presentación mohan munasinghe en almuerzo mensual amchamdr

M I N D Munasinghe Institute for Development

A sustainable future for the Ozama River and the Dominican Republic

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

Visiting Professor, Vale Inst. for Sustainable Dev., Univ. of Para, BrazilDistinguished Guest Professor, Peking University, China

Shared the 2007 Nobel Prize for Peace (Vice Chair, IPCC-AR4)

Keynote speech presented at theAMCHAM Meeting

Santo Domingo, 25 February 2015

M I N D Munasinghe Institute for DevelopmentMunasinghe Institute for Development

Buenos Dias

Greetings

Ayubowan


congratulations to AMCHAM for

organising this MEETING. We

hope to explore how business

can work with Coalicion RIO and

DR Govt. to contribute towards

restoring the Ozama river. This is

a National Project. It will not only

benefit business, but also make

development more sustainable in

the entire Dominican Republic


Brief Introduction to Project & my role: 1

1. Original request by Pres. Medina to restore

Ozama river, when Fund. Tropigas took me to

visit him in 2013.

2. Importance of Ozama/Isabella river system to DR

3. Specific economic, social and environmental

benefits to stakeholders in the river basin.

4. Initial response by Fund. Trop. and San Souci

with civil society leaders to create Coalicion RIO.

5. Much Preparatory work done by Coalicion –

tech. assessments, organisational structure,

linkages with wider group of stakeholders, etc.

6. Presid. Comm. Created: Pres. Medina’s mandate


Brief Introduction to Project & my role: 2

7. Prof. Munasinghe is a Senior Advisor.

8. Enabling framework built on key principles: SD

triangle – LR sustainability, Stakeholder triangle

– participation/collaboration, public-private

partnerships

9. Many encouraging examples of successful

major river restoration projects exist, globally.

But DR must develop its own framework based

on its own needs and experience. Opportunity to

build institutional base (eg. Coalicion RIO),

collaborative coalitions (eg., public-private), and

technical capacity (eg., univ., researchers).


WHAT ? are the challenges

Multiple global threats undermine sustainable

development efforts and poverty alleviation

M I N D

Growing Risks of Global Breakdown

due to Multiple Heavy Shocks

Multiple threats are inter-related and synergistic.

Integrated & comprehensive solutions needed.

Stakeholder interests divergent. Responses are

uncoordinated & piecemeal – lack of political will

• Financial-economic crisis: Asset bubble

• Persistent poverty and growing inequity

• Resource shortages: water, food, energy

• Environmental harm, extreme events, conflict

mass migrations, pandemics

• Climate change: the ultimate threat amplifier

Munasinghe Institute for Development

M I N D

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.

and 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 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.

M I N D

Nu

mb

er

of

Eart

hs

Sustainable

BAU

1.Ecol. Footprint of HumanityIn 2012 we needed 1.5 earths; and by 2030 almost 2 Earths

Unsustainable

oneearth 2012 2030

Munasinhe Institute for Development

3. Millennium Development Goals (MDG) & SDGUnited Nations Millennium Declaration, 2000 and Post-2015 Agenda

1. Eradicate extreme poverty and hunger 2. Achieve universal primary education

3. Promote gender equality & empowerment 4. Reduce child mortality

5. Combat HIV/AIDS, malaria & other diseases 6. Improve maternal health

7. Ensure environmental sustainability 8. Global partnership for development

Worthy targets, but if the rich consume more than one planet worth, where are the resources to feed the poor, esp. after CC.

Unfair World Consumption Pattern 2010

Champagne Glass

M I N D

Growing inequality and wealth concentration

“During past 300 years, the rich have got richer while the poor got poorer, Growth of returns to capital is faster than general growth rate

– Thomas Piketty, French Economist

“85 richest people in the world, who will fit into a single London double-decker, control as much wealth as the poorest half of global population (3.5 billion people).” – Christine Lagarde, IMF Head

“ 300 wealthiest individuals increased their wealth last year by $524 billion - more than the combined revenues of Denmark, Finland, Greece and Portugal” - Bloomberg Billionaires Index

Inequality in salaries Chipotle Mexican Grill: CEO salary $25 million/year - 1200

times wage of av. worker $21000. Plus stock bonus >$100 million.

Walmart US: CEO salary $13 million/year – almost 500 times wage of av. worker $27000.

25 best paid hedge fund managers earned $21 billion in 2013.

M I N D

WHAT ARE OUR VALUES AND

HOW WELL DO WE ESTABLISH

PRIORITIES ?

Poor leadership and values in

dealing with the Triple Bubble Crisis

M I N D

Financial Markets

Productive Economic Assets

Bio-geo-physical Resources

Econ. Growth

Sound financial markets and economic growth

should be based on the true value of the

productive economic asset base. In turn the value

and use of economic assets should closely reflect

the state of natural (bio-geo-physical) resources

Head in the clouds?

Feet firmly on the ground?

Three Levels of Reality

M I N D

Financial Markets


Asset Bubbles

Triple crisis bubbles driven by greed – enjoy now & pay later 2

A few get rich quickly, many innocents pay a heavy price afterwards

2008 crisis

M I N D

Financial Markets


Asset Bubbles



Econ. Growth

2008 crisis Poverty-Inequity

M I N D

Financial Markets


Asset Bubbles




Econ. Growth


ExternalitiesClimate change

M I N D

Financial Markets


Asset Bubbles




Hu

man

Valu

es/C

ho

ices

Econ. Growth

Govt. Bailout >$5 trillion Aid/yr ~$100 billion


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

World Military Expenditures: almost $2 trillion in 2012

ExternalitiesClimate change

Few billion $


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

Climate Change

Unrestrained market forces increase risk of conflict (erosion of

ethical & moral values underpinning civilization)

Chaos, Break-down

Conflict, rivalry and

competition for

resources overwhelm all

efforts to impose order

Fortress World

Local, regional & global groups

protect their interests within enclaves

How will we cope with such a world,

especially the poor?

