A new PArAdigm

FOR SUSTAINABLE DEVELOPMENT?

Summary of the deliberations of the Club de Madrid Working Group

on Environmental Sustainability and Shared Societies
The Club de Madrid welcomes this and the other documents
of the Working Group as an important contribution to the
debate on these issues, without endorsing all the views
expressed in them.

The Club de Madrid´s Environmental Sustainability and

Shared Societies Working Group was formed to explore
and advocate for a holistic approach to development that
integrates social, economic and environmental dimensions
to create sustainable development and Shared Societies. The
Shared Societies Project is a Club de Madrid global initiative
that has identified the necessity of creating a truly inclusive
and response society that meets the interests of all sectors.
The Shared Societies Project (SSP) has focused on bringing
to leaders of international organizations and governments
worldwide the need to promote the effective management of
ethnic, cultural, religious and other identity differences in
countries such as Kyrgyzstan and South Africa. At the global
level, the UN has acknowledged the Shared Societies message
and given these ideas a prominent role in the Agenda 2030.

Club de Madrid A new PArAdigm for SuStAinAble develoPment? 2

INDEX

Foreword: A new paradigm for sustainable development

Part 1. Key Components of a new equitable and sustainable development paradigm from a Shared
Societies perspective

A. SHAred SoCietieS, environmentAl ProteCtion And SuStAinAble develoPment

b. tHe SHAred SoCietieS PerSPeCtive on vAlueS, reSPonSibilitY And leAderSHiP

1. Shared values are important

2. A sense of Shared responsibility
3. Shared leadership and the political will to introduce change

Part 2. Transforming systems unfit to meet current and future trends and challenges

A. tHe eConomY

1 The growth model and GDP

2 Globalization and trade
3 Consumption
4 Competition
5 Costs and pricing
6 Regulation and taxation

b. nAturAl reSourCeS And tHe environment

7 Managing the commons

8 Land tenure

C. SoCietY And governAnCe

9 Nature of leadership
10 Participation
11 Shareholder model of corporate governance
12 Global governance
13 Fragmentation of development efforts
14 Monitoring mechanisms

d. looKing to tHe future

15 Planning horizon
16 Learning and education
17 Challenge of new technologies
18 Militarization
19 Bringing the approach to scale

Towards a Shared and equitable future

Members of the Working Group on Environmental Sustainability and Shared Societies

About WLA-Club de Madrid

Club de Madrid A new PArAdigm for SuStAinAble develoPment? 3

FOREWORD
A NEW PARADIGM FOR
SUSTAINABLE DEVELOPMENT?

In order to examine the nature of the link between an inclusive Shared Society and
environmental sustainability, which was the task of the Club de Madrid Working Group, it was
necessary to explore many other topics, concepts and conceptual frameworks, some at more
length than others. This paper summarizes key insights and reflections, though individual
members may hold a different opinion on particular points or the weight that should be given
them. These insights relate to three main themes:

1. It was clear from the start that environmental challenges had to be put in the context
of overall sustainable and equitable social and economic development,1 as social,
environmental and economic progress are closely intertwined and interdependent.

Major attention was given to an important critique of the current dominant discourse
2. on economics and development, from the perspective of inclusion and sustainability.
The Working Group concluded that its fundamental tenets are not fit for the purpose of
ensuring a fair, prosperous and sustainable future for the planet and all of its inhabitants.
Specifically, it concluded that the current economic and development model will not
deliver the transformative elements of Agenda 2030.

While it was not the remit of the Group to articulate a specific new development
3. paradigm more conducive to achieving sustainable development, it identified the
following key elements that would shape such a paradigm: shared values, shared
responsibility and shared leadership. These are very closely aligned with the concept
of Shared Societies as defined by the Club de Madrid, and the Group found the ideas
developed by its Shared Societies Project very pertinent to their discussion.

This document summarizes the Working Group’s discussion on positive elements of a new
paradigm to better achieve a more sustainable and just society. Part 1 gives an overview of how
Agenda 2030 aligns with the Group’s vision and the Shared Societies concept; and Part 2 gives
a more concrete critique of the fundamental building blocks of the world’s current development
paradigm.

1 The Members of the Club de Madrid Working Group believe that development is only sustainable if it is equitable, and use
the term “sustainable development” in this way throughout this paper.

Club de Madrid A new PArAdigm for SuStAinAble develoPment? 4

KEY COMPONENTS OF A NEW
PA R T

1
EQUITABLE AND SUSTAINABLE
DEVELOPMENT PARADIGM FROM A
SHARED SOCIETIES PERSPECTIVE

SHARED SOCIETIES, ENVIRONMENTAL PROTECTION

A. AND SUSTAINABLE DEVELOPMENT

The Working Group
agrees that there is a
link between the creation of Shared Societies
and the sustainability of the environment, but
puts this connection in the wider context of
SOCIAL
sustainable development. Shared Societies
have the potential to be environmentally Bearable Equitable
friendly. They not only contribute to the
protection and restoration of the planet Sustainable
and its ecosystems; at the same time, ENVIRONMENT ECONOMIC
they are inclusive, providing opportunities Viable
for everyone to achieve their potential in
sustainable ways. Conversely, the absence of
inclusion leads to multiple interlocking and
reinforcing disadvantages. In other words,
sustainable development will not be attained dimension is pursued in a way which ensures
without Shared Societies. the achievement of the other elements – not
This appreciation of the holistic nature of in a way which disregards and undermines
sustainable development resonates with the them, as has happened with much economic
vision of Agenda 2030,2 whose 17 goals and and industrial activity to date. There are many
169 related targets aim to address the world’s transversal links across goals and targets;
challenges and put humanity on a more for example, the strong integration of the
sustainable course, leaving no one behind. environmental dimension across the SDGs is
While there are questions about how far it can welcome, as are the specific goals on energy,
achieve its ambition while accepting current sustainable consumption and production,
political and economic orthodoxies,3 Agenda climate change and protection of terrestrial
2030 repeatedly emphasizes that sustainable and aquatic ecosystems. From their own
development means economic, social and experience, members of the Working Group
environmental wellbeing, and that these three have seen that focusing on some desirable
dimensions are interrelated and mutually goals without considering how they impact
dependent. Fundamental to achieving the on the achievement of others will lead to
Sustainable Development Goals (SDGs) unintended consequences and fractured and
is an integrated approach, in which each disjointed progress towards the goals.

2 United Nations (2015) Transforming our World: The 2030 Agenda for Sustainable Development A/RES/70/1 New York: UN, para 10.
3 See Part 2 of this document.

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 PA R T 1.A
For example,4 while environmental conditions have improved for some, they remain worse
for poorer individuals and children. This negatively affects their health and earning capacity,
particularly in financially challenged countries and regions. Across the world, far too many
deaths are still due to poor environmental conditions such as inadequate housing, air and water
pollution, and exposure to hazardous substances. Poor environmental conditions can in turn
introduce or exacerbate inequalities and poverty; for instance, environmental pollution can lead
to illnesses such as chronic respiratory conditions, which undermine quality of life and earning
potential and, for the state, increase the cost of healthcare. Children are particularly vulnerable
in such circumstances, the afterm burden of disease (EBD), a measure of the environmental
burden on society in terms of health, shows high levels of environmental deterioration,
particularly in emerging market economies. In all economies the burden falls most heavily on
those who are already the most vulnerable in society – the poorest, the most marginalized, the
youngest, the oldest, and women.

DEGRADATION DECLINE IN
OF NATURAL QUALITY OF NATURAL
RESOURCES CAPITALS

DEMANDS ON LOSS OF
AGRICULTURAL LAND, CLIMATE CHANGE LIVELIHOOD
WATER, FORESTS AND
FISHERIES

THE
WORLD’S
POOR

4 OECD (2015) All on Board: Making Inclusive Growth Happen, Paris: OECD, http://www.oecd.org/economy/all-on-board-
9789264218512-en.htm

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 PA R T 1.A
The world’s poor are also are adding to the loss of unfettered economic
threatened by the trend livelihood through higher development, inequality and
in degradation of natural temperatures and extreme human rights abuses threaten
resources. Increasingly, events such as drought their cultural integrity, or risk
they live in rural areas – and flooding. It is often the complete destruction of
often called “pockets of pointed out that subsistence their distinct communities.
poverty” – where much economies – i.e. those that Small island states face
of the quality of natural make the least demands potentially devastating rises
resources is degrading. on the world’s resources in sea levels as a result of
Especially in developing and are by definition the climate change caused by
countries, the demands most sustainable – are carbon emissions in larger,
on agricultural land, water, the most affected by the wealthier and more powerful
forests and fisheries are actions of those who are states.
increasingly unsustainable. more advantaged. The
Declining quality deprives communities, cultures and This poverty crisis is separate
the rural poor of adequate languages of indigenous from – and in addition
“natural capital” to support peoples are regarded as to – the biodiversity loss
sustainable livelihoods. among the most vulnerable that characterizes the
Furthermore, in these in the world. The combined modern and manmade so-
pockets of poverty, pressures of environmental called “sixth extinction”.5
climate change impacts degradation, climate change, Many believe that we are
approaching a possible
ecological collapse and
that we are living through
the erosion of our planet’s
ability to sustain life in some
vulnerable ecosystems
and regions. Perhaps that
possibility has not been
sufficiently recognized and
internalized by the bulk of

SOS
the world’s population, and
more effort needs to be
made to bring that message
home. It represents an
ultimatum which should force
the world’s population at all
levels to take action.

5 E. Kolbert (2014) The Sixth Extinction: An Unnatural History New York: Henry Holt and Company; Gerardo Ceballos, Paul
Ehrlich and Anne Ehrlich (2015) The Annihilation of Nature: Human Extinction of Birds and Mammals Baltimore: John Hopkins
University Press.

Club de Madrid A new PArAdigm for SuStAinAble develoPment? 7

 KEY COMPONENTS OF A NEW
PA R T

1
EQUITABLE AND SUSTAINABLE
DEVELOPMENT PARADIGM FROM A
SHARED SOCIETIES PERSPECTIVE

B.
THE SHARED SOCIETIES PERSPECTIVE ON VALUES,
RESPONSIBILITY AND LEADERSHIP
An integrated
approach to

1
development is necessary and would be most
effective because, fundamentally, all aspects
of development require the same underlying
conditions if they are to be fully realized.

2
These conditions are all elements of a Shared
Society: the primacy of shared human values;
awareness of our shared future and shared
responsibility for that future; and shared

3
leadership along with the political will to take
the necessary actions together. RED
SHA UTURE
F

1Shared values are important.

Values may not always be clearly articulated,
but they govern actions and behaviours. The
current dominant values across the world group first, these values are atomizing and
are not conducive to the holistic, inclusive fuel identity conflicts. Seeking short-term
approach that is needed to realize “the advantage is detrimental to the environment
future we want for all”.6 They give primacy and the needs of others, including indigenous
to the accumulation of wealth, competition, peoples and traditional farming and fishing
individualism, self-interest, short-termism, communities. Competitiveness accepts
consumerism and access to power as the inequality as inevitable and precipitates
main drivers of human action, to the point division and tension between individuals,
that such characteristics seem to be the states and commercial interests; while
innate nature of humanity (while they are reliance on power and force to influence
part of human nature, they are by no means others compounds harmful trends such as
the whole). The impact of these values on authoritarianism and violent extremism.
sustainable development is negative, and they
are unable to de-escalate harmful trends. By Current structures and systems reward these
putting individuals and their own reference dominant values and the attitudes, traits and

6 United Nations (2012) Realizing the Future We Want for All: Report of the UN System Task Team on the Post-2015
Development Agenda, New York: UN, http://www.undp.org/content/undp/en/home/librarypage/poverty-reduction/realizing-
the-future-we-want.html

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 PA R T 1.B
behaviours associated with
them. We are told they are the
necessary drivers of progress,
yet they are not in tune with
protecting the planet or
facilitating the empowerment
of weaker and disadvantaged
sections of society to fulfil
their potential and contribute SHARED SOCIETIES FRAMEWORK
to the community. This
suggests that the current Respect for the dignity of every individual
definitions of “progress”,
“development” and “success” Respect for human rights and the rule of law
need to be rethought. The
Working Group believes that Altruism and identification with the needs of
the concepts of “wellbeing” other individuals, of the community and of future
(in its broadest sense) and generations, in a spirit of solidarity and collective
“prosperity” provide more action
meaningful criteria for human
Equity, fairness and inclusiveness
achievement – compared
to the acquisition of power, Democratic participation in a way which enhances
wealth or status viewed in the ability of all sections of society to express their
isolation – and are more aspirations and their needs
consistent with sustainable
development and respect for Individual and community self-reliance and
the environment. autonomy in their own affairs, along with networks
of interconnectedness, caring and sharing
The underlying values of the
Shared Societies Project7 are Respect for the environment and the rights of
very similar to those required nature and all species
to achieve environmental
sustainability. These same Respect for the earth’s natural boundaries
values are needed if we
are to achieve an economy Recognition of the irreplaceability of the global
which works for all and commons – for example, sea, freshwater, air and
protects the environment. space – and therefore that their protection takes
Therefore, with a few small precedence over other considerations
additions to explicitly address
environmental issues, they Modesty and restraint in consumption, lifestyle
are proposed here as a and use of the earth’s resources
very helpful and pertinent
Peace and harmony
framework.

