Financing for sustainable development needs institutional and policy reform but the real cost of (un-)sustainable development remain vague

Ulrich Graute • 6 April 2021
Would you mind or do you even like reading reports on financing for sustainable development? It may not be easy especially for non-experts in finances but it certainly can be interesting and revealing. After all, financing for sustainable development doesn't depend on financial experts alone. Everybody interested in sustainable development should keep an eye on finances to assure that all necessary aspects are addressed appropriately. This post is a small contribution to the necessary dialogue on the subject.

Right in time for the Spring Meetings of the World Bank Group  the United Nations Inter-agency Task Force on Financing for Development launched the Financing for Sustainable Development Report 2021 (FSDR 2021). The report is a lot about investments, their financing but also the need to improve the enabling environment including the reform of policies and institutions. Financial experts love numbers but what you won’t find in the report are updated estimates on the cost (money, lives and other resources) for both cases, achieving the SDGs by 2030 and non-compliance with the SDGs by that date. So, we still don’t know exactly what is at stake. However, the report calls for immediate action to avoid a lost decade for many.

 Immediate action: Financing sustainable development in times of COVID-19

The Secretary-General of the United Nations states in his foreword that the COVID-19 pandemic has dramatically set back progress on sustainable development, exposing and exacerbating inequalities among peoples and countries. According to the report

“… the focus must remain on containing the pandemic and addressing its socio-economic fallout for all. There is a grave danger of a sharply diverging world—with one group of countries recovering on the back of strong stimulus measures and digital acceleration, and many others sinking deeper into a cycle of poverty, hunger, unsustainable debt and austerity—potentially facing another lost decade of sustainable development and failing to achieve the SDGs. Preventing this scenario must be a foremost priority in global recovery efforts.

 

The 2021 Financing for Sustainable Development Report of the Inter-agency Task Force focuses on this urgency and calls for:

  • Meeting ODA commitments and providing fresh concessional financing for developing countries, especially Least developed Countries (LDCs), along with replenishing the capital of Multilateral Development Banks (MDBs) as needed; sustaining a high level of positive net flows at highly concessional terms to International Development Association IDA-eligible countries through a successful replenishment of IDA20; Fully funding the Access to COVID-19 Tools (ACT) Accelerator, to ensure rapid and equitable access to vaccines, diagnostics and therapeutics;
  • Provision of a new allocation of Special Drawing Rights (along with voluntary use of SDRs of countries in strong external positions to help countries most in need) in support of liquidity for developing countries to fight COVID-19 and its economic/social fallout; an extension of the G20 Debt Service Suspension Initiative as circumstances demand; and debt treatments from official bilateral and commercial creditors for countries with unsustainable debt levels or protracted financing gaps.”  

       (Source: Financing for Sustainable Development Report 2021, page xiii)



Governance reform: Financing sustainable development requires an institutional and policy reform plus a strengthening of multilateralism

 

The Secretary-General makes in his foreword an interesting remark on the framework for sustainable development: “Investment alone, however, is not enough. To address the systemic nature of global risks including climate change and pandemics, we must reform our institutional and policy architecture, strengthen multilateralism, and create new platforms and networks for global cooperation.” (page iv)

 

In chapter 6 on Global governance and policy coherence the report points to the need to increase the coherence and consistency of the international monetary, financial and trading systems: “Building on the Monterrey Consensus, the Addis Agenda calls for coherence across a broader range of policy areas, including investment, development policy, and environment institutions and platforms. The deeper coordination that is now needed covers additional areas, such as tax, competition, and non-economic issues such as climate change, disaster risk, human rights, gender and migration.” (page 154)

 

In addition, it briefly points to the need that national policy makers ensure a coherent policy mix to achieve the SDGs (page 154). Good governance and accountable institutions are highlighted as key for designing and implementing coherent policies for achieving the SDGs. What that could mean is described for instance in chapter III.G for the field of science, technology, innovation (STI) and capacity-building. According to the report STI development and implementation play an essential role in addressing increasingly complex and unpredictable threats in a globally interdependent world – beyond the immediate COVID-19 pandemic.

 

In addition, it is stated that diverse fields of scientific knowledge contribute directly and indirectly to building resilient societies. These and other references to non-economic aspects are interesting but they may be selective and not comprehensive. In addition, COVID-19 is an example of an emerging issue which dramatically increases the cost while it has dramatically set back the progress on sustainable development. It would be interesting if and, if yes, future dynamic developments can and are factored in.

 

 

The cost: Cost of sustainable development and of doing nothing

 

Considering the many goals and targets of the interrelated and dynamic web of SDGs it is plausible that it is challenging to estimate the full cost in for the 2030 Agenda implementation. Nonetheless, political decision-making often circles around the cost for planned activities and around the cost of not reacting to needs. Not having an updated estimation of cost risks that needs will be either not addressed at all or that they are not addressed appropriately. And financing for sustainable development becomes merely a matter of trial and error.