Barbarization: One Risky Future Scenario

M I N D

Global Economic Balance Shifting Towards BRICS & Emerging Economies

•The global balance of economic momentum has shifted. Recently, emerging and developing economies have grown over 5% faster than advanced economies.

•The NORTH: US, Europe and Japan are still struggling to come out of the financial crisis, and facing major issues including low growth and high debts.

•The SOUTH led by the BRICS emerging economies (Brazil, Russia, India, China & S. Africa) appear to be gaining ground – both GNP and HDI have improved.

•Peaceful co-existence & respect for diverse civilizations is key concept,

to protect countries from global financial forces and military might.

•offers greater fairness, rooted in different philosophies of existence, and

based on their own economic and social order

•BRICS can share natural resources - enough to ensure sustainable

development worldwide, and provide the poor their basic human needs.

Multipolar World: BRICS Bank & Shanghai Cooperation Agreement (SCA)

Human beings are our greatest resource – more valuable than gold or oil. Yet we are not protecting & building it up !


WHAT ?

HOW ?

are the challenges


development efforts & need integrated solutions

can we move forward to transform risky current

trends into a safer and better future

Apply the SUSTAINOMICS framework to start

making development more sustainable (MDMS)

M I N D

Asset crisis: have we learnt from experience? Are we not returning to business as usual?

Financial Sector

Jobless

Poor

M I N D

Ozama Restoration project is in line with

United Nations Post-2015 Process

• Mandates

– Defined at MDG Summit 2010 (High Level Panel)

– Agreed at Rio+20 Conference 2012 (OWG)

• Leadership

– Member States: prerogative to deliver framework

– UN Secretary-General: presented vision to General

Assembly in September 2013 building upon UN

system’s work and consultation processes

– 17 new Sustainable development goals proposed


HOW DO WE GET THERE ?

Addressing Complex, Multiple,

Interlinked Sustainable Development

issues within the Integrated

SUSTAINOMICS Framework

M I N D

Core Concept 1: Make Development More Sustainable

with EMPOWERMENT, ACTION & FORESIGHT

There are many definitions of sustainable development starting with

Bruntland (1987), and its precise meaning still remains elusive.

Parallel track strategy:

1. Short to medium term – make development more sustainable

(apply best practice).

2. Long term - aim for ideal goal of sustainable development

(identify next practice).

Making development more sustainable (MDMS) is a less ambitious

incremental strategy that is more practical to implement because

many unsustainable activities are easier to recognize and eliminate.

PRACTICAL TEST FOR PUBLIC POLICIES:

Does the policy make development more (or less) sustainable?


Lets move forward NOW!! If

we climb uphill, we will reach

the peak eventually

We cannot see the peak!!

Let’s stop to discuss &

analyze how to reach it.

Sustainable Development

Peak – including climate

change (covered by clouds)

Many obviously unsustainable practices exist today. MDMS encourages us to eliminate them NOW! Examples include energy wastage and deforestation.

EMPOWERED to Make Development More

Sustainable (MDMS) – BEST PRACTICE

ANALYSING SD and CC –

NEXT PRACTICE


MDMS: Personal & Community Lifestyle Changes


MDMS: Corporate Social Responsibility Plus (CSR+),

Sustainability Accounting & Reporting, Shared Value

• Corporate Social Responsibility (CSR) - considering wider social interests by being accountable for operational impacts on customers, suppliers, employees, shareholders, communities and environment. • Integrated External Engagement goes beyond CSR to push concern for stakeholders deeply into business decision making at every level.• Sustainability Accounting & Reporting includes the generation, analysis, use and reporting of economic, environmental and social information (monetised wherever possible) to improve corporate management and performance in those areas. This approach uses the Triple Bottom Line, which recognizes that the environmental & social consequences of corporate actions are as important as monetary profits, and seeks to measure and report on the outcomes.• Shared Value - making profits, with benefits to environment & to society through shared sources of value common to firm & society.• Impact Investment – investing to benefit society & environment


Development- Sectors (Agriculture, Energy, Industry,

Transport, Health, etc.)

- Systems (Environmental, ecological, etc.)

- Communities (Poor, Vulnerable, etc.)

Su

sta

ina

ble

Dev.

(So

cia

l, Ec

on

om

ic, E

nviro

nm

en

tal)

En

viro

nm

en

t(n

atu

ral v

aria

bility

)

Oza

ma

OZAMA

clean-up

MDMS: National Level CC-SD IntegrationMake decision makers see sustainability as a key element

of integrated national development strategy – eg., Ozama

M I N DMunasinghe Institute for Development

Economic

Social• empowerment/governance

• inclusion/consultation

• institutions/values

Environmental• resilience/biodiversity

• natural resources

• pollution

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

•growth

•efficiency

•stability

Core Concept 2: Harmonise the SD Triangle forBALANCE & INTEGRATION - 1


Economic






• pollution

• inter-generational equity• values/culture

Poverty-Equity

Climate Change


Ozama Restoration


•growth

•efficiency

•stability

Core Concept 2: Harmonise the SD Triangle forBALANCE & INTEGRATION - 2


Economic






• pollution



•growth

•efficiency

•stability

Focus on GREEN ECONOMY must NOT ignore SOCIAL issues

Poverty-Equity

Climate Change


Ozama Restoration


Building Assets for Sustainable Development

Social

Capital

Manufactured

Capital

Natural

CapitalSocial Capital

• Human

• CulturalSource: Munasinghe

(1992), Rio Earth Summit

CoalicionRIO

Key role played by Social Capital embedded in Civil Society:

ignored, undervalued, invisible

• At individual level, it is built on personal networks that help us enormously in our private and professional lives.

• At community and national levels, it: is the invisible glue that binds society together – involving values- ethics, culture, behaviour, and social linkages.