7 Club de Madrid (2009) A Call to Action for Leadership to Build Shared Societies, http://www.clubmadrid.org/img/
secciones/The_Shared_Societies_Project_Booklet_160910.pdf

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 PA R T 1.B
These values and principles be necessary to deal with should be tested for their
are familiar, traditional, current local and global capacity to contribute
and still very much alive challenges. It is not expected to the realization of that
and practised in some that current tendencies in vision and principles. This
traditional local communities, attitude and behaviour can requires that incentives and
particularly amongst be quickly reversed and that rewards respond to and at
indigenous peoples, small the current orientation will the same time motivate and
island communities and poor suddenly change to embrace encourage the co-operative,
rural communities. Such these values and principles, compassionate, altruistic,
communities display many given all the countervailing ethical and aesthetic aspects
elements of a truly Shared pressures. Instead, of human nature to meet
Society, that can teach us the challenges facing the
much about effective social, the immediate goal global community today.
economic and political should be to It follows that money
organization, sustainable would be regarded as a
create a policy
development, and managing means of exchange, and
and educational
and safeguarding the its accumulation would
environment. These values framework informed not be seen as a sign of
are still widely held as by shared values that achievement.
ideals and are laid down in will guide decision
the Charter of the United making, New ideas8 are emerging
Nations, the Universal in local communities,
Declaration of Human Rights, and consequently actions think tanks, academia, a
subsequent conferences and and behaviour. This may few national governments
summits, and most recently facilitate the rediscovery and in intergovernmental
in Agenda 2030. However, of appropriate values, institutions, but as yet
they are not sufficiently particularly if they are they have had only limited
embraced as guiding seen to be more effective impact on the wider public
principles for the attitudes in creating a prosperous, consciousness or the
and actions of all, and instead sustainable and inclusive economic system itself. They
are squeezed or pushed society for the benefit of are designed to encourage
to one side by the current all and the recovery of the and release the potential of
discourse and existing environment. humankind to work for the
structures and systems. wellbeing and prosperity
The socio-economic system of all, and factor in non-
To redress this trend, it is should therefore be reset to negotiable requirements for
imperative to build the sense favour economic solutions true sustainable development
of belonging to multiple that will help make this such as respect for the
Shared Societies both locally vision a reality. It should environment, decent work
and globally, along with be values-driven, and and a decent life for all.
the shared values that will any regulatory measures

8 For example: Report of the Commission of Experts of the President of the UN General Assembly: www.un.org/ga/
econcrisissummit/docs/FinalReport_CoE.pdf; A. Kothari, F. Demaria and A. Acosta “Buen Vivir, Degrowth and Ecological Swaraj:
Alternatives to Sustainable Development and the Green Economy” in Development (2014) 57(3-4), (362-375); New Economics
Foundation at www.neweconomics.org; The Solutions Journal at https://www.thesolutionsjournal.com/

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 PA R T 1.B
2 A sense of shared responsibility, There are examples of how particular images
in traditional and social media compelled
particularly for living within natural people to pause for reflection, changed the
boundaries and supporting other people and narrative and shifted public attitudes, at least
living creatures, complements and reinforces for a short time. The publication of pictures
the shared values. The development of the body of three-year-old Syrian refugee
community and those fighting climate change Alan Kurdi9 is a case in point, which shows
and environmental degradation face the that people can be moved by the plight of
conundrum that people and communities others to accept their share of responsibility;
know that some of their behaviours have the next step is to make that a more
a negative impact on the environment, systematic and sustained awareness. This is
but often do not change these behaviours another reason why
unless their effects touch them directly and
personally. Examples range from simple
action like turning off taps and lights to save it is imperative to build
water and electricity, to reckless dumping of the sense of belonging to
waste by major companies and government
multiple Shared Societies,
agencies.
locally and globally.
It is worrying that many people are unwilling the sense of being a
to make such minimal efforts in their personal valued part of an entity,
lives, though of course large institutions big or small, motivates
have the biggest impact on societies and the engagement with issues,
environment. Individuals have responsibility for concerns, the needs of
the impact of their own actions and also for the others, and with the
influence they can assert on big institutions.
ecosystem that sustains
With globalization, it is even more the the community.
case that no person, group or country is
“an island”, as the poet John Donne said.
Everyone makes a difference for better or for It was noted that this sense of shared
worse. Many people are not yet aware of the responsibility is still found amongst
implications of their actions. Consumerism, indigenous peoples and other small, self-
the media and social pressures encourage sufficient communities, though of course
people to ignore the harmful consequences. financial pressures may induce them to accept
Even when those consequences are development projects that are not in their
understood, a “culture of convenience” community’s best interests, and from which
tempts them to ignore their responsibility and they are likely to gain little benefit. The direct
take the easy option, despite knowing that contact of members of such communities
greater personal effort will contribute to the with each other and with their environment
greater good. Modern communities tend to be may be an important factor in helping to
more amorphous and impersonal and people inculcate the sense of personal responsibility
are disconnected from the impact of their for the impact of their actions. This relates to
own attitudes and behaviour. a point made by Ostrom et al., that:

9 https://en.wikipedia.org/wiki/Death_of_Alan_Kurdi

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 PA R T 1.B

“
across societies. Agenda 2030 argues that the
SDGs will not be achieved unless all sectors
of society are involved in the efforts to reach
Users who depend on a resource for
them. Ban Ki-moon, the former UN Secretary
a major portion of their livelihood, General, has said: “the success of the 2030
and have some autonomy to make Agenda will depend on whether adolescents
their own access and harvesting and young people become agents of positive
change,”12 and then went on to note:
rules, are more likely than others
to perceive benefits from their own
restrictions, but they need to share
an image of how the resource
system operates and how their “People are the central agents of
actions affect each other and the their lives and are the first and
resource.”10 last responders to any crisis. Any
effort to reduce the vulnerability
of people and strengthen their
resilience must begin at the
Indigenous peoples are also very directly local level, with national and
aware of the traditional practices, customs international efforts building on
and stories of their communities, which local expertise, leadership and
instil the sense of sharing and commitment
capacities. Affected people must
to the community and the environment, as
inheritors from the past and guardians for be consistently engaged and
the future. These qualities have been hard to involved in decision making,
upscale and replicate, though the Working ensuring participation by
Group considered positive experiences
women at all levels. Legitimate
from Bhutan and Costa Rica, and members
are aware of other examples11 of building a representatives of communities
social, environmental and economic model should be systematically placed
around shared values and a sense of shared at the leadership level in every
responsibility. However, such approaches are context. People must also be able
by no means the norm.
to influence decisions about how

”
Agenda 2030 rightly emphasized that not only their needs are met.13
are the SDGs inclusive, but they also require
fostering a sense of shared responsibility

10 E. Ostrom, J. Burger, R. Norgaard and D. Policansky “Revisiting the Commons: Local Lessons, Global Challenges” in Science
(1999) 284(5412): 278-82, page 281.
11 For example, R. Levins (2008) Talking about Trees: Science, Ecology and Agriculture in Cuba, Delhi: Leftword.
12 Ban Ki-Moon (2015) One humanity: shared responsibility, Report of the Secretary General for the World Humanitarian
Summit, A/70/709 New York: UN, para 101.
13 Ibid., para 114.

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 PA R T 1.B
Many of the obstacles to commercial interests, who are rather than as the champions
meeting current challenges committed to their narrow of more sustainable, inclusive
and realizing the SDGs are concept of progress. They progress. The majority of
compounded by the lack of cannot understand why their people are not consulted,
meaningful engagement of plans should be opposed, but they should be – not only
all relevant parties in shared even when they impact because it is right and just
analysis of the problems negatively on the lifestyles to do so, but also because
and the development of and human rights of others it would lead to more
shared solutions. At present, and are open to serious engagement and therefore
decision making is too often criticism. They see their to more effective and
concentrated in the hands of opponents merely as a barrier sustainable policies and more
elite groups of politicians and to their concept of progress efficient implementation.

3 Shared leadership and the environment for all. It is not easy to say to
big corporations that their activities will be
political will to introduce change
regulated for the greater good. It is difficult to
can mobilize institutions and people in order confront populist chauvinistic rhetoric, often
to bridge a gap in commitment. Many of amplified by populist leaders and media, and
the challenges and threats are recognized instead make the case for interdependency.
in terms of rhetorical statements, but are Equally, it requires leadership at the global
avoided and not substantively or consistently level, where there may be some measure of
addressed. At all levels, there is a lack of consensus on the future we want for all, but
public commitment and political will to not on the best way to achieve it and respond
take them as seriously as they need to be to the current threats.
taken. This lack of political will means that
known solutions are not applied. It requires
honest, courageous leadership to admit past
mistakes, the consequences of which are
still to be put right. It requires leadership to
say to one’s supporters that there must be
a change in current practices, such as the it is challenging but
over-exploitation of resources or disregard necessary to call on
for the impact of consumption patterns on
people and states
poor and disadvantaged communities, and
to acknowledge that these changes may
to share power and
cause some minor inconvenience at home give up privileges,
but are necessary to meet goals and solve and to commend
problems elsewhere. It is challenging to those who do.
persuade people that while such changes are
not intended to meet immediate self-interest
or demands of citizens, in the long run they
will be in everyone’s interest and will create
a better social, ecological and economic

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 PA R T 1.B
Lack of leadership for The nature of the interaction between leaders and the
inclusive Shared Societies community is crucial. The current challenges cannot be
feeds uncertainty and resolved by leaders alone, but require the mobilization of the
inflames fear, frustration, lack whole community; therefore, enabling leadership is called for
of trust and hostility towards that supports and encourages all sectors to play their part.
those who seem different. Leaders will also need community support in challenging
How does one build political divisive tendencies; without this, they can easily become
support and motivation? How captured by and dependent on those interests. Members of
does one engage people the Club de Madrid said:
in new ways of looking at
things? Where is the political
will? Positive leadership can
gain support for altruistic
policies, provided they
are fair and equitable and
the case is made openly
and transparently. Leaders “Shared Societies are achieved
need to build awareness when all parts of a community
that the challenges are
shared challenges, and the value and feel committed to
responsibility for change is their shared achievements. The
shared by all sectors. The most effective way is through
Club de Madrid established
the Shared Societies Project
a partnership between the
to promote – and it continues state and political leaders, civil
to promote – this kind of society, religious institutions

”
leadership at all levels. Such
and the private sector.”14
leadership can be found
in any section of society,
including those that are
currently marginalized, and
can be most effective when
it is shared and dispersed
across society. There are
many examples of people
collectively mobilizing to
transform their lives for the These sentiments equally apply to the efforts to achieve
better and claim their rightful sustainable development. The situation is critical, and change
role in decision making. is urgently required.

14 Club de Madrid (2009) A Call to Action for Leadership to Build Shared Societies, page 33, http://www.clubmadrid.org/img/
secciones/The_Shared_Societies_Project_Booklet_160910.pdf

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 PA R T

2
TRANSFORMING SYSTEMS UNFIT
TO MEET CURRENT AND FUTURE
TRENDS AND CHALLENGES

This section of the paper gives a more and Shared Societies, which need to be
concrete critique of the fundamental building addressed. For example:
blocks of the world’s current dominant
development paradigm. It also aims to
illustrate why the Working Group concluded
that this paradigm is inadequate to achieve
a fair, prosperous and sustainable future The current dominant thinking
for the planet and all of its inhabitants. It assumes that the only way to
summarizes discussions in the Working harness human potential is through
Group, using an inclusive perspective, on the a growth model that creates wealth.
concepts that underlie and shape economic However, we know that the planet
and development policy, such as growth, cannot sustain current levels of
consumption, wealth, competition, efficiency, growth and exploitation, and that
the market, pricing, the functioning of the much of the wealth created is
joint stock company, the planning horizon and not made available for improving
government regulation. economic, social and ecological
wellbeing.
Many of these concepts are basic tenets of
neo-classical economics, which still dominate It assumes that human beings are
the prevailing view in the global financial inherently selfish and that self-
system and in many national economies. interest and the profit motive
They are closely interlinked and create a set are the most effective way to
of feedback loops which mutually reinforce incentivize people. In contrast, we
existing assumptions and the status quo. also know that self-fulfilment and a
Therefore, it is important to approach them sense of achievement can be more
in a fresh and critical way, with a particular important than monetary incentives,
eye towards their impact on sustainable and we are also becoming more
development. In this section, a number of aware of the limitations of self-
other concepts relevant to environmental interest as a self-organizing
sustainability and sustainable development principle.
are also considered, such as land tenure,
technology and innovation, the global It is argued that increased taxes
commons, ecological boundaries, inclusion reduce growth, but this is not
and inter-disciplinary cooperation. necessarily the case; it is also
known that people are willing to
The current dominant thinking is based on accept increases in taxes to provide
assumptions about human nature and the for those things they consider
functioning of the economy. These may or important, such as healthcare and
may not be at least partially correct, but education.
they lead to tensions and outcomes that run
counter to the objectives of sustainability

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 PA R T 2
In recent times, austerity and reduced spending have been promoted as necessary
to deal with deficits, but the consequences invariably fall on the weak and
vulnerable who are least able to bear the costs and who, not coincidentally, have
the least political influence to challenge spending priorities.

Gross Domestic Product (GDP) is considered to be the best measure of national

progress, but recent surveys in 11 countries show that only 23 percent of people
think that governments “should measure national progress using money-based
economic statistics because economic growth is the most important thing for a
country to focus on”.15

Current thinking also often fails to take account of the impact of expected trends in human
development. These include:

Improved living Shift from rural New technology and

standards leading areas to urban areas. access to it.
to growing
expectations in Shift from Access to education.
housing, access subsistence
to goods and and exchange Improved capacity
services, and energy economies to to measure and
consumption. monetized systems. assess national
progress that
Reduction of fertility Continued existence is more multi-
and lower mortality of small, traditional, dimensional than
as wellbeing, health self-sufficient recording GDP.
and standards of communities with
living improve. limited access to
resources.

There are many sources of friction between the processes of human development and
environmental sustainability, especially where the model for human development assumes
large increases in the consumption of physical products. On the other hand, the two processes
can create virtuous circles of mutual reinforcement: low-carbon energy economies; reduction
in population growth; increasing economies of scale in provision of infrastructure and services
as people migrate to larger, more accessible population centres (although there are also
downsides to increased urbanization, and challenges in enhancing living conditions and
opportunities in rural areas). All of these trends are to a large extent self-organizing, with
limited government direction, but responsive (negatively and positively) to government policy.
They produce outcomes, threats and opportunities – some fixed and inevitable, some avoidable,
and some to be encouraged and enhanced.

15 http://globescan.com/news-and-analysis/press-releases/press-releases-2013/98-press-releases-2013/278-public-backing-
for-going-beyond-gdp-remains-strong.html

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The failure of current national policies and their underlying assumptions to respond effectively
and deal with many of the challenges facing the world has led to a renewed critique of
current orthodoxies. Yet there are strong forces that resist alternative perspectives, arguing
when current strategies have not delivered that it is necessary to redouble efforts rather than
question if the approach is inappropriate and needs to be reoriented. There is a need to focus
on the deep roots of economic and social justice. This means focusing on systemic issues – tax
systems, harmful behaviour by firms and companies (such as rent seeking and rent capture)
– and on how to maximize opportunities for individuals and communities through education,
skills, access to decent work and job quality,16 and access to financial support.
For that reason, the rest of this section focuses on the three groups of systemic issues listed
below. It concludes by looking at appropriate approaches to a fourth range of issues that will
help to shape the future, for better or worse.