 

There is a tiny little subchapter on ‘the cost of doing nothing’ (page 16). There it is stated e.g. that in human development terms, the “cost on climate change is prohibitive” and that investments in prevention, risk reduction and resilience are a prerequisite for sustainable development (page 17). I like the message that ‘decision-making at all levels must become risk-informed’. However, this chapter is somewhat a lost opportunity because it doesn’t tell the full truth on the cost of doing nothing.

 

With respect to climate change there is the internationally agreed goal to limit the increase of the temperature on earth by 2 respectively by 1,5 degrees and what that would mean for the climate in the different regions of the world. That’s something governments and the public can talk about. In case of the SDGs there is nothing similar. The SDGs with their targets promise a better life but why isn’t there an estimation of the overall, economic, social and environmental costs for the case of non-compliance? These costs (finances, lives, other resources etc) could be estimated for different possible scenarios but having them would help to imagine what we’re talking about when it comes to SDG implementation and necessary reforms institutional and policy reform.

 

I recommend reading the report or to scan through and to get a taste of the challenge of financing sustainable development. Maybe you’ll conclude like me that not all answers on pending questions can be expected from financial experts alone. Instead, it needs the contributions by national development experts, urban and rural planners and many other sector experts to get a full picture on costs and financing opportunities. In that case the FSDR 2021 is an excellent starter.


