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sustainable development goals

Tackling inequality is a game changer for business and private sector development (which is why most of them are ignoring it)

Duncan Green's picture

Oxfam’s private sector adviser Erinch Sahan is thinking through the implications of inequality for the businesses he interacts with.

Mention inequality to a business audience and one of two things happens. They recoil in discomfort, or reinterpret the term – as social sustainability or doing more business with people living in poverty. Same goes for the private sector development professionals in the aid community (e.g. the inclusive business crowd).

A good example is the UN Global Compact, which steers companies on how to implement the SDGs. They completely side-step the difficult implications of inequality on business and redefine the inequality SDG as boiling down to social sustainability or human rights / women’s empowerment goal. All good things that we at Oxfam also fight for, but these can all happen simultaneously with increasing concentration of income and wealth amongst the richest – i.e. rising inequalityWe know that rising inequality is one of the great threats to our society and economy. So why is business and the aid world so uncomfortable with tackling it head on?

Man picks tea leaves at Kitabi Tea Processing FacilityInequality is a relative rather than an absolute measure. This often makes it a zero-sum game – to spread wealth and income more equally, someone probably has to lose. But the intersection of business, sustainability and development has become locked into an exclusive focus on win-win approaches where there are no trade-offs and everyone gets their cake and eats it too. Addressing inequality often hits the bottom line – meaning changes to the prices paid to farmers, wages paid to workers, taxes paid to government and prices charged to consumers. But there is hope. Through a new lens (or metric) that should drive how business addresses inequality: share of value.

Don’t confuse this with Creating Shared Value, which is focused on the win-win (without commenting on how the created value is shared). What I’m proposing is a measure that compares businesses on how they share value with workers, farmers and low-income consumers. In fact the concept dates back to the original principles underpinning the fair trade movement some decades ago.

It’s all about inclusion, but how?

Alina Rocha Menocal's picture



Inclusion
is the new buzzword in international development. From promoting citizen empowerment to fostering pathways out of fragility, it is all about political processes that are more inclusive and representative‎.

The newly adopted Sustainable Development Goals are perhaps the most ambitious articulation of this consensus, with Goal 16 in particular calling for building more “effective, accountable and inclusive institutions at all levels”.

And there are good reasons for this call-out. Two findings from research that I undertook for a paper I wrote recently on Political Settlements and the Politics of Inclusion are particularly striking in highlighting the centrality of inclusion:

New tactics to nudge habit change for open defecation behavior

Jacqueline Devine's picture
Open defecation remains a critical global health challenge, affecting almost 1 billion people around the world and contributing significantly to the estimated 842,000 people who die each year because of poor sanitation, hygiene practices, and unsafe water supplies [1].
 
Most behavior change approaches and frameworks for addressing open defecation have focused on relatively conscious, “reflective”  drivers of behavior, including people’s emotions (such as pride or shame), rational knowledge (e.g., of germ theory), social norms, and explicit action plans (such as commitments to change). Using the framework popularized by renowned social psychologist Daniel Kahneman [2].<, these factors can be described as “System 2” drivers of behavior i.e., relatively conscious and motivational factors. It is now well established, however, that human behavior can also be heavily influenced by “System 1” drivers i.e., relatively automatic, cue-driven factors [3].

Weekly wire: The global forum

Roxanne Bauer's picture
World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.
 

Do international NGOs still have the right to exist?
The Guardian
It’s highly unlikely that corporate bosses regularly ask themselves if their businesses have a right to exist. Their goal is to sell stuff and make a profit. But if your goal is to alleviate poverty and human suffering – in the face of statistics showing mixed outcomes – is this, in fact, the most important question an International NGO can ask of themselves? At the BOND conference last week, in a session entitled How can INGOs survive the future, Penny Lawrence, the deputy CEO of Oxfam stated bluntly: “we need to earn the right to survive the future.” It is like the sector’s very own Damascene moment.

Changing views of how to change the world
Brookings, Future Development blog
World leaders concluded three large agreements last year. Each represents a vision of how to change the world. The Addis Ababa Action Agenda on financing for development agreed to move from “billions to trillions” of cross-border flows to developing countries. The agreement on universal sustainable development goals (SDGs) sets out priorities (albeit a long list) for what needs to change. The Paris Agreement on climate change endorses a shift to low-carbon (and ultimately zero carbon) economic growth trajectories. There is a common thread to these agreements. They each reflect a new theory of how to change the world that is not made explicit but has evolved as a matter of practice. Understanding this new theory is crucial to successful implementation strategies of the three agreements.
 

World Water Day: Transforming lives through better water and jobs

Jennifer J. Sara's picture

The largest sphere represents
all of Earth's water. The next
smallest sphere represents the world's
liquid fresh water. The smallest
one represents fresh surface water
in all the lakes and rivers on the planet.
Source: US Geological Survey

Water covers 70% of Earth’s surface, but if you live in Sana’a, Sao Paolo, California, or the many other areas where drought or chronic water scarcity has affected daily life, you know that abundance can be relative.

This image from the US Geological Survey shows that only a tiny fraction of Earth’s water is the accessible freshwater we need to live, grow food, sustain the environment, and power our cities and jobs.

Growing cities and populations and a changing climate are placing unprecedented pressures on water. According to the World Economic Forum, water crises are among the top risks to global economic growth. For at least 650 million people, even the water they are able to find is unsafe.

But this also offers an opportunity to provide safer water and better manage our water resources for a more resilient future.