A.
THE ECONOMY

1The growth model and GDP

A new perspective on development is needed
that reflects the reality that our economies
are dependent on natural and human
resources and cannot operate beyond the
limits of ecological boundaries. the purpose
of the economy is to serve the people
and planet in terms of overall satisfaction,
prosperity, wellbeing and happiness, and measure of the functioning of the economy,
therefore is not an end in itself. and an indicator of success. However, if this
measure is used too narrowly and in isolation,
Most current development models give pre- it leaves many factors out of consideration
eminence to economic growth, measured – including the impact of growth on the
as Gross Domestic Product (GDP). This is environment, on inequality, on sustainability
justified on the assumption that growth and on how wealth is used. A more accurate
is needed to create wealth and provide frame of reference is needed that reflects the
employment opportunities, which in turn reality that our economies are dependent
can drive further growth. As a result, the on natural and human resources and cannot
financial bottom line becomes the main focus sustainably operate beyond the limits of
of attention and GDP is used as a convenient ecological boundaries.

16 For a more detailed discussion of job quality, see the OECD job quality database: http://www.oecd.org/statistics/job-quality.htm

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Additionally, the purpose of the economy is to be a tool to approaches to economies,
meet people’s needs. Therefore, the goal of economic policy societies, productivity and
must be to serve the people and planet, but – crucially – growth that go beyond
it is not an end in itself. The economy is one of the three GDP and focus on putting
dimensions of the SDGs, but not the prevailing one at the top people at the centre of its
of a hierarchy. Similarly, from the Shared Societies perspective, development models. Its
the hierarchy of the dominant discourse is reversed so that the report, “All on Board: Making
economy is not at the pinnacle but is subject to environmental, Inclusive Growth Happen”18
societal and human concerns. Some members of the Working introduces a new approach to
Group tended towards a zero-growth model, globally and in economic growth that goes
affluent economies, while others believed that sustainable beyond traditional monetary
growth is possible, but all agreed that indicators and shifts the
focus to multidimensional
living standards (MDLS).
Its “New Approaches to
Economic Challenges (NAEC)
growth alone should not be Initiative”19 also seeks to push
the primary aim macroeconomic models to
place greater emphasis on
of economic policy.
the measurement of stocks
(of wealth, natural and
social capital, etc.), beyond
focusing solely on flows (i.e.
growth), as well as to give
The measure of GDP has been seductive, as the data is readily
adequate consideration of
available and provides a convenient comparative index. We
both stock and flow concepts
acknowledge that GDP is relevant and will continue to be
in analyses.
useful, but only if it is refined and takes more account of the
costs and damage caused by production, distribution and the
loss of natural capital. GDP should also be used in conjunction
with other significant measures of human wellbeing, prosperity
and environmental sustainability.

It is a positive sign that there is recognition of the importance

of the qualitative aspects of wellbeing and significant interest
in developing other measures, such as the Happy Planet
Index, the Genuine Progress Indicator, Indigenous Human
Development Indicator and the Social Progress Index.17
The OECD, for example, has been developing a number of

17 See the Report by the Stiglitz Commission on the Measurement of Economic Performance and Social Progress: http://www.
stat.si/doc/drzstat/Stiglitz%20report.pdf; see also section 14 of this document.
18 OECD (2015) All on Board: Making Inclusive Growth Happen, OECD Publishing, Paris: http://www.oecd.org/economy/all-on-
board-9789264218512-en.htm
19 OECD (2015) NAEC Synthesis Report, OECD Publishing, Paris: http://www.oecd.org/mcm/documents/Final-NAEC-
Synthesis-Report-CMIN2015-2.pdf

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and exchange basis, and trade has been
one of the drivers of imperialism. Modern
communication and transport systems have
allowed an exponential growth in global trade,
and have broken down the role of the state
in mediating relationships between suppliers
in one country and buyers in another. While
this has lifted many people out of poverty and
offers the possibility of independent suppliers
and consumers co-operating and realizing
their own potential in a Shared Societies
way, the reality is that the change has mainly
benefited large global companies that are
now bigger, more powerful, and with more
concentrated financial resources than many
countries.

This has led to many distortions which work

against sustainable development. These

2 Globalization and trade companies straddle borders and many

cultural, legal and regulatory environments,
and are difficult for any state or institution to
large global companies are now bigger, regulate. They can electronically move their
more powerful and with greater financial profits around the world so that they are not
resources than many countries, resulting fed back into the countries where the profits
in many distortions which work against were made. The movement of profits also
sustainable development. the unwillingness allows the companies to pay only minimal
of the most powerful national governments taxes, thereby restricting the funds available
to address these distortions and protect the for national budgets.
weak against the strong means that free trade
currently does not mean fair trade. to change Global companies have the power and
this imbalance and avoid negative impacts at resources to lobby national governments
the local level there needs to be co-operation effectively to ensure free trade and light
between civil society movements and regulation. National governments are
multinational institutions; this is also needed negotiating trade agreements which facilitate
to achieve greater democracy in international trade and favour companies with global
trade bodies and greater transparency in the reach: at a global level in the World Trade
operation of large global companies. Organization, and in free trade agreements
between states such as the North American
“Globalization” is a recent addition to the Free Trade Agreement, Trans-Atlantic Trade
lexicon of terms which guide economic and Investment Partnership and the Trans-
activity, but it is a natural result of maximizing Pacific Partnership, all three of which have
growth. If growth is desired then the more been promoted by the USA – at least until
opportunities there are to produce and sell, recently, when opposition to free trade
the better it is for business. Interregional agreements in their present form was
and intercommunity trade has existed a feature of Donald Trump’s successful
since time immemorial, mainly on a barter presidential campaign.

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As presently conceived, such agreements community. It is important to ensure that
give companies easy access for sourcing this is not done in a way which protects the
supplies and for selling their goods and disadvantaged in a developed country at
services, but this is often at the expense of the expense of even more disadvantaged
local employment and the local environment. communities in developing countries.
They create a competitive environment in
which the strongest succeed and the weakest The problem is not global trading links, as the
suffer, deepening inequality and undermining ability of poor people in remote areas to be
the achievement of the SDGs. For more than able to trade and sell their surplus provides
a decade, concerns have been expressed them with resources to improve their life
by labour organizations and international chances. The problem is the unwillingness
NGOs,20 among others. In 2006, Rafael Correa of powerful national governments to protect
was elected President of Ecuador as a vocal the weak in developing countries for reasons
opponent of unfair free trade, following of national self-interest, so that free trade
protests by workers and indigenous peoples currently does not mean fair trade. To change
to a free trade agreement being promoted by this imbalance requires co-operation between
the USA. In 2014 he said, civil society movements and multinational
institutions to achieve greater
democracy in international trade
bodies and greater transparency
in the operation of large global
companies.

“
In addition, the growth in global
trade with long supply chains
We don’t believe in free trade. increases the environmental
It is the most anti-historical costs of transporting products
around the world, and also
thing that exists; almost no
makes it difficult to monitor
developed country used it. unethical workplace and
But we do believe in mutually environmental practices in
beneficial trade.” distant locations. There is
growing awareness of these
problems and growing civil
society movements to challenge
negative features of the supply
chain. The largest companies
have been forced to change
their practices as a result of
It is not surprising that protectionism seems such campaigns, but much more needs to
a better alternative for those disadvantaged be done to ensure ethical and sustainable
by free trade – there is a trend back toward practices are adhered to across companies of
localization of production to serve the local all sizes.21

20 For example, see: https://www.foe.co.uk/sites/default/files/downloads/no_deal.pdf

21 See page 26 for a fuller discussion.

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Internationally agreed
standards are crucial, and
examples include the UN
Guiding Principles for
Business and Human Rights
and the OECD Guidelines
for Multinational Enterprises
(MNEs) on Responsible
Business Conduct. The
OECD guidelines, backed
3 Consumption
by governments, cover all fundamental changes are needed in the ways that our
major areas of business societies produce and consume goods and services,
ethics, including topics such which will require ways to manage consumption and other
as information disclosure, aspects of personal choice and socio-economic behaviour
human rights, employment that are currently unsustainable and inequitable.
and labour, environment,
anti-corruption, and If it is argued that growth is important because it creates
consumer interests. Building wealth, one must then ask how that wealth is used.
on the MNE guidelines, Orthodox thinking about growth requires maximum
the OECD Due Diligence consumption, because increased consumption generates
Guidance for Responsible economic growth. However, consumption is heavily skewed
Supply Chains of Minerals towards the wealthy, even as billions have unmet basic
from Conflict-Affected and needs. While some private expenditures are invested in
High-Risk Areas22 provides productive and socially desirable ends, much is diverted
detailed recommendations to resource-depleting conspicuous consumption. Current
to help companies respect distribution systems and marketing priorities target the
human rights and avoid affluent and are not geared to getting adequate basic
contributing to conflict goods to those most in need, since that requires greater
through their mineral distributional effort, often with low profits.
purchasing decisions and
practices. This has become Almost by definition, overconsumption creates increasing
the de facto international amounts of waste, a sure sign that the world’s resources
industry standard for are being used up unnecessarily. It is ironic that when
companies working in the we are more aware than ever before of the need to
field, that are looking to conserve the planet’s resources, much of those resources
assure mineral supply chain end up as waste, polluting the air, water and soil, and
transparency and integrity. contributing to global warming – a striking illustration of
the transformation of natural resources into deadly threats
to the planet and all living things. People recycle more
than they did in the past, it is true, but this may be a sign
that the affluent buy more than they need. It would be
preferable if they did not have so much “stuff”, which is
surplus to their requirements, in the first place.

22 OECD (2016) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk
Areas: Third Edition, OECD Publishing, Paris.
http://www.oecd.org/daf/inv/mne/OECD-Due-Diligence-Guidance-Minerals-Edition3.pdf

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In Agenda 2030, the UN Member States recognize the problem and “commit to making
fundamental changes in the ways that our societies produce and consume goods and
services.”23 It is important that they make good on this undertaking, which will require them
to find ways to manage consumption and other current aspects of personal choice and socio-
economic behaviour that are unsustainable and inequitable.

4 Competition and behaviours associated

with competitiveness,
Competition can be which put the individual
a driver of innovation and his or her reference
and improvement, group first, are atomizing,
but can have direct at a time when we need
perverse effects on more collaboration
sustainable development. and inclusiveness to
Collaboration may be tackle the challenge of
equally, if not more, sustainable development.
effective. the value Competitiveness
of collaboration must encourages single-
be recognized and mindedness, ignoring
encouraged through incidental damage and
education and in society, the concerns and interests
and governments need to of others, and as such is
create more incentives for antithetical to the holistic
collaborative approaches. orientation of Agenda
2030. It also leads to
Competitiveness is highly stress and overwork.
valued and encouraged Competition for resources
by many, as it is believed can cause tension, conflict
to be the best way to develop new products, and wars. The relentless effort to reduce
services and technologies, ensure higher prices to gain competitive advantage has
quality and, as a result, enhance economic many undesirable consequences, as will be
performance. The modern competitive seen in the next section.
economic system therefore encourages
initiative and entrepreneurship. Unfortunately However, other more collaborative traits may
it also encourages other traits, such as improve the working environment and be
individualism, acquisitiveness, selfishness and equally, if not more, effective and sustainable.
short-term thinking, which are less conducive For example, teamwork may produce more
to building an inclusive sustainable future. creativity and innovation, as seen for example
in the development of open software, the
Competitiveness often has a negative effect Creative Commons movement and initiatives
at a human and social level. The norms, values like Wikipedia.

23 Op. cit., para 28.

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the value of becoming increasingly by powerful interests that can
collaboration must aware of the finite nature use their market position to
of available resources. build monopolies that prevent
be recognized
Competing groups are small and medium-sized firms
and encouraged
duplicating each other’s from benefiting from a level
in society and efforts by working on similar playing field.24 These powerful
through education, products at the same time; interests can also bring
and in the case of the least additional economic and
successful, all their investment political resources to bear,
and governments need to of time, resources and effort or manipulate the situation
create more incentives for may be abandoned. so that the brightest and the
collaborative approaches. most creative initiatives do
Competition is often less not always win out, and the
Competition can be wasteful genuine and fair than it most socially useful ideas
at a time when we are appears. It is often disrupted often come to nothing.

5 Costs and pricing:

many of the real costs of production and
consumption, such as environmental
degradation and pollution, are often treated
as externalities and fall on someone else or on
future generations. they need to be viewed
more comprehensively, looking at both the
wider impacts of current practices and the
long-term costs and benefits. the pressure to
meet targets for climate change mitigation,
Agenda 2030 and the decent work for All
campaign, if they are taken seriously, could
help bring about this change of orientation.
Public bodies and civil society organizations
must play their part in ensuring that these
frameworks are central to future assessments
of costs and benefits.

Prices theoretically reflect supply and demand difference in quality or performance. In these
– people will pay more for products that circumstances, suppliers look for ways to keep
are in short supply. Price plays a big part in prices low by reducing or avoiding costs, with
purchasing decisions, especially if there is little unfortunate consequences.

24 See OECD (2015) All on Board, op. cit. chapter 4.3, http://www.oecd.org/economy/all-on-board-9789264218512-en.htm

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Many consequences of production, such as can have unpredictable results. He therefore
environmental degradation and pollution, are favours capping resource use. This will require
not considered costs and therefore fall on concerted intergovernmental action.
someone else or on future generations:
Reducing costs also leads to poor working
conditions and drives down wages and prices
for commodities, generally at the expense
of the communities affected. These are
short-sighted measures. The International
Labour Organization, which has promoted
“We are stealing the the decent work Agenda, has shown that
future, selling it in the decent work is not only fair and just but also
strategies which focus on promoting decent
present and calling it GDP.
work opportunities tend to yield sustained
We can just as easily have development results27. A fair wage and a fair
an economy that is based price for supplies also increases workers’ and
on healing the future primary producers’ spending power.

”
instead of stealing it.25 In thinking about costs, societies sometimes
accept achieving one goal (say, growth)
even if it means postponing an alternative
goal or accepting negative consequences.
From the perspective of the Shared Societies
Framework set out earlier,28 it is not adequate
to accept such trade-offs as inevitable.
The mounting costs of the damage or repair Greater effort must always be made to find
costs resulting from misguided development win-win solutions. Costs and benefits need to
programmes can no longer be ignored. be viewed more comprehensively, looking at
They need to be costed accurately in any both the wider impacts of current practices
production process so that the cost falls on and the long-term costs and benefits. The
the most appropriate party. At the same time, pressure to meet targets for climate change
there is some concern that more accurate mitigation, the goals of Agenda 2030 and
pricing could have the perverse effect of the Decent Work for All campaign, if they
legitimizing continued overexploitation are taken seriously, should bring about this
of resources. Herman Daly26 has pointed change of orientation. Public bodies and civil
out that trying to put a price on these society organizations must play their part in
consequences of development through ensuring that these frameworks are central to
taxation or some form of market mechanism future assessments of costs and benefits.

