Photo credit: Sustainable Futures

980 million people traveled internationally in 2010, a 4% increase over the previous year, and forecasts expect 1.6 billion tourists by the year 2020. Travel & Tourism as a sector accounts for 258 million jobs globally, and provides crucial opportunities for investment, economic growth, and fostering cultural awareness.  Tourism can also be a powerful tool for tackling major challenges such as conservation and poverty alleviation.

But how do environmentally and socially conscious travelers navigate the complex differences between ecotourism, sustainable tourism, socially responsible tourism and the other myriad forms of traveling responsibly?

Ecotourism vs Sustainable Tourism

Industry consensus agrees ecotourism is more focused on ecological conservation and educating travelers on local environments and natural surroundings, whereas sustainable tourism focuses on travel that has minimal impact on the environment and local communities. Ecotourism is a form of tourism, or a category of vacation similar to beach, adventure, health, or cultural, while the concept of sustainability can be applied to all types of tourism.

As established by The International Ecotourism Society (TIES) in 1990, ecotourism is “Responsible travel to natural areas that conserves the environment and improves the well-being of local people.” Another widely cited definition of ecotourism is “purposeful travel to natural areas to understand the culture and natural history of the environment; taking care not to alter the integrity of the ecosystem; producing economic opportunities that make the conservation of natural resources beneficial to local people.”

The Global Sustainable Tourism Council (GSTC) is a global initiative dedicated to promoting sustainable tourism practices around the world. GSTC and its global members of UN agencies, global travel companies, hotels, tourism boards and tour operators follow the Global Sustainable Tourism Criteria. The 23 criteria focus on best practices to sustain natural and cultural resources, maximize social and economic benefits for the local community, and minimize negative impacts to the environment.

Currently there is no internationally accredited body charged with overseeing the standards, monitoring and assessment, or certification for the ecotourism or sustainable tourism industries. Without an established standard it is easy to be confused by organizations that greenwash services and offerings as “environmentally friendly.” Others argue that ecotourism is an oxymoron, as travel implicitly entails activities that are detrimental to the environment. Planes, trains and automobiles use harmful fossil fuels that emit CO2, and forestland is often cleared for roads and railways.

Ecotourism and Sustainable Tourism in Action

Photo Credit: Visit Costa Rica

Costa Rica was a pioneer in ecotourism and exemplifies how tourism can be a key pillar of economic development policy. Costa Rica is now the premiere destination for ecotourism, and in 2010 tourism contributed 5.5% of the country’s GDP. Jordan serves as another model of successfully integrating conservation and socio-economic development. Ecotourism generated $2.1 million in 2010, and Jordan’s Royal Society for the Conservation of Nature has received several global awards for its success in alleviating poverty and creating employment for local communities, in combination with integrating nature conservation.

Myriad sites offer options for tours and hotels that cater to a more environmentally friendly and sustainable type of traveling experience. The New York Times travel section allows viewers to search potential destinations using ecotourism as a criteria, and Condé Nast Traveler highlights Ecotourism and Sustainable Travel under Expert Travel Tips.

The Earthwatch Institute, organizes trips where travelers work alongside scientists and explorers on field expeditions and Sierra Club’s travel arm Sierra Club Outing allows environmentalist to learn something on vacation and inflict minimal harm on the surrounding environment.

At the industry level, hotels and resorts are taking on sustainability commitments that focus on recycling, decreasing water and energy usage, reducing greenhouse gas emissions,and environmentally friendly design. Many in the industry show a commitment to a holistic approach to sustainability which includes  the construction of Leadership in Energy & Environmental Design (LEED) certified buildings, providing eco-friendly and organic food and wine selections, and rewarding guests who make “green choices.” Marriott, which boasts 2,800 hotels worldwide, offers guests hotel points or vouchers for the hotel restaurant should they choose to not having linens and towels washed daily.

Understanding the difference between sustainable tourism and ecotourism educates travelers on the significant impact their travel decisions have on the environment, economy and local communities they visit. Participating in sustainable tourism, or more specifically ecotourism vacations, means travelers can contribute to development and conservation efforts, while enjoying themselves on vacation.

