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GLOBAL THREATS OF poverty In a world of 6 billion: • Almost 1 billion people go hungry every day; • 1 out of every 5 people lives on <$1.25 a day; • 1.5 billon have no access to electricity; • 2.5 billion don’t have a toilet; • Intensity of poverty as the joint distribution of their deprivations (nutrition, toilet, water, elec-tricity, assets) = highest in poorest countries; • 1.189 million poor in Middle-Income countries compared to 459 million in low-income countries; • Gini coefficient (indicator of inequality) is rising in the process of development; M.Djurovic, 2012 THE CHALLENGES WE FACE IN NEXT 40 YEARS The 0-40 age group will face the year 2050: • Population growth: 7 billion 2012 to 9 billion 2050; • Global-gross-products: $70 trillion 2012 to $200 trillion 2050 along business-as-usual way; •Life satisfaction is low •Dwindling populations and species high even 60% •Ecological foothprint high • In 38 years (1970-2008) Global Living Planet Index -30%, • Global Tropical Index -60%, • Tropical Fresh Water Index -70%, • Humanity’s Ecological Footprint higher 50% of Earth’s Biocapacity 2008 • With business-as-usual CO2 emissions in large regions will M.Djurovic, surpass 2012 2*C increase in average annual temperature by 2040 •Energy needs to double, at least Planet could sustain a high population (probably within some limits) but it is a combination of things like how we use resources, for what purpose, how many, how the use of those resources change over time, etc, that defines whether they are used inefficiently or not and whether we will run out of them or not. A dual strategy is needed to solve the energy problems: 1. Conservation: maximize energy efficiency and minimize energy use, while insuring economic prosperity 2. Develop new sources of clean energy M.Dj. 2013 Phase out of fossil fuel subsidies More local primary energy Smart energy systems Renewable Energy Buildings as Positive Power Plants Energy Storage Smart grids and Plug-in Vehicles Resulting in: More energy security – more security More energy related employment – more equity Decoupling the growth from resources Putting climate change under control Specific goals to approach water issue 1. Scaled down approach and demand management 2. Adjust pricing models to mach supply with demand 3. Innovation and smart water 4. Efficiency plus equity an solidarity (water justice) 5. Change the model 6. Human empowerment 7. Right based approach in a common economy Law issues 1.Multiliberaliyartion –beyond the fragmented law 2. Environmental instrumentalization- more rules to environmental protection 3. Humanization= right to water and sanitary 4. Participation- foster environmental democracy M.Djurovic, 2012 OBVIOUS SHORTCOMINGS IN ECONOMIC POLICY FRAMEWORK # Nature is regarded as a constant # Natural capital and ecosystem services not accounted for # GDP growth confused with increase in welfare # Resources are treated as if easy to substitute # Role of High-Quality Energy largely ignored # Externalities largely neglected + Perverse # Subsidies ( this problem primarily a policy failure) The world’s real income has risen by 87% over the past 20 years and it is likely to rise by 100% over the next 20 years. Overregulation should be avoided: “as you do not fight fire with fire, so you don’t fight complexity with complexity” (Madouros & 2012) M.Djurovic,Haldane, 2012 THE DILEMA ON ECOLOGICAL DEVELOPEMENT ♦ Continued growth, as presently structured, is not possible from the point of climate, ecosystems, resource constraints and planetary boundaries ♦ Negative growth is not possible from the point of the economy, the financial system and social stability ♦ To refuse to discuss this dilemma is unacceptable ♦ We need a new Economic Model accounting for environmental cost and resourses value ♦ Prices, economic development and energy policies play important roles in changing technology and the energy required to support continued economic growth M.Djurovic, 2012 STRATEGY FOR SUSTAINABILITY Value discussion Rethink organisation of science and education; Prio: education of economists Global Marshal Plan for greater equity and sustainability Rethink Economics; beyond GDP, valuation of Nature, tax labor less, raise tax on virgin materials, resource efficiency Finance sector reform – take climate + envi risks seriously Protect forests + turn agriculture from carbon source to carbon sink; save fish stock Support for education of girls and energy access M.Djurovic, 2012 ‘The world has enough for everyone’s need, but not for every man’s greed!’ Mahatma Gandhi Thank you for YOUR attention !