The Success of the Green Economy in Africa Solely Rests on the Shoulders of the Private Sector - Case Study Example

 ‘The success of the green economy in Africa solely rests on the shoulders of the private sector’, Discuss. The green economy was defined by the United Nations Environment Programme (UNEP) at United Nations Conference on Sustainable Development(Rio+20) in June 2012 as an economy that results in reducing environmental risks and ecological scarcities and aims for sustainable development without degrading the environment. Thus the main goals for green economies are not based on the demand for sacrifice but on the idea of sustainable development where low carbon and environmentally friendly technologies are put into practice. Green economies should flourish worldwide so as to protect the environment and for such to happen there are many stakeholders involved which include the private sector which has a major role of investing in the ideas of the green economy, which are quite costly and governments should set in place laws that attract investment that’s good policy formulation which will bring about economic stability and Non Governmental Organisations (NGOs) will be responsible for alerting the communities which are also stakeholders in the green economy initiative. Therefore the role of the private sector might be considered chief amongst other key drivers due to its investing and innovating capacities which are crucial for the transition to a resource and energy efficient low carbon economy which is generally agreed to be very expensive. The question under discussion therefore requires a detailed insight on the most important key driver of greening the economy hence comparing the role of the private sector and other stakeholders. According to the Donor Committee for Enterprise Development (DCED), the private sector is the key driver for green growth, as its investing and innovating capacities are crucial for the transition to a resource and energy efficient low carbon economy. The private sector will largely contribute to poverty alleviation through the creation of jobs for both the learned and the unlearned which will be an engine for economic growth, and a positive sign of sustainable development. Thereby, increasing offer and demand for green products and services will be met while alleviating poverty and stabilizing the economy. Unemployment will also be dealt with since most graduates in Africa are looking for greener pastures in the developed countries, but the private sector will introduce green industries and other job opportunities in companies which will be dealing with material recovery, recycling, waste management, wastewater treatment and air pollution control amongst others. Therefore in such a case the private sector will reduce poverty, brain drain and create employments which are all positive steps towards attaining sustainable development in an environmental friendly manner. To add on, the private sector will have a major role to play towards the acceptance of the green transition by civilians, besides green products being expensive there will also be so much risk within the private sector which might lead to arrogance and eventually the failure of the green economy. The private sector is therefore responsible for giving out green loans, grants and seed funds which will encourage investments in low carbon, resource efficient production technologies and climate adaptation which will make the transition smooth. According to the Business Council of Sustainable Development for Zimbabwe (BCSDZ), foreign direct investment in green sectors can also be essential in funding investments in green sectors. That can be achieved through supporting the creation of emission trading platforms and markets for green equity investments. Hence the private sector is chief amongst all other stakeholders because it will bring possible solutions to the problems that will be encountered during the transition period. Transition from the brown economy to the green economy will not be successful in the absence of updated technology and innovations which cannot be offered by neither the NGOs nor the governments but by private sector proving its magnitude. According to Hahnel (2010), innovation will help to decouple economic growth from environmental degradation and will lead to new ideas and new business models, thus contributing to green growth. For example, energy efficient technologies can reduce energy demand and have proven to be less expensive than traditional technologies for poor consumers. Same applies to green technologies which will be provided by this sector as well, for instance the solar homes programme which is still under discussion in South Africa and if it becomes successful more than 100 000 homes will be solar electrified and the installation will be done by women. Thus the private sector will not only offer technology but observing gender issues as well which will definitely lead to sustainable development putting into mind that gender equality is part and parcel of the Millennium Development Goals (MDGs). The private sector also works closely with multilateral institutions which are the major governors and regulators of the international environmental issues. Keeping in mind the fact that most African countries and small islands are still under developed one would suggest that the set of laws should be different from that of the developed countries. Scholars such as J. Rifkin (2013) say that the roles of the private sector will therefore be to negotiate with the international bodies so as not to apply a uniform set of rules but rather policies should be applied in relation to the level of development. For example, countries such as Australia which are more developed should be given a shorter period of time to fully move to a greener economy, while under developed countries should be given ample time. It should also be noted that fossil fuel driven industries are against the introduction of the green economy as it undermines them, therefore its success depends on the state buy-in. Hence one may agree that the success of the green economy will depend on the actions of the private sector. On the other hand, one should also recognize the responsibilities of other stakeholders such as civil societies and NGOs. NGOs have a pivotal role towards the success of the green economy in Africa because they have a number of responsibilities such as raising public awareness which is under principle number 9 stating that all citizens should be well informed about the environmental issues. They are also responsible for coordinating green projects and donating materials such as solar panels that can be used by the less advantaged who cannot afford the expensive technologies of the green economy such as wind powered electricity generators. It should also be noted that most NGOs are driven by humanitarian factors such as poverty alleviation and since its one of the targets of the green economy