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1. Just Transitions: A Review of How to Decarbonise Energy Systems While Addressing Poverty and Inequality Reduction

Author:
Daniele Malerba
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Germany promotes “just transition” as a guiding principle for the global transition to a socially and environmentally sustainable economy that incorporates the necessary climate, environmental and energy policy measures. This includes the urgent transformation of economies to become emission neutral while ensuring a process whereby poverty and inequality are reduced, and no one is left behind. The German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE), the World Bank and the German Federal Ministry for Economic Cooperation and Development (BMZ) worked together to explore ways to implement the concept of just transition in German development cooperation. The two papers that have resulted from this process outline approaches to a “just transition for all” and highlight its potential to reduce poverty and inequality (SDG 1 and SDG 10). In recent decades, the interdependencies between social and ecological development have become clear: negative effects of climate change particularly affect vulnerable and marginalised groups living in poverty. At the same time, social inequalities contribute to an exacerbation of climate change. A just transition must effectively address the consequences at the international, national, regional and local levels. Both papers provide an overview of existing approaches and challenges to foster a “just transition for all”. They offer different but complementary perspectives on an increasingly important complex of topics. This first paper, by DIE, takes a broad perspective by considering the decarbonisation of the energy sector as a whole, outlining the connections between just transition, poverty and inequality, and exploring how to ensure a just transition (for both workers and consumers) through the use of different social protection mechanisms. It argues that it is possible to make energy transitions just, but that properly designed combinations of socio-economic and climate policies are needed. A second paper, by the World Bank, zooms in on the transition away from coal. It lays out key social and community impacts resulting from the decommissioning of coal assets, based on experience gained from World Bank operations and from industrialised countries, and articulates an enhanced approach to supporting the coal transition. Both provide practical recommendations for international development cooperation in general, and for German development cooperation in particular.
Topic:
Development, Poverty, Inequality, Economy, and Decarbonization
Political Geography:
Europe and Germany

2. The United nations and Sustainable Development: UNDP in the Fight Against Poverty in Montenegro

Author:
Danilo Djikanovic
Publication Date:
06-2022
Content Type:
Journal Article
Journal:
Journal of Liberty and International Affairs
Institution:
Institute for Research and European Studies (IRES)
Abstract:
The paper analyzed the challenges of poverty in Montenegro. It provided an overview of the structure and scope of UN action in Montenegro and general sustainable development policies and their national implementation. The objective was to research the contributions of the UN system to the sustainable development of Montenegro while focusing on the role of the UNDP in eradicating poverty. The methodology consisted of the literature overview and the case scenario analysis of integrated social protection and employment policies. In addition, secondary data analysis has been employed to complement the research findings. The paper has identified the national socio-economic situation and the contributions of the UNDP in eradicating poverty through the design and implementation of integrative policies. The research proved the importance of the UNDP in fighting poverty in Montenegro and the effective role of the UN in achieving sustainable development.
Topic:
Development, International Cooperation, Poverty, United Nations, and Sustainability
Political Geography:
Europe and Montenegro

3. Characterisation of Danish agricultural investments in Tanzania and Uganda

Author:
Rikke Broegaard, Helle Monk Ravnborg, Evelyne Lazaro, Teddy Nakanwagi, and David Tumusiime
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
This DIIS Working Paper presents key characteristics of each of the six cases including main crop focus, size and business model, as well as types of investors, their investment approach and the factors that motivate them. It also presents the different objectives that the investors have expressed wanting to achieve. As most of the investments involve private funds, it is reasonable to expect that one important goal is to ensure a viable economy in the investment. However, in addition to an economically sound investment, all of the investors behind these six cases have ambitions regarding ways in which they see themselves - through the investment - as contributors towards a positive societal development in the area of the investment. Thus, the paper presents the different ways the investors see their investments contributing to development in the area. The paper is based on interviews with the investors and field work in the areas of investments.
Topic:
Agriculture, Development, Environment, Poverty, Natural Resources, Food, Inequality, Investment, and Land Rights
Political Geography:
Europe, Denmark, Tanzania, and Africa

