Green Economy and Inclusive GrowthDr. George B. Assaf

Director, UNIDO New York Office, and Representative to the UN and other International Organizations

22 August 2012

Outline

� Why is “green economy and inclusive growth”so crucial in the context of migration?

� How do we address the problem?

� What is UNIDO doing to help?

� Concluding remarks

1

Outline

� Why is “green economy and inclusive growth”so crucial in the context of migration?

� How do we address the problem?

� What is UNIDO doing to help?

� Concluding remarks

1

Why is it so important?

� Why is “green economy and inclusive growth”so crucial in the context of migration?

� Why is it so important for development?

� Why is it so important for you and your work?

� If we do not do something about it , it will come back to haunt us!

2

A migrant’s story: Morgan

“the most frightening experience of my life…

…despite this, I am on my way back to try again, a second time”

3

A migrant’s story: Morgan

“That journey was quite possibly the most frightening experience of my

life and had we not been picked up by the authorities, we would all

have died. Despite this, I am on my way back to try again, a second

time. I am, of course, very afraid of making this boat journey again but

there is no other way. Life in Nigeria is hard. There is such poverty.

There are no jobs, there's no food and there is corruption. I fear for the

lives of my family. I and other Africans like myself feel we have no

choice. I have to try and make a better life, I pray that God will see me

through.”

Excerpt from BBC News: http://news.bbc.co.uk/2/hi/t alking_point/5331608.stm)4

What causes migration?

� Migration is a manifestation of a systemic crisis central to development

� Challenge: How to reduce global poverty and protect the vulnerable?

� Unprecedented levels of unemployment

� Increasing inequalities:� GNI (PPP) in High Income Countries 30 times higher than in Low

Income Countries

� In the US, top 1% controls 43% of the nation’s wealth

� In India, top 10% wage earners make 12 times more than bottom 10%

� In 2011, 42% of 1.2 billion people live with less than $1.25 a day

5

Many migrants are vulnerable groups and minorities

� Women face disproportionate barriers to full participation in the economy

� Poverty has a woman’s face

� 46% of international migrants from developing countries are women

Picture courtesy: Flickr under creative commons license

Demographics adds to the problem: share of youth in total population

• Rapid growth in youth population in developing countries

• Rapidly aging population in developed countries

• Rapid and alarming growth in youth unemployment

Youth population in Africa is 20%

Tunisia:18.9% of total workforce are unemployed,

where 7 out of 10 are under the age

of thirty

Spain:Almost 50% youth

unemployment

7

Unemployment rate across

Europe is 22%

So what?

� On top of the economic & financial crisis, food, fuel and energy crisis, migration is potentially explosive if left unchecked, a social, economic and political toxic cocktail-epic proportions

� Migration isn’t just “their” problem, but also “our” problem

At the doorstep of every Member State…

8

� Why is “green economy and inclusive growth”so crucial in the context of migration?

� How do we address the problem?

� What is UNIDO doing to help?

� Concluding remarks

Outline

9

� We need a new development paradigm and approach of UN which:� Focus on sustainability & inclusive growth through productive capacities

� Focus on reducing inequality and unemployment for vulnerable groups� Make the home countries of would be migrants “more attractive”

� Increased development opportunities matters even more

� And design the Post-2015 Development Agenda accordingly

How do we address the problem of migration?

Green Economy

10

� Green Economy could be a key element of the new paradigm

� Green Economy can improve well-being and significantly reduce environmental challenges

The promise of a Green Economy

� Many causes of migration but two stand out, especially in developing countries

� Green Economy addresses the key causes of migration:

� Lack of economic opportunities� Low resilience to environmental threats

� Can significantly enhance livelihoods and environment

11

Economic characteristics of developing countries

Developing Countries

Weak, agro-based, rural economic structure, commodity based,

unprofitable small scale farming, vulnerable to external shocks, climate

change and environmental degradation

Rich Countries

Typically, less than 5% workforce in agriculture and 25% of the population live in

rural areas.

vs.

Industry

12

Need for sustainable inclusive growth: � Structural change� Enhance productive capacities � Higher value-added activities� Agri-business development� Economic diversification� Increased agricultural productivity � Agriculture still important for many countries

The Role of Industrial Development

� No country has achieved developed status without significant industrialization!

