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1. Addressing Product Diversification in Public Housing Supply/Importance of Product Diversification in Public Housing Supply

Author:
Shubhagato Dasgupta, Anindita Mukherjee, Abhinav Kumar, and Shaurya Gupta
Publication Date:
01-2023
Content Type:
Special Report
Institution:
Centre for Policy Research, India
Abstract:
Despite the government’s efforts on augmenting the supply of houses, recent estimates suggest that the housing shortage in urban areas have widened. It is a result of the mismatch between the housing needs of the urban poor and the typology of housing supply. The present study analyses and assesses the housing needs of the urban poor using secondary data from 76th round of NSS (2018-19) on housing and living condition vis-à-vis the typologies of housing supplied by public sector. Through this analysis, we highlight in the report the mismatch between the need and supply of public housing and suggest ways to bridge this gap through policy interventions. The choice of housing, its tenure and location for the urban poor is guided by nature of employment they are engaged in, their stage of life and household size. We find that casual wage workers and urban poor are more likely to compromise on housing conditions, amenities, and privacy to locate themselves near to their livelihood opportunities. Urban housing for urban poor is predominantly supplied by the small households that form part of the informal sector however, the quality of housing remains a concern. Housing provided by formal private sector is a miniscule proportion of total housing constructed by them and is not affordable for most urban poor. The current public housing supply is designed to cater to the urban poor remains mostly at the periphery of the cities making them less desirable to the targeted population – lacks tenure diversity and often disrupts livelihoods linages. The study recommends that public sector should focus on diversifying their housing supply based on the needs of urban poor. It should strive to create a robust housing ecosystem that is responsive to the urban growth, evolving economic structure of the city as well as local preference and aspirations. It should also establish modalities for collaboration with formal private sector to develop newer models of public-private partnerships that also involves and incentivizes, informal private sector, especially the small households that are categorized as subsistence landlords, non-profit sector and communities, to supply better quality housing for the urban poor residents.
Topic:
Poverty, Public Policy, Diversification, Urban, and Housing
Political Geography:
South Asia and India

2. Universal Basic Income: A Primer for Poverty Reduction in Africa

Author:
Bin Joachem Meh, Ntoubia Larissa, and Ondoua Herve
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Universal basic income (UBI) scheme provides regular payment in cash to everyone in the economy irrespective of their social, economic, financial, and political status. UBI has a direct effect on poverty reduction; this implies that providing cash to everyone in the society irrespective of their financial status will reduce the rate of poverty as citizens will be able to meet basic needs such as food, housing, and clothing especially if this basic income amount is above the poverty line. For others, UBI will only increase inequality and poverty especially in developing countries who lack finances to provide such income to everyone in the society (Robert, 2019). UBI is a simple and practical solution to eradicating poverty, by giving everyone a minimum income, regardless of whether they are young, old, employed or unemployed, the government can tackle poverty reduction (Centre for Social Justice, 2018). More recently UBI has been a major issue of concern and it is seen as the answer to wider problems of technological unemployment, wealth inequality, mental health stability and social mobility. In India, UBI improved mental and physical health and in Namibia UBI program reduced household poverty from 76% to 37% in one year (Johanna, 2014). The high poverty rate and the scanty nature of the UBI literature in Africa makes this study an important contribution to the body of knowledge and further enable policy makers to reflect on the implementation of UBI principle. The objective of this paper is to analyze the effects of universal basic income on narrowing the poverty gap in Africa. The rest of the paper will bring out the role of UBI in poverty reduction, and propose some policy recommendations for the introduction of the UBI in Africa.
Topic:
Poverty, Universal Basic Income, Humanitarian Crisis, Wages, and Income
Political Geography:
Africa

3. Inflation and Paid Care Services in the U.S.

Author:
Nancy Folbre
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Nancy Folbre offers a number of reasons why increases in average wages among the lowest deciles of the population are not likely to significantly buffer the effects of rapid inflation on families with incomes below the poverty line. It also raises a number of specific questions for future research.
Topic:
Poverty, Economic Inequality, Inflation, and Wages
Political Geography:
North America and United States of America

