Integrated Planning & Sustainable Development: Challenges .

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Integrated Planning & Sustainable Development:Challenges and OpportunitiesSynthesis Report

Copyright United Nations Development Programme, 2016, on behalf of PAGEThe report is published as part of the Partnership for Action on Green Economy (PAGE) – an initiative by the United NationsEnvironment Programme (UNEP), the International Labour Organization (ILO), the United Nations Development Programme(UNDP), the United Nations Industrial Development Organization (UNIDO) and the United Nations Institute for Training andResearch (UNITAR).This publication may be reproduced in whole or in part and in any form for educational or non-profit purposes withoutspecial permission from the copyright holder, provided acknowledgement of the source is made. The PAGE Secretariatwould appreciate receiving a copy of any publication that uses this publication as a source.No use of this publication may be made for resale or for any other commercial purpose whatsoever without priorpermission in writing from the PAGE Secretariat.CitationPAGE (2016), Integrated Planning & Sustainable Development: Challenges and Opportunities.DisclaimerThis publication has been produced with the support of PAGE funding partners. The contents of this publication are thesole responsibility of PAGE and can in no way be taken to reflect the views of any Government. The designations employedand the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the partof the PAGE partners concerning the legal status of any country, territory, city or area or of its authorities, or concerningdelimitation of its frontiers or boundaries. Moreover, the views expressed do not necessarily represent the decision or thestated policy of the PAGE partners, nor does citing of trade names or commercial processes constitute endorsement.This document was produced with the financial assistance of the European Union.The views expressed herein can in no way be taken to reflect the official opinion of the European Union.AcknowledgementsPAGE is grateful to the European Unionfor providing the funding support to this project.Terraced rice paddies near a Red Zao village; outside of Sapa, Lao Cai province, northern Vietnam.Photographer: Tran Thi Hoa, 2002

Integrated Planning & Sustainable Development:Challenges and OpportunitiesSynthesis Report

Agenda 2030 provides an unheralded opportunity to address the persistent challenges facing the world, including poverty, growing inequalities, and environmentaldegradation. Through it, world leaders have committed toaddressing the economic, social and environmental issuesstanding in the way of sustainable development.Efforts to reduce poverty remain challenging, despitesome progress since 1990, including advances made ascountries pursued the Millennium Development Goals.Income gaps, coupled with insecure livelihoods andunreliable services, increase the prospect of people fallingbelow poverty lines and into poverty traps. Employmentgrowth is lagging behind population growth, and gendergaps in employment and wages remain. The livelihoodsof many of the world’s poor depend directly on ecosystemgoods and services and natural resources. Unless environmental degradation is curtailed, poverty, inequality and instability will likely deepen, and growth will not be durable.Fundamental shifts in development models are neededto address these challenges and foster a prosperous andmore secure world. Advancing the 2030 DevelopmentAgenda and the Sustainable Development Goals requiresdeeper transitions to more resource-efficient, resilientforms of growth that bring social, economic and environmental benefits over the medium and longer term.This requires a focus on the rights of poor and vulnerablegroups, including women, to secure access to decentwork, livelihoods and basic needs, including food, water,sanitation and shelter, and to benefit from a healthy environment. There is a need to decouple development fromenvironmental destruction, and to protect and restoreecosystems and the goods and services they provide thatunderpin development.FOREWORDForewordInclusive, green economy and green growth policies arekey to these poverty eradication and sustainable development objectives. Many countries are already investing ingreener economic policies that reduce poverty and advance more resilient, environmentally sustainable growth.This Synthesis Report on Integrated Planning & Sustainable Development—Challenges and Opportunities,and the eight country studies on which it draws, have beenprepared through the Partnership for Action on GreenEconomy (PAGE), with funds from the European Commission. The report illustrates the many different sustainabledevelopment pathways that countries are pursuing in linewith national priorities and contexts. Its country-basedevidence and non-prescriptive findings for policymakersand practitioners highlight the need for integrated andcoherent development policies, while illustrating a range ofinclusive green economy solutions. As such, this report represents an important addition to the global community’sdemand-driven resources for advancing the 2030 Agenda.Nik SekhranChief of ProfessionSustainable Development ClusterBureau for Policy and Programme SupportUnited Nations Development ProgrammeIII

