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Inclusive Green Economy
in Myanmar
Prof.Dr.Aung Tun Thet
Poverty, Inequality and Growth
 Poverty widespread (‘Poverty Trap’)
 Inequality on rise
 Greater numbers experiencing
simultaneous deprivations in education,
health and living standards
Rising Economic, Social and
Environmental Costs
 Poor and vulnerable groups suffered most
Causes
 Market and institutional failures
 Conventional approaches to economic
growth
 Under-provision of public goods
 Insecure property rights
Solution
 ‘Business-as-usual’ approaches no longer
economically, socially or environmentally
sustainable
 New and innovative approaches required
New Path – Inclusive Green
Economy
Practical 21st Century Development
Model
 Connects:
 Poverty reduction
 Job creation
 Inequality
 Climate Change
 Environmental Stress
 Water, Energy and Food Security
Inclusive Green Economy
 Address systemic problems of current
economic system
 Generate more inclusive and sustainable
growth
 Increase economic and social returns from
investing in environmental improvement
and low-carbon, climate-resilient
development
Challenges of current economic system
create green economy opportunities
CHALLENGES OPPORTUNITIES
• Ecosystem decline and
loss of ecosystem
services
• Ecosystem values
• Demand for biodiversity
conservation and
ecosystem restoration
• Natural resource scarcity
and competition
• Demand for sustainable
agriculture
• Demand for improved
natural resource
management and local
resource rights
Challenges of current economic system
create green economy opportunities
CHALLENGES OPPORTUNITIES
Vulnerability to climate-
related risks and disasters
Demand for low-carbon
goods and services
Demand for more climate-
resilient production systems
and livelihoods
Fossil fuel prices Demand for renewable
energy and energy efficiency
Demand for public transport
and alternative fuels
‘Green Economy’
 Pathway
 Bringing together social, economic, and
environmental objectives of sustainable
development
 Benefit poor and vulnerable groups
 Reduce inequality
Inclusive Green Economy combines
‘Inclusive Growth’ with ‘Green Growth’
Economic
Growth
Environmental
Sustainability
Social
Development
Green
Growth
Inclusive
Growth
Inclusive
Green
Economy
Key Characteristics of Inclusive
Green Economy
Economic
 Resource-efficient, low carbon and climate
resilient growth
 Creates and sustains decent jobs
 Expand economic opportunities for poor
 Stimulate innovation and adoption of green
technologies
 Diversify and enhance resilience of local
and national economies
Social
 Improve health and well-being of poor
 Promotes equity, including gender equality
 Build social capital
 Enhances resilience of local communities
Environmental
 Increase productivity and efficiency of
natural resource use
 Reduce pollution and impact of natural
hazards
 Improve management of environmental
risks
 Restore and sustain ecosystem health and
resilience
Governance
 Empower citizens through access to
information and justice and participation in
decision-making
 Improve transparency and accountability
How poor benefit from Inclusive
Green Economy
Triple Bottom Line
1. Job-creating economic growth
2. Environmental protection
3. Social inclusion
Environmental Assets
 Fertile soils
 Clean water
 Forests
 Biodiversity
Environmental Assets
 Yield Income
 Support livelihoods
 Provide safety nets
 Contribute to public health
 Drive economic growth
Natural Resource and Environmental
Management
 Sustainable forestry and fisheries
 Reducing carbon emissions
 Urban planning
 Infrastructure
 Generate high social rates of return
Inclusive Green Economy
 Low carbon and more climate resilient
development
 Improve resource efficiency
 Healthy and more resilient ecosystems
 Greater economic opportunities
 Social justice for the poor
Inclusive Green Economy Pathways
POVERTY REDUCTION
Access to and equitable
management of human
capital
Access to safe water and
sanitation services
Improve air quality and limit
exposure to toxic
chemicals
Demand for low-carbon
goods and services
Excess to renewable
energy technologies
POVERTY AND
HUMAN
DEVELOPMENT
Rights and
empowerment
Livelihoods and
employment
Health & Well-
Being
Resilience and
security
POVERTY AND
HUMAN
DEVELOPMENT
1. Eradicate
extreme poverty
and hunger
2. Achieve
Universal
Primary
Education
3. Gender Equality
4. Reduce Child
Mortality
5. Improve
maternal health
6. Combat major
diseases
7. Environmental
Protection
8. Global
Partnership
Livelihoods
 Poor dependent on environmental assets –
farming, fishing, hunting, recycling, water
and energy distribution
 “GDP of Poor” – 47% to 89% non-
marketed goods and services
Environmental Assets
 Under-valued by markets
 “Safety Net” route out of poverty
Health
 Linked to quality of environment
 Preventive measures more cost-effective
than treatment
Inclusive Green Economy
 Better and more equitable health outcomes
 More secure access to water and
agricultural land
 Access to clean household energy
 Improved environmental infrastructure for
sanitation, drainage and waste collection
 “Green” urban transport
Resilience
 Poor and vulnerable groups affected by
climate related shocks
