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.

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.

Female-headed households hit harder by climate change

By Raya Muttarak, IIASA World Population Program

Taking action on climate change is one top priority of the Sustainable Development Goals (SDGs), especially since its adverse impacts can undermine sustainable development. At the same time, reducing gender inequalities and empowering women and girls is fundamental in making progress across all the goals.

These two issues are also closely linked:  in certain circumstances, women are more vulnerable to the effects of climate change than men, for example, due to weaker physical ability, lower socioeconomic status, and greater social, economic and political barriers in coping capacity.

This is why, in recent work, we have been exploring the differential impacts of climate change on subgroups of population such as by gender, age, education, and income. The rising number of households headed by women across the world and, in particular, in southern Africa calls for special attention to their economic welfare. In general female-headed households are more likely to be in poverty. Under the context of the changing climate, it is likely that weather extremes, rainfall variability, and natural disasters associated with climate change will exacerbate economic disadvantages of female-headed households.

Female-headed households are more economically vulnerable to climate-related shocks for three big reasons, which researchers call a “triple burden”. First, persistent gender disparities in the labor market and other productive activities, including limited access to formal credit markets and land contribute to greater economic disadvantage for female-headed households. Second, these households often have a higher total dependency ratio–that is, women take care of a higher proportion of dependent children and the elderly. Third, women who are heads of households with no other adult help have a “double day burden” where they have to fulfil both domestic duties and make money outside the home. That means that female heads face greater time and mobility constraints and may have to work fewer hours or choose lower-paying jobs.

Female-headed households are more economically vulnerable to climate-related shocks for three big reasons, which researchers call a “triple burden”. Photo: Pablo Tosco/Oxfam

Female-headed households are more economically vulnerable to climate-related shocks for three big reasons, which researchers call a “triple burden”.
Photo: Pablo Tosco/Oxfam

Add climatic shocks to an already disadvantaged family, and the livelihood disruption can be a catastrophe.  However, there have been very few studies of how female-headed households actually fare in the context of climate change. In our new study published in World Development, we used  household survey data from South Africa and local rainfall data over the period 2006-2012 to examine how female-headed households fare economically when facing variation in rainfall. The study provides new empirical evidence on economic welfare of households headed by women following climatic shocks.

The new and unique part of our study is that we are able to control for observed and unobserved characteristics of households using a statistical technique called fixed effects estimation, which enables us to control for the household-specific effects on income. It also lets us account for different income trajectories in households with different demographic compositions. Furthermore, we were able to evaluate the impacts of income shock on economic vulnerability of female-headed households using rainfall variability as an exogenous source of risk. Income loss due to other variables such as death of a household member or losing a job are likely to be endogenously determined by household characteristics, that is, female heads have lower level of education and hence are more likely to fall into unemployment. But because rainfall variation is not connected to household factors, we were able to measure the causal effect of climate variability on incomes, comparing different household types.

Our study shows that female-headed households in South Africa are indeed more vulnerable to climate variability than households headed by two adults, and not just because of the greater economic disadvantages that they start with. Even after controlling for household socioeconomic characteristics, female heads still fare worse when facing economic shocks. This might be due to limited access to family support and protective social networks who can step in to help in time of crisis.

Our analysis also reveals that not all types of female-headed households are vulnerable to rainfall variability. This finding is especially important for designing a policy to reduce vulnerability of female-headed households. Given different routes into female headship, we show that never-married female heads, women with a non-resident spouse (for example, where the husband has moved to work in another region), and widows have greater economic vulnerability to climate variability. The group of female-headed households where the female head has never been married is the largest of these groups. Households with adults of both genders where the female works but the male does not work and households of separated or divorced women are no more vulnerable than male-headed households.

We also found that vulnerability to climate impacts is related to the effect of rainfall on agriculture. We find that female-headed households face greater economic vulnerability only in the districts where rainfall has a large effect on loss in agricultural yields. Regardless of household engagement in agriculture, crop losses in a district can affect food and livelihood security through surges in food prices and shortfalls in local demand.

Although our study focuses on South Africa, the results showing that female-headed households are more vulnerable to climate variability call for particular interventions to their vulnerability in the context of climate change. The number of female-headed households is rising, with an exceptionally high proportion in southern African countries (36.3% in Lesotho (2006), 43.9% in Namibia (2013), 47.9% in Swaziland (2007). As climate variation and extremes also increase, policies to reduce vulnerability to climate change need to explicitly consider the plight of this subgroup of population.

References

Flatø, M., Muttarak, R., & Pelser, A. (2016). Women, weather, and woes: The triangular dynamics of female-headed households, economic vulnerability, and climate variability in South Africa. World Development. doi:10.1016/j.worlddev.2016.08.015

Muttarak, R., Lutz, W., & Jiang, L. (2015). What can demographers contribute to the study of vulnerability? Vienna Yearbook of Population Research, 13, 1–13. doi:10.1553/populationyearbook2015s001

Rosenhouse, S. (1989). Identifying the poor : is “headship” a useful concept? (No. LSM58) (pp. 1–62). Washington, DC: The World Bank. http://documents.worldbank.org/curated/en/1989/07/442370/identifying-poor-headship-useful-concept. Accessed 24 February 2015

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.