This year, #worldwaterday focuses on the connection between water and jobs, and these connections primarily fall under two categories: productivity and sustainability.

Making development work for peace

Saroj Kumar Jha's picture

Welcome to Development for Peace, a blog we are launching today with great ambition, to create a space to listen, learn, think, and ignite a discussion that will help us tackle the challenge of fragility, conflict and violence.

You might ask why the World Bank Group is working in this area. In fact, it’s at the core of our mission to reduce poverty. When the Bank was founded in 1944 towards the end of World War II, it was in recognition that unless there was a massive effort to help rebuild countries impoverished by war, the peace would not be sustainable. Development policies are a central part of peacebuilding and stability efforts.
 

Weekly wire: The global forum

Roxanne Bauer's picture

World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.


Middle-Class Heroes: The Best Guarantee of Good Governance
Foreign Affairs
The two economic developments that have garnered the most attention in recent years are the concentration of massive wealth in the richest one percent of the world’s population and the tremendous, growth-driven decline in extreme poverty in the developing world, especially in China. But just as important has been the emergence of large middle classes in developing countries around the planet. This phenomenon—the result of more than two decades of nearly continuous fast-paced global economic growth—has been good not only for economies but also for governance. After all, history suggests that a large and secure middle class is a solid foundation on which to build and sustain an effective, democratic state. Middle classes not only have the wherewithal to finance vital services such as roads and public education through taxes; they also demand regulations, the fair enforcement of contracts, and the rule of law more generally—public goods that create a level social and economic playing field on which all can prosper.
 

Humanitarian reform: What's on - and off - the table
IRIN News
As pressure mounts to come up with concrete proposals for the future of humanitarian aid, horse-trading and negotiations have begun in earnest behind the scenes in the lead-up to the first ever World Humanitarian Summit (WHS), to be held in Istanbul in May. The release this week of the UN secretary-general’s vision for humanitarian reforms marks one of the last stages in a multi-year process that has seen consultations with some 23,000 people around the world on how to improve crisis response. (See: Editor’s Take: The UN Secretary General’s vision for humanitarian reform)  Hundreds of ideas are floating around. Which are now rising to the top? And which are being pushed to the side? Here’s our take on the emerging trends:
 

Can we really put a price on meeting the global targets on drinking-water and sanitation?

Guy Hutton's picture

When the Millennium Development Goals (MDGs) were signed, a commitment was made to deliver improved water and sanitation to half the unserved population. This ambitious target was met for water but not for sanitation, with 2.4 billion people still lacking improved sanitation in 2015. The first part of our new study, The Costs of Meeting the 2030 Sustainable Development Goal Targets on Drinking Water, Sanitation, and Hygiene, estimates the cost of finishing what was started as part of the MDG target.

The study found that globally current levels of financing are likely to cover the capital costs of achieving universal basic WASH by 2030. The global capital costs amount to $28.4 billion per year (range: $13.8 to $46.7 billion). However, despite this good news, the current allocations need to be redirected and there will need to be significantly greater spending on sanitation (accounting for 69% of the cost of basic universal WASH) and operations and maintenance, as well as in the most off-track countries which are mainly in sub-Saharan Africa and South Asia.

But this isn’t the full story.

Media (R)evolutions: Despite tremendous growth in mobile broadband, affordability remains an issue in least developed countries

Roxanne Bauer's picture

New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.

In recent years, as the number of mobile-cellular subscriptions surpassed 7.1 billion and mobile network population coverage approached close to 95%, growth in mobile subscriptions has greatly exceeded the growth in fixed connections, especially in developing countries. For many low-income groups, mobile devices are their only window to internet access.

The tremendous growth has not only contributed to greater access rates, but also to a fall in prices of mobile-cellular services around the world as providers seek to be competitive. Over the past year, the decrease in mobile-broadband prices worldwide made it, on average, 20 – 30% more affordable.  In least developed countries (LDCs), the mobile-cellular price basket continued to fall to 14% of GNI per capita by the end of 2014, compared with 29% in 2010.

Nevertheless, as the following graph from Measuring the Information Society Report 2015 by the International Telecommunication Union (ITU) illustrates, LDCs have a long way to go in order to achieve affordable mobile-broadband packages. The graph shows, the average prices for pre- and post-paid broadband connections on computers and mobile devices, as measured against monthly GNI per capita, in 2013 and 2014. 

Among the options, prepaid mobile-broadband is the most affordable. In this context, it will be important for broadband providers to offer more new services and packages for low-income groups, such as allowing users to buy data in small volumes.  

Mobile broadband prices

SACOSAN VI: An opportunity for South Asian leaders to focus on sanitation and the Sustainable Development Goals

Junaid Kamal Ahmad's picture

The text below originally appeared in The Daily Star as part of the SACOSAN VI Supplement. The Daily Star is an English newspaper of Bangladesh.

SACOSAN VIThe 6th South Asian Conference on Sanitation (SACOSAN VI) is a historic milestone for South Asian governments. The conference reflects the efforts South Asia has made towards safe sanitation for all, but importantly, it signals the Region’s commitment to shift from the Millennium Development Goals (MDGs) to the more challenging platform of the Sustainable Development Goals (SDGs). This shift will require even greater leadership from the governments, more sustained partnership from the development community, and greater grass-root innovation. SACOSAN VI is the right moment for South Asia to concretely signal its commitment towards achieving SDG 6 – the Water and Sanitation Goals.


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