4. Examining Child Deprivation Across California and How It Could Be Addressed with Early Childhood Education

Author:
Jamshid Damooei and Ruslan Korchagin
Publication Date:
01-2023
Content Type:
Journal Article
Journal:
California Journal of Politics and Policy
Institution:
Institute of Governmental Studies, UC Berkeley
Abstract:
Socioeconomic deprivation can create adverse conditions with direct impacts on the development of children. The Early Childhood Deprivation Index (ECDI) shows that there are significant differences in the extent of deprivation of young children (aged 0 to 5 years) among the counties in California. Our research shows that the cost of childcare forms a significant proportion of family income among low- and middle-income families. It indicates that families can pay for a high proportion of such costs if they could access the available federal and state government entitlements. A universal high-quality early childhood education system brings about an efficient way of providing the childcare without the unnecessary cost of employing a means-tested entitlement mechanism. However, even with universal early childhood education, families need support to be able to take advantage of the program, since pre-schooling will be on a voluntary basis. It is therefore important that in addition to providing education universally- communities, and the state make every effort to increase the ability of California families to benefit from this important opportunity.
Topic:
Education, Poverty, Children, Inequality, and Child Care
Political Geography:
California, North America, and United States of America

5. Social Policy Expansion and Retrenchment After Latin America’s Commodity Boom

Author:
Sara Niedzwiecki and Jennifer Pribble
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
The literature on social policy expansion and retrenchment in Latin America is vast, but scholars differ in how they explain the outcomes, arriving at different conclusions about the role of democracy, left parties, favorable economic conditions, and social movements in shaping reform. What can welfare state developments since the end of the commodity boom teach us about the theoretical power of these arguments? This paper engages this question, seeking to explain recent incidents of social policy reform in 10 presidential administrations in Argentina, Brazil, Chile, and Uruguay. Using a combination of crisp-set qualitative comparative analysis (csQCA) and case studies, we identify multiple paths toward social policy expansion and retrenchment that involve the absence and presence of electoral competition, economic resources, party ideology and linkage mechanism, social movement pressure, international pressure, and legacies. The results show that while both parties of the left and right expanded social programs, only the right engaged in retrenchment, yet partisanship alone is insufficient for explaining reform outcomes, as the variable must appear in combination with other factors depending on the party’s linkage mechanism. The results provide new insight into the politics of social policy reform in Latin America, showing the relevance of complex forms of causality.
Topic:
Health, Poverty, Social Movement, Democracy, Inequality, Public Policy, and Political Parties
Political Geography:
Brazil, Argentina, South America, Uruguay, Latin America, and Chile

6. Programme-135: addressing poverty and inequality in Viet Nam

Author:
Tung Duc Phung and Thanh Minh Pham
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Viet Nam has achieved remarkable economic growth and poverty reduction since the Doi Moi. However, ethnic minorities and the ethnic majority do not benefit equally from the national economic progress. The proportion of poor households that are ethnic minority-headed soared from 18 per cent in the early 1990s to 56 per cent in 2008. The disparity exists in their access to crucial basic infrastructure and public services, including transportation, education, healthcare, electricity supply, markets, and justice services. Initiated in 1998, Programme-135 targets the most vulnerable communities and aims to promote production, increase access to basic facilities, improve education, and raise awareness for better living standards. The programme addresses typical causes of poverty among ethnic minorities and inequality between these groups and the majority. Programme-135 has created positive impacts and successfully improved the lives of the beneficiaries. In this paper we provide an overview of the programme and examine the drivers of its success in reducing poverty and bridging the majority–minority development gap. We also discuss the limitations and lessons from the programme.
Topic:
Poverty, Minorities, Inequality, and Ethnicity
Political Geography:
Vietnam and Southeast Asia

7. Poverty, inequality, and growth: trends, policies, and controversies

Author:
Ines A. Ferreira, Vincenzo Salvucci, and Finn Tarp
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Reducing poverty and inequality and promoting inclusive growth are fundamental to achieving the United Nations Sustainable Development Goals. Much has changed in the global economy in recent decades and perspectives on progress made vary widely. This is even more so in light of the ongoing COVID-19 pandemic. However, getting to grips in a meaningful manner with existing trends is critical to evidence-based policy-making. This contribution aims to provide an original review and evaluation of the main stylized facts concerning poverty, inequality, and growth. It will uncover existing trends, put controversies into perspective, and help to provide a platform for informed policy debate.
Topic:
Poverty, Inequality, Sustainable Development Goals, and Economic Growth
Political Geography:
Global Focus