Cover Page of the World Bank Report

Photo Credit: The World Bank

There is no doubt that the current surge in mobile innovations for agricultural development is defying the normal progressive growth of agricultural technologies over the past decades. For centuries, innovations in agricultural technologies have been progressively slow. The emergent of information and communication technologies (ICTs) and their innovative use to support agricultural extension and advisory services has, however, changed the history forever. According to the World Bank report Information and Communications for Development 2012: Maximizing Mobile, close to 6 billion mobile phones are in use today, a jump from less than 1 billion subscriptions in 2003. About 77% of the 6 billion subscriptions is located in the developing nations in which 70% of the world’s poor whose main source of income and employment comes from the agricultural sector.

Agricultural Technologies and the Future In her 1991 paper “Beyond Tractors: The History of Technology in American Agriculture,” Deborah Fitzgerald, Professor of the History of Technology in the Program in Science, Technology, and Society (STS) at MIT, argued that the history of agricultural technology is in a very nascent stage of development, and it is difficult to predict the outlines of a more orderly, systematic future. Barely 20 years after her observation, the developments in mobile technology for agriculture have confirmed her argument. Little is known about any prediction of the current growth of mobile technologies, especially in the world’s poorest regions. It is also becoming more difficult to predict what the market will look like in the next decade given the fast pace at which the technology is growing.  

So Why This Sudden Spurt? The 2nd chapter of the World Bank report referenced above titled “Mobilizing the Agricultural Value Chain” has identified a number of factors that are driving the increased adoption of mobile phones for agriculture in the developing nations:

  • Improved accessibility and affordability through expansion of mobile networks.
  • Increased capacity or bandwidth availability on mobile networks as the technology evolves.
  • Increasing data-enabled mobile devices with increasing affordability.
  • Innovative development of remote wireless sensors and identification technologies.
  • Increasing availability of specialized mobile services targeted to specific agricultural functions.

These and other factors, such as wide ownership of mobile phones, instant and convenient service delivery, increasing functions, and falling prices of mobile handsets, will continue to drive its adoption.    

Looking into the Future of Mobile Innovations for Agriculture

Photo Credit: American Public Health Association

According to USAID, innovations must lead to substantial (not incremental) improvements  in addressing development challenges. But this does not seem to be the case in the mobile agricultural sector. The role of mobile agricultural projects in addressing development challenges in the developing nations is yet to be empirically tested in most countries. Anecdotal results have been reported here and there, but there is little to cite about any substantial impact on agriculture and rural development. An interesting trend with the mobile innovations for agriculture pointed out by the report is that, the applications are usually designed locally and for specific target markets, with localized content specific to the languages, crop types, and farming methods. It continues that while these local designs may offer exciting opportunities for local content and applications development, they may also limit the economies of scale realizable from expanding from pilot programs into mass markets, potentially hindering the spread of new and promising applications and services. So while development practitioners are careful not to repeat the traditional “technology transfer” approach in the ICTs for development sector, they are also faced with the limitations of scalability of the locally developed mobile applications for agriculture.  

Is Reverse Innovation a Possible Solution to Limited Scaling of Locally Developed Mobile Apps? The local app development market in the emerging economies is being boosted by the proliferation of Technology Hubs & Parks in these countries. But what are the approaches to development of applications within these hubs? How can we learn from the past challenges with technology transfer and the current scaling limitations of locally developed apps for agriculture? The concept of reverse innovation developed by Vijay Govindarajan, and Chris Trimble and explained in details with practical applications in their book, “Reverse Innovation: Create Far From Home, Win Everywhere”,  could bring these two challenges together. A key component of the concept is about building Local Growth Teams (LGTs). Within the mobile agricultural sector, LGTs comprising of ICT developers, marketing specialists, and content developers in the emerging economies with strong link with global market could be developed. This will ensure that locally developed ICTs apps with inexpensive models and limited infrastructure to meet the needs of developing nations, can be easily repackaged as low-cost innovative goods for Western buyers. This could address the scaling challenge brought up by the report and at the same time limit the traditional diffusion of technologies from the developed to developing nations.  

