Copyright (c) 2013 John L. Jerz

Sustainable Development: Critical Issues (OECD, 2001)

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Organisation for Economic Co-operation and Development

sustainabledevelopmentCI.jpg

How can we meet the needs of today without diminishing the capacity of future generations to meet theirs? This is the central question posed by 'sustainable development'. OECD countries committed themselves to sustainable development at the 1992 UN Conference on Environment and Development in Rio, yet - almost ten years later - progress accomplished remains partial and uneven. Drawing on analysis carried forward in response to a mandate from OECD Ministers in 1998, this report stresses the urgency to address some of the most pressing challenges for sustainable development. It reviews the conceptual foundations of sustainable development, its measurement, and the institutional reforms needed to make it operational. It then discusses how international trade and investment, as well as development co-operation, can contribute to sustainable development on a global basis, and reviews the experience of OECD countries in using market-based, regulatory and technology policies to reach sustainability goals in a cost-effective way. The report also provides an in-depth analysis of policies designed to address key threats to sustainability in the areas of climate change and natural resource management, as well as those that respond to sustainability concerns at the sectoral and sub-national level. The common thrust of the report is that substantial opportunities exist to make economic growth, environmental protection, and social development mutually reinforcing.
 
[JLJ - we can leverage off of work done in this study. Sustainable development is what it's all about in playing a game. An advantage in a game is not truly an advantage unless it is sustainable and has chances for increasing into a winning position in the unknown future.]

p.45 Sustainable development requires explicitly valuing activities within a long-time prespective... Sustainable development implies avoiding breakdowns that would endanger the basis for future development. As the future is uncertain, it is imperative that flexible... systems, able to withstand unforeseen shocks, are maintained... decision-making takes place in the face of uncertainty.

p.47 Responding to the challenge of sustainable development requires the institutional and technical capacity to assess the economic, environmental and social implications of development strategies, and to formulate and implement appropriate policy responses.

p.48 the criteria for sustainable development cannot be defined in purely technical terms. This requires that the process through which decisions are reached is informed by the full range of possible consequences [JLJ - common sense but a great idea.]

p.55 the focus on predicting the potential downstream impact of current actions (or inaction) and on satisfying future needs is not entirely new either. What is new about sustainable development is the attempt to introduce a concern for future welfare systematically throughout... policy.

p.55 What is meant by needs? And what is required to ensure that these are being met? Answering these two questions is an important step in understanding the implications for measuring sustainable development.

p.57 So while it may be relatively easy to compile a set of indicators related to the satisfaction of needs, it is not obvious what level of satisfaction would be compatible with sustainability.

p.58 The approach taken in this chapter is to attempt a limited but explicit presentation of, on the one hand, indicators of resources (intended to reflect the level and change in... wealth) and , on the other hand, indicators of outcomes (reflecting various aspects of human welfare).

p.57 sustainable development requires:
- Establishing... balance sheets on the basis of a broad notion of... wealth, one that includes... capital.
- Monitoring the balance sheet to ensure that the net... worth is not declining.
- Monitoring the satisfaction of current needs or, more broadly, of factors that contribute to enhancing/ diminishing... wealth or the value of its components." [JLJ - seems like a good plan for a machine playing a game.]

p.60 Other indicators combine information on a much broader range of variables pertaining to either the satisfaction of current human needs, or to the resources required to meet needs in the future. These indicators are based on a selection of information for relevant issues, which are then either adjusted in monetary terms or aggregated (with subjective weighting) into a composite index. Examples include the "Genuine Progress Indicator"

p.61 Frameworks for measuring sustainable development should:
- Integrate the economic, environmental and social dimensions of sustainable development.
- Have sound conceptual foundations.
- Capture key information needed to measure sustainable development by selecting indicators.
- Clarify relationships between different indicators and between indicators and policies.

p.64 The Resource-Outcome Indicator Approach builds on the view that sustainable development is development that satisfies current needs without compromising the ability of future generations to satisfy theirs... In essence, this approach identifies a necessary condition for sustainable development in the preservation of various assets, since these assets provide the foundations for the satisfaction of needs both today and in the future... The distinction between resource indicators and outcome indicators is not always clear-cut. In fact, there is continual feedback between resources and outcomes.

p.64 Resource indicators reflect the extent to which the asset base is being maintained... Also important are resource indicators which reflect the stock of assets at a particular point in time.

p.70 Outcome indicators are aimed at measuring the satisfaction of human needs... where needs are defined broadly

p.71 A set of sustainable development indicators should:
Have a clear policy relevance and in particular:
- provide balanced coverage of some of the key issues of common concern... and reflect changes over time;
- be easy to interpret (i.e. movements in each indicator should have clear implications for overall sustainable development); ...
- allow comparisons...
Be analytically sound and broadly accepted.

p.72 Measuring sustainable development is necessary for addressing the long-term future... Without an integrated information set on long-term sustainability problems, public awareness of these issues will be limited and the formulation and monitoring of policy responses will be difficult.

p.101 Decision-making mechanisms need to adapt to address sustainable development goals.

p.250 To be effective sustainable development strategies have to:

  • Be an integral part of overall... objectives
  • Identify long-term constraints, trade-offs and opportunities...
  • Define priority objectives and ways to monitor processes.

p.251 Realistic priority setting is a key element of strategy development.

p.260 Projects, which focus directly on improving capacity, have the biggest potential pay-off.

p.350 the choice of appropriate indicators for progress towards sustainable development is one task that policy makers must face. While no one indicator can assess whether or not there is movement down a sustainable... path, different indicators can identify and then help track progress towards precise goals.

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