Symposium on Sustainable Development: New … · 03/09/2012 · 9/3/2012 1 Symposium on Sustainable Development: M I N D New Dimensions for Society & Business Espaço Tom Jobim, Jardim

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Symposium onSustainable Development:

M I N D

New Dimensions for Society & Business

Espaço Tom Jobim, Jardim Botânico, Rio de Janeiro, 18 June 2012

The Challenges of Unsustainable DevelopmentUnsustainable Development

Professor Mohan Munasinghewww.mohanmunasinghe.com

Chairman, Munasinghe Institute for Development (MIND), Colombo Professor of Sustainable Development, SCI, Univ. of Manchester

Distinguished Guest Professor, Peking University, China

M I N D Munasinghe Institute for Development Sustainable Consumption Institute SCIUniversity of Manchester

Distinguished Guest Professor, Peking University, ChinaVisiting Professor, Vale Sustainable Dev. Inst., Fed. Univ. of Para, Belem, Brazil

Keynote speech given at The Symposium on Sustainable Development:

New Dimensions for Society and BusinessRio de Janeiro, 18 June 2012

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Growing Risks of Global Breakdown due to Multiple Threats

• Financial-economic crisis: Toxic assets are a multiple of annual global GDP

• Persistent poverty and growing inequity• Resource shortages: food, water, energy • Environmental harm, extreme events, conflict

mass migrations, pandemics• Climate change: the ultimate threat amplifier

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Multiple threats are inter-related and synergisticStakeholder interests are divergent Responses uncoordinated – lack of political will

Munasinghe Institute for Development

hs

BAU

Ecological Footprint of Human Consumption In 2012 we need 1.5 earths; by 2035 almost 2 Earths

Unsustainable

Num

ber o

f Ear

th

Sustainableoneearth

2012 2030

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Unfair World Income Distribution 2000Champagne Glass

The richest fifth of the World’s Population receives 83% of the Worlds Income

83%

One fifth of the Worlds Population

Ratio of 60:1 between highest and lowest 20% !!

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The poorest fifth of the Worlds Population receives 1.4% of total World Income

POVERTY: Poor living on < $1 per day


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Millennium Development Goals (MDG)United Nations Millennium Declaration, 2000

•Eradicate extreme poverty and hunger•Achieve universal primary educationP t d lit d t•Promote gender equality and empowerment

•Reduce child mortality•Improve maternal health•Combat HIV/AIDS, malaria and other diseases•Ensure environmental sustainability•Develop a global partnership for development


Develop a global partnership for developmentCommendable targets for 2 billion poor, but where are the resources to meet them, especially with the onset of climate change

WHAT ARE OUR VALUES AND HOW WELL DO WE

ESTABLISH PRIORITIES ?Dealing with the Triple Crisis

Bubbles

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Bubbles

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Financial MarketsProductive Economic Assets

Econ. Growth

Bio-geo-physical Resources

Sound financial markets and economic growth should be based on the true value of the productive economic asset base In turn the value

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productive economic asset base. In turn the value and use of economic assets should closely reflect the state of natural (bio-geo-physical) resources

Financial MarketsAsset Bubbles 2008 crisis

Productive Economic Assets

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Triple crisis bubbles driven by greed – enjoy now & pay later 1A few get rich quickly, many innocents pay a heavy price afterwards

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Financial MarketsAsset Bubbles

Econ. Growth2008 crisis Poverty-Inequity


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Econ. Growth2008 crisis Poverty-Inequity


Bio-geo-physical Resources

Externalities Climate change

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s/C

hoic

esEcon. Growth

Govt. Bailout >$5 trillion (1012) Aid/yr ~$100 billion (109)

2008 crisis Poverty-Inequity

Asset bubble >$100 trillion (1012), Global GDP >$60 trillion


Bio-geo-physical ResourcesHum

an V

alue

s

Externalities Climate changeFew billion $

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World Military Expenditures: $1.75 trillion in 2011