25 Paul Hawken, Commencement Address, University of Portland, 2009

https://www1.up.edu/commencement/honorary-degrees/hawken.html
26 H. Daly and J.C. Farley (2010) Ecological Economics: Principles and Applications, 2nd ed., Washington, D.C.: Island Press.
http://onlinelibrary.wiley.com/doi/10.1002/wow3.47/pdf
27 International Labour Organization (2014) “Productive transformation, Decent Work and Development”, pages 65-82, World
of Work Report 2014, Development with Jobs, Geneva: ILO Publications
28 See Part 1 of this document and Sharing Our Planet: Today and Tomorrow: Key Insights of Club de Madrid Working Group
on Shared Societies and Environmental Sustainability, page 6-7.

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disadvantage in comparison
to others, but at the same
time are willing to accept
tough regulatory frameworks
and taxation regimes if they
apply to all companies.

Regulatory and political

processes are susceptible to
capture by powerful elites,
giving them a privileged and
preferential role in setting the
agenda on a whole range of
issues, and influencing policy
design in ways which are not
consistent with sustainable
development or the needs of
the general population or the
environment. One example

6 Regulation and taxation of this is the situation of the

Yup’ik fishermen of south-
western Alaska. They follow
ensuring fair regulatory and taxation systems requires age-old sustainable fishing
strong political will, backed by a clear sense among the methods but are restricted
population of the importance of these measures in ensuring by the regulations imposed
more fair and sustainable systems. At the international level, by distant State of Alaska
individual countries need an enabling international economic fisheries managers, who have
environment if they are to be able to develop effective no idea of the benefits of
regulatory policies for sustainable development; this is what the centuries-old practices
Agenda 2030 calls a “Global Partnership for Sustainable involved. In contrast, the
Development”. fisheries authorities do not
interfere with large-scale
As the previous sections have made evident, the current catches of the same fish by
economic system is not “fit for purpose”. It will not deliver commercial fleets on the
sustainable development, meet the needs of the planet, or open sea from Washington
fulfil the aspirations of most of its inhabitants. Therefore, State, Japan and elsewhere.29
regulation and taxation is often necessary to provide restraints Powerful interests are also
on negative behaviour and incentives for good practice. There able to subvert regulatory
is often resistance to regulation or increases in taxation, even and tax systems that do exist
when there is agreement on the need for more sustainable and and to ensure that harmful
fair practices. Leaders in the corporate sector have often said activities, like rent seeking
they will resist such measures and take advantage of any gaps and tax avoidance, are
in the rules so as not to put their company at any possible tolerated.

29 For a report on Yup’ik fishermen being brought before the courts, and the arguments on both sides, see: https://www.adn.
com/rural-alaska/article/yupik-alaskans-trial-violating-salmon-fishing-restrictions-claim-religious-rite/2012/11/13. The fishermen
were ultimately found guilty.

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These interests often rely on ideas from neo-liberalism, which demolish trade unions and
have proved politically persuasive; however, the Working Group tariffs that block imports from
is satisfied that its supporting arguments are invalid, lead to countries with low wages
undesirable outcomes and must be challenged. As the Stiglitz and weak environmental and
Commission on Reforms of the International Monetary and safety rules, so that wages and
Financial System found, in reference to the “flawed policies” that working conditions in these
helped to create the 2008 crisis: countries further decline.33

To overcome these tendencies

requires strong political will
backed by a clear sense
“Underlying many of these mistakes, in among the population of
both the public and private sectors, were the importance of measures
the economic philosophies that have to ensure fairer and more
sustainable systems. Tax
prevailed for the past quarter century evasion and avoidance, for
(sometimes referred to as neo-liberalism example, have for decades
or market fundamentalism). These flawed been depriving governments
of significant resources that
theories distorted decisions in both the could be directed to things
private and public sector, leading to the that matter and fund the
policies that contributed so much to the policies that can help promote
equity and inclusion: education,
crisis and to the notion, for instance,
healthcare, infrastructure
that markets are self-correcting and that and tackling environmental
regulation is accordingly unnecessary. degradation. For example,

”
revenue losses resulting
These theories also contributed to flawed
from tax base erosion and
policies on the part of Central Banks.30 profit shifting (BEPS) are
conservatively estimated at
US$100-240 billion annually,
or anywhere from 4-10 percent
As far back as 1961, Gore Vidal described the US economic system of global corporate income
as “free enterprise for the poor and socialism for the rich,”31 where tax (CIT) revenues. Individual
“the rich have been increasingly protected from the market forces, countries have difficulty in
while the poor have been more and more exposed to them”.32 By dealing with such practices by
that, he meant that states bail out investors, hand out sweetheart transnational corporations in
contracts, and impose austerity to keep bondholders whole, but isolation.

30 United Nations (2009) Report of the Commission of Experts of the President of the UN General Assembly, www.un.org/ga/
econcrisissummit/docs/FinalReport_CoE.pdf
31 Gore Vidal (1972) “Edmund Wilson, tax-dodger” in Homage to Daniel Shays: Collected Essays 1952-1972, p.153. New York:
Random House.
32 C.J. Polychroniou: “Exposing the Myths of Neoliberal Capitalism: An Interview With Ha-Joon Chang”, http://www.truth-out.
org/opinion/item/39393-exposing-the-myths-of-neoliberal-capitalism-an-interview-with-ha-joon-chang
33 Cory Doctorow: “A succinct, simple, excellent description of the problems of neoliberalism and their solution”, https://
boingboing.net/2017/02/10/a-succinct-simple-excellent.html

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The OECD and G20, working in partnership transparency in the international system of
with many weaker countries, developed taxation and limit opportunities for individuals
a package of measures that will reduce to conceal taxable income in low-tax
opportunities for aggressive tax practices by jurisdictions. This emphasizes that individual
firms, including BEPS. The aim is to ensure countries need an enabling international
that profits are taxed where economic economic environment if they are to be able
activities take place and value is created.34 to develop effective policies for sustainable
These measures were endorsed in 2015. At development – what Agenda 2030 calls
the same time, the OECD has also undertaken a “Global Partnership for Sustainable
efforts, in collaboration with international Development”.36 The Global Shared Societies
partners, to promote the Automatic Exchange Agenda37 provides a template for such an
of Information (AEoI)35 between different enabling global system.
countries’ tax authorities to improve

B.
NATURAL RESOURCES
AND THE ENVIRONMENT

7 Managing the commons

the commons are increasingly challenged
by over-exploitation and pollution. efforts to
develop Shared Societies must be intensified
in order to ensure widespread support and
action, and political will, to restore and
preserve them.

The global commons – oceans, air, water,

wildlife and all natural ecosystems – are not collective responsibility for using them wisely
ultimately owned by any one individual or and sustainably. Some are regional or local
state, but belong to humankind. In recent resources that need to be managed in terms
times, digital commons can be added to of local and regional collective interests,
the list. They are the common heritage of all but others, such as the circumpolar Arctic
people. They need to be treated with care region and the Amazon Rainforest, are global
and respect, and communities need to take resources on which the whole world depends,

34 OECD (2017) Background Brief: Inclusive Framework on BEPS, http://www.oecd.org/tax/background-brief-inclusive-

framework-for-beps-implementation.pdf
35 OECD AEoI: http://www.oecd.org/tax/transparency/automaticexchangeofinformation.htm
36 Sustainable Development Goal 17 (and see this document, section 12).
37 See section 12.

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and for which we must all regulation and pricing to area extending 200 miles
take responsibility. In the past, strict education, conservation from its shore”.41 However,
to those who did not live and behavioural changes. any such arrangement could
close to nature, they seemed Furthermore, internationally give exclusive access to the
to be a limitless resource. agreed methods to account commons at the expense of
But traditional indigenous for material natural resources access for others.
communities have always like minerals, timber and
been acutely aware at the fisheries also help, such as the A cautionary example from
local level of the commons’ UN Statistical Commission’s the USA is the allocation of
fragility and unpredictability. System for Environment Native American tribal land
Of course, much effort, which and Economic Accounts to individual members of
is not recognized or costed and the World Bank Wealth the tribe, under the General
in financial terms, makes Accounting and Valuation Allotment Act 1887. Whatever
an important contribution of Ecosystems Services.38 the original intention, the
to environment and habitat In order to reach realistic result was that Native
protection, including the figures, valuations should American landholdings
efforts of traditional farmers reflect the key principles dropped from 138 million
and indigenous fishers. and questions of the Shared acres in 1887 to 48 million
Societies approach to acres by 1934 when allotment
The commons, and all of us sustainable development39 and ended, and the land lost
who depend on them, are the fundamental values of a through individual ownership
increasingly challenged: first sustainable and just society, as included important sacred
by over-exploitation which articulated above.40 sites and the best agricultural
is driven by the push for areas. As a result, the
growth and competition, Another solution advocated community lost the benefits
and second by the effort to is to recognize property of its sustainable use and
drive down costs, as was rights, and require and productivity.
noted in section 5. There is incentivize the owner, whether
an urgent need to find ways private or public, to maintain Some members of the
to impose the full costs of sustainability. This has Working Group argued
production and consumption happened at the national level that the global commons
on producers and consumers, with the creation of Exclusive are irreplaceable and non-
otherwise there is a perverse Economic Zones, which give negotiable, and therefore
incentive to continue over- a coastal state “the right to their preservation takes
exploitation. Significant exploit, develop, manage and precedence over other
initiatives are underway conserve all resources found considerations. No use should
which aim to internalize these in the waters, on the ocean be permitted if it causes any
externalities – ranging from floor and in the subsoil of an permanent change.

38 https://www.wavespartnership.org/en/natural-capital-accounting
39 See: Sharing Our Planet: Today and Tomorrow: Shared Societies contribution to Agenda 2030: A message for World Leaders
and Governments, page 5.
40 See Part 1 of this document.
41 The United Nations Convention on the Law of the Sea, https://www.un.org/Depts/los/convention_agreements/convention_
historical_perspective.htm
It should be noted that the Convention also has important chapters on protection of the marine environment.

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 PA R T 2.B
The need to protect the
global commons is not
only driven by exploitation,
FACTORS FOR AN
but also by pollution. EFFECTIVE PRESERVATION
Governments and societies
have not been able to OF THE COMMONS
manage the levels of
pollution. We are told that
there will soon be more
PERCEPTIBLE THREAT OF
plastic bottles in the sea than
RESOURCE DEPLETION
fish.42 Algal bloom caused
by overuse of fertilizers is
widespread in the world’s
lakes, and acidification of
waterways is increasing.
Illnesses caused by air THE PRESENCE OF
pollution claim the lives of A “COMMUNITY”
nearly six million people each
year, with the vast majority of
deaths occurring in low- and
middle-income countries.
Other forms of water APPROPRIATE COMMUNITY-
pollution, contaminated BASED RULES AND
agricultural land and PROCEDURES
toxic waste have further
health and life-threatening
consequences.43

Today, as the modern world dispersed and diffuse users with her colleagues a number
is pushed to the limits of can also act co-operatively of factors conducive to
what the earth can absorb when they see the need effective preservation of the
without ecological collapse, to do so.45 Elinor Ostrom, commons.46 One of these
there is a growing awareness who was awarded the 2009 was a perceptible threat of
of the need to protect it. Nobel Prize for Economics resource depletion, and it
People in the community for her work on the has been noted already47
can work together to use management of “common that it may be important to
productively common pool resources”, which is bring home to people that
pooled resources,44 and more the term she used, identified the world faces an ecological

42 World Economic Forum, Ellen MacArthur Foundation and McKinsey & Company (2016) The New Plastics Economy:
Rethinking the future of plastics, http://www.ellenmacarthurfoundation.org/publications/the-new-plastics-economy-rethinking-
the-future-of-plastics
43 See pages 2-3.
44 A. Kothari and P. Das, “Power in India: Radical Pathways” in (2016) State of Power 2016, Transnational Institute, 183-202,
https://www.tni.org/en/publication/state-of-power-2016
45 Andy Coghlin, “Canadian cod make a comeback” in New Scientist, 27 July 2011.
46 Ostrom et. al, op. cit.:278-82.
47 See pages 5-6.

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 PA R T 2.B
collapse. Two other factors support and action, and
identified by Ostrom and her political will, to restore and
colleagues are, firstly, the preserve the global commons
presence of a “community” – for all living things.
a small and stable population
with a “thick” social network
and social norms promoting
conservation – and secondly,
appropriate community-
based rules and procedures
with built-in incentives
for responsible use and
punishments for overuse. It is
not necessary for these rules
and procedures, incentives
and sanctions to be formally
written down: the important
thing is that they are
recognized and respected.

The most effective

custodians of the commons
8 Land tenure
are local communities, many un member States must fulfil their commitment in
of which are indigenous, the Sdgs to give access and control of land to poor
because in a globalized world people48 and women49 and to halt degradation and
people often do not see restore and conserve land,50 though it is noted that
the effects of their actions they make no specific reference to crucial indigenous
as they are experienced peoples’ rights, interests and traditional use in relation
far away. But for that very to land.51 Achieving this ambition will require clear and
reason, it is equally important unequivocal rules and robust systems or oversight and
to raise awareness in wider enforcement.
populations so that they
reduce the pressure they put Land is an important resource which could be considered
on local communities and the as a global common, but much of it is held by individuals
commons for which they are or corporate entities. In some places it is held in common
caring. This sounds very like by, for example, indigenous peoples and traditional
a Shared Society, and is an communities. The form of ownership and the way the land
additional reason why efforts is used will have significant impacts on the environment.
to develop Shared Societies It is also now well recognized that access to land is a
must be intensified in order key factor in many people’s opportunities for personal
to ensure widespread progress and development.

