The challenge of equitable and
sustainable progress: scope of
HDR2011
Ljubjana, May 2011
Why Equity and Sustainability? – distributive justice
• Normative argument:– “It would be a gross violation of the universalist principle if we
were to be obsessed about intergenerational equity without at the same seizing the problem of intragenerational equity” (Anand and Sen, 2000)
• Empirical argument:– “many problems of resource depletion and environmental stress
arise from disparities in economic and political power. ...our inability to promote the common interest in sustainable development is often a product of the relative neglect of economic and social justice within and amongst nations”(Bruntlandt Commission, 1987)
• Can we identify intersections that allow for mutually supportive policies?
→ Positive synergies
Importance of risk and uncertainty
• Conceptual and measurement debates are often conceived in terms of substitutability between natural and man-made capital
• However, given risk, there is uncertainty about future substitutability– This favors the strong sustainability view over weak
sustainability• The capabilities approach is concerned with the
most disadvantaged, thus calls for action to avert catastrophic risks, and mitigate/adapt
Defining sustainable human development
The preservation – and whenever possible expansion – of the substantive freedoms and capabilities of people today while undertaking reasonable efforts to avoid risks that would seriously compromise the capability of future generations to have similar – or greater – freedoms.
Improve Deteriorate
Improve
Introduction ofequitably commonproperty regimes inopen access resources.
Cash transferprograms when themarginal propensity toconsume carbon-intensive goods ishigh.
Deteriorate
Cut CO2 emissions bystopping growth indeveloping countries.
Subsidize consumption of gasoline.
Sustainability
Equity
Synergies or trade-offs
Inequality, (Un)Sustainability and HD: Potential Links
Decline in inequality-adjusted HDI
Trends in deprivations (MPI)
-0.120
-0.100
-0.080
-0.060
-0.040
-0.020
0.000
-0.045
-0.040
-0.035
-0.030
-0.025
-0.020
-0.015
-0.010
-0.005
0.000
0.005Jordan Colombia Madagascar Kenya Nigeria Lesotho Bolivia
Ann
ualiz
ed p
erce
ntag
e ch
ange
in M
PI
Ann
ualiz
ed ab
solu
te C
hang
e in
Han
d A
ΔH * ΔA
ΔA
ΔH
Δ%MPI
2.8
13.6
1.7
7.4 5.6
46.0
22.9
0
10
20
30
40
50
SSA South Asia ECA LAC Arab States EAP Developed Countries
Regional contributions to rising global CO2 emissions(1970-2007; percentage contributions)
EAP w/o China: 6; SA w/o India: 4, China+ India: 48
Sub-Saharan Africa and South Asia most affected, particularly by precipitation
-8.00
-7.00
-6.00
-5.00
-4.00
-3.00
-2.00
-1.00
0.00
1.00
2.00
Sub-Saharan Africa
South Asia Europe and Central Asia
Latin America and
the Caribbean
Arab States East Asia and the Pacific
Developed countries
Chan
ges
in d
egre
es ce
lsiu
s
Climate change by region
Temperature (degrees celsius) Precipitation change (mm per month)
The multidimensional poverty index (MPI)used in analysis of env deprivations of the poor
‘Environmental’ deprivations are pervasive among the MPI* poor
• New analysis highlights deprivations relating to dirty water, unimproved sanitation and indoor air pollution
• ‘Environmental’ deprivations contribute disproportionately to MPI poverty
• Overlap: 8 of 10 MPI poor are deprived in 2 or more ‘environmental’ indicators, 29 percent in all three indicators
• Deprivations are highest among MPI poor in cooking fuel across all regions, except the Arab States where lack of water is paramount
• Rural poor are more severely affected* Cooking fuel (dung, wood, charcoal), electricity, water supply and sanitation
‘Environmental deprivations’ among MPI poor by region
Environment threats and deprivations affect multiple aspects of wellbeing
Livelihoods – Direct threat to those dependent on agriculture, forestry and fishingHealth – High burden of disease from indoor & outdoor air pollution & fecal/water borne disease, risk of increase in insect-borne disease & malnutritionEducation – Shocks and uncertainty, coping strategies keep children out of school; lack of electricity impedes homework Empowerment – Burden of coping strategies (wood & water, soil degradation) limits opportunities for societal participation by womenEquity – women and children tend to fare worse in natural disasters , and minorities suffer disproportionally environmental ‘bads’
Rethinking our development model• A clean and safe environment – a right, not a privilege
– 130+ constitutions address environmental norms– Enforceability not always clear cut– Increase right and access to information
• The role of the State– balanced approaches - emphasize investments in non-income
aspects of human development– role of industrial policy in enabling development needs to be
carefully considered– Policies that stimulate specific economic activities
• Eg. policies aiming to reduce the carbon intensity of development - limiting incentives to new activities, automatic sunset provisions, clear benchmarks for success
– Promotion of structural change
Integrating equity concerns into environmental policy design
ENVIRONMENTAL POLICYINSTRUMENTS
COMUNITIESFIRMSFARMS
DESIGN ASPECTS:coverage, costs, source of financing, benefits,
incidence, compensation
Institutional Framework
Monitoring outcomes and distributional
impacts
PEOPLE’S CAPABILITIESOPPORTUNITIES
FREEDOMS
ENDOWMENTS
OPPORTUNITIES
AGENCY
KEY DISTRIBUTIONAL
ASSPECTS:Sources of
livelihoods, Assets, land, skills, social
capital, opportunities