Oversights: Mobile Solutions for R&D and Data Collection? I would like to recap my recent work on “Mapping ICTs Along the Agricultural Value Chain” for USAID’s Global Broadband and Innovations (GBI) program. Two key components of the value chain, which seem to be overlooked, are ICTs for agricultural research and development (R&D), and ICTs for data collection to inform monitoring and evaluation (M&E). Firstly, mobile technologies for agricultural R&D are emerging, but due to the traditional under-estimation and under-investment in agricultural R&D in developing countries, little attention is being paid to its potential. There is huge potential in the use of mobile technologies to support the work of agricultural researchers, agricultural science students, extension staffs, and farmers to facilitate access to scientific knowledge and exchange of information between and among these actors. Unfortunately, this has been overlooked by this important report. Secondly, mobile technologies are being used along the agricultural value chain for data collection in order to inform policy and decision-making. The report did mention briefly the importance of mobile in agricultural data collection, for example the work of Grameen Foundations Community Knowledge Worker (CKW) program in Uganda and the Reuters Market Light (RML) in India. But in addition to these programs, there are host of new mobile applications that are being used in this area that need to be acknowledged. Examples include iFormBuilder, EpiSurveyor, Open data Kit, among others. These new mobile applications are essential for the work of extension staff – both public and private to facilitate their work. Most importantly, timely and accurate data through these applications will lead to actions that will benefit the smallholder farmer in a number of ways, thereby increasing their productivity.

Conclusion The growth of mobile technologies for agriculture has outpaced the speed of past technological developments within the sector. While the invention of tractors in the 1800’s was acclaimed a significant breakthrough for agriculture, not even the green revolution in the 1900’s can be compared to the extensiveness and intensiveness of mobile technologies for agriculture. The World Bank report reference in this post has done excellent job by carefully selecting experts in the field of ICTs for development to delve into a number of cases worth following. Specifically on the second chapter that deals with mobile technologies and agriculture, I believe practitioners, researchers, technology developers, policy makers, and users of agriculture and mobile technologies should look critically into the recommendations given at the end – business models, ICT skills and the supporting infrastructure to insure the growth and sustenance of the revolution.

In 2008, Jeffrey Sachs said to the United Nations Millenium Project that “mobile phones and wireless internet end isolation, and will therefore prove to be the most transformative technology of economic development of our time.”  Well, as the new World Bank report “Maximizing Mobile” shows, Sachs may not have been too far off the mark.  However, despite the promising statistics there are still some daunting challenges in the field of m4d that must be overcome.

The report shows some very encouraging mobile statistics.  Between 2000 and 2012, the number of mobile phones in use worldwide grew from less than 1 billion to over 6 billion (check out this great info-graphic). The number of mobile subscriptions in low and middle-income countries has increased by over 1,500 percent between the years 2000 and 2010, moving from 4 subscriptions per 100 people up to 72 subscriptions.  Indeed, the mobile sector as a whole has become an increasingly significant economic force in developing economies, with mobile revenues as a proportion of gross national income (GNI), rising from 0.9 percent in 2000 to 1.5 percent in 2010.

Beyond statistics, the report points to some very interesting trends that must be kept in mind as we move forward in any mobile for development work.  First and foremost, “Maximizing Mobile” marks a change in dynamics for the Bank’s approach to ICT: a shift away from its traditional supply-side focus on connectivity to a new demand-side focus on mobile applications and the ways ICTs are used.  Indeed, the report posits that much of the industry is shifting from hardware to software and services – as it is no longer about the phone, but rather how the phones are used.  Though true,

As for challenges, the report provides useful inside into the obstacles and constraints that mobile still faces. Generally, the most common constraints to the supply side of mobile service provision are a lack of available spectrum and inadequate backbone networks.  The largest constraints on the demand side remain a lack of affordable mobile devices and broadband services, as well as a dearth of local applications and content available to users. The bank goes on to underscore the importance of partnership programs between government, business, and NGOs and the role they can play in surmounting these obstacles.

When it comes to content creation, no one is better placed to construct relevant and localized applications and services than those who need them.  The Bank points out, quite rightly, that “new mobile applications that are designed locally and rooted in the realities of the developing world will be much better suited to addressing challenges than applications transplanted from elsewhere.”  The report highlights the emerging trend of the crowdsourcing that has arisen out of social networking, increased connectivity and the subsequent demand that often results.  Local content portals have been popping up all over the world in order to satisfy local demand for various types of news and information previously inaccessible.  Indeed many mobile innovations (multi-sim card phones, low-cost recharges, mobile payments) increasingly originate in poorer countries.