48 Sustainable Development Goal 1.

49 Sustainable Development Goal 5.
50 Sustainable Development Goal 15.
51 http://www.un.org/esa/socdev/unpfii/documents/2016/Docs-updates/backgrounderSDG.pdf

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There have been many forms other factors. These changes and on transfer of land should
of tenure historically and in in value often accrue to the be reviewed to ensure that
the modern era. Many of these current holder of the land they incentivize sustainable
have led to anomalies which as an unexpected windfall, use of land and are a means to
limit the potential to achieve or may influence land use share the wealth in land more
sustainable development. which does not support equitably. UN Member States
Land is often unequally sustainable development, such must fulfil their commitment
divided, with some holding as speculation, displacement in the SDGs to give access
vast tracts of land, much of of users, over-exploitation and control of land to poor
which is not used productively, or hoarding. Historically, people52 and women,53 and to
and many have no access to limitations have been placed halt degradation and restore
land which would allow them on the use of land, regardless and conserve land.54
to become economically of the ownership model,
active and contribute to through planning regulations, Since Agenda 2030 has
their communities. There conservation obligations, no specific reference to
are clashes between people redistribution schemes etc., indigenous peoples’ rights,
with different interests in usually for the common good. interests and traditional use in
the same land (such as But there are wide variations relation to land,55 there is an
pastoral and arable farmers, in how these restrictions urgent need to address this
or mining companies and are observed, and powerful gap and protect indigenous
agriculturalists). Owners landowners can use their peoples from the pressures
may exploit their land influence to ensure they are already outlined. The benefits
through deforestation, not rigorously applied. of collective community
large-scale monoculture, tenure of land and other
unsuitable choice of crops, All these tendencies show natural resources have been
overgrazing, release of the importance of ensuring recognized in international
hazardous substances, broader oversight of land instruments such as the UN
soil impoverishment and tenure and land use, and Declaration on the Rights of
erosion, without regard for an inclusive approach to Indigenous People (2008)56
the effect on others and the the achievement of fairer, and the Food and Agriculture
environment. equitable and sustainable land Organization Guidelines on
use and management, which the Responsible Governance
The value in land can fluctuate needs to be operationalized of Tenure of Land, Fisheries
widely as a result of demand, in clear and unequivocal and Forests in the Context
planning decisions and rules and robust systems or of National Food Security
resources in the land, among enforcement. Taxes on land (2012).57

52 Sustainable Development Goal 1.

53 Sustainable Development Goal 5.
54 Sustainable Development Goal 15.
55 UN Declaration on Rights of Indigenous Peoples, preambular paragraphs 6, 7, 10, and 12 as well as articles 8, 10, 25, 26, 27,
28, 29, 30 and 32. Article 25 specifically states: Indigenous peoples have the right to maintain and strengthen their distinctive
spiritual relationship with their traditionally owned or otherwise occupied and used lands, territories, waters and coastal seas
and other resources and to uphold their responsibilities to future generations in this regard.
56 http://www.un.org/esa/socdev/unpfii/documents/DRIPS_en.pdf
57 http://www.fao.org/docrep/016/i2801e/i2801e.pdf

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SOCIETY AND

C. GOVERNANCE
There are a number of challenges, sometimes
contradictory, facing leadership for
sustainable development. On the one hand,
leaders need to challenge vested interests,
while on the other they have to engage with
all sectors and, as far as possible, gain their
support for a common enterprise to create
a more inclusive society and sustainable
economy. They also have to create an
enabling environment that supports small
local communities to help themselves, and
to encourage affluent communities in both
rural and urban areas to be more modest in
their use of resources. The OECD Coalition
of Champion Mayors for Inclusive Growth, for
instance, was created in recognition of the
critical role local leaders play in contributing
to more sustainable, inclusive outcomes for
our societies. This initiative brings together
“champion mayors” from across the world
to elevate the voice of cities in the global
inclusive growth agenda. In addition to
9 Nature of leadership this political pillar, the initiative promotes
knowledge-sharing between the mayors and
Political leaders have many tasks. they need city governments, supports local authorities
to challenge vested interests and at the with expert research and analytical input, and
same time engage with all sectors to gain offers targeted support to cities. The areas
their support for the common enterprise to for targeted support include helping local
create a more equal inclusive society and governments to align social inclusion with
protect the planet. they also need to create environmental and climate-related objectives.
an enabling environment that supports
small local communities to help themselves. Strong political will and commitment is
local leadership should be promoted, and required, as well as sensitivity. Vested
inclusive and sustainable economic growth interests can be very powerful and resist
should be built from the bottom up. City change which seems to affect their priorities,
governments are taking an increasingly even though they may recognize that
significant role in citizen’s lives – not least ultimately an inclusive and sustainable
because populations are increasingly Shared Society is right and fair, and that it
concentrated in metropolitan areas – and is in everyone’s interest. It has already been
citizens voices should be heard at the noted58 that leaders of the corporate sector
highest levels. can accept more regulation if this is also

58 See section 11.

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 PA R T 2.C
applied fairly and consistently to their competitors. But in the present paradigm they feel the
need to compete to the limits of existing boundaries, and not limit themselves. Historically,
the most powerful voices have set the parameters for development, but strong leadership
can create a more balanced approach by helping to create an informed public (which relates
to the discussion below on education and alternative narratives59) and ensuring that there is
participation, as of right, in policy discussion and decision making. The latter can be achieved
in particular through increased local control and decentralization of decision making, including
within rural and remote areas across the globe.

10 Participation
meaningful participation and public
debate allow the reconciliation
of competing interests and also
create stronger commitment
to the decisions that are made.
devolved decision making facilitates
meaningful participation, which
in turn requires management of
the power imbalances between
stakeholders.

It should be clear from the

consideration of the other dimensions
of the current development paradigm
that they are antithetical, individually
and collectively, to meaningful
public participation. Yet an inclusive governments also tend to have a more
approach to development is essential, not only intimate knowledge of the situation, and
because it is fair, but also because taking into know how inappropriate development
account all sectors and interests usually result in may destabilize the ecosystem and the
better decisions. Full participation of all sections habitat. Their detailed knowledge often
of society, in the sense of access to decision- led local communities to make more
making bodies and the right and capacity not accurate assessments of future risks and
only to take part but also to set the agenda, does outcomes than professional environmental
not guarantee better decisions in every situation, appraisals. Full participation and public
but it does have a number of features which debate allows the reconciliation of
facilitate better decision making. competing interests, raises awareness of
the issues and creates more commitment
It allows different perspectives to be included, to the decisions that are made. Ostrom et
which should lead to more appropriate and al.60 in their work on managing commons,
sustainable decisions. Local people and local noted that government intervention by

59 See section 16.

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establishing rules and procedures could be Devolving decision making facilitates
ineffective because the users of the commons meaningful participation by all stakeholders.
did not feel ownership of the arrangements Several members of the Working Group have
and were willing to avoid the rules if they been involved in such processes: some are the
could. Participatory planning in Nepal61 is one continuation of traditional practices; some are
example of how an inclusive approach fosters part of devolution of local government by the
greater commitment from those directly state; and some are situations in which local
affected and leads to better outcomes. people have taken control of their own affairs.64
To summarize the outcome statement They show that such systems are viable and can
following a UN High-Level Meeting on ensure more sustainable decision making. They
implementing the SDGs,62 key to the point the way to fully participatory societies.
successful implementation of the 2030
Agenda are institutions that are more Because of the special relationship that
responsive to the needs and priorities of the indigenous peoples have with their ancestral
people; and greater capacities by government, and customary territories and their sense of
civil societies and the private sector, and their responsibility for passing them on to future
coordination and cooperation. generations, particular attention has been
paid to their participation in decisions that
All these considerations underlie the affect their lands. The right of indigenous
peoples to give or withhold “free, prior and
informed consent” is enshrined in international
concept of law (for example, the UN Declaration on
“subsidiarity”: the Rights of Indigenous Peoples65 and
the application of the Convention 16966 of the International Labour
principle that decisions Organization) and in some national laws
should originate at (for example, Australia and the Philippines).
the local level or be Article 3 of the Declaration on the Rights of
devolved as far Indigenous Peoples recognizes the right to
as possible.63 self-determination and, by virtue of that right,
freedom to determine their political status
and freedom to pursue their economic, social
and cultural development. The World Bank,
in its system of project appraisal,67 refers to
ensuring “broad community support”, but this
is not a very specific term.

60 Ostrom et al., op. cit.

61 https://assets.helvetas.org/downloads/issuesheet_pa_nepal_a4_0414.pdf
62 Chisinau Outcome Statement on Strengthening Capacities and Building Effective Institutions for the Implementation of the
United Nations Post-2015 Development Agenda, https://www.worldwewant2030.org/node/481165
63 UN Declaration on Rights of Indigenous Peoples, Article 4: Indigenous peoples, in exercising their right to self-
determination, have the right to autonomy or self-government in matters relating to their internal and local affairs, as well as
ways and means for financing their autonomous functions.
64 A. Kothari and P. Das, op. cit.
65 http://www.un.org/esa/socdev/unpfii/documents/DRIPS_en.pdf
66 http://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C169
67 World Bank Operational Policy 4.10 on Indigenous Peoples.

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 PA R T 2.C
The ability of indigenous peoples not only decision makers with explicit responsibility
to maintain their own cultural context but for the needs of vulnerable communities
also to fulfil their responsibilities to future and even future generations. Ecuador was
generations, demonstrates the significance the first country to set out in its constitution
of their own local government systems. Their explicit and enforceable rights for nature.70
right to participate in decision making68 in When we speak of informed consent that
matters that affect indigenous peoples will includes ensuring that all parties to decision
ultimately result in programmes and policy making are informed about and aware of
that will have greater, long-term, positive the consequences of those decisions for the
impacts on both the environment and society planet, and developing stronger instruments
overall. While not all marginal groups have for environmental impact appraisal to inform
the same identification with an ancestral these debates.
homeland, they too are
stakeholders who need to
be involved in decisions
that affect their welfare,
and similar provision could
be made that recognizes
that human rights are
inherent in one’s legal
status and are not “given”.

In considering participation
for all sections of society,
the question arises: “who
speaks for the planet?”
In one way, the planet
is speaking for itself by
showing that there are
limits to its capacities to
renew itself and there are
consequences if we ignore
those limits. But many are
not listening, and so it is
important to amplify those
messages. The Rapporteur’s
briefing paper69 for the
Working Group drew
attention to ways that
some countries are vesting

68 Article 18, UN Declaration on Rights of Indigenous Peoples.

69 Katherine Trebeck, “Rapporteur Discussion Paper of Club de Madrid Working Group on Environmental Sustainability and
Shared Societies”, forthcoming.
70 Constitution of The Republic of Ecuador, chapter 7, http://pdba.georgetown.edu/Constitutions/Ecuador/english08.html

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The caveat has to be made that consultation
and participation is not always meaningful,
11 Shareholder model of corporate
governance
especially if the agenda is predetermined and
certain ideas are ruled out a priori. Even with
declared recognition of and compliance with
the right of free, prior and informed consent,
the wishes of indigenous peoples and others
are often ignored.

Discrimination and inequalities of power

may make participation ineffective. Poor,
weak communities may agree to proposals
against their better judgement because of the
financial or other inducements offered. They
may accept payments in return for access to
their resources in spite of the costs to them
and the environment, because they have no
other sources of income. As a result, they feel
compelled to compromise their values and
long-term interests and have not really made
a free choice. Therefore, meaningful dialogue
and the efforts to obtain consent require the shareholder model encourages
management of the power imbalance to avoid tendencies and trends that are antithetical
asymmetry of outcomes. to sustainable development and protecting
the environment. Political leaders and all
There will also be power imbalances within stakeholders are encouraged to work with
communities, and it is difficult to know who the business sector to find ways in which
speaks for and fully represents the feelings of the sector can help promote better social
the local community. Individual community outcomes, empowerment of individuals,
leaders may be co-opted to support proposed and sustainable development.
initiatives. Therefore, participation should
be as wide, inclusive and well-informed The publicly traded company was devised
as possible. This may take time, but the as a means to mobilize capital and provide
consequences of a poor process may be investment for commercial enterprises,
disastrous for the environment and the and at the same time allow individuals to
community that depends on it. use their surplus capital to support such
enterprises. Trading companies in the 16th
Participation is a core element in the Shared and 17th century and industrial corporations
Societies concept,71 because through in the 19th century became the main
participation people can express their needs mechanism driving economic development
and concerns, pursue their aspirations and and, as conceived at that time, there were
play a full and active role in their society. strong incentives to maximize production

71 Club de Madrid (2009) Commitments and Approaches for Shared Societies, Commitment II: http://www.clubmadrid.org/
img/secciones/SSP_Commitments_and_Approaches_for_Shared_Societies_260609.pdf

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 PA R T 2.C
and increase profits. and institutional investors, and outside the shareholder
Companies had to create who themselves are senior model.
value to survive and make corporate managers and
a profit, in order to provide bring that perspective to their Corporate Social
returns for their owners – the role as shareholders. Angel Responsibility (CSR) has
shareholders – who would Gurría, Secretary General of become a significant factor in
otherwise invest elsewhere. the OECD,72 has pointed out many companies’ strategies,
It was also an effective way that institutional investors emphasizing care and respect
to share risk. But those control over US$93 trillion for employees, customers,
same incentives encourage in long-term assets in OECD the environment and other
tendencies and trends that countries alone, and the stakeholders. Financial
are antithetical to sustainable pattern of these investments advisors are now integrating
development and protecting could either play a decisive CSR in their reports as well
the environment. They reward role in financing the transition as noting exposure and risk
a narrow focus on profit and to a low-carbon economy or in relation to human rights
a disregard for other issues be used to entrench existing violations.73 Indigenous
or concerns, including fair practices. peoples have been able to
treatment and welfare of staff, use the concept to challenge
customers, suppliers and the All these factors reinforce an companies to respect their
environment. They encourage exclusive focus on share price, rights to land, territory
a short-term perspective, as regardless of the fundamental and resources. It is a self-
it is often necessary to satisfy strength of the company – imposed code of conduct
shareholders immediately. encouraging speculation on and as such is vulnerable
the price of shares on the to other pressures and
The idea that shareholders stock market rather than circumstances, including
actually exercise oversight investment in socially useful the profit motive, and open
of a company has become activities. Modern computer to different interpretations.
something of a fiction, as systems have allowed high Sometimes CSR can be little
they may not have sufficient frequency trading which more than a public relations
information or interest to has massively increased the exercise. It could be argued
exercise effective oversight. potential for speculation, so that directors of a company
Shares are often held for that the stock market now are failing in their duty to
only short periods, meaning facilitates profit-taking more shareholders if their profits
that the owners of those than getting capital into the are reduced by CSR activities
shares have little opportunity hands of producers who need without the agreement
or interest in exercising it. These negative tendencies of shareholders, who can
oversight. Increasingly, are widely known and various put pressure on directors
the bulk of shares are in efforts have been made to to deliver dividends and
the hands of hedge funds address them, both within increases in share price.

