt crisis occurred lead. The process of defining the SDGs also an existential crisis because so many and was so labelled; what the policies gave opportunities for new voices to be heard countries were in arrears to the Bank, imposed on poorer countries were and outside of government officials, such as non- Bank staff discovered that 80 per cent of why; and who the driving actors of this new governmental organisations from the South. country recipients of World Bank loans agenda were. who were delinquent in their debt Important for us, however, is that the Fragile contexts repayments were countries experiencing empirical evidence is overwhelmingly How then have these improvements armed conflict. negative: these policies did not promote affected our understanding and policies of A new agenda focused on the intimate economic development. Indeed, some development in ‘fragile contexts’? link between security and development. analysing the African cases referred to the First, despite the label of sustainable It acknowledged that conflict harmed 1980s as a ‘lost decade for development’.1 development, not one of the 17 SDGs development and that development The dramatic declines in social welfare actually attempts to measure development. aid should also be viewed as a security and government capacity, including for Agenda 2030 refers to development in imperative for these Northern donors. The development policy – beginning in the many places, rhetorically, but when one World Bank led the agenda, but was soon 1980s in Latin America and Africa, and looks at the way the goals are measured joined by development aid donors, both the 1990s in the countries of former Soviet and countries are assessed, then the targets acting bilaterally and collectively as the Union and Eastern Europe – are tragic and indicators used say nothing about how Development Assistance Committee of the testimony to the results. to examine the integrated process that is Organisation of Economic Co-operation The response by the international development.2 and Development. community came in the form of the eight Millennium Development Goals (MDGs), adopted by the United Nations in 2000 The worlds of security and development, whether with a deadline of 2015. They focused on poorer countries in the Global South and multilateral as the UN or bilateral, remain sharply set standards for their governments’ policies separate organisationally, and uncoordinated based on the developed, wealthy countries of the North. The MDGs divided development into Second, the primary audience and The concept of failed states was soon eight separate sectoral goals. Yet there focus of the SDGs is still donors and replaced, for reasons of diplomatic was no overall development strategy to the international aid architecture, which sensitivity, with that of fragile states. In the achieve them, as originally understood undermines the stated ambition that last few years, that has in turn been replaced by development economists and pro- development policies must be “voluntary with the more amorphous idea of fragility development governments of the past. For and country-led”. External aid and aid and fragile contexts. But the agenda and its some critics, the limiting of development to projects do not in any way constitute a conceptualisation remain the same. the goal of ending poverty was even more development policy for a country. Despite this idea of a security– reductionist. This is particularly pronounced when development link, no changes in the The new set of 17 UN-mandated the Bretton Woods institutions are architecture of international order have Sustainable Development Goals (SDGs) involved – their lack of respect for national occurred. The worlds of security and adopted in 2014 (called Agenda 2030 after particularities and policy choice is well development, whether multilateral as the their termination point), accepted the broad documented. The North/South divide has UN or bilateral, remain sharply separate critique of the MDGs for focusing only on thus not been replaced, nor the causes of the organisationally, and uncoordinated. The the Global South. tragedies of the 1980s. conditions that each requires countries The SDGs are universal goals, the To understand what is meant by fragile dependent on development aid to meet are new agenda declared, shared by all contexts,3 we need to return to the World more often than not deeply contradictory, countries regardless of their level of Bank and the mid-1990s. Although the leaving it to the countries themselves to economic development and prosperity concept of fragility has expanded so much manage the consequences. or poverty. Critics of the MDGs also since then (beyond any usefulness actually), Aid flows show that most donors avoid celebrated the SDGs as an ambitious and its origins still imprint the concept. These these countries ‘in conflict’, whether transformative agenda that restored a lie with the label of failed states among because of violence or because these concept of development as an integrated American and British policy practitioners countries are poor. Their explanation process encompassing social, economic and and security scholars during 1992–4, but blames the lack of particular governmental