There are many opportunities in the field as we move forward.  Tapping into and fostering local talent for mobile application development is an important next step and should remain a priority, as use and development of smart phone applications is likely to rise as market pressures continue to drive down prices.  Cross-sector partnerships between governments, firms, and NGOs will be necessary for creating the necessary solutions to both supply and demand-side obstacles.  Sachs may very well have been correct, but we still have many challenges ahead before mobile’s full potential can be realized.

Headshot of Melanne Verveer

Ambassador-at-Large for Global Women’s Issues, Melanne Verveer. (Photo: US Dept of State)

On Monday, July 23, 2012 the Center for American Progress hosted Ambassador-at-Large for Global Women’s Issues, Melanne Verveer for a discussion on “Women’s Economic Success and Global Growth.” Amb. Verveer’s talk focused on the crucial role women play in sustainable development and economic growth worldwide. US women generate $3.5 trillion yearly, and women’s employment in developing countries contributes more to the global economy than China. By 2050, women will control 2/3 of all spending worldwide. Noting that women traditionally spend their earnings in sectors that create a multiplier effect (i.e., health, education, food), Amb. Verveer emphasized the tremendous consumer power women will wield in global markets. She also highlighted growing research that shows how countries where women’s rights are more closely equal to those of men are more peaceful and prosperous than  countries that ignore, marginalize or limit the role of women.

Amb. Verveer spoke of three main areas the State Department focuses on increasing the role and influence of women: Economic Empowerment, Women in Development, and Peace and Security.  Within the Women in Development sector, three initiatives discussed fit squarely within Integra’s areas of expertise: Feed the Future (Agriculture), Global Climate Change Initiative (Environment) and mWomen (Information and Communications Technology).

Agriculture: Women are vital to agricultural development, often making up the majority of farmers in developing countries and the backbone of agriculture-based economies. FAO reports claim that if men and women farmers had equal access to credit, training, property rights and technical inputs, yields could improve 20 to 30 percent and the number of malnourished people worldwide could be reduced by 150 million people.

Environment: Women bear the burdens of climate change disproportionately more than men. Yet women are uniquely empowered to address climate change because of their central role in agriculture, forest management, and running the home (i.e., making crucial energy decisions as pertains to energy sources used in the home).

ICT4D: Increased technological access creates opportunities for financial security and independence. With mobile access, women are able to gain information about the current market, including data on pricing and weather systems, in addition to business insights and trainings, access to support networks, and the ability to transfer and save funds. “The significance of mobile technology cannot be underrated,” said Ambassador Verveer, who emphasized both the economic and social value of mobile technology. While 350 million women still do not have access to cell phones, the State Department is working to bridge this gap in connectivity through various initiatives, including the GSMA mWomen initiative. mWomen is committed to reducing this gender gap in connectivity by 50%.

In each development sector highlighted, Ambassador Verveer reiterated that gender equality is not only smart economics, but in line with US values and “a moral imperative of the 21st Century.” While the State Department and USAID continue to add gender guidance components to trainings and major international initiatives, true change will only be achieved once gender equality becomes institutionalized and integrated across all bureaus. Women’s rights need to be viewed as human rights essential to fostering economic growth, social stability and a more peaceful prosperity worldwide.

 

To view full event video, click here. To read Ambassador Verveer’s article on “Why Women Are a Foreign Policy Issue,” click here

 

In June 2012, the United Nations Conference on Sustainable Development took place in Rio de Janeiro, Brazil. Marking the 20th Anniversary of the Earth Summit, Rio+20 provided an opportunity for the world to reaffirm commitments to poverty erradication, sustainable development and environmental protection. Below, we explore various outcomes of Rio+20:

Rio+20 logo

Photo credit: Voices of Youth

1. New Sustainable Development Goals

As a replacement for the Millennium Development Goals which end in 2015, the governments of Colombia and Guatemala have proposed Sustainable Development Goals. These goals would link environmental and human development concerns within broad categories such as changing consumption patterns, combating poverty, and advancing food security. While negotiations in Rio did not agree to specific themes, terms or commitments, an “open working group” of 30 nations was appointed to determine priorities for the pledge by September 2013.

