Inclusive Green Economy in Myanmar

Prof.Dr.Aung Tun Thet

Poverty, Inequality and Growth Poverty widespread (‘Poverty Trap’) Inequality on rise Greater numbers experiencing

simultaneous deprivations in education, health and living standards

Rising Economic, Social and Environmental Costs Poor and vulnerable groups suffered

most

Causes Market and institutional failures Conventional approaches to

economic growth Under-provision of public goods Insecure property rights

Solution ‘Business-as-usual’ approaches no

longer economically, socially or environmentally sustainable

New and innovative approaches required

New Path – Inclusive Green Economy

Practical 21st Century Development Model Connects: Poverty reduction Job creation Inequality Climate Change Environmental Stress Water, Energy and Food Security

Inclusive Green Economy Address systemic problems of current

economic system Generate more inclusive and

sustainable growth Increase economic and social returns

from investing in environmental improvement and low-carbon, climate-resilient development

Challenges of current economic system create green economy opportunities

CHALLENGES OPPORTUNITIES

• Ecosystem decline and loss of ecosystem services

• Ecosystem values• Demand for

biodiversity conservation and ecosystem restoration

• Natural resource scarcity and competition

• Demand for sustainable agriculture

• Demand for improved natural resource management and local resource rights

Challenges of current economic system create green economy opportunities

CHALLENGES OPPORTUNITIES

Vulnerability to climate-related risks and disasters

Demand for low-carbon goods and servicesDemand for more climate-resilient production systems and livelihoods

Fossil fuel prices Demand for renewable energy and energy efficiencyDemand for public transport and alternative fuels

‘Green Economy’ Pathway Bringing together social, economic,

and environmental objectives of sustainable development

Benefit poor and vulnerable groups Reduce inequality

Inclusive Green Economy combines ‘Inclusive Growth’ with ‘Green Growth’

Economic Growth

EnvironmentalSustainability

SocialDevelopme

nt

GreenGrowth

InclusiveGrowth

InclusiveGreenEconomy

Key Characteristics of Inclusive Green Economy

Economic Resource-efficient, low carbon and

climate resilient growth Creates and sustains decent jobs Expand economic opportunities for

poor Stimulate innovation and adoption of

green technologies Diversify and enhance resilience of

local and national economies

Social Improve health and well-being of

poor Promotes equity, including gender

equality Build social capital Enhances resilience of local

communities

Environmental Increase productivity and efficiency

of natural resource use Reduce pollution and impact of

natural hazards Improve management of

environmental risks Restore and sustain ecosystem health

and resilience

Governance Empower citizens through access to

information and justice and participation in decision-making

Improve transparency and accountability

How poor benefit from Inclusive Green Economy

Triple Bottom Line

1. Job-creating economic growth2. Environmental protection3. Social inclusion

Environmental Assets Fertile soils Clean water Forests Biodiversity

Environmental Assets Yield Income Support livelihoods Provide safety nets Contribute to public health Drive economic growth

Natural Resource and Environmental Management Sustainable forestry and fisheries Reducing carbon emissions Urban planning Infrastructure Generate high social rates of return

Inclusive Green Economy Low carbon and more climate

resilient development Improve resource efficiency Healthy and more resilient

ecosystems Greater economic opportunities Social justice for the poor

Inclusive Green Economy Pathways

POVERTY REDUCTION

Access to and equitable management of human

capital

Access to safe water and sanitation services

Improve air quality and limit exposure to toxic

chemicals

Demand for low-carbon goods and services

Excess to renewable energy technologies

POVERTY AND HUMAN

DEVELOPMENT

Rights and empowerment

Livelihoods and

employmentHealth & Well-

Being

Resilience and security

POVERTY AND HUMAN

DEVELOPMENT

1. Eradicate extreme poverty and hunger

2. Achieve Universal Primary Education

3. Gender Equality

4. Reduce Child Mortality

5. Improve maternal health

6. Combat major diseases

7. Environmental Protection

8. Global Partnership

Livelihoods Poor dependent on environmental

assets – farming, fishing, hunting, recycling, water and energy distribution

“GDP of Poor” – 47% to 89% non-marketed goods and services

Environmental Assets Under-valued by markets “Safety Net” route out of poverty

Health Linked to quality of environment Preventive measures more cost-

effective than treatment

Inclusive Green Economy Better and more equitable health

outcomes More secure access to water and

agricultural land Access to clean household energy Improved environmental

infrastructure for sanitation, drainage and waste collection

“Green” urban transport

Resilience Poor and vulnerable groups affected

by climate related shocks

Inclusive Green Economy Generate income Employment opportunities Route out of poverty Unleash capacity of poor Expanding opportunities for new