Policewomen from the Afghan National Police at a and indicators to measure progress. statistics, auditing and implementation of training centre in Kabul. The UN believes strengthening The goal is also based on a widespread development policies that had great success the capacity of women police, and improving access to justice for women and children, is a key part of assumption that peace will promote in an earlier era. The knowledge is there; development in a fragile context like Afghanistan. This development. Unfortunately, research it needs to be accessed. Current global linkage between security and development has its critics shows that this is not the case except conditions would suggest that returning to a where government policy so aims, and that genuine respect for development policy and capacities (as measured by the World development policies can often provoke or expertise is urgent. Bank): their so-called ‘fragility’. But it has escalate violent conflict.4 1 Vandemoortele, Jan. “Are the MDGs Feasible?” been well demonstrated that governmental Asking about development in fragile New York, NY: United Nations Development capacities are a result, not a cause, of contexts provides a golden opportunity to Programme, Bureau for Development Policy (July development. refocus on development policy, not just 2002). 2 For those who want to read further on this, please The policies of the 1980s and 1990s still failed outcomes, to see that the SDGs do see the special issue of Global Policy, “Knowledge haunt this agenda. That there are exceptions not, and to ask what international support and Politics in Setting and Measuring SDGs,” for special relationships with former can be provided to individual countries’ 28 January 2019, and the final list of targets and indicators, https://sustainabledevelopment. colonies suggests a political calculation efforts at development. One might even ask un.org/content/documents/11803Official-List-of- (possibly in other cases this is down to these whether the SDGs’ silence could provoke Proposed-SDG-Indicators.pdf countries’ lack of strategic significance). In the United Nations to revive its role in 3 Further explanation can be found in my book critiquing the concept of failed states, fragile states, a country where security is not guaranteed, supporting development policy, including and fragility, Susan L. Woodward, The Ideology of the World Bank’s aid programmes will sit on what used to be the role of the United Failed States: Why Intervention Fails (Cambridge a shelf until the Bank considers conditions Nations Development Programme before University Press 2017). 4 Particularly useful on the violence of development is safe, often for many years – even if the the 1980s. Christopher Cramer, Civil War is not a Stupid Thing deployment of these programmes might Development policy has to be addressed (London: Hurst 2006); under a different title in the well contribute to building peace. to the particular conditions of a country, US: Violence in Developing Countries: War, Memory, SDG 16, the goal of peace and justice, and the ways to give each country the policy Progress (Indiana University Press 2007), and a good example from a particular country story, Guatemala, says nothing explicit about development, space necessary. It requires support for is at https://theglobalobservatory.org/2017/02/ particularly once one looks at the targets governmental capacities to do the planning, guatemala-sustainable-development-goals-peace/

SUSTAINABLE DEVELOPMENT GOALS 2019 118 POLITICS OF SUSTAINABILITY © Adrees Latif/Reuters © Adrees Migration to advance human development outcomes

The Global Compact for Migration, signed in Marrakech in December 2018, lays the ground for international migration governance

By Cécile Riallant, Head, Migration impact on the future of our societies and benefits of migration while addressing the and Development Unit, International economies. In recent years, migration has risks and vulnerabilities migration can cause. Organization for Migration been propelled to the forefront of national Under the right enabling conditions, political agendas around the globe, though migrants make significant economic, social ecause migration is intrinsically linked often in a fragmented way through a focus and cultural contributions to communities with global trends like globalisation, on domestic security. Using the universal around the globe. Migration opens new Bdigitalisation and urbanisation, it is lens of the 2030 Agenda for Sustainable markets and trade opportunities, spurs shaping our world at every turn. How we Development, we have a unique opportunity economic growth, and leads to improved govern migration at international, regional, to connect migration with broader policy human development outcomes in areas like national and local levels will have a significant considerations. This can allow us to reap the health and education.

