We are facing a triad of global crises - climate change, biodiversity loss and pollution. Traditionally, the focus has been on science and policy to address these challenges. But we must also prioritize the people directly affected. The session at the Global Solutions Summit explored innovative strategies to integrate sustainability with prosperity as a standard. This approach resonated with emerging market and developing economies (EMDEs) as they expand their economies to meet the aspirations of their citizens for a quality of life comparable to that of developed nations. The current discourse on sustainable development and economic growth provided critical insights into how different regions, particularly Africa and developed economies, perceive and address sustainability issues. The dialogue underscored the interconnectedness of sustainability, economic progress and community well-being, and highlighted the importance of a holistic approach that encompasses policy, finance and grassroots capacity building.
Issue: What is the most urgent problem to address?
First issue: Adapting to new ways of living requires new norms and systems for production and consumption. We need not only better resource efficiency, but also a circular economy, which implies a comprehensive societal and economic transformation. However, there are significant challenges to implementing circular value chains: tracking goods and services across regions, investing in new designs and capacities, and the potential loss of revenue for certain countries and suppliers that could destabilize economies (e.g., a shift to electric vehicles or specialized goods from small countries). How can we manage these transitions equitably so that no one is left behind?
Second issue: Like India, Africa is on the cusp of becoming a developed region and faces the challenge of balancing economic development with sustainability and preserving traditions while embracing modernity. There is a common perception that climate action conflicts with quality of life and livelihoods. This perception stems in part from the significant transitions required. How is Africa integrating local knowledge into the energy transition while improving the quality of life for millions of people?
Third issue: Governments, industries, and people need significant capital for systemic transformation. How must our financial system – from international financial institutions and national development banks to retail banks and non-bank institutions – evolve together to enable each part of these value chains to transform simultaneously?Idea: How can this problem be solved?
Balancing Economic Development and Quality of Life: There is an urgent need to balance economic growth with improving the quality of life, especially in developing countries like India and Africa, and across the countries in need. This involves promoting sustainability without sacrificing aspirations and economic progress.
Sustainability Integrated into Prosperity: It's essential to integrate sustainability into the concept of prosperity. This means finding better, sustainable ways of living rather than shaming people for their desires and aspirations.
Technological Solutions and Inequalities: Technological solutions for sustainability, such as those addressing climate change, must be implemented in a way that does not exacerbate inequalities within and between societies.
Challenges of Circular Economy: While the circular economy can work for certain industries like manufacturing and fashion, it faces significant challenges in broader economic contexts. The promotion of circular economy principles must consider the complexities of global trade and local economic conditions.
Policy Evolution: Policies must evolve with the changing behavior of people and the environment. There is no one-size-fits-all solution, and policy frameworks need to be flexible and adaptive to local contexts.
Cultural and traditional disconnect: In developing regions, there is often a tendency to adopt Western lifestyles, which can lead to a detachment from traditional and potentially more sustainable ways of life. Recognizing and integrating cultural heritage into modern development practices is critical.
In conclusion, sustainable development and economic growth are not mutually exclusive, but are deeply intertwined. For developing regions such as Africa, integrating indigenous knowledge and ensuring energy equity are critical steps toward sustainability. At the same time, developed economies must reassess their consumption patterns to effectively address global sustainability challenges.
Education, capacity building, and behavior change are essential to this transition, especially for small businesses in developing countries. By promoting financial literacy and sustainable practices, these businesses can make a significant contribution to economic growth and sustainability.
Impact: Who needs to Talk? Who needs to Act?
Ultimately, achieving sustainable development requires a collaborative effort that respects regional differences, promotes climate justice, and prioritizes both economic and environmental well-being. An inclusive global dialogue is needed: A diverse group of stakeholders, including those from different global regions and economic backgrounds, must be part of the dialogue to ensure comprehensive strategies and techniques. The session underscored the need for nuanced and context-specific solutions that integrate sustainability with economic development, while respecting cultural and traditional practices. It advocated an inclusive approach to global policy-making, ensuring that voices from developing regions are heard and taken into account.
Anzetse Were (Senior Economist at FSD Kenya), Nicolas J.A. Buchoud (Co-founder and President, Grand Paris Alliance for Metropolitan Development), Tabea Lissner (Research Director at Global Solutions Initiative), Tetsushi Sonobe (Dean and CEO of the Asian Development Bank Institute (ADBI)).
Moderated by Shuva Raha (Head – New Initiatives, Council on Energy, Environment and Water (CEEW) and Global Solutions Fellow)