AcknowledgementsWe are grateful to Camille Bann who authored this synthesis report, co-developed its methodology, and coordinatedand reviewed the country studies on which it draws. Rwanda: Charles Mugabo, consultant; SophieNyirabakwiye, Bernardin Uzayisaba, Denis Rugegeand Yoon Kyung Lee, UNDP.Overall management of the report was led by UNDP:Tim Scott and Usman Iftikhar guided and contributed tothe report throughout all stages of its design and drafting;initial conceptual thinking came from George Bouma andShantanu Mukherjee; and there were core contributionsfrom Maria Cruz Gonzalez, Massimiliano Riva, and SarwatChowdhury, particularly during later stages of drafting. Tajikistan: Alisher Nazirov, consultant; NargizakhonUsmanova, UNDP. Vietnam: Vu Xuan Nguyet Hong and Dang Thi ThuHoai, consultants; Bakhodir Burkhanov, Koos Neefjes,Richard Marshall and Pham Thu Lan, UNDP.The report draws on eight country studies prepared bythe following consultants, government experts, and UNDPCountry Office staff:IV Bangladesh: Dr. Md. Abul Basher and Ms. Farha DeebaSufian, consultants; Alamgir Hossain, UNDP. Ethiopia: Dr. Wassie Berhanu, consultant; JamesWakiaga and Fekadu Terefe, UNDP. Kenya: Prof. James Ole Kiyiapi, consultant; DavidGithaiga, Timothy Ranja and Zeinabu Khalif, UNDP. Kyrgyzstan: Dr. Elena Kim, consultant; Ms. LyubovTen, Minister of Economy and Industry; Ms. KanykeiOrozbaeva, Department of Sustainable Developmentand Environment Statistics; Kumar Kylychev and RozaChoibaeva, UNDP; and Gulnara Abdykalykova, UNDPUNEP Poverty and Environment Initiative. Peru: Mario Bazán, lead author with Gonzalo Alcalde,Fernando Romero, Jorge Chávez and Herbert Wagner;James Leslie, Maria Eugenia Mujica, Jorge Álvarez andAndrea Estrella, UNDP.Comments on the country studies and synthesis reportwere also provided by sister UN PAGE agencies, includingfrom Hameedullah Jamali and Asad Naqvi of UNEP,and Moustafa Kamal Gueye and Karin Isaksson of ILO.Operational support was provided by Manju Rai, UNDP.The report was edited by Meghan Lynn and designedby Paolo Ciampagna.We are grateful to the European Union, which providedfunding for the report and country studies through thePartnership for Action on Green Economy.

ew of national visions,strategies, and policy frameworks22IV4National Development Planning—current initiatives and commonchallenges32AcronymsVIIExecutive SummaryVIII4.1Visioning324.2Assessment tools and 41.1Context41.2Objectives and approach51.3Outline of report62Integrated development planningand sustainable development4.3Design, adoption and implementation4.3.1104.3.12.1Conceptual framework2.2Integrated development planning—where we stand in 20152.3Looking forward—integrated developmentplanning and the SDGs104.414164.5Environmental and social assessmentsEconomic assessmentsand natural capital accounting Modelling toolsCommon challengesChallenges to integrated policy designand implementation Private sector and an inclusivegreen economy 404245454752Financing and budgeting564.4.14.4.24.4.35657Investment requirements for the SDGsFiscal policy and the green economyLinking development planningand budget processes Monitoring and evaluation5962V

55.15.25.35.45.5VITowards integrated developmentplanning and implementation—challenges and enabling factors706Summary and conclusion887References92Strengthening institutionsand governance systems718Annexes985.1.15.1.271738.1Scoping study template8.2Annex 1: Ethiopia—integrating the greeneconomy strategy into national planningand budgeting113Annex 2: Developing green growthindicators in Kyrgyzstan117ChallengesEnabling actionsStrengthening evidence-based,empirically backed policy options755.2.15.2.27575ChallengesEnabling actionsDevelopment of budgetingand financial systems775.3.15.3.27779ChallengesEnabling actionsSupport for M&E805.4.15.4.28080ChallengesEnabling actionsCapacity development808.398