72 http://www.oecd.org/environment/rethinking-fiduciary-duty-for-a-more-sustainable-planet.htm
73 United Nations (2013) A Business Reference Guide: United Nations Declaration on the Rights of Indigenous Peoples, UN
Global Compact Business Reference Guide to the UN Declaration on the Rights of Indigenous Peoples. This guide “helps
business understand, respect, and support the rights of indigenous peoples by illustrating how these rights are relevant to
business activities”; See also Amy K. Lehr and Gare E. Smith (2010) Implementing a Corporate Free, Prior, and Informed Consent
Policy: Benefits and Challenges, Talisman Energy, Implementing a Corporate Free, Prior, and Informed Consent Policy: Benefits
and Challenges

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However, not only is a socially responsible approach ethically correct, but it is also good
business. If employees and suppliers are treated well they are likely to be more loyal and more
productive. Ethical practices are good for the image of the company and attract customers –
which is why CSR activities are often highlighted in marketing. Negligence in relation to the
environment may lead to heavy costs if the company has to repair the damage.

businessman Peter georgescu has stressed that values must matter for
business, both for more inclusive growth and because values are good for
business: businesses need to be able to walk in customers’ shoes, understand
their needs and values, and learn compassion for the customer. These values
are vital for the success of a business, and this kind of compassion and value-
based model for the private sector can help improve the lives of customers
and employees. Georgescu also stresses how corporate responsibility and
aligning sustainable outcomes with business models also demands a different
approach to company ownership, and more precisely a move away from
shareholder primacy. Shareholder primacy – wherein quarterly returns to
shareholders become the driving governing principle of companies – holds
a real risk of companies cutting wages, reducing investment in research
and failing to commit to innovation. Fair wages, research investment and
innovation are all building blocks for inclusive growth in the business sphere,
but also for businesses that grow and flourish in the long term.

See: https://www.youtube.com/watch?v=z56eSEwetcw

Companies also are under other pressures to act responsibly. Campaign groups have used
the potential power of shareholders to challenge company practices by lobbying institutional
shareholders with whom they have influence, such as universities, and by purchasing shares
in the company and attempting to raise issues at shareholder meetings. They have also been
effective on occasion in bringing about divestment from undesirable activities, most recently
with the fossil fuel divestment campaign.74 Workers, organized through trade unions, have
a long tradition of demanding fair treatment and decent work, though companies have on

74 http://www.theguardian.com/commentisfree/2014/feb/17/carbon-divestment-emissions-climate-change
75 R. Harrison “Consumer action and the economic empowerment of marginalised groups” in C. McCartney and W. Naudé
(eds.) (2012) Shared Societies: The Case for Inclusive Development, Madrid: Club de Madrid, http://www.clubmadrid.org/img/
secciones/SSP_Publication2012_Maastrich.pdf

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balance been more powerful and have Even recognizing the enlightened approach of
been able to suppress such demands, often some managers, the balance of power is very
through co-operation with legislators to much weighted against the protection of the
restrict union action, media campaigns and environment and promotion of sustainable
sometimes through statutory or private use development. Business leaders often say
of force. The ethical consumer movement they are willing to work within the laws and
has attempted to use purchasing power and regulations that are laid down provided
choice to influence retailers and producers.75 they apply fairly to all companies, but find
While it is difficult to mobilize consumers, it difficult to take the risk of implementing
campaigns have stimulated the availability of socially responsible practices if their rivals are
organic and fair trade foods and convinced not also doing so. They may argue against
customers to switch brands for reasons such restrictions but at the same time acknowledge
as a company’s use of animal testing of its that they need and want clear regulation
products or avoidance of tax. and incentives, through fiscal policy and
other means, to stimulate more broad-based
The internet facilitates communication within sustainable practices that are sensitive to
such movements and between them and the wider social concerns. There is a clear need
wider community. It also allows the possibility for government to enhance the contribution
of new, alternative business models such of the business sector to inclusive, sustainable
as crowdfunding, open-source software and equitable economies. We urge political
development and the “shift economy”,76 leaders and all stakeholders, including the
though these do not necessarily have intrinsic business sector, to work to find ways in which
social or environmental values. Some see the sector can help promote better social
the potential of the internet to facilitate outcomes, empowerment of individuals, and
contact between strangers to their mutual sustainable development.
advantage, and to allow everyone to be a
creative entrepreneur, shifting power away
from big corporations. While this is true, past
experience demonstrates that those who are
first to find ways to monetize these services
and products use the new technologies
to compete and assert their control over
competitors, and resist regulation and
government oversight of their activities in
ways not unlike those adopted by traditional
corporations. All these diverse movements
are in some sense the free market at work;
as effective as these efforts have been on
occasion, there is still a need for public
scrutiny and government regulation to avoid
unwanted outcomes.

76 H. Shaughnessy (2015) Shift: A User’s Guide to the New Economy, Boise, Idaho: Tru Publishing.

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12 Global governance
An inclusive governance
system at national and
local level is impeded if
it is not replicated at the
global level. there are
many weaknesses in the
current global governance
architecture, which need
to be tackled if the global
community is to realize
Agenda 2030. therefore,
the call for a new global
Partnership is welcome, and
the un is urged to engage
without delay all relevant
parties – intergovernmental,
governmental and non-
governmental – and begin
the process of bringing this
about.

Participative, shared impose sanctions, but such sustainable Shared Societies.

governance models are not sanctions are much weaker For example, global warming
only appropriate within in relation to agreements and the resulting rising sea
states, as is discussed in on environmental and social levels are global phenomena
section 10, but are relevant issues. The limited power to which particularly affect
to all levels of decision enforce such agreements is small island states, but their
making and all sectors, a matter for concern, and governments cannot legislate
including government, another example of how to prevent the causes and
business, civil society and protection of economic have only limited capacity
intergovernmental bodies. and commercial interests to ameliorate the impacts.
There are many weaknesses takes precedence over They need to be able to
in the current global addressing serious social and engage internationally, and
governance architecture. environmental threats. to some degree are able
A number of powerful to do so at the UN, though
international and global All intergovernmental bodies sub-national governments
processes (for example, are dominated by the more do not have the same right.
on trade) are separate powerful states. It has to The Working Group supports
from the UN but can make be recognized that local further consideration of
decisions that undermine communities and small the proposal of a “global
global agreements on issues states are often affected peoples’ assembly”, where
such as the environment, by external decisions and diverse peoples of the world
human rights and justice. impacted upon by activities can be represented, with
Bodies like the World elsewhere, impeding links to the UN decision-
Trade Organization can their own efforts to build making process.

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These are major challenges that need to be tackled if the international economic
global community is to realize a new Global Partnership as environment, including
envisaged in Agenda 2030: coherent and mutually
supporting world trade,
monetary and financial
systems, and strengthened
and enhanced global

“
economic governance”.79
The Club de Madrid worked
with partners to develop an
The scale and ambition of the new
outline of the elements that
Agenda requires a revitalized would constitute such an
Global Partnership to ensure its inclusive global system, the
“global Shared Societies
implementation. We fully commit
Agenda”.80 Such an inclusive
to this. This Partnership will work approach in the spirit of
in a spirit of global solidarity, in solidarity would be in line
particular solidarity with the poorest with the ideas proposed in
the present document and
and with people in vulnerable a real paradigm shift, and
situations. It will facilitate an therefore is to be welcomed;
intensive global engagement in at the same time, there
has not been a great deal
support of implementation of all the of evidence that powerful
Goals and targets, bringing together nation states and other
Governments, the private sector, civil interests are willing to make
such a shift. However, as
society, the United Nations system
is argued here, Agenda
and other actors and mobilizing all 2030 will not be fully
available resources.”77 realized without a strong
and meaningful partnership
of all relevant parties. The
UN is urged to engage
without delay all relevant
parties – intergovernmental,
How is this to be realized? While recognizing “that there are governmental and non-
different approaches, visions, models and tools available to governmental – and begin
each country, in accordance with its national circumstances the process of bringing this
and priorities,”78 they “need to be supported by an enabling about.

77 United Nations (2015) Transforming our World: The 2030 Agenda for Sustainable Development A/RES/70/1 New York: UN,
para 39.
78 Ibid. para 59.
79 Ibid. para 63.n,
80 Club de Madrid, Friederich Ebert Stiftung and Center of Concern (2012), Towards a Global Shared Societies Agenda to
Promote Long-Term and Inclusive Sustainable Growth:
http://www.clubmadrid.org/img/secciones/Global_Shared_Societies_Agenda_2014.pdf

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The world needs an alliance of countries and regions (supported by progressive companies
and social groups) that is committed to fostering a development model that focuses on human
and ecological wellbeing rather than narrowly defined economic output. A number of Working
Group members are already supporting the idea of an alliance of “Wellbeing Economies”, called
the “WE7” in obvious reference to the G7, that responds to this need for change. The WE7 will
give status, recognition and leadership to countries and regions that champion human and
ecological wellbeing in their economic policies. Countries and regions that join WE7 will be
those that recognize that size and growth of GDP is not a good measure of success. They are
either entities that have shown the capacity to marry a low-impact economy with high living
standards or that are sincerely committed to achieving this in future policy decisions.

ALLIANCE OF WELLBEING ECONOMIES: THE WE7

InternAtIonAl Co-operAtIon

fAvour Common posItIons In CrItICAl AreAs of

gloBAl governAnCe

mutuAl leArnIng And Co-operAtIon

sHoWCAse of CHAmpIons WItH dIfferent

development models

empHAsIZe neW notIons of progress

This informal alliance will create synergies in international co-operation, favour common
positions in critical areas of global governance (e.g. at the UN level or within other groups such
as the G20 and the OECD). It will also encourage mutual learning and co-operation within the
alliance itself, for instance through technology transfer, industrialization policies, reciprocal
foreign direct investment and development aid. It will showcase champions of a different
development model and emphasize new notions of progress, beyond the size and growth of
GDP. By showing that a different approach to development is possible (and desirable), and by
providing a different model for global leadership, the WE7 informal alliance would be a source
of inspiration and a role model for other countries and regions, and a champion of the SDGs
(for example, by integrating its goals and targets in day-to-day policy making).

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In the same way that the challenges facing

the planet cannot be dealt with by agencies
and states working in isolation from each
other, multi-disciplinary approaches are also
required. All aspects of development are

13 Disciplinary and professional

boundaries and fragmentation of
interrelated and interdependent: progress on
one aspect of development and any one of
the SDGs is dependent on progress on the
development efforts others. Equally, progress on Agenda 2030 will
be affected by other events, including natural
to be effective, disciplines and agencies and human disasters. The World Humanitarian
must be able to work outside their traditional Summit in May 2016 endeavoured to
boundaries to develop synergies and pool transcend the “humanitarian-development
knowledge and expertise with other agencies divide”, as articulated in the UN Secretary-
and professionals. they require new models General’s synthesis report81 for the summit,
of teamwork, which will have implications for which makes the connection between Agenda
education, training and recruitment. 2030 and humanitarian activities.

81 United Nations (2016) The Road to Dignity by 2030: Ending poverty, transforming all lives and protecting the planet, A/
RES/70/1 New York: UN, para 14, http://www.un.org/disabilities/documents/reports/SG_Synthesis_Report_Road_to_Dignity_
by_2030.pdf
82 See Part 1 of this document and Sharing Our Planet: Today and Tomorrow: Key Insights of
Club de Madrid Working Group on Shared Societies and Environmental Sustainability, pages 6-7.

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This orientation has However, there is a tendency The environmental dimension
implications for professions for each discipline to is central because it sets
and disciplines, including remain in a silo, targeting limits which we go beyond
economics, social its own particular concepts, at our peril. The social
development, natural principles, assumptions and dimension is critical because
science, law and human approaches, applying that dysfunctional societies do
rights protection, rural and frame to the tensions and not have the capacities and
urban planning, participatory challenges that it identifies, resilience to be able to tackle
development planning and selecting its priorities. global challenges, even if the
and peace-building. It is The Working Group has resources exist to do so.
ironic that as disciplines discussed the limitations of
become more specialized, such an approach, but the Each dimension also needs to
they become more narrow image of “silos” is potentially incorporate the best thinking
and therefore need to be misleading. It postulates that of the others. It is necessary
interdependent. To be they are equal but distinct to move beyond an economic
effective, professionals must policy areas, isolated from model based on competition
be able to work outside their the others, but in fact they and therefore inequality, a
conventional boundaries to do impact on each other social model based on power
develop synergies and pool and one discipline can come and therefore exclusion,
knowledge and expertise to dominate the others. and an environmental
with other agencies and For at least the last 200 model based on maximum
professionals with other years, policy debates in the exploitation of the planet
forms of knowledge, skills West have given primacy to and therefore leading to
and expertise. They must economists. The arguments ecological collapse. Those
also engage meaningfully of the security sector are also who drafted Agenda 2030 are
with all stakeholders, powerful,83 and we will see84 to be commended for trying
including local communities, how the possibilities offered to achieve that conceptual
asking themselves and their by science and technology shift in the preamble, and
interlocutors the kind of are increasingly adopted we urge policy makers and
questions that reflect the without questioning of their the academic community in
principles of the Shared wider impacts. However, other fields to reorient their
Societies Framework.82 This current challenges show the thinking and critically reassess
will require new models limitations of a development the “accepted truths” and
of teamwork and will have paradigm in which the “received wisdom” of their
implications for education, economic or security disciplines in a more holistic
training and recruitment. dimensions are dominant. context.

83 See section 18.

84 Section 17.

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14 Monitoring mechanisms
good monitoring mechanisms will guide and encourage states to take the necessary
initiatives to achieve the Sdgs. in identifying sources of data to monitor progress, equal
attention should be given to more subjective measures, including assessment of wellbeing,
and the application of the key principles and questions of the Shared Societies approach to
sustainable development.

It is widely understood that progress towards the SDGs needs to be monitored and that
good monitoring mechanisms, data collection and analysis will guide and encourage states
to take the necessary initiatives to achieve the goals. The UN High-Level Political Forum on
Sustainable Development is the most relevant body to provide the necessary stimulus and
strategic coordination between relevant organizations. It is intended that peer review will
take place between countries in the same region, and large international NGOs and the Cities
Alliance85 will also contribute. Particularly in the early stage, the focus will be on the systems
and structures that are being created to meet the goals and targets of Agenda 2030, rather
than the outcomes, which will take longer to become evident. The Working Group cautions
against too much reliance on the projected outcomes in national development plans (though
it is important), but also to audit strategies and proposals in terms of the Key Principles and
Questions for a Shared Societies Approach to Sustainable Development, as outlined below.

85 OECD Champion Mayors for Inclusive Growth initiative: http://www.oecd.org/inclusive-growth/champion-mayors/

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KEY PRINCIPLES AND QUESTIONS

FOR A SHARED SOCIETIES APPROACH TO
SUSTAINABLE DEVELOPMENT
Participation: Are all sectors of society involved in developing
1. sustainable policies and programmes, beginning with joint
assessments of the issues and concerns, rather than only seeking
support for preconceived solutions?

transparency: Is there transparency and full access to

2. information for all stakeholders?