SUSTAINABLE DEVELOPMENT GOALS 2019 POLITICS OF SUSTAINABILITY 119

Migrants from Honduras en route to seek work in the Migration itself is a highly visible reflection management mechanisms and strategies US, crossing the Suchiate River from Guatemala into of our global inequalities. The ability to and dare to assess and address migration Mexico. If they reach the US, the migrants face a hostile reception involving incarceration and the separation of move around the world is not equally shared in new and innovative ways. If we are to children from their families among all people. The dichotomy between succeed in realising the claim outlined in ‘strong’ and ‘weak’ passports, and the relative the GCM, we must develop policy solutions importance of individual characteristics such and interventions that articulate migration Yet these development benefits are as ethnicity, age, gender and immigration not only with sustainable development, but not guaranteed. Migration is a complex background are likely to increase. also with larger global considerations such as phenomenon bound by larger social, cultural, While the skilled, the middle class and peace, security and the rule of law. political and economic structures. Migratory those in the Global North will find it easy movements are influenced by an array of to remain mobile, people with fewer skills, Innovative solutions contextual conditions such as economic limited financial resources or specific The IOM is already making great strides opportunity, conflict and insecurity, and individual characteristics may find it in this direction. Knowing that enhancing climate change, as well as a range of increasingly more difficult to move around pathways for safe and regular migration individual aspirations, motivations and the world. requires a more holistic approach that resources. responds to future labour-market dynamics, new approaches are being tested to improve Wider issues We must dare to assess intra-African labour migration and mobility Our ability to connect this multidimensional schemes. reality of migration with policymaking and address migration in Understanding that innovative is therefore crucial. The 2030 Agenda new and innovative ways partnerships with the private sector are stands as a long-awaited platform that critical to strengthening migrants’ rights and invites us to do just that. Target 10.7, access to decent work in supply chains, the calling for the facilitation of “orderly, safe, It is imperative that we uncover these IOM is scaling up efforts on the International regular and responsible migration and diverging trajectories and acknowledge Recruitment Integrity System and is helping mobility of people, including through the that migration can be both a driver to provide remedy to victims of exploitation implementation of planned and well- for sustainable development and also a identified in supply chains. Honouring managed migration policies”, represents the source of perpetuating inequality. After the progress made and existing thematic most explicit reference to migration. Yet all, migrants routinely face barriers, competence, the IOM is working with key the 2030 Agenda is also wrought with goals discrimination and unequal access to partners such as the International Labour and targets for which success is contingent rights, social resources and economic Organization and UNESCO via a ‘Global upon the due consideration of migrants and opportunities in their communities Skills Partnership’ to elaborate strategic migration. worldwide. If we want to advance approaches to skills development, transfer For example, we will not achieve SDG migration governance, our charge must be and recognition. 13 on climate action if we do not act now to raise migrants up as a litmus test. We The IOM will advance innovative to build human mobility considerations must recognise that if we fail to eliminate solutions like those mentioned above into policies and strategies that address the inequalities for migrants, we fail to achieve and harness the opportunity to work in pressing needs of environmental change, land the Sustainable Development Goals. partnership across the UN development degradation, natural disasters and climate The Global Compact for Safe, Orderly system and beyond to maximise the change. Similarly, we cannot close the gender and Regular Migration (GCM), rooted in potential of migration to achieve sustainable gap as envisioned in SDG 5 if we do not the 2030 Agenda, can serve as a roadmap development outcomes. But this alone will adequately address the intersecting forms of to guide these efforts. The GCM declares not yield success without the full mobilisation discrimination that migrant women face in migration to be “a source of prosperity, of governments. their origin, transit and host communities. innovation and sustainable development in With demonstrated global interest These and many other migration linkages our globalised world”. and an emerging governance framework, are outlined in the recent International This bold statement must be our way the upcoming months hold the key to Organization for Migration (IOM) forward. We must capitalise on this unlocking the potential of migration for publication Migration and the 2030 Agenda: A position and exploit the gains delivered stable, prosperous societies. Establishing Guide for Practitioners. by the universal lens of the 2030 Agenda, effective global governance of migration We must also draw on the broader which holds migration as a fundamental requires the collective effort of all actors promise to ‘leave no one behind’ and and cross-cutting issue inextricably tied working in tandem to continually prioritise connect migration with wider issues such as to the success of the Global Goals. We migration in the policy agenda, building on inequality, as captured in SDG 10. must go beyond the existing migration its multidimensional reality.

SUSTAINABLE DEVELOPMENT GOALS 2019 120 POLITICS OF SUSTAINABILITY

Time to act

We need to reset civic participation and drive grassroots leadership for the Sustainable Development Goals