they are stakeholders as well and can make the green economy a success. From such a stand point the assertion that the private sector determines the success of the green economy might be questionable. NGOs and civil society will have much to contribute towards the shaping of a successful green economy in Africa because it is their role to monitor the use of funds that they are suppose to source from other international aid organisations. Most African governments are well known for their corrupt ministers, hence if there be need to channel “green” funds through the government it should be done under maximum supervision and in this case civil societies will come in handy. There is also need for NGOs to start advocating for the green economy since it will bring funding which is a serious problem for African countries. For example, Environmental Monitoring Agency (EMA) in Zimbabwe has the right policies but is in short of funding hence it becomes practically ineffective. If donors fund such agencies and more NGOs start operating in the department of environmental management and protection thereby alerting them on what the green economy is all about. Realizing the intentions of the green economy will give communities a sense of ownership, for example avoiding river bank cultivation will improve the flow of rivers and community members might get fish and it will be an undeniably positive step towards poverty alleviation. Therefore the private sector might not be considered as the sole advocator of the green economy since NGOs also play a fairly significant role as well. More so, the local governments also have a significant role to play towards building a green economy thus good policy formulation and integrating strategies that promote social and environmental goals amongst others. Governments should come up with good policies which alleviate poverty or have same goals with those of the green economy for example policies such as the Zimbabwe Agenda for Sustainable Socio- Economic Transformation (Zim-Asset). According to Jeffrey Gogo in the herald, 30 June 2014, if the Zim-Asset is properly implemented it will create a good platform for transitioning into the green economy by reducing the level of poverty and it is the key instrument for enhancing institutional and national capacities for greening the economy. Such policies will make the green economy from an economic view point because the reason why other countries are not in full force towards greening their economies is because of the high levels of poverty and economic instabilities hence states should formulate development oriented policies. On the same note, governments should put in place policies which attract foreign investment because with the state of most African countries economies they cannot afford greening their economies without assistance from the developed countries. For example, Botswana needs approximately 20 billion US dollars for a successful transition. To achieve this, the state should undertake reasonable legislative and other measures that will attain funding amongst other factors which advocate for development. Consequently, the assertion that the private sector will solely drive the green economy may be questionable after realizing the role which the state also has. Furthermore; the government is responsible for effectively enforcing laws which protect the environment. Failure to enforce such laws will only lead to the failing of green economies since the civilians might decide to stick on to the cheaper ways of life “brown economy”. Most countries especially in Africa fail to enforce environmental laws for example cutting down of trees for commercial use by someone without a license is highly prohibited in Zimbabwe however if one moves around he/she will see that the law only applies on paper and not in the practical world and the reason is because we do not have strong and efficient enforcers. If the transition to a green economy is introduced under such conditions there would be very possibilities of it failing to deliver its intended results thus the government is another very strong pillar towards a smooth and successful change from the ‘brown’ to the ‘green’ economy. With the above in mind one may not entirely agree with the quotation “the success of the green economy in Africa solely rests on the shoulders of the private sector” considering the contributions from other stakeholders. In conclusion, one may therefore assert that to a larger extent the quotation is correct because the private sector without a doubt plays a pivotal role in the process of changing to a greener economy within the African continent. It is the private sector which is responsible for bringing in the necessary technology; much needed funds and negotiates with multilateral institutions on policies to be applied in under developed countries which are the majority of African countries. However to a lesser extent one should not overlook the role of NGOs, civil societies and governments which are basically responsible for creating a favorable environment for the transition to take place. For the success there is need to come together with social and democratic participation both at the level of decision making and implementation and monitoring of such policies. If we want to create a shift we cannot rely on governments only, but we need to elect governments that will put people before profit and that will take the current crisis seriously. A paradigm shift will need action from civil society actors, organized and not organized, to change their role, their intake, their actions and proposals to bring change. For a successful transformation to a green economy, the private sector must develop green products, services and technologies which reduce the risks of climate change and environmental degradation while intensifying efforts for adaptation to climate change. At the same time, it must increase income opportunities for the poor. Hence with the evidence above one might be in agreement with the assertion, ‘The success of the green economy in Africa solely rests on the shoulders of the private sector’. REFERENCE ‘Green Growth-The green tomorrow’. DCED, 30/11/2013 retrieved 16/08/2014 Georgescu-Roegen, N. (1975), Energy and economic myths. Southern Economic Journal 41: 347-381. "Green Economy - Green Economy Report". UNEP, 2011-11-16. Retrieved 16/08/2014 Hahnel, R. (2010), Green Economics: Confronting the Ecological Crisis. New York: M. E. Sharpe. Jeremy, R. (2013), "The Third Industrial Revolution". VII, 233-242 Kennet M. (2012), Green Economics: Voices of Africa. The Green Economics Institute. The herald newspaper, accessed 17/08/2014 http://www.herald.co.zw/zim-asset-conducive-platform-for-greening-the-economy/ United Nations Division for Sustainable Development (UNDESA) (2012), “A guidebook to the Green Economy” United Nations Environment Programme (2010), A Brief for Policymakers on the Green Economy and Millennium Development Goals. Read More