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Earth Condominium
International Conference
     17-19 May 2012


           CONFIDENTIAL

                                                                                  Advocating for
                                                                                Social Sustainability
                                                                               and Inclusive Growth:
                                                                                  Emerging Ideas
                                                                                Changing Realities



           Document
           Date
                                                                                         Francisco Filho
                                                                             Catholic University of Brasilia and
                                                                              International Policy Centre for
                                                                                 Inclusive Growth (IPC-IG)
           This report is solely for the use of client personnel. No part of it may be
           circulated, quoted, or reproduced for distribution outside the client
           organization without prior written approval from McKinsey & Company.
           This material was used by McKinsey & Company during an oral
           presentation; it is not a complete record of the discussion.     Gaia, Portugal – 18 May 2012
Unit of measure




                                         Outline


                                         First Section - Social Sustainability: Addressing
                                         the Poverty-Environment Nexus

                                         Second Section - Inclusive Growth and Green
                                         Economy: The Role of Productive Inclusion

                                         Third Section - Communicating for Change
  Delegates of the VietnamStudy Tour
      on Social Inclusion of Ethnic
    Minorities visit favelas in Rio de
             Janeiro, Brazil



          *   Footnote
Source:       Source                                                                         2
Unit of measure




                         Social Sustainability

 Key issues:
 Recognition of the interdependence of 4 components: Growth, Poverty,
 Environment and Gender.
 Acceptance that socially-blind policies are unlikely to be neither
 sustained nor sustainable.
 Clear focus on sustaining green economy in society: Focus on well-
 being and human development.


         Learn more: IPC-IG Poverty in Focus Magazine on the
 Dimensions of Inclusive Development discusses the emerging concept of
 social sustainability and presents various perspectives from the Global
 South.
          *   Footnote
Source:       Source                                                       3
Unit of measure




                                 Poverty and the Environment

                         Key issues:

                          Understanding the complex dynamics of
                           resource use and depletion by the poor
                           and the poorest.

                          Understanding the heterogeneity of the
                           poor and the complexity of their
                           interactions with the environment at local
                           level.

                          Taking into account local consumption
                           patterns and the values attached to them.
          *   Footnote
Source:       Source                                                    4
Unit of measure



                             Inclusive Growth: Concepts and Definitions


 Ali and Son (2007): (i) an increase in the average opportunities available to the population; and (ii)
    improvement in the equitability of the distribution of opportunities among the population.

 Ianchovichina and Lundstrom (2009): “In short, inclusive growth is about raising the pace of growth and
    enlarging the size of the economy, while leveling the playing field for investment and increasing
    productive employment opportunities.”

 Rauniyar and Kanbur (2010): “growth […] accompanied by lower income inequality, so that the
   increment of income accrues disproportionately to those with lower incomes.”

 Habito (2010): “GDP growth that leads to significant poverty reduction.”

 McKinley (2010): “(i) achieving sustainable growth that will create and expand economic opportunities,
   and (ii) ensuring broader access to these opportunities so that members of society can participate in
   and benefit from growth.”

 Klasen (2010): “…in terms of outcome, inclusive growth could be termed ‘disadvantage-reducing’
    growth.”

          *   Footnote
Source:       Source                                                                                       5
The Global South Context
Unit of measure



                                           IPC-IG’s approach


                           IPC-IG’s work on inclusive growth starts from the
                           premise that societies based on equality tend to
                           perform better in development and that long-term
                           public investments on comprehensive social
                           protection and promotion is a necessary condition
                           to achieving sustainable and inclusive growth.

                           A debate from the Global South
                           A policy debate that emerged in the South: India,
      Learn more about     China, Brazil, South Africa, Indonesia, Turkey
        IPC-IG’s work
     on Inclusive Growth   Inclusive growth seen as both an outcome and
                           a process, requiring benefit-sharing and
                           participation.
          *   Footnote
Source:       Source                                                           6
Unit of measure


                           Inclusive Growth indicators in selected Emerging Economies



                                                                    Change in the Gini index of the
                               Annual GDP growth 2002-2009
              Countries                                           household per capita income in the
                                       (% per year)
                                                                             2000s (%)


   Brazil                                   3.7                                   -9
   Chile                                    4.2                                   -6
   Colombia                                 4.4                                   -1
   Mexico                                   2.8                                   -6
   Peru                                     5.6                                  -13




