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Permanent Secretariat Extra-Regional Relation 20 ORGANIZATION UNEP DEFINITION AND CONTEXTUAL ASPECTS OECD SELA CONCEPT GREEN ECONOMY GREEN GROWTH REDISTRIBUTIVE GREEN ECONOMY DEFINITION It is a system of economic activities related to the production, distribution and consumption of goods and services that results in improved human well-being over the long term, whilst not exposing future generations to significant environmental risks and ecological scarcities; it is environmentally friendly, is ecological, and for many groups, is also socially just. (2) The redistributive green economy should comply with the following: 1) Not compromise future generations’ capability to meet their needs; 2) Consider and respect the rights of the least developed countries with special and differential treatment; 3) Ensure social justice; and 4) Assign a value to goods and services of the natural capital of each country. SUSTAINABLE DEVELOPMENT The concept of a “green economy” does not replace sustainable development, but there is now a growing recognition that achieving sustainability rests almost entirely on getting the economy right. Sustainability is still a vital long-term goal, but we must work on greening the economy to get us there. The green economy is not a replacement for sustainable development. Rather, it is a way of realizing that development at the national, regional and global levels and in ways that resonate with and amplify the implementation of Agenda 21. Sustainable development provides an important context for green growth. The OECD Green Growth Strategy leverages the substantial body of analysis and policy effort that has flowed from the 1992 Rio Earth Summit. It develops a clear and focused agenda for delivering on a number of Rio’s key aspirations. Green growth has not been conceived as a replacement for sustainable development, but rather should be considered a subset of it. It is narrower in scope, entailing an operational policy agenda that can help achieve concrete, measurable progress at the interface of the economy and the environment. It focuses on the facts and cause-effect relationships of the behaviour of economic actors, taking into account the concept of market economy and its benefits, uses the concept of efficiency, internalizes the negative environmental effects of current patterns of production, considers the effect of incentives as an important support mechanism to boost green growth, strongly incorporates the concepts of innovation, investment and competition as new sources of economic growth. Sustainable development is and will remain the ideal paradigm and the ultimate goal to be achieved by society and each of the countries. The concept of redistributive green economy is the mechanism to reach sustainable development. POSITIVE ECONOMICS It focuses on the facts and cause-effect relationships of the behaviour of economic actors, taking into account the concept of market economy and its benefits, uses the concept of efficiency, internalizes the negative environmental effects of current patterns of production, highlights the State’s role as a regulatory agent and private investment as a catalyst for green economy. It takes into account the facts and factual evidence of contemporary economics; it takes note of the developments and progress achieved at the present time, with special emphasis on efficiency and correct intertemporal allocation of factors of production; it considers the role of governments of all countries; it takes into account the relevance of the factors of production, especially labour and natural capital, based on the production function of the redistributive green economy. NORMATIVE ECONOMICS It expresses elements of value judgments about: social justice, resource allocation, measurement of inequality and poverty, public policies, welfare economics, the problems of “brown economy;” for decades, a model of “brown economy” has been followed to create wealth, but it did not overcome substantial problems such as social exclusion or depletion of resources, leaving us still far from achieving the Millennium Development Goals. It expresses elements of value judgments about: resource allocation, measurement and indicators of green growth, public policy issues, welfare economics, and the problems of the prevailing economic system. It expresses value judgments about: social justice, fair distribution of benefits among different countries and intergenerational social justice. It also attaches special importance to distribution of benefits of working and natural capital. COROLLARY Provides recommendations and public policy elements to all UN members, attaching equal importance to the concepts of positive and normative economies. It provides recommendations and elements of economic policies of OECD Member States, based on positive economics to a larger extent than on normative economics. It provides recommendations and policy elements to be considered by all countries from the point of view of Latin American and Caribbean nations. SELA considers it vital to attach special importance to the elements of positive economics, without forgetting the normative aspects from a redistributive and inclusive approach. One that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities, i.e. it is low carbon, resource efficient and socially inclusive (1) Green growth means fostering economic growth and development, while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies. To do this, it must catalyse investment and innovation which will underpin sustained growth and give rise to new economic opportunities. (3) It is the economic system that considers – in its holistic balance – a fair interaction of economic actors and factors of production, the respect and proper functioning of the implied balance of natural capital and environmental ecosystems, the needs of society and the correct harmony among developed, emerging and developing countries. Notes: (1) UNEP, 2011 Towards a Green Economy. Pathways to Sustainable Development and Poverty Eradication. (2) UNEP, 2010 General Information that can be used by the Ministers and Heads of Delegation for the dialogue on Green Economy. (3) OCDE, May 2011 Towards green growth. A summary for policy makers. TABLE III: Summary of definitions and conceptual frameworkPDF Image | green economy In Latin America and the Caribbean
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