Core Concept 3: Transcend Boundaries of SD

with INNOVATION & FRESH IDEAS• Values – replace unsustainable, unethical values • Disciplinary – complex issues need all disciplines • Space – spans local to global scales• Time – spans days to centuries • Stakeholder – need to include all stakeholders• Operational – full cycle from data to application

•Greed, selfishness and violence are unsustainable

•Selflessness, altruism, enlightened self-interest, and respect for other

humans and nature will make development more sustainable

Transcend Unsustainable Values - Build essential ethical

and moral values especially among YOUTH

Examples: Ethical Dimensions of Climate Change 2006

Interfaith Declaration on Climate Change 2009


Wrong Values Drive Unsustainable Development: 1

Social

Capital

Environmental

DebtUnsustainable

cons. & prod.

depleting NR

Unethical

Social ValuesGreed, Selfishness,

Corruption, Inequity,

Violence, Injustice,

Elitism

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



Social

Capital

Economic

Mal-developmentgrowth based on

unsustainable debt,

waste & inequitable

consumption by

the elites

Environmental

DebtUnsustainable

cons. & prod.

depleting NR

Unethical

Social ValuesGreed, Selfishness,



Elitism




Social

Capital

Economic

Mal-development

growth based on

unsustainable debt,

waste & inequitable

consumption by

the elites

Environmental

Debt

Unsustainable

cons. & prod.

depleting NR

Unethical

Social Values

Greed, Selfishness,



Elitism


Environmental

DebtUnsustainable

Pollution &

Depleting Natural

Resources

Drivers of

Unsustainable

Development



Social

Capital

Economic

Mal-development

growth based on

unsustainable debt,

waste & inequitable

consumption by

the elites

Environmental

Debt

Unsustainable

cons. & prod.

depleting NR

Unethical

Social Values

Greed, Selfishness,



Elitism


Environmental

DebtUnsustainable

Pollution &

Depleting Natural

Resources

Drivers of

Unsustainable

Development (with feedback)


Transcending Stakeholder Boundaries to Ensure

Cooperation for Sustainable Development

Social

Capital

Business

Govern-

ment

Civil

Society

CoalicionRIO

Catalysing interactions among government, civil society and business to

strengthen local, national and global governance

Source: Munasinghe (1992), Rio Earth Summit

M I N D

Transcending Operational Barriers

Needs Better Stakeholder Cooperation

• Global

• Regional

• National

• Local

• Community

• Individual

Pragmatic balance between subsidiarity and

integration is essential

Inte

grati

on

Su

bsi

dia

rity

Top Down

Bottom upSpecific

Projects

Strategy

-Policy


Many practical analytical tools and policy options to build integrated SD strategy (global to local levels)Many available case studies and best practice examples involving sustainomics applications

Core Concept 4: Full cycle application of integrative tools, from data gathering to practical policy IMPLEMENTATION

Choosing Appropriate SD

Indicators

- Social

- Environmental

- Economic

- Institutional

many indicators are available;

thus correct choice is critical for

specific task at hand

M I N D Munasinghe Institute for DevelopmentMunasinghe Institute for DevelopmentM I N D

Integrative Analytical Tools

1. Restructuring Growth to Make

Development More Sustainable (MDMS)

2. Optimisation and Durability

3. SD Analysis (Macro Level)

4. Action Impact Matrix (AIM)

5. Green Accounting (SEEA-SNA)

6. Integrated Models (IAM, CGE, etc.)

7. SD Analysis (Micro Level)

8. Multi-Criteria Analysis (MCA), Cost-Benefit

Analysis (CBA) and Economic Valuation

9. SD Indicators

Application

Levels

A. Global-

transnational

B. National-macroeconomic

C. Subnational-sectoral

D. Local-project

Integrative analytical tools and practical applications

(linking across global, national and local levels)

Lin

kages A

cross L

evels


Main Types of Assets for Sustainable Development

Social

Capital

Manufactured

Capital

Natural

CapitalSocial Capital

• Human

• Cultural

Sustainable

Development

Integrating across the three dimensions of SD

Economic approach focuses on optimality - maximise growth

Environmental & social approaches use durability – overall system health


Optimality and Durability: Simple ExampleTwo modes complementary - tradeoff depends on situation

Optimal ModeOlympic 100m sprinter – willing to take

high risk and make extreme effort to

minimise running time (single indicator)

for one special event

Durable ModeMiddle aged walker – undertakes regular,

low risk exercise for overall health

(multiple indicators), over many decades

Max. yield

Highest riskExamples: Iskill

(Voldemart) 2B+

loss at JP Morgan.

Leeson - Bearings

Mod. yield

Lower risk

Yie

ld

Risk

Optimal view – cliff edge – higher risk


WHAT ?

WHICH?

HOW ?

are the challenges







practical analytical tools and policies are available

Many best practice examples exist, worldwide.

Ozama river is good starting point for the DR.


Identifying Priorities: Macro/Sector

Sustainomics Application

Action Impact Matrix applied to the

Ozama river restoration project by

Coalicion RIO


Global Influences,

National SD strategy

(NSDS) & plans

Action Impact

Matrix (AIM)

applied to Ozama

Macro- and Sectoral

Models and Analyses

Implement Dev. Proj.

includingCC Policies

interactions of national SD strategy

with vulnerabilities{Identify Links, Screen, Prioritize

Issues, Select

Remedies

Analysing SD Links using the

Action Impact Matrix (AIM)

National

Policy

Impact on People


The AIM methodology may be used to better understand interactions among three key elements:

(a) Major pollutants of the Ozama river;

(b) Key vulnerable sectors; and

(c) Main stakeholders and sources of pollution

First, the impacts of (a) on (b) are identified and prioritised. Next the

major pollutants are linked to (c). The AIM approach analyses key

economic-environmental-social impacts of pollution of the Ozama river to

identify potential barriers to making development more sustainable

(MDMS). It also helps to determine the priority projects, policies,

strategies that facilitate restoration of Ozama river restoration, that will

benefit stakeholders, communities, business and the entire nation, in

economic, environmental and social spheres,

Thus, the AIM helps to integrate the Ozama river restoration within

national SD strategy. The method has been used since the early 1990s to

link macro-policies and environment.