Leave no SDG behind

By IIASA Deputy Director General Nebojsa Nakicenovic and Caroline Zimm, IIASA Transitions to New Technologies Program and The World in 2050 (TWI2050) initiative. (Originally published on The Guardian)

2015 marked a historic turning point. The sustainable development goals (SDGs) unanimously adopted by the United Nations last September provide an aspirational narrative and specific targets for human development: a world free from hunger, injustice and absolute poverty; a world with universal education, health and employment; a world with inclusive economic growth, based on transparency, dignity and equity.

The 17 SDGs’ call for “global citizenship and shared responsibility” and provide legitimacy for a new global social contract for a grand transformation toward a sustainable future. They fully acknowledge the scientific advances achieved during the last three decades that have established compelling evidence that otherwise, as the UN general assembly warned, “the survival of many societies, and of the biological support systems of the planet, is at risk.” Humanity has pushed the Earth system and its global commons to their limits and the SDGs provide us with the long-needed paradigm shift towards realizing the opportunity of a sustainable future for all.

The climate agreement adopted in Paris last December has further strengthened understanding that our society depends on sustainable stewardship of the global commons, shared by us all – and particularly on the stability of the climate system. The Earth system can no longer be viewed as an economic or social externality. Last year we moved beyond the traditional view of global commons as merely the common heritage of humankind outside national jurisdiction. Now we must move beyond national sovereignty to deal with the Earth system and human systems holistically, as the SDGs require. The Paris agreement is a huge step in the right direction.

Time is running out, so we must take urgent action to implement the UN 2030 agenda. Just 14 years are left – less than the wink of an eye in the history of human development, or of the Holocene’s stable Earth systems. But where to start? Which of the 17 goals, which of the 169 targets should be tackled first? Policy makers, the media, civil society and scientists all ask these questions.

However, the 2030 agenda stresses that the SDGs are indivisible and integrated – and cumulative, since efforts to achieve them must be sustained well into the second half of the century, especially in preserving the regulating function of the global commons, Some of the goals, such as SDG13 on climate, must operate on a time scale longer than century.

Sustainable Development Goal 6: Clean water and sanitation. Photo by Albert Gonzalez Farran, UNAMID

Sustainable Development Goal 6: Clean water and sanitation.
Photo by Albert Gonzalez Farran, UNAMID

Moreover, there are interactions between and among the SDGs. For example, achieving SDG7, the energy goal, could jeopardize SDGs related to water, health and climate. Tackled in harmony, however, these goals can support one another: there would, for example, be clear health benefits from reducing indoor and outdoor air pollution through global decarbonization. Jointly implementing all the SDGs would contribute both to further human development and to safeguarding the commons and the stability of the Earth systems. Importantly, joint implementation that avoids silo-type thinking would be cheaper and faster than tackling them separately.

All these goals should be achieved in such a way as to maximize synergies and minimize investment costs and trade-offs. The SDG credo “leave no one behind” also applies to the SDGs themselves. They are indivisible. We have to deliver on all of them if we want to succeed.

The SDGs are very ambitious but it appears that tackling them together will help humanity make rapid progress and enter a new era for human societies and the Earth system. Yet, many interactions – and their scope – are unknown, and this hampers holistic policy making. We lack clear understanding of the benefits of achieving SDGs and of costs of inaction, especially when it comes to regional and national differences. We urgently need this fact-based information.

We have a plethora of knowledge, but need new ways to synthesize, integrate and share it so as to use its full potential in support of the SDGs and the global commons. Science – one of the strongest voices of the environment in governance – must become more active and leave its ivory tower to engage more intensely with other stakeholders.

This is why we at IIASA, together with the Stockholm Resilience Center, and the Sustainable Development Solutions Network have launched the scientific initiative The World in 2050 (TWI2050), designed to provide the scientific knowledge to support the policy process and implementation of the 2030 agenda.

TWI2050 aims to address the full spectrum of transformational challenges in fulfilling the SDGs in an integrated way so as to avoid potential conflicts among them and reap the benefits of potential synergies through achieving them in unison. This requires a systemic approach.

The time for “climate-only” or “economic development-only” approaches is over. We urgently need an integrated understanding of the processes that account for the inter-linkages between the economy, demography, technology, environment, climate, human development, all global commons and planetary boundaries. TWI2050 brings together leading policymakers, analysts, and modelling and analytical teams to collaborate in developing pathways towards the sustainable futures and policy frameworks necessary for achieving the needed transformational change.

Such a grand transformation goes beyond a purely technology-centered view of the world or the substitution of one technology by another. It encompasses social and behavioral changes at all levels, as well as technological ones. Incremental changes, now being experienced in some areas, are useful but will not suffice: we have waited too long and the window for action is closing rapidly in some domains including such global commons as climate. We will need radical changes in human behavior and technological paradigms. TWI2050 will look beyond 2030 to 2050 – and, in some cases, even to 2100 – to draw a vision of the world where the SDGs are eventually fulfilled.

The SDGs and the Paris agreement show what institutional international governance can achieve with joined forces. We have entered a new era of global governance, acknowledging the complexity and the connectivity of human development with the global commons and the Earth system. TWI2050 hopes to serve the global community with the best science available in tackling these key global challenges for humankind.

This article originally appeared on The Guardian.

Note: This article gives the views of the authors, 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.