At the crossroads of scientific enlightenment and regression

By Daniel McMurray, BA LLB MIL Global Event Lead – Impact Hub, Managing Director & Global Head of Communications – Enterprise IQ Pty Ltd

“It is paradoxical, yet true, to say, that the more we know, the more ignorant we become in the absolute sense, for it is only through enlightenment that we become conscious of our limitations. Precisely one of the most gratifying results of intellectual evolution is the continuous opening up of new and greater prospects”.

– Nikola Tesla

It is hard not to feel that we live at a pivotal moment in history, with the world racing toward an epochal crossroad.

In one direction lies the path of reason, science, community and progress. A world where growing systemic challenges like climate change, resource scarcity, overpopulation, inequality, and environmental degradation can be addressed through logic, evidence, and rational, creative, and collaborative action. Where the ingenuity, collective genius, and relentless optimism of humanity can resolve complex problems such as poverty, disease, and ecological collapse, creating abundance of energy, health, education and well-being for all.

In the other direction, lies a different path. One of regression, unreason, and parochialism. A fact-free, fearful and frightening world of separation, science denialism, and superstition, ruled over by demagogues offering glib, unworkable solutions, convenient scapegoats to blame, and soothing illusory retreat into fragmented tribal realms.

Which path we collectively choose to follow will determine the trajectory of the 21st century and beyond. Will we choose the enlightened path of working together collectively, collaboratively, and consciously for the greater good? Or will we choose the path of darkness, disintegrating into unconscious, unreasonable and irrational behavior that hastens systemic collapse?

At such a pivotal moment, the choice of “New Enlightenment” as the theme for the recent European Forum Alpbach was a timely, prescient and crucial framing.

Attending the forum with my European-based colleagues from Impact Hub – a globally connected network of social entrepreneurs, innovators, and change-makers as official partners for the event – inspired hope that the path of enlightenment, reason and collaborative action is fundamentally achievable.

Members of the Alpbach Laxenburg Group and Impact Hub hike in Alpbach, Austria in August 2016. © Matthias Silveri | IIASA

Members of the Alpbach Laxenburg Group and Impact Hub hike in Alpbach, Austria in August 2016. © Matthias Silveri | IIASA

One of the highlights of the event for our contingent was a facilitated hike into the Tyrolean alps with Pavel Kabat (Director General & CEO of IIASA) and other key thought leaders from the Alpbach Laxenburg Group – including Jeffrey Sachs (Director of The Earth Institute from Columbia University), Tarja Halonen (the former President of Finland), Björn Stigson (former President of the WBCSD), Justin Yifu L in (Director of the Centre for New Structural Economics at Peking University), Pascal Lamy (former Director-General of the WTO), and  many more cross-sectoral leaders from business, government, NGOs and civil society.

Gathered together in the scenic environs of the Boglalm Chalet, this diverse and eclectic group focused our discussion around how we can work together to achieve the Sustainable Development Goals.

Professor Sachs’ definition of an “entrepreneur” struck a chord. He described entrepreneurs as those with the vision to take elements from diverse sources, creatively combining and re- combining in new ways, key insights from different sectors, research fields, technologies, or existing systems to present a new solution or way of thinking.

In that group, representing a mix of the established elite and the challengers of tomorrow, the old and the new from business, government, science, social enterprise, and civil society, it was refreshing to feel the positive energy and inspired thinking that can come from embracing and making space for an open, cross -pollination of ideas.

It brought to mind a universal truth – that humanity is at its best when we work together collaboratively, breaking down barriers, dissolving silos of thought and entrenched interests and, like Professor Sachs’ concept of real entrepreneurship, combining ideas in new, innovative and creative ways. The path of enlightenment is not the domain of any one group. Political leaders can’t fix things alone – lacking the power, methodologies, community currency, and instruments required. They need business leaders, scientists, innovators, and change-agents from the social sector and civil society to bridge the gaps in dialogue, bring fresh insights and recombine them in radically new ways.

As Albert Einstein famously said, “We cannot solve our problems with the same level of thinking that created them”. The path of enlightenment can only be reached through collaborative action. It is a conscious choice and one that we must come together to choose in order to avert catastrophe.

“Really, the only thing that makes sense is to strive for greater collective enlightenment”.

Elon Musk

Note: This article gives the views of the author, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.

A world on the move

by Julia M. Puaschunder, alumna of the IIASA Young Scientist Summer Program 2016.