2. Words, Words, Words

From cries of disgust and disappointment—Greenpeace deemed the summit “a failure of epic proportion” — to careful phrased optimism about sustainable development, Rio+20 was a war of words. Promises were made, fingers pointed, and cries of injustice abound, but in the end the most important words were found within “The Future We Want”.  A non-binding communiqué ratified by all UN members that resulted in no financial commitments or concrete benchmarks.

Instead, much of the conference discourse centered around the dominant buzz word and concept of “the green economy.” We at Integra recently blogged about inclusive green growth efforts and sustainable development initiatives of the World Bank and International Monetary Fund.

Graphic displaying the Zero Hunger Challenge spectrum of milestones

Photo credit: UN

3. An Initiative to End Hunger 

At the conference, UN General Secretary Ban Ki Moon launched the Zero Hunger Challenge, an initiative that aims to put an end to hunger, ensure resilient food systems, increase productivity and income of smallholder farmers, especially women, and eliminate food waste.  The UN campaign is supported by the Food and Agriculture Organisation, the International Fund for Agricultural Development, the World Food Programme, Unicef, the World Bank, and various governments.

 4. An Appreciation for the Energizing and Influential Power of Sideshow Events

More than 3,000 fringe events took place outside of the negotiations, producing significant outputs and exciting commitments. Passionate and innovative individuals, committed grassroots organizations, and forward thinking corporations were able to mold policy and influence international agreements in new and exciting ways. These outside movements energize and influence negotiations, and are an important reminder that individuals still have incredible influence on the state of the world.

5. Innovative Pledges from Unlikely Sources

While government negotiators could not agree to binding pledges, various corporations, individual states and industry groups committed to bold and creative ways of approaching the challenge of sustainable development. Some of the more interesting pledges include:

Grenada announced its transport and electricity sectors will only use clean energy sources by 2030.

Unilever promised to cut its greenhouse gas emissions in half by 2020 and find sustainable sources of beef, soy and palm oil to prevent the deforestation now stemming from production of these three major crops.

Eight international development banks agreed to invest $175 billion to sustainable public transport systems over the next decade.

European PVS industries made a commitment to recycle 800,000 tons of PVC each year through the VinylPlus programme.

Microsoft will roll out an internal carbon fee on its operations in more than 100 countries, part of a plan to go carbon-neutral by 2013.

Map of the world in a field

Photo credit: UNEP

The United Nations Environment Programme (UNEP) was strengthened with more funding, stronger powers to initiate scientfic research, a leadership role in coordinating global environmental strategies, and a vote of confidence for the organization’s much publicized transition to a focus on creating a green economy backed by strong social provisions.

 

Photo Credit: Danny Morgan

National Broadband Strategies (NBSs) are becoming a necessity for each nation nowadays considering the immerse benefit of such policies or strategies or plans to unlock the full potential of the broadband network and maintain an open Internet. As a result, a NBS should be seen as a social contract to develop the industry base within any country. It should aim at bringing about a stronger foundation for effective governance, private investment and more active citizenship, leading to a desirable social and economic future.

Below are the 9 points distilled from the World Bank’s Broadband Strategies Handbook and another Conference Paper by Prabir K. Neogi and Rekha Jain that reviews some national broadband strategies.

1) A National Broadband Strategy (NBS) should take an Ecosystem Approach by considering both the demand and supply of broadband: This must include a) Networks – by creating the environment to reduce barriers for international connectivity, domestic backbones, metropolitan connectivity, and local connectivity; b) Services – by providing broadband services to schools, government agencies, etc.; c) Applications – by making available e-applications and content (local) creation; d) Users – by considering Customer Premise Equipments (CPEs) and Personal Computers (PCs), and digital literacy.

2) In order for the ordinary citizen to benefit from broadband investments, a NBS of any country should aim at having the greatest economic impact on the country: This could be achieved by creating and making available broadband-enabled services and applications; and then building the capacity of users to use the broadband-enabled services and applications in a productive and efficient way.

3) NBS should describe the broadband supply chain from a topological perspective: Such a topology should take into consideration a) The international, regional, national, and local connectivity and access deployment solutions; b) The technologies for each of these segments – fiber optics, satellite, microwave, mobile wireless, and traditional copper wire; and c) The implementation issues associated with these technologies – open access, quality of service, and spectrum constraints.

4) NBS should describe demand in order to make broadband services available to the users: By clearly defining the private and public sector roles to facilitate adoption after the networks are created; go beyond the market demand to reach where demand is stifled because consumers are not aware of the benefits of broadband; where broadband is not affordable; and where broadband is not attractive or relevant to potential users.