Shared benefits: Does everyone and the natural environment

3. benefit from policies and projects, or are some affected
negatively?

Affirmative action: Does the proposed initiative benefit groups

4. that are marginalized, whether on grounds of physical location,
identity, gender or for other reasons? How will they be negatively
affected and left behind?

long-term perspective: Are the long-term ecological, social

5. and economic consequences of policies and programmes
positive? Are they sustainable in the long term?

responsible pollution mitigation: Do those who are

6. responsible for negative consequences, including environmental
degradation, bear the cost of repair? How will that obligation be
enforced?

disaggregated monitoring data: Are provisions built into the

7. systems of monitoring programmes and projects for sustainable
development to ensure the collection of disaggregated data in
terms of ethnicity, race, religion, gender and other aspects of
identity, in order to identify quickly what groups are being left
behind and introduce corrections?

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The answers to these Board” report,87 it addresses that the goal, rather than
questions will indicate the inequalities in income and working out really important
extent to which policies opportunities, and proposes but hard-to-measure
promote consideration of a new metric to gauge indicators of progress,
values; encourage dialogue people’s prosperity more including qualitative data,
and participation; create effectively – a measure of and developing ways to
awareness of the challenges; “multidimensional living obtain that data. There
impact on the environment; standards” (MDLS). Using is concern that statistical
and impact on all sectors so this tool, it is evident that data has the potential to
that no one is left behind. countries with higher GDP “have a reductionist effect
are not necessarily the best on the overall vision” of
It is recognized that at converting their wealth the 2030 Agenda.90 The
considerable work is ongoing, into improvements in living Working Group stresses
both within and outside the standards for their citizens: that participation by all
UN system, on what will be for example, France and stakeholders is not only
appropriate indicators.86 As Germany registered almost important in the planning
mentioned above, it is also the same per capita GDP and implementation of
important that the data is growth between 1995 and projects, but also in the
disaggregated to compare 2007, but living standards monitoring process and the
the situation of different grew 1.7 times faster in identification of indicators.
groups, including in terms of France. Additionally, the Save the Children, in
gender, race, ethnicity and OECD Better Life Index88 its recommendations
culture, location, language (BLI) is an interactive tool on the preparations for
and religion, to identify that measures wellbeing and national-level reviews
if any specific groups are progress, and allows users to within the Agenda 2030
being left behind. Equal visualize wellbeing outcomes framework, stressed the
attention should be given to according to the priorities importance of following
broader measures, including that the user inputs. Both the the principle of “leave no
assessment of wellbeing. The MDLS and the BLI are part one behind” by being open,
OECD has been examining of the wider OECD effort to inclusive, participatory and
new data and metrics which measure progress beyond transparent; this includes
aim to encapsulate what GDP.89 seeking the views of
matters for people, looking economic and social groups
at the relevance of concepts It has been pointed out that that are furthest behind,
such as wellbeing, equity, care must be taken that the and highlighting policies
happiness and environmental focus does not shift to what and strategies to reach the
sustainability. In its “All on is measurable and making furthest-behind first.91

86 For example, the Commission on the Measurement of Economic Performance and Social Progress, http://www.stat.si/doc/
drzstat/Stiglitz%20report.pdf
87 OECD (2015) op. cit., http://www.oecd.org/economy/all-on-board-9789264218512-en.htm
88 http://www.oecd.org/statistics/datalab/bli.htm
89 See also the indexes referred to on page 32.
90 http://www.humanrights.dk/sites/humanrights.dk/files/media/dokumenter/sdg/dihr-fur_paper_final_draft_29_02_16.pdf
91 Save the Children Fund (2016) Recommendations on the Zero Draft Resolution of 6 May 2016 on the Follow-up and Review
of the 2030 Agenda at the global level, https://sustainabledevelopment.un.org/content/documents/21190Save%20the%20
Children2.pdf

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d.
LOOKING
TO THE FUTURE
also play a part. The political system also
contributes, because in many political
systems politicians have a limited term of
office and may then have the option of
15 Planning horizon seeking re-election. As a result, they are
mindful of the need to satisfy public opinion
A short-term perspective is harmful to long- or the ruling elite by producing quick results,
term development, and other mechanisms and may be less concerned about long-
are required to encourage long-term term consequences which will become the
planning. taxation and other means can responsibility of future leaders. It has been
discourage a short-term planning horizon. noted already that a short-term perspective is
harmful to long-term development, and that
It follows from the discussion of shareholder pricing, taxation and other mechanisms are
governance92 that this model encourages required to encourage long-term planning
short-term thinking, and other factors and discourage a short-term planning horizon.

92 See section 11.

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16 Learning and education
following the 2008
education and learning has an important contribution financial crisis,
to make to the achievement of inclusive sustainable people with higher
development,93 but it will require new approaches and a rates of education
fundamental shift in education systems across the world. were less affected by
effective education should encourage critical reassessment unemployment, and
of current thinking and ideas through new experiences and the already wide gap
interaction with others and with the environment. in earnings between
people with higher
education and those
with lower levels
actually grew.

Good education provides

individuals with the
environment that nurtures
their talent, allows them
to develop their skills and
knowledge, and equips
them to seek decent work or
establish their own business.

In order to help all individuals

to fulfil their potential and
equip them with valuable
skills for the workplace,
policy needs to be informed
by comprehensive and
Learning and education in all its forms, from pre-school to comparative data that can
life-long learning, has a key role to play in all areas of human facilitate the sharing of best
endeavour and can make an important contribution to the practices between countries.
efforts to achieve inclusive sustainable development. The To this end, the OECD has
Millennium Development Goals promoted access to education, developed the Programme
and Agenda 2030 maintains that goal with an emphasis on the for International Student
quality of education available.94 Formal education can help to Assessment (PISA),95 a
empower poor and marginalized individuals and communities, comprehensive international
reducing inequality. Young people from poorer families comparison of the skills
are badly under-represented in higher education, which and knowledge of 15-year-
risks exposing them to a lifetime of reduced earnings and olds around the world in
undermines the foundations of wider prosperity and wellbeing. mathematics, science and

93 See Target 4.7, Agenda 2030.

94 Sustainable Development Goal 4.
95 OECD PISA: http://www.oecd.org/pisa/home/

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reading. The PISA survey “earning quality” (the extent to which earnings contribute to
has both drawn attention to workers’ wellbeing in relation to average earnings and their
the significant differences in distribution), labour market security and the quality of the
educational outcome within working environment, and gives a comprehensive and holistic
and between countries – for assessment. Matching skills and training to employment roles
instance, there are large is again vital, and is key for individual wellbeing; however, the
differences in numeracy OECD PIAAC in 2013 pointed to the existence of significant
scores within countries, with mismatches between skills and their use at work.
students from disadvantaged
socio-economic backgrounds The Working Group focused particularly on how learning
registering significantly lower can inspire, nurture talent and creativity, raise awareness,
scores than the average – and encourage appropriate values and stimulate critical thinking.
pointed to effective policy These qualities are characteristics of a mature, well-rounded
interventions. The PISA individual and will be needed if he or she is to contribute
programme has shown that to sustainable development through work and free time.
children who were enrolled Therefore, Target 4.7 of Agenda 2030 should be stressed as
in pre-school education central to achieving the whole vision:
perform better throughout
their education life. Similarly,
the OECD Survey of Adult
Skills (PIAAC) shows that
the skills distribution among
the adult population is also
heavily determined by socio-
economic background. “By 2030 ensure that all learners
For example, PIAAC 2013
acquire the knowledge and skill
showed that parental levels
of education – a strong needed to promote sustainable
measure of socio-economic development, including among others,
background – influence through education for sustainable
literacy proficiency scores in
all countries. development and sustainable
lifestyles, human rights, gender
The interaction between equality, promotion of a culture
education and skills training,
and job quality, must not be
of peace and non-violence, global
forgotten. People in formal citizenship and appreciation of cultural
employment spend many diversity and culture’s contribution to
hours each week at work,

”
sustainable development.
and an increasingly larger
share of their adult lives in
paid work, which means that
work is strongly related to
the quality of individuals’
lives and wellbeing. The
OECD framework on job
quality looks at it in terms of

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Many educationalists Unfortunately, education of teachers in the USA
support this perspective, often fails to provide those are white women. These
but achieving it will opportunities, and individuals tendencies are additional
require new approaches and groups remain static. reasons why involvement
and a fundamental shift in Everyday interaction with by local communities is
education systems across the colleagues, friends and important, including in
world. acquaintances tends to the establishment and
confirm existing ideas and management of schools that
Effective education attitudes, reinforcing the share with the children their
should encourage critical current way of doing things commitment to local culture
questioning of current because no new perspectives and language,97 while at the
thinking and ideas through are introduced. Formal same time ensuring this does
new experiences and education tends to transmit, not lead to ghettoization.
interaction with others without questions, current
and with the environment. orthodoxies including neo- It is important to recognize
Members of the Working classical economics and the power of narrative
Group have been involved existing power relationships, in shaping thinking in
in various forms of critical without also introducing general, and its relevance to
dialogue, and techniques alternative perspectives as shifting perspectives on the
were shared such as is advocated in Target 4.7 challenges of sustainable
mindfulness, appreciative of Agenda 2030. It often development. How a story
inquiry, scenario building, undermines traditional is told shapes and then
resource training, etc. The knowledge96 and culture, reaffirms understanding
challenge is to extend in particular minority of the story. It is through
the application of such languages. These messages narrative that people
approaches more widely are not only conveyed understand their past and
and in different settings, through the curriculum. A are aware of their future.
including through distance lack of diversity in teaching But all narratives are partial.
communication using staff at all levels of education Often only some stories are
electronic media. sends its own message. heard – stories of the more
For example, 80 percent powerful, the articulate and

96 UN Declaration on the Rights of Indigenous Peoples, Article 31:

1. Indigenous peoples have the right to maintain, control, protect and develop their cultural heritage, traditional knowledge and
traditional cultural expressions, as well as the manifestations of their sciences, technologies and cultures, including human and
genetic resources, seeds, medicines, knowledge of the properties of fauna and flora, oral traditions, literatures, designs, sports
and traditional games and visual and performing arts. They also have the right to maintain, control, protect and develop their
intellectual property over such cultural heritage, traditional knowledge, and traditional cultural expressions.
2. In conjunction with indigenous peoples, States shall take effective measures to recognize and protect the exercise of these
rights.
97 UN Declaration on the Rights of Indigenous Peoples, Article 14, confers the right to establish and control educational
institutions. For a recent example of an agreement under which the Navajo Nation will control their schools, see: http://
indiancountrytodaymedianetwork.com/2016/09/28/obama-administration-gives-historic-control-education-system-navajo-
nation-165937

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those who have access to
the means to disseminate
them. They reflect the status
quo, but may not be the
THE POWER OF NARRATIVE
most accurate depictions.
The stories of the weakest,
the less articulate and those
A STORY
without access to media are
not heard, but they may have
important insights to share.
HoW IS TOLD
SHAPES AND THEN REAFFIRMS
A member of an indigenous
tribe living deep in a tropical UNDERSTANDING OF THE STORY...
jungle may understand
the consequences of
indiscriminate logging, but
his or her voice is not heard.
Someone living near the
edge of melting shore-fast
ice above the Arctic Circle or
REFLECT THE
on a coral atoll in the Pacific
is more aware than most of
the consequences of global
...tHeY STATUS QUO ,
BUT MAY NOT BE THE MOST ACCURATE
warming, but few people are DEPICTIONS. THE STORIES OF THE
listening or want to know WEAKEST, THE LESS ARTICULATE AND
about their plight. Someone THOSE WITHOUT ACCESS TO MEDIA
ARE NOT HEARD, BUT THEY MAY HAVE
living in poverty and ill health
IMPORTANT INSIGHTS TO SHARE
in a declining industrial
wasteland has insights into
the real costs of current
forms of production, but no
way to share that narrative.
Equally, there are many
communities implementing
effective approaches that
respect the planet and build
Shared Societies, and these
stories are also not heard.
printed word and through social media. One image can tell a
Therefore it is important to story – but what story is told and what is our understanding of
ensure that these narratives it? It is important that everyone has the capacity to interrogate
are listened to and not lost narratives, test what they really can tell us and see how they
in the multitude of other complement each other. We need to understand more about
narratives, and that they the impact of narratives shared through different forms.
are shared in a variety The more narratives that are shared and critically examined,
of ways, including direct the richer and deeper the understanding of the stories they
communication, through tell and the situations they describe. More opportunities for
films, television and the dialogue around narratives need to be created.

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The current dominant narratives increase fatalism and acceptance of the way things have been
and how they will be. Narratives of the future are either complacent in their avoidance of future
challenges, or doom-laden. They do not inspire or encourage engagement and participation.
If they are to enthuse and mobilize the population to take action, they must be more exciting
and positive. Such narratives exist, and the means must be found to share them more widely.
New narratives can help people to understand the failures and mistakes of the past and how
to prepare for different futures. If the alternative narratives are grounded in the type of values
endorsed in this paper, then those values will critique the contradictions and failures of the out-
of-date stories.

17 Challenge of new technologies

it is important to assess the possible
impacts of new technology against a clear
set of values and principles such as those
identified in this paper. given the speed of
technological innovation, agencies need
to be developed, strengthened and given
a higher profile in order to oversee and
assess technological development with a
specific focus on their impact on sustainable
development and inclusivity.

Scientific knowledge and technology-based

solutions to real or perceived problems are
advancing at an exponential rate, and there
is no indication that this process will reach
a limit in the future. The potential benefits
of such innovation are accepted.98 They
can provide cheaper, more environmentally
friendly approaches, as well as introducing
solutions to what were previously thought to
be insoluble problems. There is the promise
of further developments in fields such as
communications, biotechnology, robotics,
health, climate science, clean energy and
climate-smart agriculture.

