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The sustainable development framework:
             THE WHOLE AGENDA



                                      Economic:
                           Issue of traditional growth path;
                             GDP, capital stock, and debt;
                            government’s role: provision of
                           public goods, regulation, energy
                                         pricing

                                  (DEMOCRATIC)
                                  GOVERNANCE
               Social                                         Environmental
      Social inclusion, access to
                                                         Biodiversity, water, food,
       jobs, health, education,
                                                       energy, climate change impact
      good governance, culture




                       Green (and decent) jobs
           Poverty-environment nexus; Social impact of ecosystem damage;
           Social inclusion effects of pollution, and of environmental disasters.
PROCESSES & INSTITUTIONS



                     Central Government
        Level of Decentralization, Fiscal empowerment
                                                                         INCLUSION and
                         Local Government                               EMPOWERMENT
                              Services
  RULE OF
   LAW                                           Equal access
                     Equal                                           Community
                   opportunity
                                                                   Human and Social
                                 Collective action                     Capital
  Private sector                   / incentives
   Livelihoods
                                                         Justice
                            Eco-                                           TRANSPARENT
                         efficiency
                                                                             DECISION-
                                                                              MAKING
REGULATION                                            Environment
                                                     Natural resource
                                                        heritage

                                                                                         2
REALITY: RISKS AND CHALLENGES

•   Not one but three different internally diverse regions
•   Hierarchical close regimes
•   Relative high levels of corruption
•   Weak institutional frameworks
•   Weak checks and balances
•   Weak civil society/democratic civic culture
•   Conflicting or not-converging interests
•   No structures/traditions for dialogue and accommodation
CASE STUDY I
 Inter-municipal Cooperation Programme

                        Country:       Macedonia
                        Stakeholder: National Government, Local Authorities,
                        Association of local self-government units, Civil Servant
                        Agency
©UNDP Macedonia

Objective:
- 22 partnerships involving 48 municipalities strengthened
- Improved delivery of local services to local citizens
- Target areas: tax collection, urban planning, financial management, social
  protection, environment
   Smaller municipalities are able to provide better services particularly to
   vulnerable groups
   920 members of local authorities and municipal administration trained on
   IMC, energy efficiency, etc.
   after 2 years, 74% of the municipalities still participated in IMC
   (highly sustainable model!)                                                      4
CASE STUDY II
Climate Risk Managment at the Local Level

Country:     Armenia
Stakeholder: National Government, Local Authorities, Regional Disaster Risk
Reduction Authorities
Objective:
- Reduction of the vulnerabilities and strengthening of capacities of
  communities and public administrations concerning disaster and climate
  change risks.

  Protection against floods and mudflow
  Anti-hail nets to protect wine yards
  Engagement of local communities e.g.
  through a photo story contest



                                                         © UNDP Armenia       5
DEMOCRACIES (OR ALETERNATIVE SYSTEMS THAT PROVIDE VOICE & ACCOUNTABILITY) ARE
INDISPENSABLE FOR DEBATING PROBLEMS LIKE THE NECESSITY TO HAVE SUSTAINABLE
DEVELOPMENT, FOR ACCOMODATING CONFLICTING INTERESTS AND FOR SHAPING SOCIAL
CONSENSUS AND A NEW PARADIGM.
Core democratic governance features which support human development




     Programmatic politics                        Inclusive institutions


                                    Human
                                  development

    Policy coherence &
  performance monitoring                              Collective action
      (state capacity)


Programmatic politics and political commitments
Evidence shows that, over and above the existence of particular forms of democracy, credible
programmatic political commitments by politicians influence service delivery and development
outcomes. These commitments are often linked to the existence of well-established programmatic
political parties, which advocate particular positions on issues of broad public concern, and thus can
make credible commitments to their electorate. This programmatic approach to politics is in contrast to
more clientelistic or patronage models, which tends to produce benefits for certain groups of the
population only.
DEMOCRACY & GOVERNMENT EFFECTIVENESS


WE ALSO KNOW THAT NON-DEMOCRACIES AND AUTOCRATIC
REGIMES ARE CORRUPT, ARE NOT EFFECTIVE NOR EFFICIENT,
TAKE ARBITRARY DECISIONS AND ARE NOT ACCOUNTABLE,
DELIVER VERY POOR RESULTS.
THREE SUSTAINABLE DEVELOPMENT ISSUES