5) NBS should aim at building the capacity of users: The presence of broadband services without the capacity of the citizens to use them may be a waste of investment. Hence capacity for citizens, businesses, and government should be build to understand, learn, and apply broadband benefits and capabilities across the economy and society: Absorptive capacity in the areas of the economy’s macroeconomic environment; the business environment; the quality of human capital; and the governance structure are key for consideration.

6) Stages of NBS: NBS should be design to include three stages: a) Promotion stage when the market is incipient and the aim will be to promote the build-out of broadband networks, encourage the use of broadband services and applications, explore options for funding the development of the strategy and address  issues associated with measuring the effectiveness of policies designed b) Oversight stage will key as competition begins to drive growth. The traditional legal and regulatory frameworks need reforms in order to address supply and demand issues with convergence of the technologies. Government’s role in creating the environment for oversight through competition policy, guard against monopolistic, oligopolistic, and unfair practices and regulate essential facilities. c) Universalization stage comes as the market matures. The role of governments is needed when market mechanisms do not meet goals for broadband access and use. This can be done through universal service and access programs. Government should also narrow or eliminate gaps between markets and the country’s development needs to allow for private-led competitive markets.

7) Scale and scope of the strategy: NBS should be seen as a component of a larger, long-term phased national economic plan for the adoption and use of ICTs to improve competitiveness and productivity. Countries such as Australia has taken a comprehensive national strategy approach that is rather supported by all levels of government. Others also have a standalone or ad hoc programs at various levels of government, to improve broadband connectivity in rural and remote areas.

8) Duration of the broadband strategy: A NBS should be developed in such as way that it is not too long that technology solutions might have radically changed, but covers a longer time frame than electoral cycles in most countries. Example of short/medium term initiatives, such as 2-3 year programs of the U.S. DOC/NTIA $4.2 billion Broadband Technology Opportunities Program/BTOP), funded under the American Recovery and Reinvestment Act of 2009. On the other hand, the Australian National Broadband Network (NBN) initiative and the Federal Communications Commission’s proposed National Broadband Plan are long term strategies extending over 5-10 years.

9) Funding and implementation model: NBS should consider the degree and nature of public sector funding and support such as direct funding, loan guarantees, targeted tax incentives. In most cases, governments are provide one-time, up front capital grants to fund the deployment of the broadband infrastructure. But the main challenge is with the provision of continuing subsidies for the ongoing operation of the network facilities which mostly may be the function of the private sector. The model of greatest interest is the Public-Private Partnership (PPP), with joint ownership of the deployed infrastructure as seen in Singapore, Australian NBN, and New Zealand.

In conclusion, there is no ‘one size fit all’ for National Broadband Strategies but a good NBS should have the following key characteristics:

a) Be  forward looking to keep up with the pace at which technology is being developed

b) Become a permanent fixture of economic development and the embodiment of a shared vision

c) Be resilient to the checks and balances brought about by politics

d) Be endorsed by all policy-makers at the time of conception

e) Demarcate respective roles of public and private sector participation, and the potential for partnerships

f)  Should contribute to demand through e-services, expertise centers, government services online, and capacity building.

Note: Key points in this post were distilled from the: The World Bank’s Broadband Strategies Handbook, edited by Tim Kelly and Carlos Maria Rossotto (2012) in preparation for the release of Broadband Strategy Toolkit as done for Telecom Regulation and National Broadband Strategies: and A Comparative Review and Possible Lessons for Developing Countries by Prabir K. Neogi and Rekha Jain (2011/12), presented in a conference in India, February 2012.

Marianne Fay, Chief Economist of the Sustainable Development Network, presenting the World Bank report, "Inclusive Green Growth".

Marianne Fay, Chief Economist of the Sustainable Development Network. Photo credit: World Bank

On June 26, 2012, Dr. Marianne Fay, Chief Economist of the Sustainable Development Network presented the World Bank report entitled “Inclusive Green Growth”, followed by a panel discussion in Washington, D.C. Commentators included Dr. David Reed, the Senior Vice President, Policy of the World Wildlife Fund, and Dr. Rosina Bierbaum, Professor of Natural Resources and Environmental Policy at the University of Michigan.