Inclusive Green Economy
 Generate income
 Employment opportunities
 Route out of poverty
 Unleash capacity of poor
 Expanding opportunities for new products,
services and technologies
Eight Key Sectors
1. Agriculture
2. Forestry
3. Fishing
4. Energy
5. Resource-intensive manufacturing
6. Recycling
7. Buildings
8. Transport
Example
 Greener farming practices – organic
farming
 REDD+ (Reduced Emissions from
Deforestation and Forest Degradation)
 Ecotourism
 Energy efficient, emission reducing
technology and climate proofed
infrastructure
 Renewable energy
Green Technologies
 Generate new income
 Employment opportunities
 Export-led growth
 Investment in R&D
“Green Jobs”
 Public employment schemes
 Informal waste sector
 Small-scale natural resource management
Enabling Conditions for Inclusive
Green Economy
National Policy Objectives
1. Leading role and political commitment
2. Safeguarding poor against adverse
impacts
3. Maximizing opportunities to capture
benefits
Reforms
 Governance
 Institutional
 Regulatory
 Tax
 Expenditure-based economic policies
 Incentive mechanisms
 Social protection policies
Key Messages for Policy-Makers
Myanmar
 Face economic, social and environmental
challenges
 Overcoming poverty and inequality
 Ecosystems degradation
 Climate Change
 Major threat to livelihoods and economies
“Business as Usual” Strategies
 No longer economically socially or
environmentally sustainable
New Approach
 Accelerate poverty reduction
 More equitable and sustainable
development
Inclusive Green Growth
 Alternative pathway
 Low-carbon and climate-resilient
development
 Improved resource efficiency
 Healthy and resilient ecosystems
 Economic opportunities and social justice
Investing in improved resource efficiency
and environmental management
 Sustainable forestry and fisheries
 Reducing carbon emissions
 Urban planning and infrastructure
Inclusive Green Growth
 Policy, Institutional and Governance
Reforms
 Targeted investments at local and national
levels needed
 Poor and vulnerable groups participate in,
contribute to and benefit
Investing in improved resource efficiency
and environment management
 Alternative pathway
 Low-carbon and climate-resilient
development
 Healthy and resilient ecosystems
Shared Policy Agenda
Conditions
 Three
 Separate
 Related
1. Political Commitment
 Government’s leading role
 Transition to inclusive green economy
2. Safeguarding Poor
 Adverse impacts during transition
3.Maximizing Opportunities
 Of Poor
 Capture benefits
Transition
 Five critical “Building Blocks”
 Framework for shared policy agenda
 Government, Civil Society, Private Sector
Towards Inclusive Green Economy
Building Blocks
1
National Economic
&
Social Policies
2
Local Rights
& Capacities
3
Inclusive
Green Markets
4
Harmonized
International
policies & support
5
New metrics for
measuring
progress
1. National Economic & Social
Policies
Government
 Promote rural and urban development
 Review economic and social policies
 Fiscal/Monetary policies
 Tax regimes
 Micro-credit services
 Social protection measures
 Public works programs
Government
 Capture higher economic returns from:
 Investments in sustainable use of
ecosystems
 Low-carbon and climate resilient
development
2. Local Rights and Capacities
Poor women and men
 Need rights and security of tenure
 Means and incentives to sustainably
manage and benefit from natural resource
wealth
 Right to information, participation and
access to justice
 Voice in decisions affecting how natural
assets are managed and benefits
distributed
3. Inclusive Green Markets
Inclusive Green Markets
 Build and expand poor’s access to markets
and supply chains for green products and
services
 Innovative business models
 Enabling policy and institutional
environment
 Sustain and restore natural ecosystems
 Low-carbon and climate resilient
development
 Better and more secure livelihoods
4. Harmonized International
Policies and support
Higher-income countries
 Ensure coherence of development, trade,
technology, environmental and other
relevant policies
 Ability of low and middle countries to
succeed in transition to Inclusive Green
Economy
Myanmar
 Development partners provide harmonized
policy, investment and capacity
development support
 Develop and implement inclusive green
economy transition strategies
5. New tools to measure progress
New Tools
 Beyond narrow focus on income poverty
and GDP
 Broader way of tracking economic, social
and environmental progress and well-being
Stakeholders
 Government
 Private Sector
 NGOs
 Development partners
 Poor and vulnerable groups
 Join forces
 Find new and innovative ways to work
together
MOVING FORWARD
Inclusive Green Economy
 Not ‘retrofitting’ of existing economic
system
 Empowers and engage poor
 Interests, knowledge and priorities of poor
communities
Inclusive Green Economy
 Innovations
 Local/Global cooperation
 Policy learning
 Experience sharing
 All stakeholders – State, poor and
vulnerable, private sector, NGOs,
development partners – join forces

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Inclusive Green Economy

  • 1. Inclusive Green Economy in Myanmar Prof.Dr.Aung Tun Thet