By Lysa John, Secretary General, CIVICUS Despite much criticism of the limited The CIVICUS Monitor, an online scope of the goals, there were strong platform tracking civic space trends he year 2019 is already proving to examples of the MDG framework worldwide, indicates that a staggering 96 be one in which ordinary citizens being used to expand the space for local per cent of the world’s population – some Tare demonstrating an increased organisations to exercise direct influence seven billion people in 111 nations – live in impatience with incremental changes that on national and global deliberations around countries where fundamental freedoms of do not lend themselves to the bold and policy and fiscal mechanisms relevant to the expression, association and peaceful assembly urgent actions needed to support structural national achievement of the goals. are not properly respected and in some cases and transformative change. In apparent contrast, the SDGs – despite are being actively obstructed. We have witnessed it in the street having been formed through what is Civil society worldwide is facing more protests in Zimbabwe and Sudan and in the possibly one of the most extensive processes restrictions on its ability to operate than thousands of school strikes that have seen of stakeholder and public consultation in the any time in recent history. As evidenced young people demand decisive action to history of the UN – seem to have come up by our latest edition of the State of Civil combat climate change across more than against several barriers to enabling an active Society Report, powerful interests on every 100 countries. local engagement with change efforts. continent are actively colluding to reverse Since such change requires fundamental The conversation on the ‘how’ of commitments made by previous generations shifts in the way power and resources are the SDGs in the years following their of leaders to lay the foundations for more traditionally organised, it is hardly surprising adoption has been largely organised around just, peaceful and sustainable societies. that the places where these efforts for change technical complexities best suited to global Worse still, the brunt of repressive and are located are outside the spaces dominated deliberations in New York or Geneva, often violent actions that seek to reverse and by established development actors. rather than as a response to urgent political undermine progression is being borne by Citizen action is instead being organised narratives being shaped by citizen-led communities that are the most vulnerable through hyperlocal, social movements: movements in Sudan or Serbia. sections of society. These include women, mass-based, non-hierarchical and cause- migrants, refugees, LGBTQI people, based groupings. These are providing voice Restrictions on civil society indigenous communities and minority ethnic and energy to grassroots-led and globally If we are serious about the SDG framework and religious groups. connected struggles for human rights and fulfilling its potential to secure the Across Europe, for instance, major social justice. wellbeing of future generations, there is an population blocs are being mobilised against What can those of us who are passionate urgent need for us to find new ways to make excluded groups. Ethnic and faith identities about the potential of the Sustainable it relevant to issues that are bringing people are being distorted in the name of narrowly Development Goals (SDGs) learn from to the streets around the world. defined national interests to sow division for these trends? A good place to begin may be The SDGs will simply not be political ends. Elsewhere, as in China and to reflect on some of the lessons we have achieved without radically expanding the India, excluded groups are being suppressed learnt from the predecessor to the SDGs: the opportunities for ordinary citizens to play as part of a conscious strategy to promote a Millennium Development Goals (MDGs). an active role in framing the policy and narrow and artificially homogenous official In the decade between 2005 and 2015, fiscal mechanisms that enable real change version of national identity. we saw the rise of a new generation of on the ground. Groups that represent and defend the global activists. Groups that had previously And yet, there are now serious restrictions rights of such communities – including trade never worked outside their immediate local in civic space on every continent. These unions, journalists and rights activists – are contexts were increasingly learning how to further undermine the ability of ordinary being attacked and intimidated with gross enhance their impact by linking efforts with people to engage with the vision for a better impunity even in established democracies like-minded initiatives across borders. future adopted by governments in 2015. such as the United States and Brazil.

Asking fundamental questions cannot talk about peaceful societies without Students demand action on climate change in Lisbon, This is a terrifying indication that the forces calling out leaders who actively oppose or Portugal. The SDGs will only be achieved if ordinary citizens are given a more active role in framing policy needed to hold governments accountable, obstruct the ability of minority groups to and ensure they invest in effective responses access their rights. to the social and environmental challenges We need the discourse on the SDGs to to protect civic space and democratic we collectively face, are being heavily be less about abstract targets and indicators, freedoms. Internationally, it requires compromised. In response, we need to find and more about the questions that are us to make a compelling new case for more powerful ways to articulate the values fundamental to the quality of rights that multilateralism as the only credible response that underpin the ambition and intent of the people experience in their daily lives. This to the major, transnational issues of the SDGs. includes framing questions about how we day – and to do this by actively creating This potentially includes speaking not build better connections between trade more spaces for citizen voices in the current only about what the Global Goals stand for, unions, academics, think tanks and other international system. but also what they stand against. parts of civil society to develop fairer In short, the SDGs cannot be realised We cannot talk about gender equality economic alternatives, or how we develop without expanding spaces where people without challenging cultural practices that new approaches to analysing and combating can lead their own struggles and build promote discrimination and harassment. the growing power of anti-rights groups. bold, intersectional campaigns that ask the We cannot talk about environmental It also includes developing better big questions about structural power. Across sustainability without naming and shaming ways to keep election periods free from the world, many of us are doing this already, businesses that put profits above their misinformation and illicit interference, but we now need to do this more, and do concern for people and the planet. We and advocating for stronger mechanisms it smarter.