8. Taxation, infrastructure investment, growth, and poverty reduction: A case study of Zimbabwe

Author:
Hans Lofgren and Martin Cicowiez
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
In recent decades, Zimbabwe’s development record has been disappointing. In the last few years, a severe drought and the Covid-19 pandemic have added to the country’s development challenges. This paper is concerned with the long-run need to find a path toward faster growth in GDP, employment, and incomes, accompanied by more rapid progress on poverty reduction and other parts of the global sustainable development agenda. As part of this search, the country will need to address structural constraints including a large infrastructure gap, an inefficient government, and unhospitable business climate. Among these, this paper is focused on infrastructure and alternative means of financing scaled-up investments – what are the consequences of relying on domestic taxes compared to foreign financing? To address these questions, the paper draws on simulations with SDGSIM, a computable general equilibrium (CGE) model, designed for SDG analysis but applicable to analysis of policies in a wide range of areas, including growth, fiscal space, and external shocks. The model was adapted to the Zimbabwean context and calibrated to a database for 2016. The simulations cover the period 2016-2030 and analyzes the effects of alternative levels and priorities for government spending and resource mobilization (domestic and foreign). The simulation results cover a wide range of economic indicators, including some related to the global Sustainable Development Goal (SDG) agenda. The differences between the scenario results for GDP growth, household consumption, and poverty point to the importance of strong public investment management and, other things being equal, of targeting TFP gains to tradable sectors. The advantages of reliance on domestic taxation for the funding of expanded investment include slower debt accumulation and less reliance on the decisions of external actors. Tax reliance may also give the funders, the citizens, a stronger sense of ownership and right to monitor how the money is used, with a positive impact on investment productivity. On the other hand, before the investment have yielded sufficient returns, reliance on taxes reduces private purchasing power, leading to some combination of lower private consumption and investment. Raising the tax burden by 2-3 percent of GDP may also be administratively difficult. It would of course be possible to consider scenarios that split the funding burden between domestic taxes and foreign financing.
Topic:
Poverty, Infrastructure, Economic Growth, Tax Systems, and Investment
Political Geography:
Africa and Zimbabwe

9. Overcoming Barriers to Poverty Alleviation in the Arab Region

Author:
Khalid Abu-Ismail and Vladimir Hlasny
Publication Date:
03-2022
Content Type:
Journal Article
Journal:
Brown Journal of World Affairs
Institution:
Brown Journal of World Affairs
Abstract:
Many Arab countries have been living beyond their means. Following years of high spending without developing a solid revenue base or adequate emergency reserves, public debt levels have skyrocketed, and governments’ balance sheets have struggled to cope with waves of crises and their required responses. Private debt levels have also grown amid chronic economic stagnation, worsening cur- rent account deficits, and absent effective public assistance during recent crises.
Topic:
Poverty, Inequality, Economy, Protection, and Income
Political Geography:
Middle East, Arab Countries, and North Africa

10. 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

11. Global Food Security Act Reauthorization: New and Lingering Challenges

Author:
Gloria Dabek
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
Chicago Council on Global Affairs
Abstract:
Amid new challenges to global food security, the Center for Global Food and Agriculture analyzes necessary changes to the Global Food Security Act Reauthorization. The Global Food Security Act (GFSA) authorizes the Feed the Future Initiative (FTF), the US government’s premier effort to address the root causes of hunger and poverty in lower- and middle-income countries. The GFSA must recognize how the COVID-19 pandemic and climate change wreak havoc on global food security efforts.
Topic:
Agriculture, Poverty, Food, Hunger, and COVID-19
Political Geography:
North America and Global Focus

12. Who was Impacted and How? Covid-19 Pandemic and the Long Uneven Recovery in India

Author:
Mrinalini Jha and Rahul Lahoti
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
We investigate the impact of the Covid-19 pandemic on income levels, poverty, and inequality in both the immediate aftermath and during the long uneven recovery till December 2021 using high-frequency household survey data from India. We find that the average all-India household income dropped between 30 to 38 percent during the months of the nationwide lockdown of April and May 2020. The subsequent recovery remained incomplete and was unevenly spread over the population even twenty-one months after the start of the pandemic. Households on an average continued to make 16 to 19 percent lower cumulative income in the post-lockdown period, but have mostly recovered after the second wave in the second half of 2021. Poverty more than doubled during the lockdown and was 50 to 80 percent higher in the post-lockdown period in comparison to the pre-pandemic levels. In the post-second-wave phase, poverty was still slightly higher than in the pre-pandemic period, and any progress in poverty reduction that would have been achieved under normal circumstances over the two years was lost. Inequality too spiked during the lockdown, but returned back to the pre-pandemic levels. Using an event study model we find that the initial shock of the lockdown was more severe for the bottom of the income distribution, but the bottom also experienced a faster recovery. On the other hand, the top end of the distribution experienced smaller declines during the lockdown but they have been slow to recover. The bottom deciles in any period typically constituted households working in contact-intensive, informal, less secure occupations that were hit the hardest during the lockdown, but were quick to recover when the economy opened up. The upper end of the distribution constituted households working in less contact-intensive, formal, secure occupations that were shielded from the sudden shock but were slow to recover.
Topic:
Poverty, Employment, COVID-19, Economic Recovery, and Income
Political Geography:
South Asia and India