The world is on the move. Currently, more than 250 million people live outside their countries of birth. Of the moving masses, an estimated 6% are refugees fleeing across borders to more favorable environments. The ongoing European refugee crisis has increased the pressure to reap the benefits from migration while alleviating the burdens of societal movement.

worldregions_2005-10

Estimates of directional flows between 123 countries between 2005-2010. Only flows containing at least 50,000 migrants are shown. “The Global Flow of People” (www.global-migration.info) is by Nikola Sander, Guy Abel & Ramon Bauer, and published in Science as “Quantifying global international migration flows” in 2014 (vol. 343: 1520-152).

Concerns were recently raised as to whether granting asylum to refugees—who often make up the most productive parts of their original populations—prevents (re)development in their fractionated home countries? An important consideration absent in these debates are the monetary gifts migrants send to their family members back home.

The World Bank estimates that migrants currently return around 450 billion US Dollars per year to the developing countries they came from, and this number is expected to rise. These monetary remittances have multiple positive impacts, including economic growth. As refugees are primarily younger to middle-aged, their remittances likely pay for their wives and children’s access to medical care and education, or support their parents when pension systems are missing.

Intergenerational monetary transfers are therefore the focus of my recent publication Gifts Without Borders. Contrary to conventional institutionalized sustainable development, remittances grounded in intergenerational care benefit from communication within families. Long-lasting family ties allow direct feedback. People truly care about their loved ones back home and families share their day-to-day experiences honestly. Intergenerational remittances beyond borders are thus a purer and potentially longer-enduring pathway to sustainable development, as these stable funding streams’ impact is more accountable than standard international aid.

Based on World Bank and OECD data covering almost all countries of the world, my forthcoming publication in the book ‘Intergenerational Responsibility in the 21st Century’ highlights that the intergenerational glue of a migrating population helps countries lacking socially responsible and future-oriented public sectors. Rather than blaming asylum-granting countries for removing the labor force from fragile territories, hosting refugees is portrayed as making use of human capital in stable economies, while refugees—at the same time—develop their former homelands by direct monetary contributions in a natural, transparent, and accountable way. In the age of migration, analyzing intergenerational networks and their financial flows is an important, but unexplored, facet of sustainable development. My findings open prospective research avenues on how we can align the economic outcomes of human capital mobility with sustainable development.

The IIASA Young Scientists Summer Program granted a vibrant setting to discuss my findings in a group of international, diverse, and multi-disciplinary future academic leaders during this summer, which was filled with beautiful moments in the historic Schloss Laxenburg in Austria. Recently IIASA also launched a Joint Research Centre of Expertise with the European Commission on Population and Migration, which aims to predict how migration will impact future economies and societies. In addition, the Advanced Systems Analysis (ASA) Program hosts the ‘Economic migration, capital flows, and welfare’ collaboration between ASA and the World Population Program to model dynamics of economic migration and investment. This research is also directly related to my New School Economic Review paper ‘Putty Capital and Clay Labor: Differing European Union Capital and Labor Freedom Speeds in Times of European Migration,’ which elucidates trade differences in capital and labor flows gravitating the benefits and burdens of globalization unequally and the potential problems arising for the European project from migration.

The Alpbach-Laxenburg Group Retreat 2016 on ‘New Business Models for Sustainable Development’

The Alpbach-Laxenburg Group Retreat 2016 on New Business Models for Sustainable Development. © Matthias Silveri | IIASA

 

Above all, attending the IIASA 2016 Alpbach-Laxenburg Group Retreat at the European Forum Alpbach helped to enhance my understanding of the relationship between migration and intergenerational responsibility. All these endeavors are targeted at contributing to sustainable development in a world on the move.

 

 

 

 

More information on the author of the post: www.juliampuaschunder.com

This article gives the views of the author, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.

Interview: Businesses now have social goals

Michael Perkinson is the chief of staff to the chief investment officer at the asset management firm Guggenheim Partners in the US. On 28 and 29 August he took part in a meeting of the Alpbach-Laxenburg Group, focused on new models for sustainable business development, and on 30 August he spoke at the European Forum Alpbach Political Symposium.

Michael Perkinson speaks at the European Forum Alpbach. ©Matthias Silveri | IIASA

Michael Perkinson speaks at the European Forum Alpbach. ©Matthias Silveri | IIASA

As a business leader with a background in international relations, you have unique experience in both government and the private sector: How do you think that the two could work together towards achieving the sustainable development goals?
Traditionally, the two sectors have not mixed well. Governments were skeptical of the private sector’s profit motives and the private sector believed government was an impediment. Both views were, of course, short-sighted. In recent years the United Nations has looked to the private sector to help finance development as the traditional levels of fiscal policy have been removed from the toolkit by increasingly narrowly focused legislatures. Similarly, private investors and private enterprise, who make up over 60% of GDP in the developed world, realize that they can partner with governments to achieve their social goals. Yes, businesses now have social goals.

