Our Perspective

Environmental finance

Seven things to consider when managing non-renewable natural resources

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Gold mining in the Democratic Republic of Congo, where production is booming but many diggers live in abject poverty. Photo: Benoît Almeras-Martino/UNDP DRC

Natural resource wealth offers enormous potential for achieving development goals. But without effective management, the wealth can be squandered. UNDP works with governments, the private sector and civil society to minimize the risks associated with building an oil, gas and mineral economy and optimize the benefits. Here are seven tips on how the development impact of these finite resources can be enhanced. Know your wealth. Most of the oil, gas and mineral resources in developing countries are yet to be discovered. Consequently, foreign companies that carry out exploration activities have pertinent geological information before governments do, creating bargaining asymmetry during contract negotiations. As the African Mining Vision notes, governments need to fully know their resource wealth to be able to negotiate as equals. Establish comprehensive legal frameworks. Several contracts and mining codes have been revised in recent years, usually when governments realize, sometimes under pressure from civil society, that tax rates are low, environmental protection is weak and re-settlement schemes are inadequate. Participatory and consultative measures are indispensable when drafting key legislation. Maximize revenues for development. The income earned from taxing resource extraction can be low, first, because of weak contract negotiating capacity, and second, due to lack of transparency and... Read more

2015: Many things could go well!

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The 3x6 approach in Burundi allows people, through an integrated approach to control the development process themselves. (Photo: UNDP Burundi)

This year is iconic, and has been branded as a year of opportunity. Like Y2K, it could be an annus mirabilis (year of miracles). UNDP can make a serious contribution: the Strategic Plan (2014-2017) is designed to chart the way forward in the major conferences ahead, and in the final definition of the Sustainable Development Goals (SDGs). 2015 is the European Year of Development, the UN’s 70th Anniversary and the 20th Anniversary of Beijing (the platform to advance women’s rights).  In 2015, the African Union Summit will focus on Ebola and beyond, and the Turkish G20 Presidency priorities are focused on Inclusivity, Implementation and Investment for growth. We are on the road to Sendai for the 3rd World Conference on Disaster Risk Reduction (DRR), to Addis for the 3rd Conference on Financing for Development (FfD). The events complement each other leading to the General Assembly (GA) on Post 2015 and the CoP21 in Paris. UNDP is ready for the challenge. It is strong, fit, and cost-effective. It is state of the art in development thinking and is in the lead of the UN Development System. What will be our key messages? I suggest the following five: UNDP is ready to support... Read more

What can be done to ensure global agreements include and are relevant to Small Island Developing States?

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New irrigation methods revive farming in a Comorian village. (Photo: UNDP)

Today the United Nations and observers marked the official closing of the International Year of Small Island Developing States (SIDS), a reflection of a global agreement by governments to put these countries, small dots as they are on a global map, in the spotlight for all to see their development challenges and realities in the 21st Century. In this year, 2015, when so many global development processes are coming to a head, including efforts to define and mobilize financing for development, agree a new disaster risk reduction framework in Sendai, and adopt the post-2015 development agenda and Sustainable Development Goals, as well as a new climate change agreement in Paris under the UNFCCCC, the question to be asked is for SIDS is, what can be done to ensure that these global agreements include, and are relevant to SIDS, their size, circumstances and capacities? These countries, which represent over one-quarter of the UN membership, together with their many partners, gathered in Samoa last September for the Third International Conference on SIDS, a once-in-a-decade opportunity, to present their aspirations for the future.  The voices of islanders are a clarion call to the international community: addressing their sustainable development needs goes hand in hand... Read more

National finance helps Asia-Pacific lead the way on Climate Change

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With UNDP's support, rural residents in Bangladesh now have the resources and capacities to build back better and become resilient in the face of environmental threats. Photo credit: UNDP Bangladesh

A vital round of United Nations climate change negotiations is underway in Lima, Peru, from Dec. 1-12. This marks a significant milestone for the crucial Paris Summit on climate change that is a year away. At the climate talks in Lima, climate finance will again be at the forefront of negotiations and key in reaching a new global climate agreement. Initiated at the Secretary General’s Climate Change Summit in September, pledging towards the Green Climate Fund almost reached $10 billion. So far, countries in the Asia Pacific region have received a quarter of all global public climate finance. India and China are the largest recipients. Nineteen dedicated climate funds and initiatives have approved more than $2 billion for projects in the region, since 2003. With many countries in Asia Pacific at the frontline of climate change, bolstering resilience of low lying deltas and small islands, and reducing emissions from fast industrializing nations is a good investment. While this international financing is crucial, for it to have a sustained impact and leverage the investments needed it is also important that planning and budgeting systems are revisited through a climate lens. With the support of the United Nations through the Poverty and Environment... Read more

Building the house of development: We can get there

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Learning to adapt to climate change in Odisha, India where women are hit hardest by the extreme weather conditions. Photo: Prashanth Vishwanathan/ UNDP India

As I think about the current challenges facing international development policy I find myself increasingly concerned about how we define development. We talk about “people-centered” development, but our goals still refer to society, economy and the environment as though these can be separated. To quote Geraldine Fraser-Moleketi, African Development Bank Special Envoy on Gender : “Progress on key gender indicators – such as school enrollment and completion rates, maternal mortality, labour force participation, and asset ownership – also depends on investments in water, sanitation, transport, productive assets, and access to financial services.” My recent work with the Intergovernmental Panel on Climate Change (IPCC) taught me that, when we separate the social, the economic and the environmental, we hamper opportunity and creativity – and we may even be doing harm.  The IPCC process was committed to finding ways to express complexity and nuance by bringing together social, environmental and economic analysis. Yet currently we seem conservative rather than progressive. We need to take unprecedented action to tackle inequality at the international level, acknowledging that it is a global challenge and not just an issue for some countries or some people. Our approach must reflect countries’ unequal capacities to cope with climate change,... Read more

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