Thursday, January 14, 2010

Green fiscal stimulus

A new paper Global Governance: The G20 and a Global Green New Deal analyses the worldwide green fiscal stimulus. South Africa's green stimulus as percentage of the total fiscal stimulus of $7.5bn was 10.7%, compared to the UK's 10.6%, the US's 12%, China's 33.4% and South Korea's 95.2%.

As the world recovers from the worst economic crisis since the Great Depression, the international community should promote a mix of policies to sustain this global recovery and create jobs through reducing carbon dependency, ecological degradation and poverty. Such a Global Green New Deal (GGND) requires a long-term commitment to implementing and coordinating “green investments” by the Group of 20 (G20), who should also adopt complementary pricing policies and foster international aid and other actions in support of the GGND. Developing economies should provide clean water and sanitation for the poor, create safety nets, invest in heath and education, and target energy and water poverty. Such a global strategy can revive economies, create jobs and improve the sustainability of world development.

Full citation: Edward B. Barbier (2010). Global Governance: The G20 and a Global Green New Deal. Economics: The Open-Access, Open-Assessment E-Journal, Vol. 4, 2010-2.

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