          *     Footnote
Source:         Source                                                                                 7
Unit of measure


                         Inclusive Growth indicators in selected Emerging Economies



                                      From
                                     1996 to                Avg.
                                      most    Gini Poverty GDP
                                     recent: Change Change growth
                         Argentina     2008       -4%        23%       5%
                         Brazil        2008       -9%       -54%       6%
                         China         2005       10%       -44%       9%
                         Egypt         2008      -16%       -30%       3%
                         India         2005       -1%        -7%       6%
                         Indonesia     2008        3%       -27%       4%
                         S. Africa     2005        4%       -99%       3%
                         Thailand      2004      -14%       -34%       9%
                         Turkey        2008      -13%        -8%       4%
                         Vietnam       2006       13%       -51%       7%
          *   Footnote
Source:       Source                                                                  8
Unit of measure


                           Inclusive Growth indicators in selected Emerging Economies



                               28%
                                                                     Argentina

                                8%


                                             Turkey                           India
                              -12%
                         m
                         o
                         n
                         P
                         e
                         a
                         c
                         r
                         f




                                         Egypt                                        Indonesia
                              -32%
                                                 Thailand                                              China
                         U
                         d
                         $
                         2
                         <
                         a
                         S
                         y
                         /
                         )
                         (




                              -52%                                                                       Vietnam
                                                            Brazil
                         o
                         P
                         e
                         y
                         v
                         r
                         t




                              -72%


                              -92%
                                                                                           S. Africa

                             -112%
                                  -19%      -14%            -9%        -4%            1%          6%       11%     16%

                                                                             Gini Performance
          *   Footnote Bubble size: GDP growth
Source:       Source                                                                                                     9
Unit of measure



                              Inclusive Growth and Green Economy

                         Policy questions:
                         How can investments in green economy help
                         promote inclusive growth?
                         Is inclusive growth a necessary condition for a
                         transition towards a green economy?
                         Key elements for discussion:
                         Productive Inclusion: Learn more here.
                         Integration of the economic/social/environment
                         dimensions into policymaking
                         The role of public communications and adocacy
                         for policy change

          *   Footnote
Source:       Source                                                        10
Unit of measure



                                        Productive Inclusion

    Key components:

     A framework of policy interventions aimed at promoting Social
              Inclusion via the generation of new employment opportunities for the
              poor and the vulnerable so as to ensure a sustained and inclusive
              growth process.
                   Focus on rural growth; family agriculture; extreme poverty
              eradication.

     Addressing the structural factors that create and perpetuate
              inequality:
              The role of the State in expanding access to quality education;
              ensuring social transfers; affirmative actions; specific policies for
              ethnic minorities and forest peoples.
          *     Footnote
Source:         Source                                                                11
Unit of measure




                         Productive Inclusion




 Innovative approaches in Brazil:


 Food Acquisition Programme (PAA) - Agro-ecology component


 National Biofuels Programme (PNB)


          *   Footnote
Source:       Source                                          12
Unit of measure


                         Communications and Advocacy for Change


                                           Key issues:


                                            Agenda-Setting: The complexity of
                                              strategic engagement with
                                              stakeholders – Media, CSOs,
                                              Public Intellectuals


                                            Positive payoffs to be maximized in
                                              the short term.


                                            The local to the global: Supporting
                                              innovations and giving voice to
                                              change catalyzers.
          *   Footnote
Source:       Source                                                               13
Unit of measure




    Case studies:            Communications and Advocacy for Change


             Ongoing research at UCB: The environmental and the social in the Brazilian
              media.

