How the public sector can support sustainable business

LJD

By Frederique Mestre, Senior Legal Officer, UNIDROIT


This blog is part of a special series exploring subjects at the core of the Human-Centred Business Model (HCBM). The HCMB seeks to develop an innovative – human-centred – business model
based on a common, holistic and integrated set of economic, social, environmental and ethical rights-based principles. Read more about the HCBM here, and check out an event about it here
The HCBM project originated in 2015 within the World Bank’s Global Forum on Law, Justice and Development and is now based at the OECD’s Development Centre

Development-Finance-shutterstock_524218915How can we ensure economic development while advancing social and environmental objectives? How can we promote sustainable growth – a concept that in today’s real world may sound like an oxymoron? These questions are at the core of governments’ concerns at a time when the planet and humanity are faced with greater and more pressing challenges than ever before.

The Sustainable Development Goals (SDGs) are a milestone amongst the many political and legal instruments forming global standards, policies and procedures adopted by the international community for a more sustainable planet. The SDGs call for action to respond to social and environmental challenges. They outline obligations for governments toward their citizens to promote political and social cohesion and a responsibility for them toward future generations to advance long-term sustainable ecosystems.1

In this context, governments should be responsive to virtuous stakeholder initiatives and support them with enabling policies and appropriate legal and regulatory frameworks. And one such stakeholder that can’t be overlooked is the private sector. Recognised as a major driver of productivity, inclusive economic growth and job creation, the private sector has an essential role to play in contributing to sustainable development.2 Continue reading

What does public procurement have to do with sustainability?

LJD

By 
Professor Barbara De Donno, LUISS Guido Carli, Dr Livia Ventura, LUISS Guido Carli, and Andrea De Maio, EPLO 


This blog is part of a special series exploring subjects at the core of the Human-Centred Business Model (HCBM). The HCMB seeks to develop an innovative – human-centred – business model
based on a common, holistic and integrated set of economic, social, environmental and ethical rights-based principles. Read more about the HCBM here, and check out an event about it here
The HCBM project originated in 2015 within the World Bank’s Global Forum on Law, Justice and Development and is now based at the OECD’s Development Centre

Green-cityThe global financial crisis brought significant economic, social and political changes. It fostered the transition from a shareholders’ capitalism model to a new form of stakeholders’ capitalism, moving from maximising shareholders’ wealth to measuring a company’s social responsibility and environmental impact along with its economic value.

The economic, social and environmental dimensions characterise the “triple bottom line” approach, and are at the core of the inclusive and sustainable economic growth promoted by the Sustainable Development Goals (SDGs) and captured, more generally, by the sustainable development concept of the United Nations 2030 Agenda for Sustainable Development. Implementing this ambitious agenda requires strong co-operation amongst governments, the private sector and the civil society. Indeed, the importance of the business sector as a force for social change is, nowadays, undisputed and the role of enterprises in creating equitable and sustainable economic growth has gained traction in recent years. Consequently, governments worldwide have enacted statutes and adopted policies to foster a sustainable business ecosystem. And part of this ecosystem for greater sustainability is different forms of public “preferred procurement.”

Public procurement is when governments and state-owned enterprises purchase goods, services and works. It is a key factor in the economy and represents a strategic policy lever for states to drive innovation and change down through supply chains. Public procurement represents approximately 12% of GDP on average in OECD countries, almost 30% of total government expenditures, and up to 25-30 % of GDP in developing countries. Thus, it has a high impact on a country’s economic development and can play a critical role in promoting the inclusive and sustainable economic growth endorsed by the SDGs. Currently, public procurement – which is generally guided by the principles of fairness, transparency, openness and non-discrimination – is increasingly inspired by several forms of “preferred procurement”, such as “green procurement”, “social procurement” and “sustainable procurement”. Continue reading

What’s the path to sustainable development?

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By Mario Pezzini, Director, OECD Development Centre, and Special Advisor to the OECD Secretary-General on Development


This blog is part of an ongoing series evaluating
various facets of Development in Transition.
Perspectives on Global Development 2019: Rethinking Development Strategies
adds to this discussion


Cover-PGD_2019What’s the path to sustainable development? In this era of the Sustainable Development Goals (SDGs) — when all countries face both new challenges and new opportunities for improving the lives of their citizens in inclusive, holistic and environmentally sustainable ways – the question remains as relevant as ever.