Following the Rio+20 UN Conference on Sustainable Development, panelists upheld the importance of inclusive, sustainable economic growth. Accordingly, the report puts forth a three-pronged strategy to achieve this goal. Highlighted methods include appealing to immediate and short-term benefits, creating incentives for private sector investment, and promoting sustainable decision and policy making such as natural capital accounting.

Referencing Christine Lagarde’s recent speech on sustainable development, Dr. Fay pointed out that while “getting the prices right” is fundamental to building a green economy, that it would not act as a catalyst on its own. Similarly, Dr. Bierbaum informed the audience that cost-efficient alternatives are insufficient for stimulating investment. Panelists insisted that in order to achieve a green economy, a change in human behavior must occur, alongside a shift in private investment, given the proper incentives. Nevertheless, while each commentator recognized the importance of  attracting the private sector and communities to facilitate this change, little was discussed as to what those incentives might be.

Pointing out another important issue, Dr. Reed emphasized the need for a micro-level focus on members of the communities such as farmers, civil society members, microfinance institutions and social entrepreneurs. While he supported the World Bank report, he also pointed out what he called a “major disconnect” between the document and a strategy on how to involve all stakeholders in fostering a green economy; not just the World Bank and government agencies. His comments raised the question as to what incentives could build such a network to support this effort?

As Dr. Fay mentioned, no matter how high gas prices rise, the majority of a population will continue to pay for the fuel if they do not have a public transportation system that provides them with another option. Accordingly, governments and the private sector must work together to provide and invest in the infrastructure necessary to support green growth. Sustainable transportation systems and increasing access to ICT, for example, are two topics that took center stage at the Rio+20 conference last week. Multilateral banks committed over $175 billion dollars to support sustainable transportation systems in the developing world, and ICT has been recognized as a key strategy for inclusive sustainable development.

While the World Bank and similar financial institutions may not be able to provide incentives for private sector investment, they can provide funding to assist financially struggling governments pursue this path of sustainable development. Marianne Fay suggested that a combination of both regulatory policies and price instruments be used, in conjunction with social policies that help the poor deal with the transition. The discussion concluded with a reminder to the audience, that the goal is not to slow growth, but to change the way in which we develop. Perhaps once the incentives are better defined, and strategies are tailored to the context of each individual country, drivers of the economy will be more open to change.

 

 

 

Workers begin laying the ACE submarine cable in Penmarc'h, France, October 2011Bandwidth problems in West Africa may soon become a thing of the past when the Africa Coast to Europe (ACE) broadband submarine cable comes online this December. The US$700 million will interconnect a total of 23 countries in Europe and West Africa, including two Integra and GBI clients, Nigeria and Ghana. This massive infrastructure project aims to bring high-speed broadband internet to these developing countries in order to reduce the digital divide and serve as “a vector of social development and economic growth in Africa.”

Led by the France Telecom company, this broadband system will extend over 17,000 km to from Brittany in France to Cape Town in South Africa. Parts of Europe and 16 West African countries will be interconnected by the submarine cable. Connectivity will extend even to the landlocked nations of Mali and Niger who will be connected via their own terrestrial links.

The cable itself has an initial 1.92 terabytes per second (Tb/s) capacity that can be upgraded to a whopping 5.12 Tb/s. ACE will use cutting edge fiber optic technology developed by Alcatel-Lucent that offers a higher quality of high-speed broadband than satellite at a lower cost. Utilizing new wavelength-division multiplexing (WDM)technology, the ACE stations can be upgraded without any actual modifications to the cable itself. This is a significant increase in the broadband capacity for these countries. Gambia for example, is estimated to have an increase in capacity by a factor of 16.

Increasing bandwidth capacity is crucial for enabling increased broadband penetration rates within a county. In 2011, the Broadband Commission for Digital Development issued a report that identified broadband as a “tool of unprecedented power” in helping countries meet the millennial development goals in 2015. Additionally, a report from the World Bank showed that a 10% increase in broadband penetration in developing economies correlates with a 1.38% contribution to economic growth.  With ACE online, West Africa will be able to access a plethora of new opportunities.

Christine Lagarde, Managing Director of the IMF giving a speech at the Center for Global Development in Washington, D.C.