13. Triple Win: How Mining Can Benefit Africa’s Citizens, Their Environment and the Energy Transition

Author:
Papa Daouda Diene, David Manley, Silas Olan'g, and Thomas Scurfield
Publication Date:
11-2022
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
Africa’s mineral wealth is essential for the energy transition and for the hundreds of millions of people currently living in poverty in African mining countries. Whether and how governments and companies move to further extract this mineral wealth is not only economically and environmentally important for Africa, but also for the vital importance of protecting the world’s rapidly diminishing forests. The world therefore needs a mining triple win: policies that can benefit Africa’s citizens, their environment, and the energy transition. These policies need to work for all if they are to work for any of them. But mining in Africa has been riddled with injustice. Humanity cannot afford to repeat the mistakes that have beset Africa’s mining in the past. To achieve a triple win, this time must be different. There are a whole host of policies available, and many ideas from experts. NRGI has brought these together and considered how they may work to truly achieve a triple win.
Topic:
Environment, Poverty, Natural Resources, Mining, Minerals, Energy, and Green Transition
Political Geography:
Africa

14. Policy Options for an Equitable Re-globalization

Author:
Constantine Michalopoulos
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Developing countries made impressive gains in reducing poverty and global income inequality in the past half century, many riding the wave of globalization. But the dozen years that followed the 2008 financial crisis witnessed a deterioration of global commitments to a more equitable economic order made in the early years of the 21st century. The pandemic undermined development prospects, intensified pre-existing anti-globalization sentiments, and raised questions about the effectiveness of the international institutions within which developing countries achieved great progress. Russia’s invasion of Ukraine created a major geopolitical split and contributed to large increases in energy and food prices with disastrous results for developing countries, many of which were just recovering from the increased poverty created by the pandemic. This paper sets out an agenda for what I call a more equitable re-globalization. This has several parts: addressing climate change, providing economic assistance to help reduce poverty in low income countries, strengthening the social safety net, limiting the power of MNCs, and reestablishing an effective multilateral trading system. The potential calamities of future pandemics and the threats posed by climate change require countries to submerge narrow national political objectives and develop a collaborative global multilateral approach. The last part of the paper discusses the steps the international community must take to revitalize multilateralism to enable it to cope with global challenges effectively and equitably.
Topic:
Globalization, Poverty, Income Inequality, and Multilateralism
Political Geography:
Global Focus

15. A Simple Theory of Economic Development at the Extensive Industry Margin

Author:
Dario Diodato, Ricardo Hausmann, and Ulrich Schetter
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
We revisit the well-known fact that richer countries tend to produce a larger variety of goods and analyze economic development through (export) diversifcation. We show that countries are more likely to enter ‘nearby’ industries, i.e., industries that require fewer new occupations. To rationalize this fnding, we develop a small open economy (SOE) model of economic development at the extensive industry margin. In our model, industries difer in their input requirements of non-tradeable occupations or tasks. The SOE grows if proft maximizing frms decide to enter new, more advanced industries, which requires training workers in all occupations that are new to the economy. As a consequence, the SOE is more likely to enter nearby industries in line with our motivating fact. We provide indirect evidence in support of our main mechanism and then discuss implications: We show that there may be multiple equilibria along the development path, with some equilibria leading on a pathway to prosperity while others resulting in an income trap, and discuss implications for industrial policy. We fnally show that the rise of China has a non-monotonic efect on the growth prospects of other developing countries, and provide suggestive evidence for this theoretical prediction.
Topic:
Industrial Policy, Poverty, Reform, Economy, Diversification, Exports, and Convergence
Political Geography:
Global Focus

16. War in Ukraine and food insecurity in Tunisia: Where is reform most needed?

Author:
Khouloud Ayari
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Arab Reform Initiative (ARI)
Abstract:
Since February 2022, food insecurity due to the war in Ukraine has become a key issue of public debate in Tunisia, shedding light on the country’s food dependence, given that it imports more than half of its needs. This paper analyzes the significant changes concerning agriculture and food in terms of dependency and sovereignty in the contemporary agricultural history of Tunisia.
Topic:
Security, Poverty, Food, and Reform
Political Geography:
Africa and Tunisia

17. Green Systems and Resilient Cities

Author:
Ali Faruk Göksu
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
Turkish Economic and Social Studies Foundation (TESEV)
Abstract:
Comprehensive and participatory solutions that take into account the inadequacy of familiar approaches and methods in the solution of global problems such as climate change, migration, poverty, epidemic etc. should be developed with an approach that focuses on designing the process. The process should embrace steps towards understanding the current system and problems well; planning strategies within the framework of future predictions, and designing solutions to primary problems and strategies.
Topic:
Climate Change, Migration, Poverty, Governance, and Cities
Political Geography:
Global Focus

