Towards a green economy 3 Supporting actions
Depending on their level of development, countries will have a different range of capacities to implement the types of policies discussed in the preceding sections of this report and to cope with the change entailed by a green economic transition. In particular, robust institutions, including the polices, practices and systems that allow for the effective functioning of an organisation or group, are vital to the success of government policies intended to green key sectors (UNDP 2009). A strategy to enable increased green economic activity must therefore include efforts
to improve capacities to implement policies and to manage change.
More specifically, countries may need assistance with regard
to resources, technical expertise, training,
technology development and diffusion, political backing and other kinds of aid from a broad range of actors, including inter-governmental organisations, international financial institutions, bilateral aid agencies, multilateral companies and non-governmental organisations.
3.1 Supporting capacity building and the strengthening of institutions
UNDP has identified five basic functional capacities of governments that determine the outcome of development efforts. They include a government’s capacity to: engage stakeholders; assess a situation and define a vision; formulate policies and strategies; budget, manage and implement policies; and evaluate outcomes (UNDP 2009). These generic functional capacities will all be called on to successfully make a green economic transition.
Three of the most important capacity-building issues that are emphasised across the sector chapters are improved information-based capabilities, the need for integrated planning, and adequate enforcement of policy requirements and laws.
The importance of research, data collection and data management cannot be understated.
The sector
chapters of this report establish that there is already a substantial amount of information about the status of natural resources and ecosystems and how they contribute to economic well-being, as well as the green economic opportunities that can be exploited in every sector of the economy. Nonetheless, a common message is that these generalities need to be carefully nuanced with respect to specific national and local conditions. In addition to technical and human capital, this requires
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the development of institutions that adopt a consistent, science-based approach to the assessment and analysis of environmental resources. Hard or soft rules must also exist to ensure that scientific analysis is appropriately factored into policy decision-making and that feedback loops enable ongoing learning and adaptation. Information and Communication Technologies (ICTs) may also play an important role in supporting data collection and research (see Box 12).
Information is also an important issue for good governance. In policy planning processes, awareness of the needs, concerns and knowledge of stakeholders, and interaction on this basis, is vital to ensure socially optimal outcomes. Once objectives are stated and measurable, and the operation of policies is being monitored, the provision of information is also necessary to ensure policy effectiveness and accountability (see the modelling chapter for more information about indicators and measurement). Data also needs to be credibly evaluated and used as the basis for any policy adaptation.
Amassing sufficient information to inform good policy- making is not an easy task. It often requires increased financial resources, improved administrative capacity, technical training and access to technology, as well as developing institutions that allow for the effective functioning of the research and consultation processes, and their interaction with policy-making decisions.
Strategic integrated planning is equally important.
Most sector chapters emphasise the need for a holistic approach to policy-making to ensure decisions are aligned with the overall objectives of a green economy. This includes the development of processes and norms to systematise taking into account how policies in one sector might affect others; carefully assessing decisions that have long-term consequences; incorporating skills development policies; and using an appropriate mix of policy tools to achieve a given objective.
Research on the use of multiple policy tools confirms that different combinations of informational, regulatory and market instruments can be more or less effective and efficient in different situations (OECD 2007). The most striking illustration of this principle is in the Cities chapter, which concludes that urban planning has significant, often unalterable impacts on the costs of living and ecological efficiency. Similarly, in promoting renewable
energy technologies, it is now well recognised that the establishment of income support
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