Christine Lagarde, Managing Director of the IMF. Photo credit: International Monetary Fund

On Tuesday, June 12, 2012, Christine Lagarde, Managing Director of the International Monetary Fund (IMF), presented a speech at the Center for Global Development in Washington D.C. entitled “Back to Rio, the Road to a Sustainable Economic Future”.

Mrs. Lagarde spoke of a “triple crisis”, comprised of economic, environmental and social factors, stressing her belief that none of the issues could be improved in isolation from one another. In order to address these problems, she called for a different type of economic growth that would use a variety of fiscal and monetary policies to address the environmental and social issues simultaneously. Fiscal policies mentioned included cap and trade schemes on carbon emissions, and various environmental taxes. In regards to how the IMF can assist in this matter, Mrs. Lagarde stated that the organization can help set prices and fill infrastructure gaps with clean energies to help increase economic growth. With the ability to lend to the developing world, she stressed, “Now the IMF needs more resources for concessional lending, to help vulnerable countries navigate an increasingly volatile world. This is one of my top priorities.”

Mrs. Lagarde also highlighted the dual effects of environmentally-sensitive fiscal policy, to reduce environmental damage while generating tax revenue for the economy. Illustrating this point, she stated, “Right now, less than 10 percent of worldwide greenhouse gas emissions are covered by formal pricing programs. Only a handful of cities charge for the use of gridlocked roads. Farmers in rich countries are undercharged—if charged at all—for increasingly scarce water resources.” Mrs. Lagarde also mentioned that the IMF currently involved in natural resource accounting, along with the United Nations and the World Bank, to monitor the stock and use of natural resources such as land, water, and subsoil assets.

Mrs. Legarde brought attention to the need for social safety nets, particularly in developing countries, where she feels people are the most vulnerable to environmental consequences. Furthermore, she reminded the audience that the hardest-hit populations are usually those who contribute the least to the economic and environmental crises. In an effort to help relieve the stress, she cited the IMF’s effort to replenish the poverty reduction fund and provide resources to those countries in need. She also called for governments to move away from subsidy regimes that do not account for income disparities between different populations.

Following Mrs. Lagarde’s speech, a Questions and Answer session was led by Nancy Birsdall, President of the Center for Global Development. An important topic of discussion was how the global community can best take a green measurement of GDP. Mrs. Lagarde emphasized that the way in which we measure, determines the way in which we think; so while it may not become a mainstream measurement of growth, some type of value or index is crucial in order to compare and address the cost of natural resources, the value of goods, etc. She also mentioned that this is something the Department of Statistics at the IMF is currently working on with the Organization for Economic Cooperation and Development (OECD).

In preparation of the Rio+20 Summit, United Nations Conference on Sustainable Development, Mrs. Lagarde outlined a variety of important issues for attendees to take into account. The conference took place this week in Brazil, marking the 20th anniversary of the 1992 United Nations Conference on Environment and Development (UNCED), in Rio de Janeiro.

Photo Credit: Costas Troulos

In a joint statement issued today ahead of the Rio+20 Conference on Sustainable Development, the Broadband Commission noted that “We believe broadband is a fundamental technology to achieve sustainable development that should also be recognized in future Sustainable Development Goals (SDGs)”.

The statement came as a follow-up to its April call to action to the delegates  at the United Nations Conference on Sustainable Development who gathered in New York at the time to continue their negotiations ahead of the Rio+20 conference.  In this April call, the Broadband Commission asked the delegates to recognize ICT and broadband connectivity as catalysts to achieve the three pillars of sustainable development – economic growth, social inclusion and environmental sustainability.

In renewing their call, the Secretary-General of ITU, Hamadoun Touré stated that “ICTs have created a watershed moment in human evolution and are poised to make a catalytic impact on the sustainable development of our planet and the roadmap being negotiated at Rio+20 must therefore explicitly recognize the potential of ICTs and broadband connectivity.” Dr Touré added that ‘Broadband Inclusion 4 All’ must be fully integrated into shaping strategies in the post-2015 international development framework.

The statement concluded that broadband connectivity has the potential to provide solutions to sustainable development challenges, while simultaneously increasing socio-economic development and quality of life as well as facilitating transformative change in a wide range of key sectors from power, transportation, buildings, education, health and agriculture.

For more information on the press release, see ITU Newsroom and on the Broadband Commission for Digital Development.

 

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