A whole-of-society approach to realizing the SDGs...A whole-of-society approach to realizing the...

A whole-of-society approach to realizing the SDGs

O. De Schutter - Interministerial Conference on Sustainable Development - 22 November 2017

Realizing the SDGs: A whole-of-society approach

I. What is the original contribution of the Sustainable Development Goals, and why are they a significant step beyond the Millennium Development Goals?

II. What makes it so difficult for our societies to shift to a more sustainable pathway, in line with the SDGs?

III. What governance reforms should be imagined in order to allow our societies to be transformative ? – the “whole of society” approach



The original contribution of the SDGs ¨  Reduce inequality within and among countries (Goal 10) ¨  Make cities and human settlements inclusive, safe, resilient and

sustainable (Goal 11) ¨  Ensure sustainable consumption and production patterns (Goal 12) ¨  Promote peaceful and inclusive societies for sustainable

development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels (Goal 16)



The increase of inequality in OECD countries, 1985-2008 Realizing the SDGs: A whole-of-society approach


Source: OECD, Divided We Stand. Why Inequality Keeps Rising (2012)

AN OVERVIEW OF GROWING INCOME INEQUALITIES IN OECD COUNTRIES: MAIN FINDINGS

DIVIDED WE STAND: WHY INEQUALITY KEEPS RISING © OECD 201124

the major underlying, indirect causes of changes in inequality. Is globalisation the mainculprit? To what degree were changes in labour and product market policies andregulations responsible? Do changes in household structure matter? Finally, what cangovernments do to address rising inequality? These and other questions are addressed indetail in the present report which identifies key drivers and possible policy measures fortackling inequality trends among the working-age population.

Globalisation has been much debated as the main cause of widening inequality. Froma political point of view, protectionist sentiments have been fuelled by the observation thatthe benefits of productivity gains in the past two decades accrued mainly – in some cases,exclusively – to highly skilled, highly educated workers in OECD countries, leaving peoplewith lower skills straggling. From a conceptual point of view, the standard reading oftraditional international trade theory3 is that increased trade integration is associated withhigher relative wages of skilled workers in richer countries, thus contributing to greaterinequality in those countries (e.g. Kremer and Masking, 2006).

However, evidence as to the role of globalisation in growing inequality is mixed. Anumber of international cross-country studies find trade integration to have increasedinequality in both high-wage and low-wage countries, which is at odds with traditionaltrade theory (for a review, see Milanovic and Squire, 2005). Other studies, by contrast,suggest that rising imports from developing countries are actually associated withdeclining income inequality in advanced countries (Jaumotte et al., 2008). Recently, someleading trade economists, such as Krugman (2007) or Slaughter (Scheve and Slaughter,2007) have changed tack from their earlier views that the effect of trade on inequality wasmodest at best: they now consider that globalisation may have had a more significant

Figure 1. Income inequality increased in most, but not all OECD countriesGini coefficients of income inequality, mid-1980s and late 2000s

Note: For data years see Table 1. “Little change” in inequality refers to changes of less than 2 percentage points.1. Information on data for Israel: http://dx.doi.org/10.1787/888932315602.

Source: OECD Database on Household Income Distribution and Poverty.1 2 http://dx.doi.org/10.1787/888932535185

0.50

0.45

0.40

0.35

0.30

0.25

0.20

0.15

2008 (�)1985

Mexico

United

States

Israe

l1

United

Kingdo

mIta

ly

Aus

tralia

New

Zeala

nd

Jap

an

Can

ada

German

y

Neth

erlan

ds

Lux

embo

urg

Finl

and

Swed

en

Cze

ch R

epub

lic

Norway

Den

mark

Franc

e

Hun

gary

Belg

iumTu

rkey

Greece

Increasing inequalityLittle changein inequality

Decreasinginequality

THE KEY ISSUE OF EQUALITY Realizing the SDGs: A whole-of-society approach


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Sources: Ortiz and Cummins (UNICEF, 2011), data from World Bank and Eurostat

THE CONTRIBUTION OF EQUALITY TO THE PURSUIT OF SUSTAINABLE DEVELOPMENT



INEQUALITY EQUALITY Reduces impact of growth on poverty reduction – therefore the tension between ecological footprint and poverty reduction increases

Maximizes impact of growth on poverty reduction

Increases competition between the satisfaction of basic needs and the satisfaction of superfluous desires