What do you see as the biggest challenge is in achieving the SDGs?
Money and willpower.

What changes would be needed in business in order to fully embrace the SDG agenda?
I suspect that businesses need to understand how they can contribute. If given the option of a regulation or a tax, businesses will always chose a tax, because it allows them to plan accordingly. So, in this case, I think businesses require an explanation as to how they can contribute and how it won’t interfere with their executing on their business plan.

Business is often seen as “part of the problem” when it comes to issues like climate change and poverty – do you think that sustainable development could also bring opportunity for business, and if so, how?
Having been in the public sector for 25 years before returning to the private sector, I have never seen the private sector as part of the problem. In the United States, the private sector contributes some 80% of GDP. The private sector also provides jobs, which is really the only way that poverty can be eliminated on a generational scale. I think that there is ample opportunity for business to contribute to the SDGs, but the public sector needs to explain clearly how businesses can contribute in a way that doesn’t interfere with their business plan. It doesn’t mean that businesses need an inducement (like a tax break), they just need to understand the strategic logic of the concept.

Meeting of the Alpbach-Laxenburg Group, 29 August 2016. ©Matthias Silveri | IIASA

Meeting of the Alpbach-Laxenburg Group, 29 August 2016. ©Matthias Silveri | IIASA

Interview conducted and edited by Katherine Leitzell, IIASA science writer and press officer

Note: This article gives the views of the interviewee, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.

 

Interview: An occasion for innovation

Pascal Lamy was the director general of the World Trade Organization from 2005 to 2013, and currently serves as a president emeritus of the Notre Europe – Jacques Delors Institute. On 28 and 29 August he is taking part in a meeting of the Alpbach-Laxenburg Group, focused on new models for sustainable business development.

Pascal Lamy ©The Jacques Delors Institute

Pascal Lamy ©The Jacques Delors Institute

As the former director general of the WTO, you have extensive experience in global trade and economic development. How does this background inform your perspective on the issues of the sustainable development?
To put it very simply, there is a very well-understood interaction between trade and growth, starting in the 18th century until now. The understanding of the relationship between global trade and sustainable development, i.e. including the environment dimension, is much more recent, understandably because environmental issues only came into the picture much more recently than the 18th century.

The reality is today that the communities working on trade and environmental issues are rather poorly connected. You belong either to one or to the other. There are not that many people who have feet on both sides, which does not help because the issue  is complex.

In theory it’s very simple. Take climate change for instance: If you put the carbon price at the proper level, i.e. the one that takes into account the externalities of climate change and CO2 emissions, all you have to do is price CO2 properly, and problem is solved: markets will reallocate production factors accordingly.  That’s what theory tells us. The little problem is actually agreeing on a set price for the entire planet. And this triggers a lot of suboptimal propositions, solutions.

I think that the overall stance now is that that trade is not an end. Trade is a means to improve growth in climate, welfare, sustainability, including environment sustainability. This was in fact part of the WTO charter from 1994. When I was DG of the WTO we did quite a lot of work in collaboration with environmental international organizations such as UNEP for instance. We looked into the big question on this topic: Is the expansion of trade good or bad for the environment? There are arguments on both sides, and it is a vast set of issues. But overall I think there are ways and means to reconcile, to synergize the benefits of trade opening for a more environmentally sustainable world.

What do you see as the biggest challenge in achieving the Sustainable Development Goals?
It’s a very long and vast set of issues. So it’s not a single thing—what you have to address issues on inequality, on education,  on oceans, on poverty—it’s a lot of different things.

But overall, I think the biggest challenge—and this is why a number of us are working on that—is to properly organize the accountability of these SDGs. That means providing proper metrics, proper review, proper debate, and proper public accountability. Now that the goals have been agreed by the UN, the issue is whether or not they can be achieved, and whether we can properly organize public pressure on sovereign nation states, through civil society, involvement of businesses. So in my view the main issue is building and agreeing on a proper follow up transparency system.

Pascal Lamy talks with other members of the Alpbach-Laxenburg Group at a retreat on 29 August. ©Matthias Silveri | IIASA

How do you think that the private sector could help in achieving the SDGs?
In doing what private businesses have been doing increasingly, which is integrating this sustainable development focus into their global strategies. Most big businesses now have a set of principles, a set of values that include sustainability.

What’s happening for instance around the push towards green finance, notably since the COP21 in Paris, is a good example of how some businesses can be on the front line of a larger coalition. We need coalitions like this to bind public authorities at the national, regional, and city levels, to civil society organizations focused on sustainability, climate, environment, biodiversity, and development, and businesses, whether big or small.

