Sustainable Development Challenges

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Department of Economic and Social AffairsWorld Economic and Social Survey 2013Sustainable Development ChallengesUnited NationsNew York, 2013E/2013/50/Rev. 1ST/ESA/344

DESAThe Department of Economic and Social Affairs of the United Nations Secretariat isa vital interface between global policies in the economic, social and environmentalspheres and national action. The Department works in three main interlinked areas:(i) it compiles, generates and analyses a wide range of economic, social and environmentaldata and information on which States Members of the United Nations draw to reviewcommon problems and to take stock of policy options; (ii) it facilitates the negotiationsof Member States in many intergovernmental bodies on joint courses of action to addressongoing or emerging global challenges; and (iii) it advises interested Governments onthe ways and means of translating policy frameworks developed in United Nationsconferences and summits into programmes at the country level and, through technicalassistance, helps build national capacities.NoteSymbols of United Nations documents are composed ofcapital letters combined with figures.E/2013/50/Rev. 1ST/ESA/344ISBN 978-92-1-109167-0eISBN 978-92-1-056082-5United Nations publicationSales No. E.13.II.C.1Copyright @ United Nations, 2013All rights reserved

iiiPrefaceThe present edition of the World Economic and Social Survey rightly focuses on the major issue of our time: sustainable development. As we work to reach the MillenniumDevelopment Goals by 2015 and shape a global vision for the period beyond, we mustevaluate progress and look ahead to emerging challenges.The global goal of halving poverty was achieved in 2010. We have seen remarkable gains in access to improved sources of water, the fight against malaria and tuberculosis, improved conditions for slum dwellers in cities, enrolment in primary education andthe advancement of women.At the same time, we must acknowledge that progress has been uneven andinsufficient. Environmental sustainability is under threat, with accelerating growth inglobal greenhouse gas emissions and biodiversity loss. More than a billion people stilllive in extreme poverty. Nearly all of them suffer from hunger. Eradicating poverty mustremain central to the international development agenda.The United Nations Conference on Sustainable Development (Rio 20) reaffirmed commitment to sustainable development and adopted a framework for action andcomprehensive follow-up. The World Economic and Social Survey 2013 serves as a valuableresource as we look towards translating the outcome of Rio 20 into concrete actions.In particular, it offers in-depth analyses of some of the cross-sectoral issues identified atthe Conference, notably urban sustainability, food and nutrition security and access tomodern energy services for all.Eradicating extreme poverty, promoting sustainable consumption and production, and managing the planet’s natural resource base for the benefit of all are theoverarching challenges of sustainable development. I commend the World Economic andSocial Survey 2013 and emphasize its value to all those seeking a solid understanding ofthese major issues which will underpin our progress towards the future we want.BAN KI-MOONSecretary-General

ivAcknowledgementsThe World Economic and Social Survey is the annual flagship publication on major development issues prepared by the Department of Economic and Social Affairs of the UnitedNations Secretariat (UN/DESA).The Survey was prepared under the general supervision and direction of RobVos, former Director of the Development Policy and Analysis Division (DPAD) of UN/DESA, and Willem van der Geest, Chief of the Development Strategy and Policy Unitof DPAD. The core team at DPAD included Diana Alarcón, Nicole Hunt, S. NazrulIslam, Alex Julca, Marco V. Sánchez, Oliver Schwank, Sergio Vieira and Eduardo Zepeda.Administrative support was provided by Lydia Gatan. Michael Brodsky of the Departmentof General Assembly Affairs and Conference Management copy-edited the original manuscript. Israel Machado of DPAD and Ramona Kohrs and Jose Tatad of the Department ofPublic Information provided bibliographic support.Substantive contributions were also made by Chantal Line Carpentier andRichard Alex Roehrl of the Division for Sustainable Development (DSD) of UN/DESAand by Shari Spiegel of the Financing for Development (FfD) Office of UN/DESA.We gratefully acknowledge the background research contributions of MartínCicowiez, Stephany Griffith-Jones, Mark Howells, Helena Molin Valdes, José AntonioOcampo, Matteo Pedercini, Vladimir Popov, John Toye, Tom van der Voorn and DavidWoodward. Substantive feedback was also received from Rodolfo Lacy, Jorge Nunez,Paulo Saad, David Satterthwaite and Claudia Sheinbaum. Further thanks are due to theparticipants of several workshops, organized to facilitate the preparation of this Survey,for the insights they provided. They include, apart from the contributors mentionedabove, Jorge Bravo, Barney Cohen, Sarah Cook, Barry Herman, Pingfan Hong, BelaHovy, Ronald Lee, Eduardo Lopez Moreno, Deepak Nayyar, David O’Connor, ElinaPalm, Jonas Rabinovitch, Hamid Rashid, Nikhil Seth, John Shilling, Maximo Torero andJohn Winkel.Critical overall guidance was provided by Shamshad Akhtar, AssistantSecretary-General for Economic Development at UN/DESA.