• The governance of natural resources
• Urbanization and urban governance
• Environmental governance, and global
  environmental governance

• DEMOCRATIC GOVERNANCE: NOT MARKET,
  NOT HIERARCHICAL, BUT NETWORK
  GOVERNANCE/INCLUSIVE GOVERNANCE IN
  WHICH ALL ACTORS (COMMUNITY, PUBLIC,
  PRIVATE ACTORS, NATIONAL AUTHORITIES
  AND INTERNATIONAL COMPANIES)
WHAT TO DO? EXAMPLE:



 Fostering an Enabling Environment for Green Investments through Governance

CHALLENGE:
An enabling environment that fosters low-carbon investments by the private sector requires incentives, access to
credit, knowledge transfer and technologies, as well as transparency and a stable and predictable legal
environment.

PROJECT OBJECTIVES:
The objective of this project is to foster the requisite legal, financial and institutional frameworks to catalyze the
green economy. Working directly with the Government, the project will ensure that the private sector can benefit
from an appropriate enabling environment when making green investments.

The project also provides incentives to the private and public sectors by creating innovative arrangements for
capacity building while strengthening quality efficiency and regional competitiveness. This includes municipal-
level public-private partnership schemes for low-carbon development, inter-municipal co-operation partnerships,
schemes for foreign investors, and the launch of a technical support fund for financing green investments.
FOUR DEMOCRATIC GOVERNANCE CONDITIONS WICH SUPPORT EEFECTIVE
                   SUSTAINABLE HUMAN DEVELOPMENT


1. UNDERSTANDING THE POLITICAL ECONOMY: INTERNAL (POLITICS AND SYSTEM) AND EXTERNAL (GLOBAL GOVERNANCE)
2. INCLUDE FUTURE GENERATIONSWITHIN GOVERNANCE STRUCTURES AT ALL LEVELS THROUGH SOME FORM OF
   REPRESENTATION.
3. GREATER ENGAGEMENT FROM DIFFRENTE STAKEHOLDERS AND STRUCTURES FOR CONFRONTATION AND COLLABORATION.
4. INSTITUTIONAL COHERENCE IN IMPLEMENTATION




                 Ensuring political incentives for    Inclusive institutions (including
                          sustainability              proxies for future generations)




                                           Sustainable human
                                              development



                Policy coherence & performance
                monitoring on sustainable human      Collective action for sustainability
                          development
                                                                                                     11

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The Sustainable Development Framework