Reduces competition between the satisfaction of basic needs and the satisfaction of superfluous desires

Increases « positional » competition and « status » achievement through conspicuous or imitative consumption

Reduces the pressure to conform or to compete through consumption

Makes social transformation more difficult to achieve : the « rentier economy »

Facilitates social transformation


sustainable (Goal 11) ¨  Ensure sustainable consumption and production patterns (Goal 12) ¨  Promote peaceful and inclusive socities for sustainable development,

provide access to justice for all and build effective, accountable and inclusive institutions at all levels (Goal 16)



Make cities and human settlements inclusive, safe, resilient and sustainable (Goal 11)

11.3 By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management in all countries.

11.3.2 Proportion of cities with a direct participation structure of civil society in urban planning and management that operate regularly and democratically.

11.7 By 2030, provide universal access to safe, inclusive and accessible, green and public spaces, in particular for women and children, older persons and persons with disabilities.

11.7.1 Average share of the built-up area of cities that is open space for public use for all, by sex, age and persons with disabilities.



Recognizing cities as key actors in social innovation and livable urban spaces as essential to well-being



Examples in Belgium: Gent en garde, Ceinture Aliment-Terre Liégeoise, Brussels Good Food Strategy




sustainable (Goal 11) ¨  Ensure sustainable consumption and production patterns (Goal 12) ¨  Promote peaceful and inclusive socities for sustainable development,

provide access to justice for all and build effective, accountable and inclusive institutions at all levels (Goal 16)





The need for lifestyle changes – overcoming the “rebound effect” following cleaner technologies

Source: J. Rubin & B. Tal. Does energy efficiency save energy? StrategEcon (2007)



Two varieties of the “rebound effect” – improved technologies insufficient unless accompanied by reduced consumption

Improved energy efficiency

Energy is less expensive

Individuals consume more

energy (substitution

effect) and spend savings on other

consumption items (income

effect)

Improved energy efficiency

Individuals believe less is required from

them to reduce consumption

Individuals consume more (compensation

effect)



The Ehrlich/Holdren equation (I=PAT): the seduction of “green growth”



The “middle-class effect” towards 2030 – multiplier effect after a country reaches approx. 6.000 USD/capita/year

Source: Ernst & Young 2013, in: S. Put del Pino, E. Metzger, D. Drew & K. Moss, The Elephant in the Boardroom. Why unchecked consumption is not an option in tomorrow’s markets, World Resources Institute (March 2017)



The “middle-class effect” towards 2030 – multiplier effect after a country reaches approx. 6.000 USD/capita/year

Source: S. Put del Pino, E. Metzger, D. Drew & K. Moss, The Elephant in the Boardroom. Why unchecked consumption is not an option in tomorrow’s markets, World Resources Institute (March 2017)



The need to move from the Ehrlich/Holdren equation (I=PAT) to the equation of Schulze (I=PBAT)

Source: Stig-Olof Holm et Göran Englund, « Increased ecoefficiency and gross rebound effect: Evidence from USA and six European countries 1960-2002 », Ecological Economics, 68(3) (2009)): 879-87

I: Ecological impact P: Population A: Affluence (income/capita) T: Technology B: Behavior



The tragedy of the inert society – five lock-ins have co-evolved

Socio-technical choices favoring standardisation and economies

of scale

Dominant economic

positions and growth of

inequalities

Lifestyles – based on time, space and

gender roles that demand convenience

and high levels of consumption

Political economy:

capture of the political

decision-making

Governance: concentrated and focused

on short-term objectives

Three components of a « whole of society » transition towards sustainable societies

I. The « partner government » : ensuring (horizontal) alignement of different

sectoral policies, (vertical) coordination across different policy levels, monitoring of progress, stakeholder participation / feedback to ensure permanent learning ; and supporting citizens-led social innovations

II. « Green competition » : aligning economic incentives with sustainable development objectives by the internalization of externalities and supporting research and development efforts towards « clean » technologies

III. The « energetic society »



Citizens’ initiatives

Consumers Civil society

Cities

Social innovations that

prepare the transition

Enabling policies removing

obstacles and facilitating citizens’

involvement



Source: OECD PCD Unit, in Policy Coherence for Sustainable Development 2017: Eradicating Poverty and Promoting Prosperity (Paris: OECD, 2017), chap. 2, p. 5.



Source: P2P Foundation, A commons transition plan for the city of Ghent

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