Green Economy and IEG

In conjunction with our topic of Green Economy & IEG, I found Neth Dano's note on the AG page of interest.  My sense of her suggestion was to focus on the UNEP recommendations of the GER and to array those against the institutional options for IEG.  I have taken a shot at doing this and offer it for your reaction and possible forwarding to our group as a catalyst for thinking, if not analysis.

As implied by my comments and analyses, I see this exercise as underscoring the import of conceiving governance in a much broader context than IEG.  The UNEP report is well done, and articulates some powerful strategies.  However, virtually all require very active engagement, if not leadership, from the international financial institutions and WTO - its all about economy and our starting point is just that, the existing global economic relationships.

Enabling conditions critical, and governance is critical to the enabling conditions.  However, most of the discussion and much of the GER documents end states, not transitional means.  I believe the nation states, in the end, will be key to whatever gets done, but they all are vested in the existing economic structure and global institutional structure.  I believe we need to tap into that existing structure, not try to drive some work-around.
 
I also believe the IGOs can deliver models, guidance and catalytic roles, but in the end, basic conditions of predictable state-level regulatory governance are crucial.  The challenge is to enable that, but to deliver it with reasonable international consistency.
 
It is also important to note that there will be winners & loosers in any global shuffling, and therefore the starting-points of the nations and key institutions are crucial.  It is unrealistic to view this challenge as a top-down one, as countries will take steps not rational from global perspective in order to preserve national interests.  Financial and trade impacts must be taken into account.  This requires policies integrated into financial and trade institutions.  “Sustainability” not “Environmental” governance will dictate the future, as trade and finance/investment policies must be adjusted if externalities are to be priced effectively and consistently.
 
I also think the financial chapter is vitally important from a governance standpoint - we must be cognizant of that dimension.
 
Just a few of my thoughts at the moment.  Hope this helps get ball rolling.  Happy to see them stimulate exchange and pushback...

Institutional framework

See Tom Jacob's full comment "Institutional Framework for Sustainability" of 26.08.11 under Forum 6, that is also relevant to this topic.