Action Impact Matrix (AIM) Methodology


The AIM methodology relies on a fully participative stakeholder

exercise to generate the AIM itself. 30-40 experts are drawn from

government, academia, civil society and the private sector, who

represent various disciplines and sectors relevant to both sustainable

development and Ozama river restoration. In the initial exercise,

they usually interact intensively over a period of about two days, to

build a preliminary AIM. This participative process is as important

as the product (i.e., the AIM), since important synergies and

cooperative team-building activities emerge. The collaboration helps

participants to better understand opposing viewpoints, resolves

conflicts, and ultimately facilitates implementation of agreed policy

remedies. On subsequent occasions, the updating or fine-tuning of

the initial AIM can be done within a few hours by the same group,

since they are already conversant with the methodology.

AIM Process

M I N D

Main Stakeholders, Pollution Sources

& Pollutants of Ozama River


Households (Solid waste/waste water/sewage/detergents)

Agro Industries (Food processing /slaughter houses)

Industries (other factories)

Government (Waste water, Landfills, stormwater)

Ship yards (waste oil discharge, solid waste)

Power Generation (Oil, chemical)

M I N D

Benefits of Ozamo Clean Up to Stakeholders

• Access to clean water for residents living along the river

• Less pollutants in the river leading to fewer health issues

• Better living condition for those living along the river

• Monetary gains from decreased pollution

• Greater industrial productivity

• Increase in tourism –(cruise ships, water sports, hotels)

• Better working conditions and health of workers

• Decrease in health care costs

• Greater participation and empowerment of all stakeholders

• Peoples pressure will push industries to become more

environmentally conscious.


M I N D

Environmental Sustainability of the Project

• Less pollution of water resource and

habitats

• Greater Biodiversity

• Less vulnerable ecosystems


M I N D

Social Sustainability of the Project

• Active stakeholder participation and

ownership of the project

• Capacity building – institutional & individual

• Changes in behavioral patterns of those

living along the river

• Reforestation programmes done by the

community

• Opportunities for business to engage

positively with civil societyMunasinghe Institute for Development


Economic• Reduced costs of pollution cleanup

• Increased industrial resource efficiency

• Higher worker health and productivity

• Improved conditions enhance tourism

Social• Better water quality

• Better living conditions

• Improved health of communities

(esp. the poor, children, and elders)

Environmental• Less water/land pollution

• Improved biodiversity

• More resilient ecosystems


Ozama

River

Restoration

Sustainable Development Triangle – harmonising key elements and

interconnections (corners, sides and centre) Source: Munasinghe [1992], Rio Earth Summit

M I N D

Risks for existing businesses due to Ozama

river pollution how long can they continue to pollute?

economic costs will rise with pollution levels.

What is the capacity of the river to absorb industrial waste?

social unrest against business polluters as socio-economic and

environmental vulnerability increases with pollution

legal actions against business polluters and resultant costs

air, land and water – long term capital for businesses in

jeopardy

business ethics in jeopardy - firms profit from the local

economy, so they have an obligation to maintain and improve

the environment for the benefit of all citizens.

These issues can have high economic, social & environmental costs


M I N D

Future benefits for business

1) Health & productivity - pollution affects the health and working condition of employees, so output will rise and health care cost will fall as pollution declines

2) Clean river water is a valuable an industrial input 3) Clean river can be a mode of transportation for businesses4) New business opportunities - increased land value - tourism – “room with a river view” - opportunity to boost other local businesses with rise in tourism- water & commercial use – cruise ships, river side restaurants- River fishing/sports activities5) New markets for environmental technologies –eg. waste management. eg. Ecofriendly enzyme: Coalición RIO initiated a low cost method to neutralize & convert household waste into useful products.



MACROECONOMY (Multisectoral CGE)

TRANSPORT WATER

RESOURCES

URBAN-IND

ROAD RAIL

OTHER

OZAMA

RIVER

OTHER

RIVER

OTHER

REGION

I

REGION

III

REGION

II

Linking up with DR Economy

Multi-sector Computable General Equilibrium Model

ENERGY


Sectoral and Project AnalysisSustainable Development Assessment Tools1. Economic/Financial Assessment (CBA)2. Environmental Assessment (EA)3. Social Assessment (SA)4. Multi-Criteria Analysis (MCA)5. Poverty Assessment (PA)6. Technical Assessment (TA)

Choice of appropriate indicators is vital for SDA

Examples of Coalicion RIO Projects1. Enzyme waste treatment2. Cleaning up Canadas.3. Re-afforestation (with communities)

M I N D

Other Example 1: Singapore River

• Took nearly two decades & had a very positive cost-benefit ratio

• Today, restaurants and condos line the transformed riverbanks

• Places that had no economic value are expensive

• The land values and economic activity have both risen

National University of Singapore argues:

“ that it would have cost significantly more to leave it dirty, because the health, social and economic costs would be quite significant”

M I N D

Other Example 2 : Buriganga River

(Bangladesh) restoration prog. Benefits

M I N D

Other Example 3: Citarum River, IndonesiaSome call Citarum the world's most polluted river

Photo: Mother Nature Network

ADB initiated a clean-up

programme in 2008 and

estimated economic benefits to be

more than double

of costs of clean-up.

M I N D

Other Example 4: Private public partnerships

National Ganga River Basin Recovery – India

• World Bank-financing will be used to pilot innovative technologies and implementation arrangements. The potential pilot areas identified so far include innovative Public-Private Participation (PPP) financing models which have not been used in the Ganga basin states.

• Project will identify pollution hot-spots along the river where “no regret” investments can be made, even while the larger basin management plan is being drawn up.

• The majority of these investments are expected to be made in cities along the banks of the Ganga, in wastewater treatment (e.g. plants and sewage networks); industrial pollution control efforts (e.g. common effluent treatment plants); solid waste management (e.g. collection, transport and disposal systems); and river front management (e.g. improvement of the built environment along river stretches, improvement of small ghats and crematoria).


M I N D

• A campaign to restore the Ganges was initiated by prime

minister Rajiv Gandhi in 1984, but the river’s problems

proved to be too numerous and complex.

• Modi has restarted it - Total estimated cost $15billion. The

government may provide about 30% of the funding.