OverviewSummaryyyThe world is faced with challenges in all three dimensions of sustainable development—economic, social and environmental. More than 1 billion people are stillliving in extreme poverty, and income inequality within and among many countrieshas been rising; at the same time, unsustainable consumption and productionpatterns have resulted in huge economic and social costs and may endanger lifeon the planet. Achieving sustainable development will require global actions todeliver on the legitimate aspiration towards further economic and social progress,requiring growth and employment, and at the same time strengthening environ mental protection.yySustainable development will need to be inclusive and take special care of the needsof the poorest and most vulnerable. Strategies need to be ambitious, action-orientedand collaborative, and to adapt to different levels of development. They will needto systemically change consumption and production patterns, and might entail,inter alia, significant price corrections; encourage the preservation of natural endowments; reduce inequality; and strengthen economic governance.yyThe World Economic and Social Survey 2013 aims towards contributing to thedeliberations on sustainable development with a focus on three important crosssectoral issues: sustainable cities, food security and energy transformation. Whilethe entire range of thematic areas identified for action and follow-up in section Vof the outcome document of the 2012 United Nations Conference on SustainableDevelopment, entitled “The future we want” (General Assembly resolution 66/288,annex), cannot be covered comprehensively in this Survey, highlighting three of thecross-sectoral issues may hopefully contribute to the addressing of sustainable development challenges in the follow-up to the Conference.Global sustainable developmentchallenges post-2015In September 2000, world leaders adopted the United Nations Millennium Declaration1which provided the basis for the pursuit of the Millennium Development Goals. A globalconsensus was successfully forged around the importance of poverty reduction and humandevelopment. Since then, the global community has managed to uplift a large segment of1See General Assembly resolution 55/2.

viWorld Economic and Social Survey 2013the poor and vulnerable. The world reached the poverty target five years ahead of the 2015deadline. In developing regions, the proportion of people living on less than 1.25 a dayfell from 47 per cent in 1990 to 22 per cent in 2010. About 700 million fewer people livedin conditions of extreme poverty in 2010 compared with 1990. Still, results fall short ofinternational expectations and of the global targets set to be reached by the 2015 deadline. It remains imperative that the international community takes bold and collaborativeactions to accelerate progress in achieving the Millennium Development Goals.Continuation of current development strategies will not suffice to achievesustainable development beyond 2015. Moreover, relying on “business as usual” scenariospresents clear risks, because evidence is mounting that:(a) The impact of climate change threatens to escalate in the absence of adequatesafeguards and there is a need to promote the integrated and sustainablemanagement of natural resources and ecosystems and take mitigation andadaptation action in keeping with the principle of common but differentiatedresponsibilities;(b) Hunger and malnourishment, while decreasing in many developing countries,remain persistent in other countries, and food and nutrition security continuesto be an elusive goal for too many;(c) Income inequality within and among many countries has been rising and hasreached an extremely high level, invoking the spectre of heightened tensionand social conflict;(d) Rapid urbanization, especially in developing countries, calls for major changesin the way in which urban development is designed and managed, as well assubstantial increases of public and private investments in urban infrastructureand services;(e) Energy needs are likely to remain unmet for hundreds of millions of households, unless significant progress in ensuring access to modern energy servicesis achieved;(f) Recurrence of financial crises needs to be prevented and the financial systemhas to be redirected towards promoting access to long-term financing for investments required to achieve sustainable development.Over the past years, the global challenges to sustainable development havebeen driven by a broad set of “megatrends”, such as changing demographic profiles,changing economic and social dynamics, advancements in technology and trends towardsenvironmental deterioration. A better understanding of the linkages among these trendsand the associated changes in economic, social and environmental conditions is needed.The United Nations Conference on Sustainable Development, held in Rio de Janeiro,Brazil, from 20 to 22 June 2012, highlighted a range of interlinked challenges which callfor priority attention, including decent jobs, energy, sustainable cities, food security andsustainable agriculture, water, oceans and disaster readiness.2 The present Survey focuseson three of these cross-sectoral issues with immediate implications for realizing sustainabledevelopment, namely: (a) sustainable cities, (b) food and nutrition security and (c) energytransformation. The other challenges are important, but a comprehensive discussion ofthem is beyond the scope of this Survey.2See http://www.uncsd2012.org/about.html.