  • 2. Poverty, Inequality and Growth  Poverty widespread (‘Poverty Trap’)  Inequality on rise  Greater numbers experiencing simultaneous deprivations in education, health and living standards
  • 3. Rising Economic, Social and Environmental Costs  Poor and vulnerable groups suffered most
  • 4. Causes  Market and institutional failures  Conventional approaches to economic growth  Under-provision of public goods  Insecure property rights
  • 5. Solution  ‘Business-as-usual’ approaches no longer economically, socially or environmentally sustainable  New and innovative approaches required
  • 6. New Path – Inclusive Green Economy
  • 7. Practical 21st Century Development Model  Connects:  Poverty reduction  Job creation  Inequality  Climate Change  Environmental Stress  Water, Energy and Food Security
  • 8. Inclusive Green Economy  Address systemic problems of current economic system  Generate more inclusive and sustainable growth  Increase economic and social returns from investing in environmental improvement and low-carbon, climate-resilient development
  • 9. Challenges of current economic system create green economy opportunities CHALLENGES OPPORTUNITIES • Ecosystem decline and loss of ecosystem services • Ecosystem values • Demand for biodiversity conservation and ecosystem restoration • Natural resource scarcity and competition • Demand for sustainable agriculture • Demand for improved natural resource management and local resource rights
  • 10. Challenges of current economic system create green economy opportunities CHALLENGES OPPORTUNITIES Vulnerability to climate- related risks and disasters Demand for low-carbon goods and services Demand for more climate- resilient production systems and livelihoods Fossil fuel prices Demand for renewable energy and energy efficiency Demand for public transport and alternative fuels
  • 11. ‘Green Economy’  Pathway  Bringing together social, economic, and environmental objectives of sustainable development  Benefit poor and vulnerable groups  Reduce inequality
  • 12. Inclusive Green Economy combines ‘Inclusive Growth’ with ‘Green Growth’ Economic Growth Environmental Sustainability Social Development Green Growth Inclusive Growth Inclusive Green Economy
  • 13. Key Characteristics of Inclusive Green Economy
  • 14. Economic  Resource-efficient, low carbon and climate resilient growth  Creates and sustains decent jobs  Expand economic opportunities for poor  Stimulate innovation and adoption of green technologies  Diversify and enhance resilience of local and national economies
  • 15. Social  Improve health and well-being of poor  Promotes equity, including gender equality  Build social capital  Enhances resilience of local communities
  • 16. Environmental  Increase productivity and efficiency of natural resource use  Reduce pollution and impact of natural hazards  Improve management of environmental risks  Restore and sustain ecosystem health and resilience
  • 17. Governance  Empower citizens through access to information and justice and participation in decision-making  Improve transparency and accountability
  • 18. How poor benefit from Inclusive Green Economy
  • 19. Triple Bottom Line 1. Job-creating economic growth 2. Environmental protection 3. Social inclusion
  • 20. Environmental Assets  Fertile soils  Clean water  Forests  Biodiversity
  • 21. Environmental Assets  Yield Income  Support livelihoods  Provide safety nets  Contribute to public health  Drive economic growth
  • 22. Natural Resource and Environmental Management  Sustainable forestry and fisheries  Reducing carbon emissions  Urban planning  Infrastructure  Generate high social rates of return
  • 23. Inclusive Green Economy  Low carbon and more climate resilient development  Improve resource efficiency  Healthy and more resilient ecosystems  Greater economic opportunities  Social justice for the poor
  • 24. Inclusive Green Economy Pathways POVERTY REDUCTION Access to and equitable management of human capital Access to safe water and sanitation services Improve air quality and limit exposure to toxic chemicals Demand for low-carbon goods and services Excess to renewable energy technologies POVERTY AND HUMAN DEVELOPMENT Rights and empowerment Livelihoods and employment Health & Well- Being Resilience and security POVERTY AND HUMAN DEVELOPMENT 1. Eradicate extreme poverty and hunger 2. Achieve Universal Primary Education 3. Gender Equality 4. Reduce Child Mortality 5. Improve maternal health 6. Combat major diseases 7. Environmental Protection 8. Global Partnership
  • 25. Livelihoods  Poor dependent on environmental assets – farming, fishing, hunting, recycling, water and energy distribution  “GDP of Poor” – 47% to 89% non- marketed goods and services
  • 26. Environmental Assets  Under-valued by markets  “Safety Net” route out of poverty
  • 27. Health  Linked to quality of environment  Preventive measures more cost-effective than treatment
  • 28. Inclusive Green Economy  Better and more equitable health outcomes  More secure access to water and agricultural land  Access to clean household energy  Improved environmental infrastructure for sanitation, drainage and waste collection  “Green” urban transport
