UPSC Express

Headline : To achieve development goals, Asia-Pacific countries need to spend USD 1.5 tn/yr, says UN report

Details :

The News

• UNESCAP’s report ‘ambitions beyond growth’ has projected $1.5trillion as the additional annual cost of meeting the targets set in SDG by 2030 for the countries in the Asia Pacific region.

 

In focus: UNESCAP’s ‘Ambition beyond Growth’ Report

Introduction

• The UNESCAP has released a report called ‘ambitions beyond growth’ as a precursor to ‘SDG Progress Report’ to be released in the near future.
• The report is summarized in the following framework
• Progress achieved by Asia Pacific countries in meeting SDGs
• Policy prescriptions
• Region-wise investment priorities in the Asia Pacific
• Prediction of additional investments required to meet SDGs by 2030.

 

SDG progress of Asia Pacific

• The progress achieved so far on the 17 Sustainable Development Goals is mixed in Asia Pacific region.
• Progress is made but not enough to meet targets on
• SDG 1 (poverty eradication)
• SDG 3 (health)
• SDG 4 (quality education)
• SDG 7 (reliable and clean energy).
• Asia Pacific has regressed in goals such as
• SDG 6 (water and sanitation)
• SDG 8 (decent work)
• SDG 12 (sustainable consumption and production).

 

Challenges

• High Poverty and Hunger in South and South East Asia
  • 400 million people living in extreme income poverty
  • 931 million people in conditions of multidimensional poverty
  • 486 million people remain undernourished
• Income Inequality
  • Income inequality has increased with the top 10% people accounting for more than half of income.
  • Reach of social protection benefits is low among extremely vulnerable groups including children, women, old aged and poor.
• Climate Change
  • GHG emissions have increased 6 fold, from 0.9 to 5.8 metric tons per capita.
  • 5 of the world’s 10 economies most affected by climate change in the past 10 years in Asia Pacific (Bangladesh, Nepal, Sri Lanka, Thailand and Viet Nam)
• Job Losses
  • Weaker demand in Europe and United States and trade war between US and China has increased tariffs and a loss of at least 2.7 million jobs.
• Low social sector spending
  • Low social sector spending as a result of distressed bank assets, high corporate debt and household debt.
• Late entrant in Manufacturing
  • Countries shifting from an agriculture-based economy to services-based one bypassing the manufacturing sector may reduce the scope for industrialization.

 

Investment to achieve SDG by 2030

• Additional annual investment of $1.5 trillion which is equal to $1 per person per day.
• This is 5% of the combined GDP of Asia-Pacific developing countries in 2018.

 

 

 

Region-wise priorities

• Least developed countries and South and South-West Asia
  • Should scale up investments to end poverty and hunger and reach health and education targets
• East and North-East Asia
  • Step up on clean energy and climate action.
• Pacific island developing States
  • Additional investments in disaster-resilient infrastructure

 

 

Policy Interventions to achieve SDG by 2030

Prudent financing

• Efficient public spending
• Proactive fiscal policy to support near- and long-term development needs beyond just economic growth.
• Leveraging private sector
• Innovative financial instruments such as green bonds
• Strengthened multilateral financing mechanisms

 

Strategic investments

• $669 billion to support basic human rights and develop human capacities
• $590 billion to achieve clean energy for all and live in harmony with nature
• $196 billion for improved access to transport, information and communications technology (ICT), and water and sanitation

 

Structural transformation towards sustainable development

• Invest in people and enabling infrastructure.
• Focus on agricultural productivity and rural industries
• Resource-efficient systems of production and consumption to reduce carbon emissions

 

Social Protection

• Targeted cash transfers to eliminate poverty
• Social protection floor for vulnerable groups including child, maternity, unemployment, disability and old-age

 

Nutrition

• Nutrition-specific interventions to address wasting, breastfeeding, anaemia and stunting

 

Health and Education

• Additional investment of $158 billion to scale up health systems.
• Additional investment of $138 billion per year would be needed for providing universal pre-primary to upper-secondary schooling of a certain quality.

 

Clean Energy and Energy security

• Additional cost for
• Shifting from fossil fuel to renewable energy
• Enhancing energy efficiency in the transport, building and industry sectors
• Achieving universal access to electricity and clean cooking.

 

Regional cooperation

• North-South, South-South and triangular cooperation to accelerate the pace of sustainable development