Informal economies and the green economy
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Major international organizations and private sector players are leading the green transition with over 60 national green economy plans in place. Estimates show $6.22 trillion now going towards the green economy annually, primarily from private sector sources and development banks. However, most green growth strategies fail to adequately consider how transition will impact informal markets or ensure that those without a stake in the current economy can participate in the green economy. There is a missing focus on informal workers and how to include them.
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Informal economies and the green economy
- 2. What is the status of the ‘green transition’? • Over 60 national green economy / growth plans • Big players taking a lead OECD, World Bank, regional development banks, UN PAGE (UNEP, UNDP, ILO, UNITAR, UNIDO) + newer organisations e.g. GGGI • Private sector
- 3. Are ‘green funds’ flowing? Ethical Markets Media estimates USD 6.22 trillion now going towards green economy
- 4. Where are the funds coming from? Source; Green Growth Action Alliance 2012
- 5. How does informality feature in green growth discourse?
- 6. How does informality feature in green growth strategies? • Out of 15 national plans - 6 mention informality • Those references focus on structure of economy rather than how GG might impact informal markets • E.g. Egypt; Kenya
- 7. How will people who don’t have a stake in the ‘brown’ economy have one in a green economy?
- 8. Peter Poschen, Director of the ILO Enterprises Department Mao Amis, Executive Director of the Africa Centre for a Green Economy
Hinweis der Redaktion
- Brief GEC intro
- GE emerged as response to social. Financial and env crisis Rio, green light to GE Paris and SDGs will accelerate that trend Big global orgs have taken the lead – OECD, WB, PAGE – plus new organisations GGGI Now GE action plans emerging at all levels – local, municipal, national and global Big private sector (e.g. renewables, consumer goods companies) but also service providers (e.g. accounting bodies)
- Yes, new and additional funds This is just a snap shot of the green bond market Also look at international funds (EC, GGGI, WB, etc.) Though, is worth stressing that it is comparatively slim relative to brown economic financial flows – fossil fuels, resource intensive consumer goods, etc.
- So, if green growth is indeed on the top of the policy agenda – nationally and globally – and if it is indeed inclusive then what does it have to say about informal markets. First took a quick look at the three bigger global reports on GE that have helped to set the agenda. So, yes, informality does feature in all three. References to what Doesn’t feature in the top 500 words Informality does feature in all three – In the World Bank’s flagship report – UNEP OECD does better – 10 mentions and, more importantly, those references aren’t automatically couched as a ‘problem’ or ‘obstacle’.
- - Informality doesn’t feature once: Vietnam, Barbados, Serbia, South Africa, Serbia, Indonesia, Colombia Or Green Growth Key Findings - The fact that it is entirely missing from countries such as SA or Vietnam – where the informal economy IS the economy – is worrying. - In Egypt it is mentioned but largely in the context of ‘cleaning and greening’ – ie. NOTES Chile National Green Growth Strategy (2) GE Scoping studies (UNEP): Kenya (8), Azerbaijan (1) Egypt (7), Senegal (4), Ghana (4) Colombia fact sheet (OECD) (0) Indonesia road map (GGGI) (0)