  • 1. The sustainable development framework: THE WHOLE AGENDA Economic: Issue of traditional growth path; GDP, capital stock, and debt; government’s role: provision of public goods, regulation, energy pricing (DEMOCRATIC) GOVERNANCE Social Environmental Social inclusion, access to Biodiversity, water, food, jobs, health, education, energy, climate change impact good governance, culture Green (and decent) jobs Poverty-environment nexus; Social impact of ecosystem damage; Social inclusion effects of pollution, and of environmental disasters.
  • 2. PROCESSES & INSTITUTIONS Central Government Level of Decentralization, Fiscal empowerment INCLUSION and Local Government EMPOWERMENT Services RULE OF LAW Equal access Equal Community opportunity Human and Social Collective action Capital Private sector / incentives Livelihoods Justice Eco- TRANSPARENT efficiency DECISION- MAKING REGULATION Environment Natural resource heritage 2
  • 3. REALITY: RISKS AND CHALLENGES • Not one but three different internally diverse regions • Hierarchical close regimes • Relative high levels of corruption • Weak institutional frameworks • Weak checks and balances • Weak civil society/democratic civic culture • Conflicting or not-converging interests • No structures/traditions for dialogue and accommodation
  • 4. CASE STUDY I Inter-municipal Cooperation Programme Country: Macedonia Stakeholder: National Government, Local Authorities, Association of local self-government units, Civil Servant Agency ©UNDP Macedonia Objective: - 22 partnerships involving 48 municipalities strengthened - Improved delivery of local services to local citizens - Target areas: tax collection, urban planning, financial management, social protection, environment Smaller municipalities are able to provide better services particularly to vulnerable groups 920 members of local authorities and municipal administration trained on IMC, energy efficiency, etc. after 2 years, 74% of the municipalities still participated in IMC (highly sustainable model!) 4
  • 5. CASE STUDY II Climate Risk Managment at the Local Level Country: Armenia Stakeholder: National Government, Local Authorities, Regional Disaster Risk Reduction Authorities Objective: - Reduction of the vulnerabilities and strengthening of capacities of communities and public administrations concerning disaster and climate change risks. Protection against floods and mudflow Anti-hail nets to protect wine yards Engagement of local communities e.g. through a photo story contest © UNDP Armenia 5
  • 6. DEMOCRACIES (OR ALETERNATIVE SYSTEMS THAT PROVIDE VOICE & ACCOUNTABILITY) ARE INDISPENSABLE FOR DEBATING PROBLEMS LIKE THE NECESSITY TO HAVE SUSTAINABLE DEVELOPMENT, FOR ACCOMODATING CONFLICTING INTERESTS AND FOR SHAPING SOCIAL CONSENSUS AND A NEW PARADIGM.
  • 7. Core democratic governance features which support human development Programmatic politics Inclusive institutions Human development Policy coherence & performance monitoring Collective action (state capacity) Programmatic politics and political commitments Evidence shows that, over and above the existence of particular forms of democracy, credible programmatic political commitments by politicians influence service delivery and development outcomes. These commitments are often linked to the existence of well-established programmatic political parties, which advocate particular positions on issues of broad public concern, and thus can make credible commitments to their electorate. This programmatic approach to politics is in contrast to more clientelistic or patronage models, which tends to produce benefits for certain groups of the population only.
  • 8. DEMOCRACY & GOVERNMENT EFFECTIVENESS WE ALSO KNOW THAT NON-DEMOCRACIES AND AUTOCRATIC REGIMES ARE CORRUPT, ARE NOT EFFECTIVE NOR EFFICIENT, TAKE ARBITRARY DECISIONS AND ARE NOT ACCOUNTABLE, DELIVER VERY POOR RESULTS.
  • 9. THREE SUSTAINABLE DEVELOPMENT ISSUES • The governance of natural resources • Urbanization and urban governance • Environmental governance, and global environmental governance • DEMOCRATIC GOVERNANCE: NOT MARKET, NOT HIERARCHICAL, BUT NETWORK GOVERNANCE/INCLUSIVE GOVERNANCE IN WHICH ALL ACTORS (COMMUNITY, PUBLIC, PRIVATE ACTORS, NATIONAL AUTHORITIES AND INTERNATIONAL COMPANIES)
  • 10. WHAT TO DO? EXAMPLE: Fostering an Enabling Environment for Green Investments through Governance CHALLENGE: An enabling environment that fosters low-carbon investments by the private sector requires incentives, access to credit, knowledge transfer and technologies, as well as transparency and a stable and predictable legal environment. PROJECT OBJECTIVES: The objective of this project is to foster the requisite legal, financial and institutional frameworks to catalyze the green economy. Working directly with the Government, the project will ensure that the private sector can benefit from an appropriate enabling environment when making green investments. The project also provides incentives to the private and public sectors by creating innovative arrangements for capacity building while strengthening quality efficiency and regional competitiveness. This includes municipal- level public-private partnership schemes for low-carbon development, inter-municipal co-operation partnerships, schemes for foreign investors, and the launch of a technical support fund for financing green investments.
  • 11. FOUR DEMOCRATIC GOVERNANCE CONDITIONS WICH SUPPORT EEFECTIVE SUSTAINABLE HUMAN DEVELOPMENT 1. UNDERSTANDING THE POLITICAL ECONOMY: INTERNAL (POLITICS AND SYSTEM) AND EXTERNAL (GLOBAL GOVERNANCE) 2. INCLUDE FUTURE GENERATIONSWITHIN GOVERNANCE STRUCTURES AT ALL LEVELS THROUGH SOME FORM OF REPRESENTATION. 3. GREATER ENGAGEMENT FROM DIFFRENTE STAKEHOLDERS AND STRUCTURES FOR CONFRONTATION AND COLLABORATION. 4. INSTITUTIONAL COHERENCE IN IMPLEMENTATION Ensuring political incentives for Inclusive institutions (including sustainability proxies for future generations) Sustainable human development Policy coherence & performance monitoring on sustainable human Collective action for sustainability development 11