Expect the rest to come through a public-private

partnership model. Foreign direct investment rules are

expected to be relaxed to attract both funding and

technology.

The success of this project will have a massive ripple effect

on India’s entire water system


Other Example 4: Private public partnerships

National Ganga River Basin Recovery – India


WHAT ?

WHICH?

HOW ?

are the challenges







WHO ? must respond and how

Business & civil society can act now - sustainable

consumption & production in DR & globally.




M I N D

THE SUSTAINABILITY AGENDA –

ACT NOW

Sustainable Future for the DR

and Key role for Business

Partnership of Sustainable

Consumers and Producers

M I N D

FUTURE VISION:

3 main challenges for the DR

• How to build a sustainable economy that is prosperous

and resource-efficient, but respects critical

environmental and social sustainability limits?

• How to build a sustainable society that meets basic

needs of all human beings especially the poor &

vulnerable, ensuring peace, harmony, social justice &

security?

• How to respect nature and keep resource use within

the sustainable capacity of the country?


M I N D

3 Main Action Priorities for the DR

• Develop a sustainable economy and 21st century eco-

civilization that promotes sustainable lifestyles, consumption

patterns and production practices - will require more focus on

human well-being and happiness rather than pure material

consumption.

• Strengthening social capital and sustainable values, especially

among youth, to improve poverty and inequality, nutrition,

health and education. It is vital to build human resources --

the DR’s greatest asset.

• Targeted action programmes to restore and maintain

environmental quality and ecosystems – on water, land and

air. The Ozama river restoration project and strengthening

disaster risk reduction efforts are good areas to start with.


M I N D

DR can become a Leader in Innovation &

Making Development More Sustainable

1. Growing economy able to leapfrog and find new

SD path for 21st century (tunnel)Economic: innovation, resources, skills

Social: social and human capital, committed to peace & prosperity

Environmental: long tradition of respect for nature

M I N D

• Eradicate Poverty - economic growth and reduced poverty across all regions and strata of society

• Combat Hunger and Malnutrition – need for proper resource allocation policies to be implemented

• Health – reduce child and maternal mortality; need to halt or reverse spread of HIV and other diseases

• Sustainomics requires balance within SD triangle - If social and environmental issues worsen, economic growth will be jeopardized

• Inequality – social and gender inequality has worsened

• Environmental & domestic resource costs are high

• Education – onl y 60% of children finish primary education

• Unemployment - high quality job creation is critical

• Infrastructure – provide clean energy and water

DR’s SD Challenges

M I N D

• Poverty - population living on less than 1 US dollar a day: has decreased but considerable urban –rural disparities.

• Literacy Rate of 15-24 Year-Olds: 96.8% • Gender - The rate of youth unemployment for women is more

than double the rate for men • Health - Infant mortality rate decreased - 45.2(1990 )to 20.9

(2011)• Health – Maternal mortality rate decreased but still

considerable – 220 (1990) to 150 (2010)• Sanitation - population with access to safe drinking water

slightly decreased - 88% (1990) to 86% (2010)• Carbon dioxide emissions per capita increased from 1.33MT

(1990) to 2.08MT (2009)• Number of internet users (per 100 inhabitants) increased 0.02

(1995) to 35.5 (2010)

DR – Selected MDG indicators in 2010-2012

M I N D

DR: Selected Indicators of Sustainability

World ranking is medium

Human

Development

Index (HDI)

UN measureof country development

based on factors like life expectance,

adult literacy and GDP per capita

DR ranked 96th of 186 nations

countries (HDI 0.702). Norway is

first with HDI 0.975. (2013 )

Environ-

mental

Performance

Index (EPI)

General ranking of performance under:

Environment, Health, Air Quality, Water

Resources, Productive Natural

Resources, Biodiversity and Habitat, &

Sustainable Energy using 16 indicators

DR ranked 72nd out 132 countries

with score of 52.4. Switzerland is 1st

with score of 76.7. (2013)

Ecological

Footprint

(EF)

Tracks demand of human populations on

planet’s ecosystems relative to

biologically productive land and

available water

DR ranked 48th of 152 nations:

ecological footprint is 1.5. United

Arab Emirates has largest footprint of

10.7 and Timor-Leste the least with

0.4. (2010)

M I N D

• Fast growing green economy

• Stable society with a high quality of life for all, and having sustainable livelihoods

• Better infrastructure: electricity, water, schooling & health care

• Maintain the best of culture, traditions and long standing global identity

• Become emerging market economy, competitive internationally and integrated into the

global economy, with a knowledge-based society

• Reduce vulnerabilities & increase resilience of socio-economic and ecological systems

• Some MDG targets

– Eradication of hunger and hard-core poverty.

– Universalization of primary education for all.

– Reduce the maternal mortality ratio by 3/4

– Reducing malnutrition rate of children.

– Reverse the spread of HIV/ AIDS, dengue, tubercolosis, malaria

– Increasing access to clean water in urban areas from 60 to 90 percent.

– Raising forest coverage from 14-28 percent.

– significant improvement in the lives of at least 100 million slum dwellers

Short-Medium Term perspective: SD integrating economic, social and

environmental areas with prosperity for all

M I N D

Key CC vulnerabilities in the DR

•Hydrological resources are important for drinking water, power generation and irrigation of agricultural lands

•Annual drinking water availability per capita decreasing •Irrigation is a major consumer of water, but drainage is a problems resulting in thousands of acres of unproductive land

•Industrialization and water stress: tourism is increasing and consuming 4 times more water than domestic use

•Salt water intrusion

•Agriculture is highly vulnerable to climate change impacts, especially storms. •In 1998 Hurricane Mitch caused total crop losses totaling US $278 million , and one third of the area planted with crops was destroyed.

•Tropical storm Noel, 2007, is thought to have destroyed the entire plantain and vegetable crops in some areas of the country (World Bank, 2009).

•Agricultural sector is also susceptible to drought and floods.•High costs of food production for domestic sector

WATER

AGRICULTURE

ENERGY infrastructure is vulnerable to impacts from tropical storms and hurricanes

M I N D

Train future business leadersTop business management schools worldwide are starting

to integrate sustainability and SD concepts into their core

curricula. Developing countries are leading in this area

MBA oath of ethics is emerging, which includes

sustainability ideas.