SUSTAINABLE DEVELOPMENT GOALS 2019 122 ABOUT US

Editor Fred Carver SDGs 2019: Sub-editor Howard Gossington Design James White sustainability Sales Cecily Robinson Operations Geraldine Brennan e endeavour to minimise the environmental impact of Finance Ricky Harwood disseminating the information in this publication. It Editorial director Claire Manuel Wis published in print form as this is the most effective medium to convey its content – most readers express the preference Publisher Hugh Robinson for print as the most accessible format for complex topics. It is also ideal when the information has a value for an extended period of time and lends itself well to pass-on readership. This publication is carbon neutral, with all emissions that we Published by couldn’t avoid being offset. Our publisher’s offices use renewable Witan Media Ltd The Old Baptist Chapel, energy provided by Bulb and are heated using biomass from Painswick, GL6 6XH, UK sustainably managed, local woodland. Tel: +44 (0)20 3327 3730 The paper used in this publication is certified by PEFC www.witanmedia.com (Programme for Endorsement of Forest Certification), which is an international non-profit, non-governmental organisation dedicated to promoting sustainable forest management through independent On behalf of third-party certification. United Nations Association – UK 3 Whitehall Court The publications are printed by Buxton Press, which has been London SW1A 2EL, UK recognised by the UK printing industry for its environmental Tel: +44 (0)20 7766 3454 management. Buxton uses 100 per cent vegetable-based inks, www.una.org.uk alcohol-free printing and ultra-low chemistry processes for plate- making. It has a particular focus on waste reduction and energy conservation, and has worked with the Carbon Trust to minimise its Front cover: Performers from The Red Brigade power use. during the Extinction Rebellion protest in London. The protest, which shut down large parts of the city The excess carbon emissions associated with the manufacturing for almost two weeks in April 2019, was designed of the paper and printing have been balanced with carbon to highlight the threat of climate change. The credits from the World Land Trust. The trust uses the avoided protesters succeeded in eliciting a commitment deforestation technique (REDD) to protect threatened forests of from the government to work towards climate very high conservation importance. neutrality (©Ollie Millington/Getty Images). Copies distributed in the UK and Europe are delivered using DPDgroup’s carbon neutral service, using recyclable cardboard Images: Alamy, GAVI, Getty Images, Reuters, UNICEF, UN Photo, UN Women packaging. Mailed copies are wrapped in compostable film made from potato starch. Printed by: Buxton Press ISBN: 978-1-9998451-3-1

© 2019. The entire contents of this publication are protected by copyright. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means: electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher. The views and opinions expressed by independent authors and contributors in this publication are provided in the CBP000762 writers’ personal capacities and are their sole responsibility. Their publication does not imply that they represent the views or opinions of United Nations Association – UK or Witan Media Ltd and must neither be regarded as constituting advice on any matter whatsoever, nor be interpreted as such. The reproduction of advertisements in this publication does not in any way imply endorsement by United Nations Association – UK or Witan Media Ltd The Professional of products or services referred to therein. Publishers Association Member

SUSTAINABLE DEVELOPMENT GOALS 2019 ABOUT US 123

About us © Eskinder Debebe/UN Photo The United Nations Association – UK (UNA-UK) is the only UK charity devoted to building support for an effective UN, and a vibrant grassroots movement campaigning for a safer, fairer and more sustainable world

n 1945, the creation of the UN reflected the the Agenda, making these commitments a reality for hope for a better future. Since then, UNA-UK all the world’s people will require political will and Ihas enabled ordinary people to engage with public buy-in on a scale never seen before. that promise. Today, the need for the UN has never been greater. Please support us Thanks to the Organisation, millions of people UNA-UK is ready to play its part. We serve as now live longer, safer and healthier lives. But far a bridge between governments, the UN and the too many people still die each year from violence, public. We lobby for joined-up thinking on peace, disasters and deprivation. The death toll from sustainable development and human rights. We work conflicts and emergencies is rising. More people have with experts and practitioners to find new ways to been forced to flee their homes than at any other tackle the challenges we face. Through education time since records began. And across the world, our and training, we equip young people to play a role fundamental values are increasingly under attack. in international affairs. And by demonstrating why Climate change is the defining issue of our time and the UN matters, we encourage people to act on their the most obvious case for more and better global responsibilities as global citizens. cooperation: it cannot be solved by one government – Most recently we have launched the ‘Together or indeed by governments – acting alone. First’ initiative, a network of over 150 organisations The UN is the only organisation with the around the world to advance fair, open and inclusive reach, remit and legitimacy to mount the urgent, approaches to creating a global system that works coordinated response we need. The 2030 Agenda and for all. Please do contact us if you would like to get Paris Agreement demonstrated the UN’s ability to involved. forge solutions, even in uncertain times. But, with just one year to go until what must be the peak for global Please visit www.una.org.uk or contact us at: emissions, and with just a decade left to implement [email protected]

SUSTAINABLE DEVELOPMENT GOALS 2019 FIAT.indd 1 03/06/2019 21:55