  • 29. Resilience  Poor and vulnerable groups affected by climate related shocks
  • 30. Inclusive Green Economy  Generate income  Employment opportunities  Route out of poverty  Unleash capacity of poor  Expanding opportunities for new products, services and technologies
  • 31. Eight Key Sectors 1. Agriculture 2. Forestry 3. Fishing 4. Energy 5. Resource-intensive manufacturing 6. Recycling 7. Buildings 8. Transport
  • 32. Example  Greener farming practices – organic farming  REDD+ (Reduced Emissions from Deforestation and Forest Degradation)  Ecotourism  Energy efficient, emission reducing technology and climate proofed infrastructure  Renewable energy
  • 33. Green Technologies  Generate new income  Employment opportunities  Export-led growth  Investment in R&D
  • 34. “Green Jobs”  Public employment schemes  Informal waste sector  Small-scale natural resource management
  • 35. Enabling Conditions for Inclusive Green Economy
  • 36. National Policy Objectives 1. Leading role and political commitment 2. Safeguarding poor against adverse impacts 3. Maximizing opportunities to capture benefits
  • 37. Reforms  Governance  Institutional  Regulatory  Tax  Expenditure-based economic policies  Incentive mechanisms  Social protection policies
  • 38. Key Messages for Policy-Makers
  • 39. Myanmar  Face economic, social and environmental challenges  Overcoming poverty and inequality  Ecosystems degradation  Climate Change  Major threat to livelihoods and economies
  • 40. “Business as Usual” Strategies  No longer economically socially or environmentally sustainable
  • 41. New Approach  Accelerate poverty reduction  More equitable and sustainable development
  • 42. Inclusive Green Growth  Alternative pathway  Low-carbon and climate-resilient development  Improved resource efficiency  Healthy and resilient ecosystems  Economic opportunities and social justice
  • 43. Investing in improved resource efficiency and environmental management  Sustainable forestry and fisheries  Reducing carbon emissions  Urban planning and infrastructure
  • 44. Inclusive Green Growth  Policy, Institutional and Governance Reforms  Targeted investments at local and national levels needed  Poor and vulnerable groups participate in, contribute to and benefit
  • 45. Investing in improved resource efficiency and environment management  Alternative pathway  Low-carbon and climate-resilient development  Healthy and resilient ecosystems
  • 48. 1. Political Commitment  Government’s leading role  Transition to inclusive green economy
  • 49. 2. Safeguarding Poor  Adverse impacts during transition
  • 50. 3.Maximizing Opportunities  Of Poor  Capture benefits
  • 51. Transition  Five critical “Building Blocks”  Framework for shared policy agenda  Government, Civil Society, Private Sector
  • 53. Building Blocks 1 National Economic & Social Policies 2 Local Rights & Capacities 3 Inclusive Green Markets 4 Harmonized International policies & support 5 New metrics for measuring progress
  • 54. 1. National Economic & Social Policies
  • 55. Government  Promote rural and urban development  Review economic and social policies  Fiscal/Monetary policies  Tax regimes  Micro-credit services  Social protection measures  Public works programs
  • 56. Government  Capture higher economic returns from:  Investments in sustainable use of ecosystems  Low-carbon and climate resilient development
  • 57. 2. Local Rights and Capacities
  • 58. Poor women and men  Need rights and security of tenure  Means and incentives to sustainably manage and benefit from natural resource wealth  Right to information, participation and access to justice  Voice in decisions affecting how natural assets are managed and benefits distributed
  • 60. Inclusive Green Markets  Build and expand poor’s access to markets and supply chains for green products and services  Innovative business models  Enabling policy and institutional environment  Sustain and restore natural ecosystems  Low-carbon and climate resilient development  Better and more secure livelihoods
  • 62. Higher-income countries  Ensure coherence of development, trade, technology, environmental and other relevant policies  Ability of low and middle countries to succeed in transition to Inclusive Green Economy
  • 63. Myanmar  Development partners provide harmonized policy, investment and capacity development support  Develop and implement inclusive green economy transition strategies
  • 64. 5. New tools to measure progress
  • 65. New Tools  Beyond narrow focus on income poverty and GDP  Broader way of tracking economic, social and environmental progress and well-being
  • 66. Stakeholders  Government  Private Sector  NGOs  Development partners  Poor and vulnerable groups  Join forces  Find new and innovative ways to work together
  • 68. Inclusive Green Economy  Not ‘retrofitting’ of existing economic system  Empowers and engage poor  Interests, knowledge and priorities of poor communities
  • 69. Inclusive Green Economy  Innovations  Local/Global cooperation  Policy learning  Experience sharing  All stakeholders – State, poor and vulnerable, private sector, NGOs, development partners – join forces