Educate sustainable consumers & producersEducating business and public and awareness building

about sustainable development is crucial, especially youth

Human Resource is greatest asset

mobilize and empower business & civil society to synergise

with government, to make development more sustainable

Business and civil society to work with Govt.

M I N D

Sustainable Consumption &

Production Pathway (SCP) to

Sustainable Development (SD) &

Global Eco-Civilization:

Millennium Consumption Goals

(MCGs) are an important tool

M I N D

Economic

Social•fairness/empowerment

•inclusion/consultation

•institutions/governance

Environmental•natural resources

•resilience/biodiversity

•pollution


SD based on

Happiness &

Well-Being (GNH)

•efficiency

•growth

•stability 21st Century

Global Eco-

Civilization

VISION: Global Eco-Civilization of the 21st Century focusing on Happiness & Well-Being (GNH) -

depending not only on material consumption (GNP)

“Happiness” is a state of mind like “Business Confidence”


SUSTAINOMICS & BUSINESS SUSTAINABILITY

Evolution of Attitudes in the Business Community

“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 Managers be only asking: how do we maximize shareholder’s value? Or, should they ask: 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)

M I N D


AMCHAM and Business Community in

the DR should develop a similar vision

M I N D

Nu

mb

er

of

Eart

hs

Sustainable

BAU

1.Ecol. Footprint of HumanityIn 2012 we needed 1.5 earths; and by 2030 almost 2 Earths

Unsustainable

oneearth 2012 2030

Munasinhe Institute for Development

2. Unfair World Income

Distribution 2000 Champagne Glass

Richest fifth of world population receives 83% of world income

One fifth of the

Worlds Population

Poorest fifth of world population receives 1.4% of world income

Ratio of 60:1 between highest & lowest 20%

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

1. Eradicate extreme poverty and hunger 2. Achieve universal primary education

3. Promote gender equality & empowerment 4. Reduce child mortality

5. Combat HIV/AIDS, malaria & other diseases 6. Improve maternal health

7. Ensure environmental sustainability 8. Global partnership for development

Commendable targets for 1-2 billion poor, but where are the resources to meet them, especially with Climate Change

1.4 billion


Cli

mate

Ris

k(e

.g.

per

ca

pit

a G

HG

em

issi

on

s)

Development Level (e.g. per capita income)

Resource Use Model for Making Consumption and

Production More Sustainable

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

Poor

Middle Income

Rich

Incentives/resources for developing countries

1. Adaptation fund (safety net) for poorest and

most vulnerable.

2. Technology cooperation/support to leapfrog

Leapfrog

(China, DR)

Transform

Decarbonise


Food for a Week:Affluent Family

Unsustainable – must transform/dematerialise towards sustainablity:Millennium Consumption Goals: MCG

Source: Menzel, 2005

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

Example: 1/3rd World food production lost/wasted. In homes: USA - 50% & Europe - 30%. Yet about 1 billion are starving.

M I N D

The consumption of the rich is crowding out the development prospects of the poor.

As resources (like energy, water and food) become scarce, the “market” solution is for

prices to rise – but this will simply ration those resources in favour of the rich and

deprive the poor of even their basic needs. Recent events in many countries show that

deprivation leads to violence

We can enhance poverty eradication and protect nature by complementing the MDGs with Millennium Consumption Goals that will

help make the rich consume more sustainably

M I N D

Sustainable Consumption empowers householdsInfluence people’s behaviour to promote sustainable change

• Empower and motivate – using prices, labels

information, psychology and advertising.

• Change values, habits and socio-cultural

contexts to shift to low-carbon products and

behaviour. Eg., public attitude to smoking

• Adapt material and physical elements of

production - goods and infrastructures are

inter-connected

Social capital embedded within individuals and communities, can

be better mobilized, organized, and empowered to work

synergistically with business and influence government, to make

development more sustainable (MDMS)!

Individual

Community

Producer

M I N D

EXAMPLE: Food Spoilage is a Major

Cause of World Hunger

3.9 billion tons (approx.) of food is currently

produced annually for human consumption

1.3 billion tons of food spoiled annually

1/3 rd of world food production is lost or wasted

(in homes: USA-50% & Europe-30%)

FAO ,2011

M I N D

Launched at Rio+20

SustainoMusica is an international consortium of musicians and music

lovers who believe that music and song constitute an universal language

that can be used effectively to communicate the message of sustainability

to everyone on the planet. We are confident that our new music of

sustainability will appeal to the heart, especially to empower and motivate

young people. We feel that this complementary approach will have greater

appeal than the messages of science and policy, which are aimed mainly

at the mind. Music and song will help to make sustainability a practical

and living reality, by harmonising people and planet, to achieve

prosperity, peace and happiness - that is what our logo shows.

M I N D

Sustainable Production: Insights from Workshops

& Seminars on Business & Sustainability for Senior

Managers of Leading Multinationals

Recent Examples:• BASF, Germany (Chemicals)

• TESCO, UK (Supermarkets)

• Unilever, Coca Cola, Reckit-Benkeiser, Johnson SC, Danone, Nestle (Retail)

• Petrobras, Brazil (Energy, Oil and Gas)

• OPEC (energy, oil and gas)

• Sime Darby, Malaysia (Plantations Conglomerate)

• Novozymes, Denmark (Biotechnology)

• Vale, Brazil (Mining)

• Siemens, Shanghai Electric Group (Heavy Industry)

• WCW, Denmark (300 CEOs in Europe)

M I N D

Sustainomics: Ideas for Enterprises

1. Training management and staff on sustainability and bringing about value change within the firm.

2. Engaging deeply with govt. and civil society to make development more sustainable: beyond CSR (CSR+)

3. Transparency in declaring bold sustainability goals and reporting on performance.

4. Identifying appropriate economic, environmental and social performance indicators (both internal and external), and monitoring them.