4. Economic and Social Impacts of FDI in Central, East and Southeast Europe

Author:
Doris Hanzl-Weiss and Branimir Jovanovic
Publication Date:
11-2022
Content Type:
Special Report
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This study assesses the economic and social impacts of foreign direct investment (FDI) in 17 economies in Central, East and Southeast Europe (CESEE). More precisely, we investigate how different FDI inflows have affected various economic and social indicators, such as GDP growth, labour market outcomes, and poverty and inequality, for the period since the fall of communism until 2020. We pay particular attention to FDI that originates from the EU, as well as FDI from Germany and Austria, in order to evaluate whether their effects are different from the effects of FDI from other places of origin. We also examine whether there are differences in the impacts of different types of FDI – equity capital, reinvested earnings and intra-company debt, as well as of FDI that goes to different sectors of the economy – the primary, secondary and tertiary sectors. We find that FDI inflows have had, in general, a positive effect on economic growth in CESEE, and that this effect has been particularly strong for German and Austrian FDI. For total FDI, higher inflows of 1 percentage point (pp) of GDP are associated with 0.19 pp higher GDP growth. For FDI from Germany and Austria, this effect is five times higher – FDI inflows of 1 pp of GDP have led to 0.9 pp higher GDP growth. The positive GDP effects have come from the higher consumption and exports that the FDI has induced. FDI inflows have also reduced unemployment and increased wages, but have had no effects on labour productivity. Total FDI has had only limited effects on inequality and poverty, but FDI from Germany and Austria has been found to reduce both inequality and poverty, likely because they have benefitted mainly lower-income persons. There are differences in the effects of the different types of FDI, with reinvested earnings and equity capital having in general more beneficial effects than intra-company loans. Also, FDI in different sectors of the economy has had different effects, with inflows to the secondary and tertiary sectors having greater effects than inflows to the primary sector. The policy implications of these results are that CESEE economies should not give up on their efforts to attract more FDI, but also that their endeavours should be more targeted, focusing on investments that have greater economic and social impacts. Moreover, foreign investment should not be criticised for the perhaps unsatisfactory economic and social performances of the economies from this region. Instead, the reasons for this should be sought in domestic factors and in the modest growth of the European Union during the past two decades.
Topic:
Development, International Trade and Finance, Poverty, Foreign Direct Investment, Inequality, Economic Growth, and Unemployment
Political Geography:
Europe, Eastern Europe, Germany, and Austria

5. Rethinking EU economic governance: Social investment

Author:
Laura Rayner
Publication Date:
12-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
COVID-19 has led to more inequality and poverty in Europe. Together with the accelerating climate crisis and ageing population, massive additional investments in education, healthcare and social infrastructure will be needed to maintain Europe's social protection systems, ease the negative impact of the digital and green transitions, and protect the Union's future prosperity. Unfortunately, the EU's current economic governance model does not leave much room for member states to make these kinds of investments in human capital - also called 'social investment'. This third Policy Brief in a series on reforming EU economic governance sets out five proposals to promote the role of social investment: Alter the pace of fiscal consolidation to be in line with economic growth; Reassess the accounting procedure for public investments, which can, in the long run, split up government investment from government spending and improve the quality of public finances overall; Establish a Future Investment Fund, whereby public investment would be excluded from the calculations of both headline and structural deficits; Reform the European Semester in a way that incorporates the lessons of austerity and prioritises social outcomes alongside fiscal and public administration reforms; Prioritise what matters to citizens - even if it challenges the existing economic orthodoxy.
Topic:
Poverty, Governance, European Union, COVID-19, and Social Investment
Political Geography:
Europe

6. Recovery and reform in the EU’s most vulnerable regions

Author:
Alison Hunter and Marta Pilati
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
Europe’s most vulnerable regions, characterised by persistent low growth and poverty, face a systemic lack of specific EU support. These regions display particularly high levels of vulnerability to the social, economic and territorial impacts of COVID-19, which will affect their recovery trajectories. They risk being left further behind in the EU’s complex pathway towards ‘a green and digital recovery’. The Union’s lack of focus and action for investing in these most vulnerable regions must be addressed. First and foremost, EU institutions and member states should recognise that some territories will struggle much more than others in their recovery trajectories. Ignoring their plight would have potentially far-reaching consequences. The EU’s ‘convergence machine’ could be damaged irreparably, with long-term – and potentially political – consequences. Alison Hunter and Marta Pilati continue their extensive research on the Union’s low-growth, poor regions, calling for the founding of a specific EU initiative to support them as well as further targeting by the existing policy architecture. In particular, they recommend: creating an EU policy space for regions experiencing long-term low growth and poverty, to promote the value and visibility of place-based support; aligning Cohesion Policy and the Recovery and Resilience Facility for improved policy coherence and greater investment impact; and tailoring support for growth-enhancing reforms in the EU’s most vulnerable regions. The EU’s green and digital recovery strategy fails to account for the specific needs of its poor and low-growth regions. Existing disparities and fragmentation challenges across the Union could widen or even become entrenched, casting new doubts on the EU’s ability and commitment to strengthen its convergence agenda and execute a just transition. The fallout could lead to a rise in territorial and political tensions while leaving many vulnerable places behind. Hunter and Pilati outline an agenda for a new EU initiative that champions reform support for these vulnerable territories and improves their prospects for a digital and green recovery.
Topic:
Political Economy, Poverty, Reform, European Union, Digital Economy, Economic Growth, Green Technology, Recovery, COVID-19, and Economic Recovery
Political Geography:
Europe