CRGEClimate-Resilient Green Economy strategy2011, for EthiopiaCSRCorporate Social ResponsibilityDCGEDynamic Computable General EquilibriumEFREnvironmental Fiscal ReformEIAEnvironmental Impact AssessmentESGEnvironmental, Social and CorporateGovernanceECEuropean CommissionPTSDGovernment Programme for Transition toSustainable Development 2014–2017HLPFHigh-Level Political Forum on SustainableDevelopmentIGEInclusive Green EconomyISDIntegrated Sustainable DevelopmentKIPPRA Kenya Institute for Public Policy Researchand AnalysisACRONYSMAcronymsNCANatural Capital AccountingNTFPsNon-Timber Forest ProductsPAGEPartnership for Action on Green EconomyPESPayments for Ecosystem ServicesPEIPoverty-Environment InitiativePENPoverty-Environment NexusPBBProgramme-Based BudgetingPEPPublic Employment ProgrammesPEERsPublic Environmental ExpenditureReviewsPERsPublic Expenditure ReviewsPPPsPublic-Private PartnershipsREDD Reducing Emissions from Deforestationand Forest Degradation in Developing CountriesRBBResults-Based BudgetingRBMResults-Based ManagementMTEFMedium-Term Expenditure FrameworkSAMSocial Accounting MatrixMDGsMillennium Development GoalsSEAStrategic Environmental AssessmentMEFMinistry of Economy and Finance, of PeruSCPSustainable Consumption and ProductionNSONational Statistics OfficeSDGsSustainable Development GoalsNSSDNational Strategy for SustainableDevelopment, of KyrgyzstanSEEASystem of Environmental-Economic AccountingVII

Executive SummaryBackgroundIn September 2015, UN Member States approvedthe 2030 Development Agenda and a set of Sustainable Development Goals (SDGs). The SDGs holistically address the economic, social and environmental dimensions of sustainable developmentand are designed to be pursued in combination,rather than one at a time. Integrated developmentis therefore at the heart of the 2030 DevelopmentAgenda as reflected in the SDGs.Inclusive Green Economy (IGE) approaches andthose that address the Poverty-Environment Nexus(PEN) can play a central role in advancing the SDGs.This report seeks to further the understanding ofthe practicalities of embedding such integrated approaches across the planning cycle in countries atvarious stages of development. There is a growingcountry demand for such insights to inform SDGimplementation.This synthesis report identifies what countries arealready doing to transition to integrated planningand implementation and analyzes what challengesthey face and where support should be targetedto accelerate the 2030 sustainable developmentagenda and promote inclusive green growth.The report synthesizes a wide range of policy andprogramming experiences in the areas of inclusivegreen economy and the poverty-environmentnexus, and draws on the findings of eight nationalscoping studies on integrated planning, commissioned as part of this study. The national scopingstudies provide an up-to-date snapshot of wheresome countries stand on integrated planning,the key challenges they now face, and suggestedactions to accelerate their transition to an IGE insupport of SDG implementation. The scoping studycountries are: Bangladesh, Ethiopia, Kenya, Kyrgyzstan, Peru, Rwanda, Tajikistan and Viet Nam.Conceptual frameworkVIIIIntegrated development approaches are defined as approaches that simultaneously advancemultiple benefits across the three dimensions ofsustainable development (social, environmentaland economic). They ensure that poverty eradica-tion and environmental sustainability go hand inhand (UNDP/UNEP, 2013). They require effectivegovernance, policy coordination and coherenceacross government departments and betweenstakeholders to fully understand and manage the