Policies and Governance for Resilient and Sustainable Cities and Regions

by Ulrich Graute 14 April 2025
None of the following supports the idea that urban sprawl is required or even helpful to build sustainable cities. However, it is argued that it may be part of the solution for the crisis of affordable housing in many countries of the world. With this post, I would like to encourage a debate, eg, at the 61st ISOCARP World Planning Congress #WPC61 on 1-4 December 2025 in Riyadh, Saudi Arabia. In 1976 and alarmed by rapid and uncontrolled urban growth, particularly in the developing world, the UN General Assembly called for the First United Nations Conference on Human Settlements (Habitat I) addressing the challenges and future of human settlements. Housing remained at the focus of the United Nations Human Settlement Programme UN-Habitat ever since, and this was reconfirmed at Habitat III in Quito 2016. The New Urban Agenda recognizes and promotes a "right to the city," meaning the right of all inhabitants to have equal access to the benefits and opportunities that cities offer. It emphasizes a vision where urban spaces are designed and used collectively for the benefit of all, including those in informal settlements. Yes a vision, but overall, the Agenda is not very strategic and invites more to raising picking instead of integrated problem solving. Meanwhile, cities keep struggling to cope with fast urbanization, migration and growing demand for larger apartments. Urban sprawl is criticized since the 1950s and 60s because of its large demand for land. No densely populated urban areas have higher costs for the water, energy and transportation grid. In addition, developers often focus on profitable housing development while they don’t care for urban infrastructure, public spaces, schools etc. The New Urban Agenda promotes urban density as a key strategy for sustainable and efficient urban development but that doesn’t help those who a looking for housing now. Conor Dougherty is the author of the book Golden Gates: The Housing Crisis and a Reckoning for the American Dream published on 10 April 2025 in the New York Times the article “Why America Should Sprawl. The word has become an epithet for garish, reckless growth — but to fix the housing crisis, the country needs more of it.” He doesn’t make any effort to paint urban sprawl in rosy colors. Instead, he describes how eg in Princeton, Texas, the nation’s third-fastest-growing city, infrastructure has struggled to keep up with growth. He analyzes how difficult and slow-moving densification efforts in cities are and states, “Even if all the regulatory restraints were removed tomorrow, developers couldn’t find enough land to satisfy America’s housing needs inside established areas. Consequently, much of the nation’s housing growth has moved to states in the South and Southwest, where a surplus of open land and willingness to sprawl has turned the Sun Belt into a kind of national sponge that sops up housing demand from higher-cost cities. The largest metro areas there have about 20 percent of the nation’s population, but over the past five years they have built 42 percent of the nation’s new single-family homes, according to a recent report by Cullum Clark, an economist at the George W. Bush Institute, a research center in Dallas.” For instance, Celina, Texas (picture), has 54,000 residents, compared with 8,000 just a decade ago, and the population is projected to hit 110,000 by 2030. The lack of urbane infrastructure, employment, greenery, and community is striking, but people keep coming because of affordability. While planners and others prefer denser and walkable neighbourhoods like 15-minute-cities, the money to build related infrastructure in addition to houses is often missing or would reduce affordability. A dilemma. There are good reasons to criticize the trend described for the US by Conor Dougherty, but it provides a chance to attain affordable housing for people who cannot find it elsewhere. And the history of these satellite towns has demonstrated that the missing infrastructure, employment and community can be added lateron. It seems, urban sprawl is not the solution, but it might be part of the solution, isn’t it? Let's discuss this here or later on other occasions, like eg the 61st ISOCARP World Planning Congress 'Cities & Regions in Action: Planning Pathways to Resilience and Quality of Life 1-4 December 2025, in Riyadh, Kingdom of Saudi Arabia #WPC61. Reference: Why America Should Sprawl. The word has become an epithet for garish, reckless growth — but to fix the housing crisis, the country needs more of it. By Conor Dougherty. The New York Times, April 10, 2025 https://www.nytimes.com/2025/04/10/magazine/suburban-sprawl-texas.html?smid=nytcore-ios-share&referringSource=articleShare
by Ulrich Graute 8 March 2025
Picture: UN photo
by Ulrich Graute 25 February 2025
Click to see the map in the full scale or download map in pdf format here https://anatomyof.ai/img/ai-anatomy-map.pdf.
by Ulrich Graute 22 February 2025
About the challenge of providing advice on governance and development in times of disruption and transition (English with German captatio ns) Deutsch: Ulrich spricht darüber, wie es ist, in Zeiten von Umbruch, Wandel und vielfachen Krisen als erfahrener Berater zu arbeiten. Obwohl die Situation nicht einfach ist, kann man daraus auch Chancen für effizientere Institutionen und Unternehmen sehen. Erfahrung und Flexibilität sind dabei wichtig, um neue Wege zu finden. English: Ulrich talks about working as an experienced consultant in times of upheaval, change, and multiple crises. Although the situation is not easy, we can also see opportunities for more efficient institutions and companies. Experience and flexibility are important to find new pathways.
by Ulrich Graute 12 February 2025
"The development of highly capable AI is likely to be the biggest event in human history. The world must act decisively to ensure it is not the last event in human history. This conference, and the cooperative spirit of the AI Summit series, give me hope; but we must turn hope into action, soon, if there is to be a future we would want our children to live in." Professor Stuart Russell, IASEAI President and Distinguished Professor of Computer Science at the University of California, Berkeley Please join me on 13 February 2025 at ARCS 9.0 for my keynote on 'Urban politics, planning, and economy in the Global South in times of fast developing AI' The two weeks before my conference presentation were full of dynamics in the field of AI, its politics, and development. First came the launch of the 500 billion US$ Stargate Project in the USA, followed by the launch of the Chinese open-source large language model (LLM) DeepSeek. On 6 February the International Association for Safe & Ethical AI held its inaugural conference in Paris, France. Prominent AI scientists including Stuart Russel and the 2024 Physics Nobel Laureate Geoffrey Hinton called for international cooperation to ensure safe and ethical artificial intelligence. On 10 and 11 February 2025, France co-chaired by India hosted the Artificial Intelligence (AI) Action Summit in Paris. The speeches by Heads of State and Government including the President of France, the Prime Minister of India, the President of the EU Commission, and the US Vice President gave the impression of how different countries of the world try to position themselves in a race for AI leadership. Urban politics, planning, and economy, not only in the Global South, need longer-term frameworks. How should digital transformation and urban planning be approached in cities facing multiple crises and the new wave of AI technological innovation? The latter is according to the Indian Prime Minister Narendra Modi and others unprecedented in scale and speed but it is expected to affect all spheres of life. ARCS 9.0 schedule and Zoom link for Inaugural, plenaries and Valedictory. Date - 13th Feb to 15th Feb 2025 Join Zoom Meeting https://zoom.us/j/95336599575?pwd=NExxgf8gBoubEfKRhhtbalM1ZYjQph.1 Meeting ID: 953 3659 9575