5. Undertaking research and studies to improve performance and implementing the results.

6. Disseminating relevant information on sustainable development to the community, country and world.


• Sustainability Accounting or Triple Bottom Line (TBL) Accounting corresponds to the three dimensions of the SD triangle – People (social), Planet (environmental) and Profit (economic)

• It requires firms to expand the usual reporting framework of financial performance, to include ecological & social issues

• The TBL concept demands that a company's responsibility lies with stakeholders much as with shareholders.

• “Stakeholder" refers to anyone who is affected, eitherdirectly or indirectly, by the actions of the firm.

Sustainability Accounting & Reporting 1

M I N D

From Corporate Social Responsibility (CSR)

To Creating Shared Value (CSV)


M I N DSource: Adapted from Munasinghe et al. (2009)

Raw material production

Manufacture & processing

Logistics distribution transport

Retail Consumer use

Recycling &

disposal

Light bulb (UK 11W)

2% 1% 1% 95% 1%

Sustainable Production - life cycle analysis of CO2

emission hot spots along the supply/value chain: 1





Retail Consumer use

Recycling &

disposal

Light bulb (UK 11W)

2% 1% 1% 95% 1%

Orange Juice (Brazil freshly squeezed 1L)

28% 19% 47% 5% 1% 0%







Retail Consumer use

Recycling &

disposal

Light bulb (UK 11W)

2% 1% 1% 95% 1%

Orange Juice (Brazil freshly squeezed 1L)

28% 19% 47% 5% 1% 0%

Milk (UK, National Tesco)

76% 5% 4% 10% 3% 1%



M I N D

Case study: Life Cycle Value/Supply

Chain Analysis of Garment Industry in

Sri Lanka (Focus on CO2/Energy/Labour)

The product – Bra manufactured

at MAS Intimates, Thurulie factory

Sri Lanka.

•Identification of HOT SPOTS

•Trade-offs among economic-social-

environmental indicators

M I N D

Detailed Life Cycle Process Map of Product

Wing mesh

Galloon lace

Mechanical stretch mesh

Narrow stretch lace

Embroidered Fabric

Denier

Bow

Wires

Stretch satin

Strapping

Hook and eye

Fortitube

Binding

Seam tape

Rings

Slides

Mesh elastic

Plain elastic

Autograph tab

MAS

RM STORE

CUTTING

MOULDING

SEWING

PACKING

WAREHOUS

E

Electr

icity

Energ

y

Material

Waste

COLOMBO

PORT

COLOMBO

PORT

Warehouse

Retail store

CUSTOMER

USE PHASE

WASHING

DRYING

UK PORT

Disposal

Packaging

Waste

Electri

city

Packaging

waste

Energ

y

Raw materials

Packing material

Manufacturing

process

Retail operation

Consumer phase

Energy/Electricity

Waste

Disposal

Land Transport

Sea transport

Electri

city

Packaging

Waste

Packaging

Waste

Packaging

Waste

Hanger

Hanger Sticker

UPC

Collar Card

Price sticker

Care Label

Bell Sticker

Raw Material Manufacture Transport Retail End Use & Disposal

M I N D

Life cycle analysis of CO2/Energy hot spots

along the supply/value chain for garmentsRaw

Material

Incoming

Transport

Manufac

turing

Distrib

ution

Storag

e/ retail

Use Disp-

osal

56% 3.1% 19.5% 1.9% 5.0% 10.1% 4.7%

16.8%* 5.7% 22.6% 25.8

%

0.42

%

28.5% Lack

of

Data

Carbon reduction: Raw Materials - sust. procurement is key

Energy reduction: Manuf., Distrib. & Use stages are all critical

Car-

bon

Ene-

rgy

M I N D

Procurement: Detailed C-footprint of Raw

Materials – Elastics, Laces & Packing are key

Fabrics,

13%

Laces, 17%

Elastics, 28%Strip cuts, 4%

Trims &

Accessories, 9%

Cup, 11%

Packing material,

17%

M I N D

Energy efficiency gains

The product is manufactured in an eco-friendly plant (MAS-

Thurilie) that uses less energy than a standard plant.

Energy savings: Thurulie vs. standard factory (also MAS owned)

0

0.5

1

1.5

2

2.5

Thurulie Plant A

Remaining Components

Manufacturing Footprint

M I N D

Social Aspects:

Labour Input at the manufacturing Plant

Gender Balance

Job Type Female Male Total

Manager 2 14 16

Executive 21 47 68

Staff 55 76 131

Worker (indirect) 52 97 149

Machine Operators 829 121 950

Total 959 355 1314

M I N D

Integrating Sustainability

into Tourism Industry:

Case Study of Eco-Tourism

from Sheraton Hotel Chain

M I N D

An integrated approach

• An effective sustainability approach for hotels is based on the several disciplines– Energy Measurement and Management

– Carbon Footprinting and Mitigation

– Water Footprinting and Mitigation

– Waste Management

– Resource Efficient Cleaner Production

• All these aspects come together to form an integrated approach to sustainability rather than a piecemeal method with limited focus

M I N D

Energy Flow Analysis

Input

Oil

Elect-

ricity

Gas

Renew-

ables

Waste

Output

CO2

SOX,

NOX

etc

Kitchen

Rooms

Laundry

Usage

Point

M I N D

Water Flow Analysis

Input

Ground

Piped

Harvested

Rain

Recycled

Waste

Output

Waste

Water- Drain

- Recycle

Kitchen

Rooms

Laundry

Usage

Point

M I N D

Waste Flow Analysis

Input

Water

Energy

Raw

Mate-

rial

Waste

Output

Waste-

Water

Energy

loss / Heat

loss

Solid

Waste

Noise

GHG

Particulate

Matter

Kitchen

Rooms

Laundry

Usage

Point

M I N D

Key findings – Energy

• Converting Energy Waste to steam

through Heat Recovery Systems

• Harvesting wasted energy, mobilizing

clean energy based on gas & wind power

• Improving and implementing Solar

Energy

• Viability of implementing a Bio Gas Plant

M I N D

Key Findings - Water

• Lack of waste water harvesting in many

instances

• Potential to re-cycle water use from the

swimming pool filtering system

• Additional rainwater harvesting potential

• Potential to reduce water consumption by

up to 10% in year 1

M I N D

Key Findings - Carbon

• Setting up systems to measure waste and carbon emission on a regular basis

• Greening the supply chain

• Greening the vehicle fleet

• Integrating a sustainability software into day to day operation to track daily carbon output

• Setting reduction targets for carbon emissions

• Calculating the carbon footprint of a guest night to offer guest the option to offset their own footprint


Caution – Jevons Paradox & Limits of

Resource Efficiency

Economic BehaviourStanley Jevons (1865) first noted the “Jevons’ paradox” - any

technological advance that increases efficiency of resource

use eventually increases the consumption of that resource.

