Abstract
This paper aims to analyze a strategic transformational transition of green economy, green growth, and sustainable development from the institutional perspective. The analysis begins questioning the implications of the concepts and principles of green economy, green growth, and sustainable development from different perspectives in the transformational transition considering the investment, trade, and capacity building though the design and implementation of strategies and policies, as well as measures from an institutional analysis. The methodology followed was the analytical review of the literature to derive inferences, challenges, proposals, and conclusions. It is concluded that the green economy concept addresses current challenges delivering economic development opportunities and multiple benefits for the welfare of all human beings.
TopEvolution Of The Concept Of Green Economy
The concept of green economy has emerged in the last decade as a policy framework for sustainable development and poverty eradication. The concept of green economy was coined and used in 1989 in the report Blueprint for a green economy (Pearce, Markandya, & Barbier, 1989) commissioned to advice on the applications, projects, policies and measures of sustainable development.
On the middle of the economic crisis in 2008, green economy was presented as a means to reduce the growing social inequality and achieving sustainable development. The concept of green economy rises in the aftermath of 2008 global financial crisis challenging a radical transformation of development practices (Davies 2013, 1285). The concept of green economy was initially a response to the financial crisis (Bina & La Camera, 2011), and an operational policy for growth based on sustainable development at the environment– economy nexus (Schmalensee, 2012).
After the financial crisis of 2008, green stimulus programs were launched as an incentive for investments in green energy sources and technologies. The global recession has led to design green energy sources. The United Nations Environmental Program (UNEP) launched the green economy initiative in climate change mitigation. Green economy aims to improve human well-being and social equity while significantly reducing environmental risks and ecological scarcity according to the concept of The United Nations Environmental Program (UNEP).
In 2009 was proposed the Global Green New Deal as a strategy to revive the global economy, mitigate climate change and environmental degradation and reduce poverty. The objective UNEP’s GE Initiative (GEI) was to provide policy support for investing in greening sectors and environment. Green economy delivers transformations for more egalitarian and inclusive societies and shared economic prosperity.
Key Terms in this Chapter
Green Growth: The one that promote economic growth and development while ensuring that natural assets continue to provide the environmental resources and services on which our well-being depends
Strategic Plan: It is a document integrated in the business plan that includes the planning at the economic-financial, strategic and organizational level with which a company or organization has to address its objectives and achieve its future mission.
Sustainable Development: It is development that meets the needs of the present without compromising the ability of future generations to meet their own needs
Green Economy:That which leads to the improvement of human well-being and social equality: while environmental risks and ecological scarcity are significantly reduced.
Transformation: The result of a process of change of form. It happens when one thing: fact or idea is converted into another.
Institutional Approach: Analysis of the economic relations that need a regulatory framework that allows them to interact in the market, is where the institutions take action by establishing certain limits - whether formal and informal - that regulate economic negotiations, in an imperfect market.
Transition: A change from one form or type to another, or the process by which this happens.
Capacity Building: A process through which people, organizations and societies obtain, strengthen and maintain the necessary skills to establish and achieve their own development goals over time.