It was not the intention of the Working Group

to assess these technologies and expected
future innovations in scientific terms, but to

98 United Nations (2016) Global Sustainable Development Report 2016, Department of Economic and Social Affairs, New York:
UN, chapters 3 and 5, http://sustainabledevelopment.un.org/content/documents/2328Global Sustainable development report
2016 (final).pdf

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consider the implications
of new technology for the Today we see a new cultural clash between modernity and
inclusive Shared Society, tradition. The spread of internet and mobile technology is,
which is advanced here paradoxically, bringing the world closer and, at the same
as being at the core of time, the virtual world is accused of isolating people from
meeting the challenges direct physical contact and from problems in their own
posed by Agenda 2030. New neighbourhood. It is clear that the internet, smart technology
technology can introduce and social media can have a profound impact on our sense of
profound changes in being part of a global community that stands or falls together.
individual and social identity. Those with less access to state-of-the-art communication
In the past, technology technology will be further marginalized, though the extent of
developed slowly and the the reach of these systems into very remote and traditional
impact on culture and communities is remarkable.
society was gradual. Since
the agricultural and industrial For the future, technology can exacerbate existing negative
revolutions in Europe in trends if it is not guided by a clear set of people- and planet-
the 18th and 19th centuries oriented values and principles. Most technology is open to
technological change has misuse for destructive purposes.
been increasingly rapid,
opening up possibilities for
access to knowledge and it is conceivable that
information, and greater new technology could offer the means
geographical and social to solve problems but undermine the human
mobility and opportunities. capability to apply those solutions
This has created possibilities effectively, if it is not guided by the thinking
of empowerment and underpinning inclusive
advancement for some, sustainable development.
and left others more
obviously disadvantaged
and marginalized. The
old social structures and Dystopian visions in contemporary films and novels articulate
conventions – practical and the dangers.
cultural – have been found
unnecessarily restrictive, This is of particular concern in the field of robotics and bio-
and have been eroded and engineering. For example, biotechnology is challenging the
ignored, most markedly in understanding of what it is to be human and potentially could
the West and in cultures speed up the erosion of human values, which has already
that were most affected been identified as one of the obstacles to meeting current
by western colonialism. environmental and social challenges. New diagnostic tools
However the impact of these could allow people with limited medical training to treat
changes on social bonds patients effectively and, through advanced communications,
and interrelationships is not people in remote areas could have virtual access to highly
fully understood and taken trained doctors. While this may be positive, unequal access to
into account. This tendency this new technology could reinforce and accentuate current
is likely to increase with the disparities. Robotics could also destroy the livelihoods and
rapid introductions of new self-esteem of those it displaces while enhancing the quality of
emerging technologies. life of those who have access to its benefits.

Club de Madrid A new PArAdigm for SuStAinAble develoPment? 54

 PA R T 2.d
Since the industrial out new ideas and be at the forefront of commercial
revolution, developments applications makes it difficult to subject new ideas to
in science and technology rigorous dispassionate assessment, yet it is all the more
have marginalized earlier important to assess their possible impacts against a clear
knowledge systems. These set of values and principles. There are existing bodies that
have not been totally lost and have some responsibilities in this area in some countries and
are still valued by indigenous internationally, but none with a specific focus on the impact of
peoples and traditional new technology on sustainable development and inclusivity.
communities, among others. Such bodies need to be developed, strengthened and given
Various global agreements a higher profile in order to be able to respond effectively to
recognize the importance the global reach and power of modern technology and the
of all knowledge systems, organizations that use and promote it.
and the current ecological
and social challenges
require the pooling of all
forms of knowledge. This is
happening in the increasing
collaboration between

18
modern scientific institutions
and indigenous peoples in Militarism and the
understanding and dealing option of force
with climate change, or
in the creation of holistic in wartime, militarism and
health services combining conflict have very direct
allopathic, ayurvedic and and obvious impacts on
other health and medical the environment and
systems. Such developments development. even in
are best served by treating peacetime, militarism
knowledge and information not only justifies and
as part of the global encourages combativeness,
commons, and reversing the but it also distorts the
trend towards privatized and economy. for real progress
monopolistic control that is to be made on sustainable
inherent in the ownership of development for all,
intellectual property rights demilitarization has both
– bearing in mind that much a practical contribution
of this knowledge is in any to make in freeing up
case the product of public resources, and also an
investment in research and existential contribution in
development.99 breaking down the barriers
of national self-interest and
The speed of development pointing instead to a shared
and the urge to try future.

99 M. Mazzucato (2013) The Entrepreneurial State: Debunking Public vs. Private Sector Myths, London: Anthem Press.

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 PA R T 2.d
One of the weaknesses of governance at security. Militarism distorts the economy,
all levels is the dominant role played by and in many countries military expenditure
those who are more powerful, and the way far outstrips expenditure on overseas aid,101
in which they exert their power. Many (but reducing the resources, capital and labour
by no means all) states,100 communities, available for sustainable development.
corporations and individuals are reluctant to Nuclear weapons are the extreme example
pool their capacities and resources and share because of their destructive power and
power in order to address the challenges. cost. Most countries selling arms are already
When there is a conflict of interest, the default affluent, and many of the countries buying
option is to use financial or military strength arms can ill afford them, so the trade
to get one’s own way. As discussed above, contributes to inequality. Often the buyers are
many aspects of current orthodox attitudes among the most repressive regimes.
and assumptions, such as competition,
encourage the belief that exerting one’s As the UN Office for Disarmament Affairs
power is a virtue, and they reinforce the close says:
relationship between the military, industry and

“
politics.

There is a feedback loop between the We acknowledge that

assertion of power, the acquisition of power
disarmament alone will not
and the acceptance of force as appropriate
path to success. The desire to assert power produce world peace. Yet
leads to the accumulation of power in terms we also maintain that the
of capital, armaments or both. Having power elimination of weapons of
increases the tendency to use it. The capacity
mass destruction, illicit arms
to use or threaten to use power is taken as a
validation of the powerholder, and it becomes trafficking and burgeoning
accepted that the use of power and force is weapons stockpiles would
appropriate. The argument is made that a advance both peace and
strong military posture is necessary to deal development goals. It would
with threats, but in terms of this feedback
accomplish this by reducing
loop, the military posture increases the sense
that violence is the only effective option, and the effects of wars, eliminating
therefore increases rather than decreases some key incentives to new
the level of threat. In other words, rather conflicts, and liberating
than reducing war-like behaviour, militarism
resources to improve the
actually reinforces it.
lives of all the people and the
In wartime, aside from moral and ethical natural environment in which
considerations, militarism and conflict they live.” 102

have very direct and obvious impacts on

the environment, development and human

100 For example, Costa Rica – see forthcoming paper presented to the Working Group by Laura Miranda Chinchilla (2016) The
Costa Rican Experience.
101 http://www.globalissues.org/article/75/world-military-spending#Spendingforpeacevsspendingforwar
102 https://www.un.org/disarmament/vision/

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 PA R T 2.d
“Disarmament alone will not produce world of peace and security were not the concern of
peace” and a change of orientation is needed an agenda on sustainable development. But
in order to bring about a more inclusive, for real progress to be made on sustainable
sharing world. The inexorable advance of development for all, demilitarization has both
climate change is the kind of threat that may a practical contribution to make in freeing up
expose the limitations and powerlessness of a resources, and also an existential contribution
militarized world and demand a rethink. SDG in breaking down the barriers of national
16 is a very direct response to this challenge, self-interest and pointing instead to a shared
but it was hard won, as some states argued – future.
on this occasion unsuccessfully – that issues

19 Bringing the approach to scale

The Shared Societies approach is crucial to realizing a holistic vision in which everyone feels
that they are part of the whole, are sensitive to the wellbeing of others and feel a shared
responsibility. This approach can be found in many small communities and they have much to
teach the world community about how to create Shared Societies and to facilitate sustainable
development. Their sense of involvement and belonging can be replicated on a wider scale if
care is taken to maintain the essential features of these small communities.

A recurring factor, related to all the dimensions of this paper and also in the literature, is the
problem of scale. The Shared Societies approach, values and practice, can often be seen within
a small-scale community, where all the members of the community are directly known to each
other. But is it possible to replicate this on a national or global scale where these personal
bonds are absent? This document argues that these values are essential in the modern world.
But are they still feasible? If they are, how can they be reactivated and re-energized? They are
conspicuously absent in larger, more complex systems, in powerful states and in the global
governance system, including the UN and the Bretton Woods Institutions, where there is less
direct contact between people, and powerful voices carry more weight.

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 PA R T 2.d
Ostrom and her colleagues cultural contexts provide a and can take responsibility.
talk about “thick” social vast array of examples and This requires that people are
networks. How does instructions for maintaining treated by their leaders and
one create “thickness”? our natural environment their fellow citizens in ways
In many indigenous and the means to nurture which nurture that sense of
societies and other small harmony between humanity belonging and responsibility.
communities, there is direct and our shared planet. As in small, close-knit
personal knowledge of communities, this means
and connection with other To realize the vision and openness and transparency,
members of the group and approaches of this document raising awareness of the
the environment around would require scaling up challenges we face, and
them. These communities these practices and insights involving the whole society
have a profound relationship to larger and potentially in a shared project to decide
with the environment more impersonal situations, on preferred solutions.
and natural world, as well while ensuring that their
as a wealth of intricate essence is not lost. Building Many of these principles
knowledge concerning the sense of involvement and are part of ancient or newly
sustainability. Their belonging is crucial, such emerging worldviews such
communities, nations and as: the sense of the group as ubuntu and others.103 They
peoples have manifested as an important entity; the are still relevant, and ways
distinct values, customs, sense that we matter (that to ensure they inform and
practices and institutions our dignity is respected); enrich mainstream thinking
for centuries. Their different and that each person has to should be encouraged.

103 For example, buen vivir, sumac kawsay, ubuntu and swaraj. See A. Kothari et. al (2014) op. cit., (362-375).

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T O WA R D S A S H A R E D
A N D E Q U I TA B L E
FUTURE

The approach advocated in this paper requires a paradigm shift. It proposes alternative lenses
through which the development process needs to be viewed and key questions that need to be
asked. The situation is critical and change is urgently needed, but it is likely that the preferred
way forward will be sought in incremental stages appropriate to local circumstances, building
on the strengths of local systems in order to minimize features that undermine sustainable
development. There are different views on whether that will be sufficient to bring about the
changes required. A local perspective may facilitate a holistic view of the overall challenges
and needs of each community, but it could also shift the focus towards particular concerns and
issues in isolation from the wider dimensions of these issues. In either case, real progress will
only be made if the development process is viewed in a new way.

So, what will be the implications of an analytical framework that is more inclusive and
incorporates an environmental orientation based on conservation and modest consumption,
a social orientation based on inclusion, respect and sharing, and an economic approach
based on maximizing wellbeing? It is proposed that while it may not maximize GDP, such a
framework may lead to more sustainable development characterized by greater co-operation,
environmental renewal, lower levels of intergroup tension and higher levels of wellbeing, all of
which will free up wealth for future development. It will be easier to get consensus on the key
challenges (e.g. climate change), on starting points for tackling those challenges and holistic
approaches to overcome them.

Finding the right way to gain support for these ideas is also critical. What is the most effective
way to mobilize people around challenges? Is fear more effective than hope? Or self interest?
Or a positive vision? Or solidarity? Or demands for rights and justice? Past efforts have had
elements of all these incentives and this will likely continue in the future. Sometimes alliances
will be uncomfortable. Those who have felt oppressed are more likely to use the terminology
of demands and justice, but that may not resonate with the people whose support they want
to enlist to bring about change. Perhaps the most effective message, which can be drawn from
the work of the Shared Societies Project, is that by working together and pooling our interests,
everyone can benefit.

Agenda 2030 is not just the responsibility of political leaders; it is also the responsibility of
the whole of humanity which will have to play its part in realizing the SDGs and ensuring
that governments and intergovernmental bodies fulfil their tasks. Therefore, this analysis is
also commended to people’s movements and civic society, in the hope that it will give them
perspectives and ideas that will be useful in their work.

Club de Madrid A new PArAdigm for SuStAinAble develoPment? 59

MEMBERS OF THE WORKING
G R O U P O N E N V I R O N M E N TA L
S U S TA I N A B I L I T Y A N D
SHARED SOCIETIES

CHAirS of tHe worKing grouP

laura Chinchilla, President of Costa Rica Zlatko lagumdzija, Prime Minister of Bosnia
(2010-2014) and Club de Madrid Member & Herzegovina (2001-2002) and Club de
Madrid Member

memberS of tHe worKing grouP

Jamil Ahmad, Deputy Director, UN beatriz merino, former National

Environment, New York Office Ombudsman of Peru and Club de Madrid
NetPLUSS Member
frederic bontems, Former Director for
Development and Global Public Goods david miller, former Mayor of Toronto
at the Ministry of Foreign Affairs, French (2003-2010) and President and CEO
Ambassador to Ethiopia, France of WWF – Canada. Club de Madrid
NetPLUSS Member
roberto mukaro borrero, Consultant and
Member of United Nations Indigenous Patrick reinsborough, Special Adviser of
Peoples Major Group the Center for Story-based Strategy

Carter brandon, Global Lead Economist doug Saunders, Journalist, International

for the Environment and Natural Resources Affairs Columist, Toronto Globe and Mail,
Global Practice, World Bank author of “Arrival Cities.”

dalee Sambo dorough, 2014 Chairperson Sarah Silver, Alan B. Slifka Foundation
of the United Nations Permanent Forum on Executive Director
Indigenous Issues, Associate Professor at
Youba Sokona, Special Advisor on
University of Alaska Anchorage.
Sustainable Development, South Centre
thomas gass, UN Assistant Secretary- Juan Somavía, former Director-General
General for Policy Coordination and Inter- of the International Labor Organization
Agency Affairs in the Department of and Director of the Diplomacy Academy
Economic and Social Affairs (UN DESA) “Andres Bello”, Chile
lamia Kamal-Chaoui, Director of the Alfred tolle, Founder and Chairman of
Centre for Entrepreneurship, SMEs, Local Wisdom Together
Development and Tourism at OECD and
Coordinator of the OECD’s Inclusive Growth Katherine trebeck, Policy and Research
Initiative Advisor, Oxfam GB Global Research Team

Ashish Kothari, Founder Member of the veerle vandeweerd, Former Director of

Kalpavriksh Environment Action Group, India the UNDP Environment and Energy Group

Club de Madrid A new PArAdigm for SuStAinAble develoPment? 60

ABOUT
THE WLA-CLUB DE MADRID IS A NON-PROFIT
INTERNATIONAL ORGANIZATION AND THE
WORLD’S LARGEST, INDEPENDENT GROUP OF
DEMOCRATIC POLITICAL LEADERS,
committed to addressing the challenges of good governance and effective leadership. The added
value of the Club de Madrid is a membership of more than 100 former Presidents and Prime
Ministers from over 65 countries, willing to share their diverse expertise and networks. We partner
with governments, non-governmental organizations, civil society, scholars and the business world,
building bridges between them and the current leaders and policy makers and encouraging
dialogue to foster social and political change towards inclusive and peaceful societies.

Club de Madrid A new PArAdigm for SuStAinAble develoPment? 61