Climate Change – IPCC AR4 Main Findings• Global warming in unequivocal. Total radiative forcing of the climate now is unprecedented in several thousand years, due to rising concentrations of GHG (CO2, CH4 & NO2). • Humans activities since the 18th century are very likely to have caused net warming of Earth’s climate, dominating over the last 50 years. More temp.

d l l i i i it bl ith i ti GHG t tiand sea level rise is inevitable, even with existing GHG concentrations.• Long term unmitigated climate change would likely exceed the capacity to adapt, of natural managed and human systems.•Adaptation measures are available, but must be systematically developed • Mitigation technologies are also available, but better policies and measures (PAM) are needed to realize their potential. • Poor countries & poor groups are most vulnerable to warming, sea le el rise precipitation changes and e treme e ents Most socio

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level rise, precipitation changes and extreme events. Most socio-economic sectors, ecological systems and human health will suffer.• Making development more sustainable (MDMS) is the most effective solution - by integrating climate change policy into sustainable development strategy.

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Global Impacts of Climate ChangeAt 2C, Food & Water impacts are severe. Ecosystem

impacts, extreme events and catastrophic changes worsen

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Source: IPCC AR-4

MOST DESIRABLE:

CC Policies that Harmonise both Adaptation and Mitigation (Win-Win) while also Making Development More

Sustainable (MDMS)Examples: growing forests, energy saving


Many trade-offs also arise and need to be reconciled

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P I i P d i

Unrestrained market forces increase risk of conflict (erosion of ethical & moral values underpinning civilization)

Barbarization: One Risky Future Scenario

Poverty, Inequity, PandemicsEnvironmental degradationResource Shortage, ConflictSocial polarization, Terrorism

Climate Change

Chaos, Break-down Fortress World


,Conflict, rivalry and competition for resources overwhelm all efforts to impose order

Local, regional & global groups protect their interests within enclavesHow will we cope with such a world, especially the poor?

SUSTAINOMICSCore concepts and elements

1. Making development more sustainable (MDMS)EMPOWERMENT ACTION & FORESIGHTEMPOWERMENT, ACTION & FORESIGHT

2. Harmonising the sustainable development triangleBALANCE, INTEGRATION


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Economic

•growth•efficiency•stability

Social Environmental


• empowerment/governance• inclusion/consultation• institutions/values

• resilience/biodiversity• natural resources• pollution

Sustainable Development Triangle – harmonising key elements and interconnections (corners, sides and centre) Source: Munasinghe [1992], Rio Earth Summit

Economic

•growth•efficiency•stability

Social Environmental• inter-generational equity• values/culture

PovertyEquity

Sustainability


• empowerment/governance• inclusion/consultation• institutions/values

• resilience/biodiversity• natural resources• pollution

Sustainable Development Triangle – harmonising key elements and interconnections (corners, sides and centre) Source: Munasinghe [1992], Rio Earth Summit

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Building Assets for Sustainable Development

ManufacturedCapital

SocialCapitalNatural Capital

Social Capital• Human

ITV DS


• Cultural

Source: Munasinghe (1992), Rio Earth Summit

Wrong Values Drive Unsustainable Development: 1

S i lEnvironmental

Debt

UnethicalSocial Values

Greed Selfishness

M I N DMunasinghe Institute for Development

SocialCapital

DebtUnsustainable cons. & prod.depleting NR

Greed, Selfishness, Corruption, Inequity,

Violence, Injustice, Elitism

Source: Adapted from Munasinghe (1992), Rio Earth Summit

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Economic Mal-development

growth based on unsustainable debt, waste & inequitable

S i l

waste & inequitable consumption by

the elites

EnvironmentalDebt


Greed Selfishness


SocialCapital








S i l


the elites

EnvironmentalDebt


Greed Selfishness

EnvironmentalDebt

Unsustainable

Drivers of Unsustainable Development


SocialCapital





Unsustainable Pollution &

Depleting NaturalResources

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S i l


the elites

EnvironmentalDebt


Greed Selfishness

EnvironmentalDebt

Unsustainable

Drivers of Unsustainable Development

(with feedback)


SocialCapital





Unsustainable Pollution &

Depleting NaturalResources

(with feedback)

