Green Economy and Inclusive Growth

Transcription

1 Green Economy and Inclusive Growth Dr. George B. Assaf Director, UNIDO New York Office, and Representative to the UN and other International Organizations 22 August 2012

2 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

3 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

4 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

5 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

6 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: 4

7 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

8 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

9 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 Unemployment rate across Europe is 22% Spain: Almost 50% youth unemployment 7

10 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

11 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 9

12 How do we address the problem of migration? 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 Green Economy Green Economy could be a key element of the new paradigm Green Economy can improve well-being and significantly reduce environmental challenges 10

13 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

14 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 vs. Rich Countries Typically, less than 5% workforce in agriculture and 25% of the population live in rural areas. 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 Industry 12

15 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

16 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

17 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 CO 2e 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

18 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

19 UNIDO s Green Industry Initiative Sectoral strategy to implement a green economy 1 2 Greening existing industries Creating new green industries 17

20 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

21 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

22 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: 20

23 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

24 Concluding remarks (1/3) Migration is not only Developing Countries problem, it is our problem It is a manifestation of a systemic crisis that features two key causes: 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

25 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 significant diversification 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

26 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

27 Future generations will judge us on how we handle migration through inclusive and green growth 25

28 Treat the Earth well. It is not given to you by your parents. It was loaned to you by your children Kenyan proverb

29 Thank you very much!