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Taxes for More Equity: Human Development Report Searches for a Better Future for All

For nearly two decades, the concept of sustainable development has played a key role in international debates. However, many discussions about sustainability neglect equity as an aspect, treating it as a separate and unrelated concern. The Human Development Report 2011 (HDR), titled “Sustainability and Equity: A Better Future for All”, argues that these two issues must be simultaneously addressed to achieve an inclusive and sustainable future.  

The authors point out that on the one hand environmental degradation intensifies inequality through adverse impacts on already disadvantaged people, and that on the other hand inequalities in human development amplify environmental degradation, thus perpetuating a vicious cycle of impoverishment and ecological damage. The report expresses concern that development progress in the world’s poorest countries could be halted or even reversed by mid-century unless bold steps are taken to slow climate change, prevent further environmental damage and reduce inequalities within and among nations. According to different scenarios, the average Human Development Index (HDI) could fall by 12 to 15 percent below the baseline projection for 2050, with the deepest losses in the poorest regions.

Furthermore, the HDR highlights the issue of food security, reporting that half of all malnutrition worldwide is attributable to environmental factors, such as water pollution and drought-driven scarcity. The authors forecast that unchecked environmental deterioration could cause food prices to soar by up to 50 percent and reverse efforts to expand water, sanitation and energy access to billions of people, notably in South Asia and sub-Saharan Africa.

The report also emphasizes the possible security implications of environmental stress, arguing that climate  change and  limited  natural resources  have  been  linked  to  an  increased likelihood of conflict, defining resource scarcity as a threat  multiplier  which  interacts  with  other risks and vulnerabilities posing a pernicious  threat to  human  development.

In order to prevent climate change and escalating environmental hazards from jeopardizing the notable progress of previous decades, the HDR 2011 advocates possible new public financing mechanisms, including an international currency transaction tax to help fund the fight against global warming and extreme poverty. “The tax would allow those who benefit most from globalization to help those who benefit least,” the authors argue. (Katherina Ziegenhagen)

The HDR 2011 as well as further information on the report can be found at http://hdr.undp.org/en/reports/global/hdr2011/.

Published in: ECC-Newsletter, 6/2011