by Ulrich Graute 22 January 2025
Source of the picture OpenAI: https://openai.com/index/announcing-the-stargate-project/
by Ulrich Graute 1 January 2025
It was a tremendous privilege in my life to meet Rosalynn and Jimmy Carter for the first time in 1984 (picture) and then again in the summer of 1985 during my internship at Koinonia Farm near Americus, Georgia (USA). Jimmy Carter, who served as the 39th president of the U.S. from 1977 to 1981, died on December 29, 2024, at his home in Plains, Ga. Jimmy Carter was a lifelong farmer who worked with his hands building houses for the poor well into his 90s. I didn't agree with him on all issues (the early 1980s were the time of a new US missile deployment in Germany ordered by Jimmy Carter and a large peace movement against it) but he took the time to discuss it with me and others at Koinonia Farm. That alone was amazing. Even more mind-blowing was that he continued hands-on work on peacebuilding and house renovation for the poor around the world with Habitat for Humanity International well into his 90s. If in my career providing hands-on support became more important than climbing my own career path, this was also due to the example Jimmy Carter gave in the decades after his Presidency. I learned a lot from him about working for peace with humbleness, love, and perseverance. Read more in the New York Times about why Jimmy Carter was known as much for his charity and diplomatic work later in life as he was for his single presidential term, which ended in 1981. https://lnkd.in/d9qxSmTM *. *. *. *. * Note: This post was first published on LinkedIn https://www.linkedin.com/posts/graute_learning-to-work-hands-on-for-peace-from-activity-7279396908270309376-BBjV?utm_source=share&utm_medium=member_desktop
by Ulrich Graute 2 December 2024
In 2024, for the first time since 2000, the Parties to the United Nations Rio Conventions on biodiversity, climate change, and desertification faced a very busy 3 months, moving from large Conferences of Parties (COP) in Cali (Colombia) for biodiversity in October to Baku (Azerbaijan) for climate in November to Riyadh (Saudi Arabia) for desertification in December. On top of this Triple-COP, there was the UN High Level Political Forum on Sustainable Development and the UN Summit of the Future in September in New York (USA) while UN-Habitat held its World Urban Forum in Cairo (Egypt), and let’s not forget the fifth session of the Intergovernmental Negotiating Committee to develop an international legally binding instrument on plastic pollution, including in the marine environment (INC-5) which ended last weekend in Busan, South Korea. No real breakthroughs were reported but I noticed many promises to double future efforts. There is a lot that can be critically reviewed about the events, eg what’s the purpose of moving approximately 100.000+ delegates, UN staffers, and other participants worldwide if the necessary political will to agree and resources available are insufficient and the outcomes are limited accordingly? But such a critique would be a bit unfair since I don’t know how many new ideas and initiatives were born during those official meetings, side events, and informal chats that might bloom up in upcoming years despite of the multicrises we’re living in. What needs to be criticized is that the UN System is not progressing on its task to implement its many mandates more “synergistically” by targeting policies, programs, and initiatives to jointly address the goals of the Rio Conventions, SDGs, etc. Instead, the conferences referred to each other but worked mainly within their silos. This is not appropriate in a world full of interrelations and interdepensies. Well, no individual or group can follow up on every aspect, and swarm intelligence of conferences with thousands of participants each seems to be no functioning alternative. But what else could be done? To give an example: How about building an AI-based Large Language Model (LLM) trained with the UN Charter, all UN declarations, national and subnational resolutions, regulations, and programmes? AI Agents for the different conventions and agendas should then be asked to coordinate and propose “synergistic” proposals across policy levels. Of course, the use of artificial intelligence should be wisely supervised by a team of AI experts and professionals from all affected fields. I wouldn’t expect AI applications to solve all problems but to better inform decision-makers and UN agencies on integrated scenarios. This could help to increase efficiency, avoid duplicating efforts, and increase the overall problem-solving capacity of the UN. I would be happy to support such work with my governance and development experience across all policy levels. Picture source: https://www.iisd.org/articles/policy-analysis/cop-nature-climate-adaptation-mitigation
by Ulrich Graute 14 November 2024
Since the first climate COP in 1995, the Local Governments and Municipal Authorities (LGMA) Constituency has been representing local and regional governments at the processes under the United Nations Framework Convention on Climate Change (UNFCCC). The LGMA also represents ISOCARP - International Society of City and Regional Planners and Global Taskforce of Local and Regional Governments. ICLEI - Local Governments for Sustainability acts as the Focal Point of LGMA. The 2015 Paris Agreement marked a turning point, recognizing the essential role of these governments in enhancing Nationally Determined Contributions NDSs and driving transformative climate action. The LGMA is atively present in Baku with a robust agenda, numerous partners, and an esteemed delegation of political leaders representing local and subnational governments. At the center of the presence is the Multilevel Action & Urbanization Pavilion as the global stage for the city and region climate agenda during COP29. The Pavilion brings into focus not only the challenges and needs, but also the accomplishments and commitments of local and subnational actors on climate action. The Pavilion is open from 12 to 22 November in the Blue Zone, Area E, Pavilion I15. We are looking forward to welcoming you at the High-Level Opening on 12 November at 10:00 AM. Please find the agenda of LGMA attached. Please visit also the Youtube channel of ICLEI Global for daily updates https://lnkd.in/dddDCKtA Ulrich Graute - ISOCARP Online Delegate at COP29 and Chair of the ISOCARP Scientific Committee
by Ulrich Graute 19 October 2024
Report on the Urban Conversation on Ethical Use of AI in Urban Planning at the 60th World Planning Congress in Siena, Italy on 11 OCTOBER 2024
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