                     Analysis of media coverage: Can the social help raise awareness of
                    the environmental?
                    Media and collective action: Has the coverage been supportive to
                    individual or collective action?
                    Green Economy and Sustainable Development: Differences in media
                    perception and media friendliness


             The case of green washing: Different patterns in Brazil and the US


          *     Footnote
Source:         Source                                                                     14
Unit of measure



                            IPC-IG Knowledge Materials and References


     Green Equity: Environmental Justice for more Inclusive Growth – Kishan
              Koday and Leisa Perch
             Understanding the Socio-Environmental Policy Space – Leisa Perch
             Social Policies and the Fall in Inequality in Brazil: Achievements and
              Challenges – Pedro Ferreira de Souza
             Development from Below: Social Accountability in Natural Resource
              Management – Kishan Koday and Leisa Perch
             Dimensions of Inclusive Development – Leisa Perch and Gabriel Labbate
             Public Support to Food Security in India, Brazil and South Africa: Elements for a P
              Dialogue – Darana Souza and Danuta Chmielewska
             The Consolidation of Social Assistance in Brazil and Its Challenges,
              1988–2008 - Luciana Jaccoud, Patricia Dario El-Moor Hadjab, Juliana
              Rochet Chaibub

          *     Footnote
Source:         Source                                                                      15
Unit of measure




                               Obrigado!

                           francisco.filho@ipc-undp.org
                               + 55 61 2105 5000
                               www.ipc-undp.org
                                  @UNDP_IPC



                         Photos: Humanizing Development
                           Global Photography Campaign,
                                      IPC-IG


          *   Footnote
Source:       Source                                      16

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Earth Condominium Conference Advocates Social Sustainability