OverviewPartial convergence and persistence of inequalitiesThe progress that has been achieved in recent decades—and its unevenness—are tiedintrinsically to changes in the global economy. Fast growth in some large emergingeconomies has led to a partial convergence in living standards, which exists side by sidewith abject poverty and a persistence of inequalities. Inequality undermines prospects forinclusive growth, equal access to social protection, and broader sustainable developmentby negatively affecting aggregate demand, investments in health care and education, andsociopolitical and economic stability.In the decades ahead, diverse population dynamics have the potential tofurther exacerbate inequalities, both in developing and in developed countries, and atthe global level. Increased urbanization, and rapid population growth, as well as population ageing, while reflecting rising prosperity in many countries, will put major stress onnational and local infrastructures and public finance, as well as caregiving, health andeducation systems.To address these challenges and to position for global sustainable developmentafter 2015, a strengthened global development agenda will have to facilitate transformation in the way goods and services are produced, in the way jobs are created, in globalconsumption patterns, in the management of natural resources, and in the mechanismsof governance.Strategies for pursuing sustainable developmentAgenda 21 (United Nations, 1993) emphasized the interconnectedness among the threedimensions of sustainable development. Its actual implementation, however, arguably didnot occur in the integrated manner envisaged. While the Millennium Development Goalsfocused attention on selected social and human development priorities, the world todaywitnesses emerging new challenges, aggravated by multiple financial, economic, food andenergy crises, which have threatened the ability of all countries to achieve sustainabledevelopment. The United Nations Conference on Sustainable Development reaffirmed thepolitical commitments of the international community to pursue sustainable development,under the principles of Agenda 21, including the principle of common but differentiatedresponsibilities.Implementation process of Agenda 21 and theUnited Nations Conference on Sustainable DevelopmentIt is now clear that economic, social and environmental implementation efforts need tobe reintegrated, and the tracks of discussion currently unfolding under the rubrics of theMillennium Development Goals and future sustainable development goals need to bethought of as dimensions of the sustainable development paradigm.An important sustainable development challenge arises from unsustainableconsumption and production patterns that have evolved in developed countries, a patternthat is increasingly being followed by developing countries. For example, per capita greenhouse gas emissions levels in developed countries are 20-40 times greater than needed forstabilization of the atmospheric greenhouse gas concentration. The per capita ecologicalfootprints in developed countries are 4-9 times greater than their bio-capacity. The highvii