Some may think the question was answered in the 2000s when we witnessed the transformation of the global economic geography. Whereas only 12 developing countries in the 1990s managed to double the OECD per-capita growth rates, 83 developing countries managed to do so a decade later. By 2008, developing and emerging economies made up 50% of the global economy for the first time. And the 15-fold surge in South-South trade linkages from 1990 to 2016 and the jump in development finance from USD 3.2 billion in 2003 go USD 15.6 billion in 2012 provided by large emerging economies, notably China, are clear proof points of this new economic geography.

Yet, this upswing in global economic growth masks two underlying issues that we cannot ignore on the road to sustainable development.

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Getting private resources on board for sustainable development

By Royston Braganza, CEO, Grameen Capital India


To learn more about this topic, check out the Global Outlook on Financing for Sustainable Development 2019


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GOOOOAAAAAALLLLLL! The frenzied celebration that reverberates across the globe, every time a goal is scored, reflects the seemingly universal passion for football – be it the FIFA World Cup, the Champions League or any other national or local leagues. The game cuts across generations, blurs political boundaries and traverses ethnic divisions. Sadly, some other things do too – hunger, refugee crises, poverty and global warming, to name a few. And yet, everywhere I look, shining examples exist of H.O.P.E.

Holistic approach. Governments, corporations, capital markets, non-governmental organisations need to find integrated solutions. One exceptional example is the catalytic potential of using corporate social responsibility/philanthropic capital to de-risk investment from capital markets. The financial sector can help guide companies to look towards a sustainable future. Grameen Foundation’s Growth Guarantees programme, for example, did precisely that by bringing together donors, international and local banks, microfinance institutions, and poor, vulnerable women borrowers.
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Raising capital for intermediary cities

By Jeremy Gorelick, Senior Infrastructure Finance Advisor, USAID’s* WASH-FIN (Water, Sanitation and Hygiene – Finance) Programme, and Joel Moktar, Project Leader, Open Capital Advisors


This blog is part of an ongoing series exploring the intersection between intermediary cities in developing countries and sustainable development


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Intermediary cities are the fastest growing cities in the developing world. Often referred to as secondary or second-tier cities, intermediary cities typically have a population of between 50,000 and one million people. They play a fundamental role in connecting both rural and urban areas to basic facilities and services.[1] Driven by population growth and rural-urban migration, intermediary cities worldwide are projected to grow at almost twice the rate of megacities (those with more than 10 million inhabitants) between now and 2030.[2] Of these, the fastest growing cities are in Africa and Asia.[3]

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Towards sustainable cocoa: financial solutions for smallholders in Côte d’Ivoire

By Adeline Dontenville, Land-use and Finance Expert, EU REDD Facility, European Forest Institute

cocoa-1529742When you buy a chocolate bar, it’s quite likely that the cocoa in it came from Côte d’Ivoire, the world’s top producer. If so, it is almost certain that the cocoa plants were grown where dense rainforest once stood.

Expansion of cocoa production into new areas is amongst the main drivers of deforestation in Côte d’Ivoire. At current rates, the country will lose all its forest cover by 2034. Decoupling cocoa production from deforestation is therefore crucial if Côte d’Ivoire is to achieve its goals of producing zero-deforestation cocoa and restoring forest cover to 20% of its territory by 2030.

One solution for the Ivoirian government is agroforestry, a type of land management in which farmers grow not only crops but also a variety of trees for multiple purposes, like firewood, fruit and timber. It’s a way to produce cocoa while restoring forest cover, improving soil fertility and diversifying the income of producers.

But how can Côte d’Ivoire’s smallholders invest in agroforestry when they live below the poverty line and have limited access to finance? And how can large chocolate manufacturers that buy cocoa from smallholders help?
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Infrastructure, jobs, good governance: Bringing Africans’ priorities to the G20 table

By Michael Bratton, University Distinguished Professor of Political Science and African Studies at Michigan State University and senior adviser to Afrobarometer, and E. Gyimah-Boadi, Executive Director of Afrobarometer and the Ghana Center for Democratic Development

 

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Beyond the limelight and the headlines, the recent Group of 20 (G20) summit accomplished an important piece of business by launching the Compact with Africa. The next step is crucial: negotiating the priorities that the compact will address.

One key concept is that the compact is with – rather than for – Africa, implying that it will rely on true partnerships to pursue mutually agreed-upon goals.

With its contribution to a “20 Solutions” document presented to the G20 by a consortium of think tanks, the pan-African research network Afrobarometer is working to ensure that the compact will take into account what ordinary Africans say they want and need.

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