  • 1. Earth Condominium International Conference 17-19 May 2012 CONFIDENTIAL Advocating for Social Sustainability and Inclusive Growth: Emerging Ideas Changing Realities Document Date Francisco Filho Catholic University of Brasilia and International Policy Centre for Inclusive Growth (IPC-IG) This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion. Gaia, Portugal – 18 May 2012
  • 2. Unit of measure Outline First Section - Social Sustainability: Addressing the Poverty-Environment Nexus Second Section - Inclusive Growth and Green Economy: The Role of Productive Inclusion Third Section - Communicating for Change Delegates of the VietnamStudy Tour on Social Inclusion of Ethnic Minorities visit favelas in Rio de Janeiro, Brazil * Footnote Source: Source 2
  • 3. Unit of measure Social Sustainability Key issues: Recognition of the interdependence of 4 components: Growth, Poverty, Environment and Gender. Acceptance that socially-blind policies are unlikely to be neither sustained nor sustainable. Clear focus on sustaining green economy in society: Focus on well- being and human development. Learn more: IPC-IG Poverty in Focus Magazine on the Dimensions of Inclusive Development discusses the emerging concept of social sustainability and presents various perspectives from the Global South. * Footnote Source: Source 3
  • 4. Unit of measure Poverty and the Environment Key issues:  Understanding the complex dynamics of resource use and depletion by the poor and the poorest.  Understanding the heterogeneity of the poor and the complexity of their interactions with the environment at local level.  Taking into account local consumption patterns and the values attached to them. * Footnote Source: Source 4
  • 5. Unit of measure Inclusive Growth: Concepts and Definitions Ali and Son (2007): (i) an increase in the average opportunities available to the population; and (ii) improvement in the equitability of the distribution of opportunities among the population. Ianchovichina and Lundstrom (2009): “In short, inclusive growth is about raising the pace of growth and enlarging the size of the economy, while leveling the playing field for investment and increasing productive employment opportunities.” Rauniyar and Kanbur (2010): “growth […] accompanied by lower income inequality, so that the increment of income accrues disproportionately to those with lower incomes.” Habito (2010): “GDP growth that leads to significant poverty reduction.” McKinley (2010): “(i) achieving sustainable growth that will create and expand economic opportunities, and (ii) ensuring broader access to these opportunities so that members of society can participate in and benefit from growth.” Klasen (2010): “…in terms of outcome, inclusive growth could be termed ‘disadvantage-reducing’ growth.” * Footnote Source: Source 5
  • 6. The Global South Context Unit of measure IPC-IG’s approach IPC-IG’s work on inclusive growth starts from the premise that societies based on equality tend to perform better in development and that long-term public investments on comprehensive social protection and promotion is a necessary condition to achieving sustainable and inclusive growth. A debate from the Global South A policy debate that emerged in the South: India, Learn more about China, Brazil, South Africa, Indonesia, Turkey IPC-IG’s work on Inclusive Growth Inclusive growth seen as both an outcome and a process, requiring benefit-sharing and participation. * Footnote Source: Source 6
  • 7. Unit of measure Inclusive Growth indicators in selected Emerging Economies Change in the Gini index of the Annual GDP growth 2002-2009 Countries household per capita income in the (% per year) 2000s (%) Brazil 3.7 -9 Chile 4.2 -6 Colombia 4.4 -1 Mexico 2.8 -6 Peru 5.6 -13 * Footnote Source: Source 7
  • 8. Unit of measure Inclusive Growth indicators in selected Emerging Economies From 1996 to Avg. most Gini Poverty GDP recent: Change Change growth Argentina 2008 -4% 23% 5% Brazil 2008 -9% -54% 6% China 2005 10% -44% 9% Egypt 2008 -16% -30% 3% India 2005 -1% -7% 6% Indonesia 2008 3% -27% 4% S. Africa 2005 4% -99% 3% Thailand 2004 -14% -34% 9% Turkey 2008 -13% -8% 4% Vietnam 2006 13% -51% 7% * Footnote Source: Source 8
  • 9. Unit of measure Inclusive Growth indicators in selected Emerging Economies 28% Argentina 8% Turkey India -12% m o n P e a c r f Egypt Indonesia -32% Thailand China U d $ 2 < a S y / ) ( -52% Vietnam Brazil o P e y v r t -72% -92% S. Africa -112% -19% -14% -9% -4% 1% 6% 11% 16% Gini Performance * Footnote Bubble size: GDP growth Source: Source 9
  • 10. Unit of measure Inclusive Growth and Green Economy Policy questions: How can investments in green economy help promote inclusive growth? Is inclusive growth a necessary condition for a transition towards a green economy? Key elements for discussion: Productive Inclusion: Learn more here. Integration of the economic/social/environment dimensions into policymaking The role of public communications and adocacy for policy change * Footnote Source: Source 10
  • 11. Unit of measure Productive Inclusion Key components:  A framework of policy interventions aimed at promoting Social Inclusion via the generation of new employment opportunities for the poor and the vulnerable so as to ensure a sustained and inclusive growth process. Focus on rural growth; family agriculture; extreme poverty eradication.  Addressing the structural factors that create and perpetuate inequality: The role of the State in expanding access to quality education; ensuring social transfers; affirmative actions; specific policies for ethnic minorities and forest peoples. * Footnote Source: Source 11
  • 12. Unit of measure Productive Inclusion Innovative approaches in Brazil: Food Acquisition Programme (PAA) - Agro-ecology component National Biofuels Programme (PNB) * Footnote Source: Source 12
  • 13. Unit of measure Communications and Advocacy for Change Key issues:  Agenda-Setting: The complexity of strategic engagement with stakeholders – Media, CSOs, Public Intellectuals  Positive payoffs to be maximized in the short term.  The local to the global: Supporting innovations and giving voice to change catalyzers. * Footnote Source: Source 13
  • 14. Unit of measure Case studies: Communications and Advocacy for Change  Ongoing research at UCB: The environmental and the social in the Brazilian media.  Analysis of media coverage: Can the social help raise awareness of the environmental? Media and collective action: Has the coverage been supportive to individual or collective action? Green Economy and Sustainable Development: Differences in media perception and media friendliness  The case of green washing: Different patterns in Brazil and the US * Footnote Source: Source 14
  • 15. Unit of measure IPC-IG Knowledge Materials and References  Green Equity: Environmental Justice for more Inclusive Growth – Kishan Koday and Leisa Perch  Understanding the Socio-Environmental Policy Space – Leisa Perch  Social Policies and the Fall in Inequality in Brazil: Achievements and Challenges – Pedro Ferreira de Souza  Development from Below: Social Accountability in Natural Resource Management – Kishan Koday and Leisa Perch  Dimensions of Inclusive Development – Leisa Perch and Gabriel Labbate  Public Support to Food Security in India, Brazil and South Africa: Elements for a P Dialogue – Darana Souza and Danuta Chmielewska  The Consolidation of Social Assistance in Brazil and Its Challenges, 1988–2008 - Luciana Jaccoud, Patricia Dario El-Moor Hadjab, Juliana Rochet Chaibub * Footnote Source: Source 15
  • 16. Unit of measure Obrigado! francisco.filho@ipc-undp.org + 55 61 2105 5000 www.ipc-undp.org @UNDP_IPC Photos: Humanizing Development Global Photography Campaign, IPC-IG * Footnote Source: Source 16