viiiWorld Economic and Social Survey 2013degree of inequality that accompanies and promotes these patterns makes them sociallyunsustainable and constrains achievement of the human development goals. Without aneffective global agenda, high-income households, in developed as well as developing countries, are likely to continue to adopt unsustainable consumption practices.Need for inclusive strategies and technology innovationThe outcome document of the United Nations Conference on Sustainable Development 3provides guidance for achieving the transition to sustainable development as a means ofincreasing the well-being of current and future generations in all countries. Sustainabledevelopment strategies need to be inclusive and take special care of the needs of the poorestand most vulnerable. Strategies need to be ambitious, action-oriented and collaborative,taking into account different national circumstances.They will need to systemically change consumption and production patterns,and might entail, inter alia, significant price corrections; encourage the preservation of natural endowments; reduce inequality; and strengthen economic governance. Such a processwill need to minimize the types of consumption and production that have negative externalities, while simultaneously seeking to maximize the types of consumption and production that create positive externalities. Examples of minimizing negative externalities includereduction of environmental pollution, while examples of positive externalities include, forexample, technology adaptation, reduction of food waste and enhanced energy efficiency.Technology will certainly play a major role in this transformation. Changes inconsumption patterns can drive the creation of new technologies necessary for sustainabi lity and their adoption and diffusion at the desired pace. Success in bringing about thesechanges will require substantial reorganization of the economy and society and changesin lifestyles. Economic and financial incentives for the creation and adoption of new technologies will be needed which may include innovative policy reforms.Poverty eradication, changing unsustainable and promoting sustainablepatterns of consumption and production, and protecting and managing the naturalresource base of economic and social development are the overarching objectives of andessential requirements for sustainable development. In this large context, protection ofclimate and environment will need to be pursued as a universally shared goal. The globalrelocation of manufacturing and services sectors will also mean that appropriate technicalregulation and social standards need to be adopted by developing and developed countries,with technical and financial support for developing countries.The global sustainable development transformation entails, inter alia, significant price corrections, a strong commitment to preserving natural endowments, a reduction of inequalities, introduction of environmental accounting, strengthening of publicspheres of life, redirection of the financial sector to the real economy and sharing of profitand employment. Transformation along these lines may be expected to increase the wellbeing of people, especially the poorest.Sustainable development strategies of developing countries will continue togive priority to human development, with the eradication of poverty as its central goal.Human development requires more attention to be directed towards quality issues aswell as coherence at the national level. Human development success depends to a largeextent on using the opportunities created by globalization and on minimizing its negative3General Assembly resolution 66/288, annex.

Overvieweffects. In this context, better management of capital flows and macroeconomic regulations may be necessary and coherence between national development strategies and globaldecision-making is important. Global institutions have to accommodate the special needsof developing countries, especially those of the least developed countries, the small islanddeveloping States, the landlocked developing countries and the countries in post-conflictsituations. The global agenda will also need to attach greater importance to human rights,conflict prevention, good governance and reduction of inequality.Developing countries have in fact put forward initiatives that are more advanced than those implemented by developed countries so far. For example, Ecuadorand the Plurinational State of Bolivia enshrined the “rights of nature” in their recentconstitutions. Many developing countries are developing their own sustainable lifestyleand consumption patterns, and offer aspirational models. Drawing on their traditionalknowledge, they can in many areas leapfrog to more sustainable means of production, including greening of agriculture, industry and services. Developed countries can facilitatethis process by offering appropriate cooperation in means of implementation, for example,through technology adaptation and transfer. Thus, both developed and developing countries can enter into a virtuous cycle of cooperation and engagement so as to ensure globalsustainable development.Towards sustainable citiesUrbanization provides new jobs and new opportunities for millions of people in the world,and has contributed to poverty eradication efforts worldwide. At the same time, rapidurbanization adds pressure to the resource base, and increases demand for energy, water,and sanitation, as well as for public services, education and health care.Since 2007, more than half of the world’s population has lived in urban centresand it is estimated that the proportion will have exceeded 70 per cent by 2050. Eighty percent of the world’s urban population will live in developing regions, especially in cities ofAfrica and Asia.During 1950-2010, a net 1.3 billion people wa

development. The United Nations Conference on Sustainable Development reaffirmed the political commitments of the international community to pursue sustainable development, under the principles of Agenda 21, including the principle of common but differentiated responsibilities. United Nations Conference on Sustainable Development

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