The Green Eureka Moment: Investing and Inventing to Stop Climate Change

By Raluca Anisie, Carbon Impact Analyst and Paul Hailey, Head of Impact, responsAbility Investments AG

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A family bakery in Ecuador that used a green loan from a GCPF investee to buy a more energy-efficient oven. Photo: José Jacomo

In the 3rd century B.C., Archimedes declared: “Give me a place to stand and with a lever I will move the world.” This phrase speaks to the potential of the right tools at the right time, but as anyone who has tried to build flatpack furniture will confirm, not having the right tools can derail any project, however grand.

In 2019, our quest to find and use the right tools to move the world is more urgent than ever. As UNEP stated at COP24, we are the last generation that can stop climate change. This challenge requires a mobilisation of investment on an unprecedented scale, yet enormous gaps remain, especially in the developing world. Filling these gaps will require ground-breaking investment approaches like blended finance, a method that uses public money to improve the risk profile of investments to catalyse private funding. However, tools such as blended products will also need to credibly demonstrate impact to attract and retain public and private investors. Continue reading

Africa is the continent of the future. Are democracy and governance up to the challenge?

By Nathalie Delapalme, Executive Director, Mo Ibrahim Foundation

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Photo by Doug Linstedt on Unsplash

Africa is the world’s youngest continent with around 60% of the population currently under age 25. Between now and 2100, basically two generations only, Africa’s youth population is expected to increase by more than 180%, while Europe’s and Asia’s will shrink by more than 21% and by almost 28%, respectively. By the end of the century, Africa’s youth population will reach 1.3 billion people, double the expected total population of Europe, and will represent almost half of the world’s youth.

If Africa is the continent of the future, youth is the future of the African continent. Undoubtedly, the ability to offer them sound prospects is a key challenge that will shape the future of our shared world. Youth is Africa’s biggest resource. Its eagerness, dynamism, creativity, energy, and ability to make the best use of innovation can drive political, economic and cultural transformation on the continent, provided it is properly harnessed and challenged.

But we are at a tipping point. Too many young people on the continent feel both devoid of proper economic prospects and robbed of political ownership, often still held by leaders who are two or three generations older than their average population. Continue reading

Social protection and risk: the ultimate root cause of migration?

By Jason Gagnon, Development economist / PGD coordinator, OECD Development Centre and Jessica Hagen-Zanker, Senior Research Fellow, Overseas Development Institute
 

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Receiving cash transfers in Freetown, Sierra Leone (photo: Dominic Chavez/World Bank)

According to recent estimates, 258 million people in the world were living outside of their country of birth in 2017, up from a total of 161 million in 1990. That represents an increase of 60%. Under different circumstances, most migrants would never migrate in the first place; they would choose to stay close to their family and friends, and the food, music and culture they cherish. Migration – in these cases – is the consequence of something gone wrong.

So why do they leave? Poverty and lack of opportunities for a better future are the typical culprits. But it’s more complicated than that.

Risk is another factor that pushes many people to migrate. The mere risk of falling (back) into poverty can motivate migration. Indeed, migration theory has long described migration as a coping strategy to deal with risk. Empirical evidence confirms this. A 2016 qualitative study on Bolivia found that (internal) migration was a typical response by rural households in response to risks related to land access, insufficient work opportunities and low agricultural productivity. More evidence (on China) suggests that attitude towards risk can even determine who migrates from within the household. Continue reading

The Global South’s contribution to the climate crisis – and its potential solutions

By Harald Fuhr, Professor of International Politics at the University of Potsdam, Germany

DEVELOPMENT-MATTERS-emissionsGlobal CO2 emissions in 2017 totalled some 36.2 gigatonnes (Gt), of which the Global South1 emitted some 21 Gt CO2 or 58%. In the same year, the Global North (including Russia) emitted some 13.7 Gt and contributed to some 38% of global emissions. The remaining 4% are mostly emissions from shipping and aviation (international bunkers).