Efficient resourse use Savings Greater resource use

Biological Behaviour (instinct)Species tend to live near the short-term carrying capacity

their habitats. Until constrained by negative feedback

(scarcity, disease, conflict, etc.), they will: (1) occupy all

accessible habitat; and (2) use up all available resources (for

humans, 'availability' is extended by improved technology).

Consumerist culture, greed & focus on material consumption

reinforce these behaviours


Improved technology and increased

efficiency of resource alone use

cannot solve our problems.

Human beings need to use rational

analysis based on long term thinking

to adopt more sustainable values and

lifestyles that will over-ride

instinctive short term behaviour


FUTURE: Potentially Disruptive Technologies!

1. Mobile internet

2. Automation of knowledge work

3. Internet of things

4. Cloud technology

5. Advanced robotics

6. Autonomous and near-autonomous vehicles

7. Next generation genomics

8. 3-D printing

9. Energy storage

10. Advanced materials

11. Advanced oil and gas technology

12. Renewable energy


Sustainable

Consumers

Sustainable

Producers

Civil Society

Busi-ness

Bringing Sustainable Consumers & Producers Together: 1 Sustainability Culture - Making Development More Sustainable (MDMS)

Sustainability leadership by a few consumers and producers


Other Sustainable Consumers

Sustainable

Consumers

Sustainable

Producers

Other Sustainable ProducersCoalicion

RIO

Govt.

Civil Society

Busi-ness

Bringing Sustainable Consumers & Producers Together: 2 Sustainability Culture - Making Development More Sustainable (MDMS)

Sustainable behaviour spreads throughout the country


Key Role of Communications & Responsible Media

in Making Developmenty More Sustainable

Social

Capital

Business

Govern-

ment

Civil

Society

Responsible

Media

Media must play greater role in disseminating correct information to

strengthen civil society and business in supporting and influencing

government to move towerds a more sustainable development path.

Source: Munasinghe (1992), Rio Earth Summit


WHAT ?

WHICH?

HOW ?




are the challenges







WHO ? must respond and how

Business & civil society can act now - sustainable

consumption & production in DR & globally.

M I N D

Mildly optimistic final message for DR & the World

Multiple global problems pose a serious challenge to us all –poverty, hunger, water, energy, climate change, economic crisis, resource scarcities, ecosystem harm, etc. are interlinked. Although the issues are complex and serious, these problems can be solved together, provided we begin now. We know enough already to take the first steps towards making development more sustainable (MDMS) by using the Sustainomics framework, that will transform the risky “business-as-usual” scenario into a safer & better future.Governance systems (at all levels) must be transformed to deal with multiple crises in an integrated way.Business and civil society can help government in identifying issues, changing values and implementing solutions.Restoration of Ozama river is a key step in the DR to to build the new sustainable development model of the 21st century


“DEVO VASSATU KALENA

SASSA SAMPATTI HETU CA

PHITO BHAVATU LOKO CA

RAJA BHAVATU DHAMMIKO”

“May the rains come in time,

May the harvests be bountiful

May the people be happy & contended

May the king be righteous”

Even in ancient times, a favourable environment,

economic prosperity, social stability (and good

governance), were clearly identified as key pre-requisites

for making development more sustainable.

Environmental:

Economic:

Social:

Ancient Pali Blessing (Sri Lanka)

M I N D

M I N D

Environment

Society Economy

Munasinghe Institute for Development"making development more sustainable - MDMS“

10/1 De Fonseka Place, Colombo 5, Sri Lanka

Phone: +9411-255-1208; Fax: +9411-255-1608

E-mail: <[email protected]> ; Web: <www.mindlanka.org>


MIND PROGRAMMES

• AwardsResearch fellowships, Scholarships, MIND Sustainable Support Service (MS3), Book donations

• Dissemination & ResearchDissemination & Training workshops

Expert meetings & conferences

Applied research studies and evaluations

UN “Centre of Excellence” for Asia in the Climate Change Capacity Development (C3D) network of the United Nations Institute for Training and Research (UNITAR).

M I N D

MIND CC-SD Training Course, CMA, Beijing, July-Aug, 2006

270 Senior Chinese Officials

M I N D

MIND SD Course, Delhi, Feb. 2007

25 Senior Indian Civil Service Officers

M I N D

MIND-ERC CC-SD Training Course, University of Cape Town, October 2007,

for 30 Senior Decision Makers from Government, Business and Civil Society


Suggestions for Further Information

1. Munasinghe, M. (2010) Making Development More

Sustainable Development, Second Edition, MIND Press, Sri

Lanka – Translated into Chinese and Portuguese.

2. Munasinghe, M. (2009) Sustainable Development in Practice –

Sustainomics Methodology and Applications, Cambridge

University Press, UK.

3. Munasinghe, M., and Swart, R. (2005) Primer on Climate

Change and Sustainable Development, Cambridge University

Press, UK – Translated into Chinese.

4. Website URL: <www.mindlanka.org>


MIND Press

Book:

650 pages

Second

Edition

Published in

April 2010 -

Translated

into Chinese

& Portuguese


Muchas Gracias

Thank You

Sthuthi

presentación mohan munasinghe en almuerzo mensual amchamdr

Environment

i n d munasinghe institute

ozama river

river basin

coalicion rio

development mind

developmentbrief introduction

ukvisiting professor

national project