� Creates wealth through productive capacities

� Reduces poverty, generates jobs, delivers goods and services, raises living standards

� Industry also reduces the inequality gap (Rodrik, 2011)

� Industry only sector that can absorb large increase in working age population- unskilled, semi-skilled, poorly educated.

Industry matters!13

The Role of Industrial Development (cont’d)

� Countries with strong industrial base, such as BRICS, were less affected by the economic crisis

� UNIDO to present new findings on importance of industrial development in October

� Report on Industrial Development Cooperation (later transmitted by Second Committee to the General Assembly)

14

Is industry the panacea to all evils?

� Industry has major socio-economic benefits, but is also a major polluter

� More energy used than in any other sector� 30% global CO2e emissions

� How can we reconcile: socio-economic benefits and environmental costs ?

� We believe that a Green Industry approach may be the answer to increasing inclusive growth and reducing migration

15

Outline

� Why is “green economy and inclusive growth”so crucial in the context of migration?

� How do we address the problem?

� What is UNIDO doing to help?

� Concluding remarks

16

UNIDO’s Green Industry Initiative

Sectoral strategy to implement a green economy

1 2

Greening existing industries

Creating new green industries

17

1. Greening existing industries

� Producing more output with less resources

� Reducing waste and pollution: � Conserves valuable resources� Especially in poor rural areas (large environmental

contamination and land degradation or air pollution)

� Economic and environmental benefits

� Good business sense� Vital for the mitigating harm to rural poor,

susceptible to environmental contamination and degradation

18

2. Creation of new green industries

� Potential to create new employment opportunities� Environmental services industries, clean technologies, waste

management, consulting services

� + 15 to 60 million jobs globally (UN Agencies-Green Jobs Initiative)� Potential to lift millions out of poverty� Already renewable energy industry employs 5.6 million globally,

double what it did in 2006

19

What are the challenges for promoting Green Industry

� Lack of highly-skilled labour force (women, youth)

� Need higher skills to produce goods with international demand

� To retain workers, you need an attractive home-base market

� Need to upscale and replicate existing technologies

� Need to enhance technological innovation

� Design of suitable industrial policy frameworks

� Effective Public Private Partnerships (PPP)

UNIDO’s Green Industry Platform

� Public and private sector to come together to design strategies and a Action Plan to implement effective green industry policies and support

� Visit: http://www.unido.org/index.php?id=100260920

Outline

� Why is “green economy and inclusive growth”so crucial in the context of migration?

� How do we address the problem?

� What is UNIDO doing to help?

� Concluding remarks

21

Concluding remarks (1/3)

� Migration is not only Developing Countries’ problem, it is ourproblem

� It is a manifestation of a systemic crisis that features two keycauses:

� Lack of economic opportunities

� Low resilience to environmental threats

� Major challenges to be addressed:

� Increasing inequality

� Increasing unemployment

� Significant contributory factors to increased migration

22

Concluding remarks (2/3)

� Existing policies have proven insufficient to address development challenges: migration

� New economic paradigm needed focused on provision of effective productive capacities and sustainability and inclusive growth

� New paradigm to be included in Post-2015 Development Framework

� No country achieved Developed Country status without significantdiversification of productive base – vibrant industrial sector: Industry matters

� Only industry can absorb the tremendous increase in working age labour force

� Countries with strong industrial base less affected by economic crisis

23

Concluding remarks (3/3)

� In absence of an agreed definition of the green economy, Green Industry offers a practical, non-controversial sectoral strategy

� It addresses the economic, social and environmental causes of migration, through:� Greening of existing industries� Creating new green industries

� Implementation requires action on many fronts(Training, up-scaling and replicating existing technologies, innovation, industrial policies, PPPs)

� Example: UNIDO’s Green Industry Platform

24

Future generations will judge us on how we handle migration through inclusive and

green growth

25

“Treat the Earth well. It is not given to you by your parents. It was loaned to you by your

children”

Kenyan proverb

Thank you very much!

http://www.unido.org/index.php?id=1001271