CO2 emissions in the Global South are heavily concentrated. The top 10 countries of the South contribute some 78% of the group’s emissions (see Table 1). With some 9.8 Gt CO2, China is by far the world’s biggest emitter. In 2017, it emitted more than the US (5.3 Gt CO2) and the EU-28 (3.5 Gt CO2) combined. Just two countries, China and India, are responsible for almost 60% of the Global South’s emissions, followed by other countries in the range of only 2-3% each. In 2017, 56 upper middle-income countries contributed to 46% of global emissions, while 34 low-income countries, most of them in Sub-Sahara Africa, contributed to only 1% of the total. Despite the fact that the latter group hardly contributes to global warming, its countries are likely to be the ones most severely affected by extreme weather events.
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Podcast: Can a TV show change gender discrimination in India?

Poonam Muttreja, Executive Director of Population Foundation of India-PFI, in conversation with Gaelle Ferrant, Economist for the OECD Development Centre’s Gender Team

Poonam Muttreja is the Executive Director of Population Foundation of India-PFI. She has over 35 years of experience in promoting women’s health – reproductive and sexual rights, rural livelihoods, public advocacy, and behaviour change communication. Under her direction, the successful Indian television show, “I, a woman, can achieve anything”, is promoting behaviour change to improve the lives of women and men in the country.

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The Sahel: responding to emergencies with efficiency

By Abdoul Salam Bello, Senior Fellow, Africa Center, Atlantic Council

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Image by Anton Wagner/Pixabay

The situation in the Sahel is concerning as community conflicts add to existing security, humanitarian and development challenges. What is now at hand is an emergency requiring the Sahel countries to respond with a sense of urgency. And not only is a greater and effective State presence necessary, but also improved synergies and coordination amongst stakeholders, including beneficiary communities and the private sector whose role is often overshadowed and underleveraged.

Here’s what we know: security challenges in the Sahel region put additional pressure on governments’ budget. This consequently generates significant macroeconomic and fiscal costs. Mali, for example, almost quadrupled its military spending from USD 132 million to USD 495 million from 2013 to 2018 according to figures from the Stockholm International Peace Research Institute (SIPRI). Over the same period, Niger increased its military spending by 2.5-fold, from USD 91.6 million to USD 230 million, while Burkina Faso doubled its expenditures from USD 142 million to USD 312 million. Mauritania spent 4.1% of its GDP on security spending in 2016, while Chad spent the equivalent of 5.6% in 2013. Such security expenditures often crowd out social investments. In 2018, for instance, Niger spent 17% of its total budget on security compared to 11% on health. If this trend persists, it would hinder the States’ ability to implement critical social programmes needed to achieve the Sustainable Development Goals (SDGs). Continue reading

Should firms in developing countries pursue independent R&D or adopt technology to innovate?

By Dai Jianjun and Yang Jianlong, Policy Research and Advice, OECD Development Centre (on secondment from the Development Research Center of the State Council of China)

Research-and-developmentInnovation promotes the global economy’s sustained growth, and innovation in developing countries can be achieved through two main means: independent research and development (R&D) or technology adoption. It is generally believed that developing countries can achieve development at a lower cost and faster by adopting technology. Even though enterprises are subject to certain restrictions in their technology adoption, such as mergers and acquisitions (M&As) that may be rejected due to national security factors, is it still relevant to depend on the adoption of technology for innovation to achieve continuous development?

To help answer this question, two companies in China, Huawei and Lenovo, offer perspectives in analysing different innovation models and their achievements. Both companies are engaged in the information technology industry and were established basically around the same time in the 1980s, experiencing first-hand the process of China’s implementation of the reform and opening-up policy to achieve economic catch-up. Currently, both are Fortune 500 companies, leading in their segmentation and having adopted different innovative approaches. Given the good comparability between the two companies, they offer relevant inspiration and analysis on innovation strategies and performance. How?

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