Making Development More Sustainable via “Tunneling”:Sustainable via “Tunneling”:

Potential Post-Kyoto Framework for Jointly Managing Climate Risk &

Right to Develop


g p

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Climate Justice – Equitable Allocation of Per Capita Carbon Emissions

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ions

)

MDMS via “Tunneling” & global cooperation to manage Climate Risk & Right to Develop - 1

Rich Today

Clim

ate

Ris

ke.

g. p

er c

apita

GH

G e

mis

si

Poor

Middle Income


(

Development Level (e.g. per capita income)

Source: M. Munasinghe (1995) "Making Growth More Sustainable," Ecological Economics, 15:121-4.

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ions

)

MDMS via “Tunneling”: global cooperation to manage Climate Risk & Right to Develop - Step 2

Rich Transform -Decarbonise

Clim

ate

Ris

ke.

g. p

er c

apita

GH

G e

mis

si

Poor

Middle Income

Incentives/resources for developing countries1. Adaptation fund (safety net) for poorest and

most vulnerable.


(



ions

)

MDMS via “Tunneling”: global cooperation to manage Climate Risk & Right to Develop - Step 3

Rich Transform -Decarbonise

Clim

ate

Ris

ke.

g. p

er c

apita

GH

G e

mis

si

Poor

Middle Income

Incentives/resources for developing countries1. Adaptation fund (safety net) for poorest and

most vulnerable.

Leapfrog(BRAZIL)

M I N D Munasinghe Institute for DevelopmentMunasinghe Institute for Development

(



2. Technology cooperation/support to leapfrog

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Food for a Week: Poor FamilyUnsustainable/Unethical –must leapfrog/tunnel to prosperity: Millennium

Food for a Week:Affluent Family

Unsustainable – must

prosperity: Millennium Development Goals: MDG


transform/decarbonize towards sustainablity:Millennium Consumption Goals: MCG

Source: Menzel, 2005Source: Menzel, 2005

Transcending Stakeholder Boundaries to Ensure Cooperation for Sustainable Development

Business

SocialCapital

Govern-ment

CivilSociety

ITV


ITV can catalyse interactions among government, civil society and businessto strengthen local, national and global governance

Source: Munasinghe (1992), Rio Earth Summit

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Business Community - Evolution of Attitudes “Few trends could so thoroughly undermine the very foundations of our free society than the acceptance by corporate officials of a social responsibility other than to make as much money as possible for stockholders.”Milton Friedman (1962), Capitalism and History

”The crisis has led many in the UK, France and the USA to demand the right of inventory. Should the only questions that Managers be asking be: how to maximize shareholder’s value? Or, what is the importance of values? What are our values?Stephen Green (2009), CEO of HSBC, "Good Value: Reflections on Money, Morality and an Uncertain World”


“Over the past decade, sustainability has moved from the fringes of the business world to the top of the shareholders' agenda….”PriceWaterHouseCooper (2009)

Environment Goals Social Goals

Waste Management - Ranges from separation of different materials to the pursuit of alternative reprocessing

Management programs to leverage the positive results of its presence in each region Vocational Training

Example of Corporate social and Environmental Goals - Vale

pursuit of alternative reprocessing techniques to enable waste to be reused in other supply chains

region- Vocational Training, Community relations, Cultural projects and strengthening relationships with indigenous communities

Water Management - environmental information system to organize and store data on water resource management

Protect human rights – along supply chains; of employees; of locals ; of societies

Energy Management – Both at power generation and management

C- program – programs for reducing c-


C- program – programs for reducing c-emission and increasing c- sequestration; use of new technologies; use of renewable energy

Biodiversity - improving and developing technologies and procedures to restore degraded areas and preserve biodiversity

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Thank You Very Much

Muito

M I N D Munasinghe Institute for DevelopmentMunasinghe Institute for Development

Obrigado

Documents

Symposium on Sustainable Development: New … · 03/09/2012 · 9/3/2012 1 Symposium on Sustainable Development: M I N D New Dimensions for Society & Business Espaço Tom Jobim, Jardim