7. Social Policy Programme “The Family 500+” – Assumptions, Results, and Costs of Functioning: Is It Worth?

Author:
Anna Owczarcyk
Publication Date:
01-2021
Content Type:
Journal Article
Journal:
Polish Political Science Yearbook
Institution:
Polish Political Science Association (PPSA)
Abstract:
The unfavorable demographic situation and the falling number of births resulted in an increased interest among Polish politicians in introducing tools to social policy that would reverse this negative trend. Implemented to social policy by Prawo i Sprawiedliwość Party in 2016, the “Family 500+” benefit has become such a tool. According to the government’s intention, this financial aid for families with children aims to reverse the decline in the number of births observed for many years and reduce the scale of poverty among families with the most complex financial situation. After several years of the “Family 500+” Program in force, it is difficult to clearly define whether the goals were achieved and whether the expenses for financing the program were adequate to the results. The aim of the article is an attempt at the assessment of the functioning of the Family 500+ Programme. Both the statutory assumptions of the programme, the costs of its functioning, and its results so far were analyzed. The central part of the analysis covered the period 2016–2019.
Topic:
Poverty, Children, Social Policy, and Welfare
Political Geography:
Europe and Poland

8. Celebrating 20 Years of The Living Wage at Queen Mary University of London

Publication Date:
11-2021
Content Type:
Video
Institution:
Mile End Institute, Queen Mary University of London
Abstract:
The Living Wage Campaign was launched by London Citizens in Walthamstow, East London, in 2001. Since then, it spread across the country and became a nationwide campaign led by the Living Wage Foundation. In 2006, Queen Mary became the first accredited university in the UK to pay all staff a real Living Wage, based on the cost of living, not just the government minimum. Queen Mary also improved working conditions so that every staff member at the university – regardless of rank or role – received a minimum of 30 days’ annual leave, access to sick pay, an annually negotiated pay increase, and an employer contribution pension scheme. In 2011, the University became a founding partner of the Living Wage Foundation. At this event to mark twenty years of the Living Wage Campaign, the Mile End Institute hosted a conversation with Matthew Bolton, the Executive Director of Citizens UK, to revisit the history of the Living Wage and the campaign to establish the living wage at Queen Mary. The event reflected on how the Living Wage is a vital strategy in the fight to end poverty in London and the important role of higher educational institutions in creating a fairer society.
Topic:
Economics, Poverty, Labor Issues, and Standard of Living
Political Geography:
United Kingdom and Europe

9. The unequal inequality impact of the COVID-19 pandemic

Author:
Zsolt Darvas
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
GDP contractions are typically associated with within-country income inequality increases. While official income inequality data for 2020 will not be available for about two years, the already available employment data for 2020 shows that the difference between highly-educated and low-educated people in terms of job losses is correlated with the economic shock from the COVID-19 pandemic, suggesting that the depth of the economic recession is related to the increase in within-country income inequality in 2020. Scenarios based on historical patterns of recessions and within-country income inequality increases suggest relatively small increases in global income inequality in 2020. Factors mitigating global inequality increases in 2020 include larger GDP per-capita declines in richer advanced countries than in poorer emerging and developing countries, and the positive GDP growth of China, which suggests that within-country inequality in the world’s most populous country might have not changed much in 2020. In contrast, it is quite likely there was a significant increase in European Union income inequality in 2020, partly reversing the decline during the previous decades.
Topic:
Poverty, European Union, Employment, Inequality, and COVID-19
Political Geography:
Europe

10. Preparatory Study for the Evaluation of Denmark's Development Cooperation on Climate Change Adaptation: Overviews and analysis of Danish support to adaptation from 2008-2018

Author:
Lily Salloum Lindegaard, Mikkel Funder, and Esbern Friis-Hanse
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The Evaluation of Danish Support to Climate Change Adaptation in Developing Countries has just come out. But what knowledge does it build on and what fundamental questions does it explore? This Preparatory Study, commissioned by the EVAL Department of Denmark’s Ministry of Foreign Affairs in 2019, lays the groundwork for the evaluation. It sought to help define the scope of the evaluation; identify potential country case studies, case projects and evaluation themes; and point out overarching issues and questions to be addressed in the evaluation. To do so, the study provides overviews of all Danish climate change adaptation-related Official Development Assistance (ODA) from 2008 to 2018 and of adaptation support through the Danish Climate Envelope, which provides Fast Start Finance for climate change mitigation and adaptation in developing countries. The study also includes an analysis of trends and gaps in the Climate Envelope. These, and other outputs from the study, are now available in this DIIS Working Paper. The paper’s analysis and findings continue to have relevance for discussions of how we approach climate change, particularly adaptation, in Danish development assistance.
Topic:
Climate Change, Development, Environment, Poverty, and Inequality
Political Geography:
Europe and Denmark