18. The Missing Link: Understanding Rental Housing for Urban Poor

Author:
Anindita Mukherjee, Shubhagato Dasgupta, Abhinav Kumar, Aastha Jain, and Isha Khurana
Publication Date:
11-2022
Content Type:
Special Report
Institution:
Centre for Policy Research, India
Abstract:
More than 30 million urban households in India, including urban poor, depend on the rental housing market for their housing needs, out of which around 70 per cent rely on informal rental arrangements. According to the NSSO 76th round (2017-18), 19 million households, 64 per cent of the total rental housing stock, belong to the economically weaker section. This reaffirms the important role of rental housing in providing housing for urban poor, albeit still remains understudied. This study contributes to the emerging discourse on state of rental housing for urban poor while highlighting the emerging policy direction from the analysis therein. Drawing from primary data from a household survey of 1800 urban poor households that included landlord and tenants across Bhubaneswar, Coimbatore, and Cochin across slum or non-slum low income neighborhoods; the findings reveal poorer housing condition in slums than those living in non-slum areas. It also shows that the households providing rental services to urban poor are also urban poor and they continue to rely on informal rental practices. This further perpetuates the deficient access to basic civic infrastructure both for the renter and rent provider, further marginalizing the renter. These findings suggest that there is an imminent need to recognize urban poor households as a critical supplier of rental housing stock for the urban poor and to develop comprehensive approaches for incentivizing them to improve the quality of living in renting arrangements. It further highlights the need to involve communities to create quasi legal structures for easier and faster dispute resolution, preferably outside the formal legal structure – cost of compliance to the Model Tenancy Act (MTA) may end up exacerbating poverty among the renters. The report further highlights the importance of policy and planning measures including earmarking land for affordable rental housing near and around high growth areas, servicing areas where poor urban tenants live, among others. As the fast-urbanising countries debate over the best ways to provide affordable housing at scale in the global south, providing affordable rental housing near places with economic opportunities is emerging as most crucial for fulfilling the vision of ‘Housing for All’. Affordable rent structure, universal access to safe water, sanitation, and connectivity through public transport have the potential to improve the living conditions and quality of life of urban poor enhancing their economic contribution in city making.
Topic:
Poverty, Urban, Housing, and Rent
Political Geography:
South Asia and India

19. Odisea Demográfica. Tendencias demográficas en Argentina: insumos clave para el diseño del bienestar social

Author:
Rafael Rofman, Carola Della Paolera, Juan Camisassa, and Emanuel López Méndez
Publication Date:
11-2022
Content Type:
Special Report
Institution:
Center for the Implementation of Public Policies for Equity and Growth (CIPPEC)
Abstract:
En los últimos 30 años, aún en períodos de crecimiento económico, Argentina no ha logrado reducir la incidencia de la pobreza por debajo del 25%. En otras palabras, durante las últimas tres décadas, siempre hubo al menos un cuarto de la población que vivió en la pobreza. La pobreza implica vulneraciones en múltiples dimensiones (ingresos, educación, vivienda, etc.) y una política efectiva enfocada en este desafío demanda la adopción de medidas en diversos campos, como la macroeconomía, los mercados de trabajo, la educación, el cuidado y otras políticas sociales. Habitualmente, en Argentina, estos temas son debatidos con un foco marcado en encontrar soluciones de corto plazo a los problemas, lo que dificulta cristalizar mejoras significativas y sostenibles. A esto se suma el hecho de que es habitual que una dimensión tan relevante como las anteriores sea ignorada: la dinámica demográfica. La evolución de la población, en tamaño y estructura etaria, es un factor determinante en las tendencias de mediano y largo plazo, tanto en lo que refiere a las posibilidades de desarrollo económico como a las condiciones de bienestar social, la equidad y la incidencia de pobreza. Este documento analiza los recientes cambios demográficos en Argentina para enfatizar el rol que tiene la demografía en las perspectivas económicas y sociales del país, respondiendo a cuatro preguntas: ¿de dónde venimos?, ¿por qué cambió la tendencia en la fecundidad en el último quinquenio y qué significa esto para la reducción de la pobreza?, ¿en dónde estamos hoy? y ¿hacia dónde vamos?
Topic:
Demographics, Development, Poverty, Society, Well-Being, and Protection
Political Geography:
Argentina and South America

20. 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