So from your perspective it sounds like business is already on the right track. What further changes would be needed in the private sector in order to fully embrace the SDG agenda?
It will happen if and when businesses realize that it matters to their consumers, to their staff, and to their shareholders, or their finance providers more generally. This is the frame within which they have to optimize what they do—clients, consumers, their people, and where they get their financial resources from. And if these various sides of the triangle push in that direction, inevitably businesses will push in this direction. They’ll have to.

The Alpbach-Laxenburg Group brings together leaders from business, and young entrepreneurs, along with government leaders and science experts. What do you think can be gained from a meeting of this type?
What’s unusual is that it links you with people whom you may not meet every day, so it’s an occasion of diversity connecting on a topic. Plus, there is something which tends to come out of this sort of environment, which is innovation. People exchanging ideas, not just theoretically, “What should we do?” “Where are we?” “Where are we going?” but, “This is what I suggest to do,” “This is what I tried and it worked,” and “This is what I tried and it didn’t work.” It’s  more about experiences on the ground, which may then inspire more general conclusions.

Further reading
Pascal Lamy (2016). “Négociations climatiques et négociations commerciales : antinomie évidente ?“. Speech delivered at the 24th Meeting about Risk Management, AMRAE, at Lille, France, February 5th 2016. Download speech (PDF)

Pascal Lamy (2013). The Geneva Consensus: Making trade work for all. Cambridge University Press  http://www.cambridge.org/ao/academic/subjects/law/international-trade-law/geneva-consensus-making-trade-work-all

Interview conducted and edited by Katherine Leitzell, IIASA science writer and press officer

Note: This article gives the views of the interviewee, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.

Interview: Inequality is a lifelong story

Tarja Halonen was the 11th President of the Republic of Finland and Finland’s first female head of state from 2000 to 2012. She currently serves as the Co-Chair of the UN High-level Panel on Global Sustainability, and the Chair of the Council of Women World Leaders. She is also a member of the high-level reflection group, the Alpbach-Laxenburg Group.

"Being poor does not mean that you are stupid; it sometimes demands a lot of intelligence to survive if you are poor. It is very important to take these issues seriously and our primary focus should be the empowerment of people." - Tarja Halonen

“Being poor does not mean that you are stupid; it sometimes demands a lot of intelligence to survive if you are poor. It is very important to take these issues seriously and our primary focus should be the empowerment of people.” – Tarja Halonen at the 2014 Alpbach Forum

IIASA: How have you been involved in the formation of the Sustainable Development Goals? Why is this process important?
TH: I have been involved in this process since the development of the Millennium Development Goals, and I consider that it is very important that we continue to work for these principles after the implementation of the millennium goals has ended in 2015.

In spite of all of their weaknesses the Millennium Development Goals were important goals, informing the knowledge and expectations that we have regarding sustainable development and a global climate agreement or commitment. To me, the post-2015 Agenda and the Sustainable Development Goals, are perhaps the most important guarantee for the future of the world.

What is different about the approach of the Alpbach-Laxenburg Group?
We have said many times—and many world leaders agreed at Rio+20—that it is time to stop working in silos. We need a multidimensional approach, where academia, politicians, business, civil society, and also NGOs are involved. This is where the Alpbach-Laxenburg Group is so important. I think that this group is an effort to address that need, and I hope that by bringing together the various areas of society we can address the great social injustices in the world. It is not only the business of scientists what happens in the world. It is not just someone else’s problem: everyone needs to be involved in the process.

How do you hope to see the issues of gender inequality reflected in the group?
In 2012 I was co-chair of a report entitled “Resilient People, Resilient Planet: A Future Worth Choosing” for the UN Secretary General, as part of my role on the High-level Panel on Global Sustainability. While compiling this report we noticed that there are a lot of resources that are overused and which cause problems. However, what is underused is human capital.

There are three categories we should focus on: the poor, youth and women. Of course all of these groups are very important to include. But for women, inequality is a lifelong story that you cannot get rid of.

It is very important to take these issues seriously and implement measures to change the status quo. I have already tried in many ways, and of course the Council of Women World Leaders has already done a lot of work which I am very thankful for. I am also very proud of Michelle Bachelet, current President of Chile, and the first Under-Secretary General and Executive Director of UN Women, who has led work on the empowerment of women at all levels. We need to make an effort to strengthen gender and women’s rights as part of the post-2015 goals. There are many similar attempts to raise this issue but I hope this group can make it a stronger voice.

-Interview by Philippa Brooks, IIASA Communications Manager, during the 2014 European Forum Alpbach

Alpbach, Austria

Alpbach, Austria

Note: This article gives the views of the interviewee, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.