products, services and technologies

Eight Key Sectors

1. Agriculture2. Forestry3. Fishing4. Energy5. Resource-intensive manufacturing6. Recycling7. Buildings8. Transport

Example Greener farming practices – organic

farming REDD+ (Reduced Emissions from

Deforestation and Forest Degradation) Ecotourism Energy efficient, emission reducing

technology and climate proofed infrastructure

Renewable energy

Green Technologies Generate new income Employment opportunities Export-led growth Investment in R&D

“Green Jobs” Public employment schemes Informal waste sector Small-scale natural resource

management

Enabling Conditions for Inclusive Green Economy

National Policy Objectives

1. Leading role and political commitment

2. Safeguarding poor against adverse impacts

3. Maximizing opportunities to capture benefits

Reforms Governance Institutional Regulatory Tax Expenditure-based economic policies Incentive mechanisms Social protection policies

Key Messages for Policy-Makers

Myanmar Face economic, social and

environmental challenges Overcoming poverty and inequality Ecosystems degradation Climate Change Major threat to livelihoods and

economies

“Business as Usual” Strategies No longer economically socially or

environmentally sustainable

New Approach Accelerate poverty reduction More equitable and sustainable

development

Inclusive Green Growth Alternative pathway Low-carbon and climate-resilient

development Improved resource efficiency Healthy and resilient ecosystems Economic opportunities and social

justice

Investing in improved resource efficiency and environmental management

Sustainable forestry and fisheries Reducing carbon emissions Urban planning and infrastructure

Inclusive Green Growth Policy, Institutional and Governance

Reforms Targeted investments at local and

national levels needed Poor and vulnerable groups

participate in, contribute to and benefit

Investing in improved resource efficiency and environment management

Alternative pathway Low-carbon and climate-resilient

development Healthy and resilient ecosystems

Shared Policy Agenda

Conditions Three Separate Related

1. Political Commitment Government’s leading role Transition to inclusive green economy

2. Safeguarding Poor Adverse impacts during transition

3.Maximizing Opportunities Of Poor Capture benefits

Transition Five critical “Building Blocks” Framework for shared policy agenda Government, Civil Society, Private

Sector

Towards Inclusive Green Economy

Building Blocks

1National Economic

&Social Policies

2Local Rights& Capacities

3Inclusive

Green Markets

4Harmonized International

policies & support

5New metrics for

measuring progress

1. National Economic & Social Policies

Government Promote rural and urban

development Review economic and social policies Fiscal/Monetary policies Tax regimes Micro-credit services Social protection measures Public works programs

Government Capture higher economic returns

from: Investments in sustainable use of

ecosystems Low-carbon and climate resilient

development

2. Local Rights and Capacities

Poor women and men Need rights and security of tenure Means and incentives to sustainably

manage and benefit from natural resource wealth

Right to information, participation and access to justice

Voice in decisions affecting how natural assets are managed and benefits distributed

3. Inclusive Green Markets

Inclusive Green Markets Build and expand poor’s access to

markets and supply chains for green products and services

Innovative business models Enabling policy and institutional

environment Sustain and restore natural ecosystems Low-carbon and climate resilient

development Better and more secure livelihoods

4. Harmonized International Policies and support

Higher-income countries Ensure coherence of development,

trade, technology, environmental and other relevant policies

Ability of low and middle countries to succeed in transition to Inclusive Green Economy

Myanmar Development partners provide

harmonized policy, investment and capacity development support

Develop and implement inclusive green economy transition strategies

5. New tools to measure progress

New Tools Beyond narrow focus on income

poverty and GDP Broader way of tracking economic,

social and environmental progress and well-being

Stakeholders Government Private Sector NGOs Development partners Poor and vulnerable groups Join forces Find new and innovative ways to work

together

MOVING FORWARD

Inclusive Green Economy Not ‘retrofitting’ of existing economic

system Empowers and engage poor Interests, knowledge and priorities of

poor communities

Inclusive Green Economy Innovations Local/Global cooperation Policy learning Experience sharing All stakeholders – State, poor and

vulnerable, private sector, NGOs, development partners – join forces