OECD (2012): Green growth in developing countries: a summary for policy makers

Authors : Willima Hynes, Shannon Wang

Date: June 2012

What is it about? The document summarizes the main findings and analysis of the draft Green Growth and Developing Countries report. According to the OECD findings, in developing countries, green growth is namely about sustainable and equitable development (i.e. - increased and more equitably distributed GDP, natural capital use within ecological limits, risk management, increased livelihood opportunities and reduced inequality). The OECD believes that national green growth policy frameworks can help create the environment needed to incentivize sustainable development, and that there are three dimensions to the policy framework: national planning for green growth will create the enabling environment; mainstreaming mechanisms to improve existing systems; and green growth policy instruments to tap green opportunities. The report also includes short examples of green growth policies in countries like Ghana, Costa Rica, Sri Lanka.

Why we recommend reading this? This paper looks at the different generic components of enabling environments. The authors identify 6 enabling conditions for green growth: (1) government expenditures to shift away from waste or overuse of environmental assets, (2) more effective enforcement of legislation, (3) shifting of educational priorities to support the transition to the green economy, (4) resource and land rights regime that safeguard the interests of those with informal rights, (5) creating enabling conditions for psychological and behaviour change, (6) facilitating businesses to fully integrate sustainability and equity concerns. The paper also analyses the role for OECD countries in creating the conducive environments for green growth in developing countries: enhancing capacity, strengthening ODA, promoting innovation and dissemination of green technologies, facilitating trade of environmental goods and services and developing coherent policies. This is useful as LTF workshop will have to look at all the kinds of enabling conditions needed, both in developed and developed countries.