In practice, to realize sustainable development,integrated development approaches need to bemainstreamed into each stage of the nationalplanning cycle. The national planning process isdefined in this study as comprised of all the activities and decisions undertaken at the national,subnational and sector levels by diverse stakeholders to both develop and implement policies,strategies, plans and projects. It is underpinnedby legislation and includes the following genericcomponents over a revolving planning cycle:stakeholder engagement and coordination to setvisions and goals; integrated assessments to understand the environmental, social and economicimpacts (positive and negative) of different policyoptions across different sectors and segments ofthe population and the linkages (synergies andtrade-offs) of policy options; policy design andformulation based on integrated assessments andstakeholder consultations; implementation ofpolicies, plans and strategies (e.g., through investments, the provision of incentives or disincentives,regulations and social interventions); and, monitoring and evaluation to measure the effect of theinventions against targets and recommend corrective actions if needed. The planning, developmentand implementation process is country specificbut there are common elements across countries.Executive Summarymany interactions between economic growth,poverty eradication and the environment, and toensure that policies and plans are designed andimplemented in ways that do not bring progress inone dimension at the expense of another.A generic representation of the planning cycle ispresented in Figure A and is used as the frameworkfor discussing possible entry points for integratedapproaches at the distinct stages in the cycle. Theplanning cycle mirrors the policy cycle as it is commonly portrayed. Feedback loops and iterations arealso common to the planning and policy cycle asdepicted, although it is hard to capture such complex non-sequential interlinkages within and acrossthe planning cycle in a single graphic.Figure B presents an overview of the mechanisms currently being used by the scoping studycountries to facilitate a transition to integratedapproaches (within the blue circle) and the challenges apparent at the key stages of the planningcycle. Broadly speaking, constraints to integratedapproaches include weak institutions, governanceissues, low awareness of the poverty-environmentnexus and limited capacity, data and resources.Key challenges and enabling factorsThis synthesis report identifies five keys areas(elaborated below) where support is needed toaddress the challenges and bottlenecks facingthe adoption of integrated approaches across theplanning cycle. This support needs to be tailoredto the needs of individual countries based on theirdevelopment context and priorities, institutionalstructure, and capacities.1. Strengthening institutions and governancesystemsThe existence of institutions, laws, policies andstrategies promoting integration provides a criticalfoundation, but many institutions are still weak andneed support if they are to influence developmentpolicy. The development of fledgling institutions isunderstandably a slow process that entails goingthrough stages of iterative learning and evolutiontowards becoming fully integrated and holistic. Amajor challenge facing integration in most countries is that planning institutions and processes stillwork along sectoral lines and no one institution hasthe mandate and resources to pull all actors together. Also, for many countries integrated planning andpolicy coherence is a new concept, and integratedplanning is challenged by a lack of coordinationmechanisms, budgets for cross-disciplinary work,and skills and incentives for working together.A transition to integrated planning and implementation requires strengthening institutions andIX

Figure A:Generic stages of a national planning cycleStakeholderengagement& coordinationGoal settingMonitoring& EvaluationNATIONALPLANNING CYCLEKey entry pointsfor integrated planningImplementation(includingfinancing)Figure B:Integratedassessment —to understandsynergies& trade-offsPolicy design& formulationOverview of mechanisms supporting integrated planning, and associated challenges acrossthe planning cycle in the scoping study countries Integrated M&E frameworks & coordinationCapacityAccountability mechanismsStakeholder consultationM&EPPPs, NGOs, civil societyImplementationInter-agency working groups,Public Environmental Expenditure ReviewsX Lack of skilled staff Coherence & coordination across national& country governance functions Development of programme-based budgets Underfunding & competition for resources Fledgeling mechanisms and institutionsAwarenessCommunicationHistorical mindsetsVisioningCross-ministerial working groups,technical committees stakeholder involvementIntegrated Assessments & policy designSEA, EIA, ecosystem services valuation & SEEA,systems modelling tools, inter-agency working groups,public consultation Capacity Interaction between researchers,policymakers & stakeholders Data IT systems

2. Strengthening evidence-based, empiricallybacked policy optionsThe complexity of integrated planning, with itsmany drivers and actors, makes evidence-basedpolicymaking increasingly desirable. However, theassessment of integrated policy options is a challenge in many countries due to a lack of data availability and sharing arrangements, low institutionalcapacities across the policy cycle, and insufficientcommunication between analysts, policymakersand stakeholders. While better evidence is necessary to support and inform a consultative policymaking process, for such a process to be realized,mechanisms also need to be in place that ensure allparties have a voice in the process, especially thevulnerable sections of society.Support is needed to: (i) develop reliable andcomplete data (disaggregated by relevant factors,such as sex, age and geographical location) forassessing problems, identifying priorities, gauging effectiveness, guiding policy, and measuringresults/tracking progress; (ii) promote appraisalapproaches and system analysis tools to ensurethat agencies, sectors and civil society are betterinformed on the need for integrated policies andhow they can be implemented; (iii) develop andpromote participatory approaches to evidencebuilding; and, (vi) build capacity across government and specialized agencies in the broad rangeof tools that can inform integrated planning sothat countries can independently undertake andperiodically uptake assessments.3.Development of budgeting and financial systemsThe transformative post-2015 developmentagenda must be underpinned by a credible meansof implementation (Addis Ababa Action Agenda,2015). However, currently all countries, to varyingdegrees, face a shortfall in the funding requiredto meet sustainable development objectives andneed to better leverage existing funding. Clearlines of resource

1.3 Outline of report 6 2 Integrated development planning and sustainable development 10 2.1 Conceptual framework 10 2.2 Integrated development planning— 4.4.2where we stand in 2015 14 2.3 Looking forward—integrated development planning and the SDGs 16 3 Overview of nation

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