Policy Coherence, Global Environmental Governance, and Poverty Reduction

This paper explores linkages between policy coherence, global environmental governance, and poverty reduction. It begins with a few thoughts on what these terms mean, and how they are linked. It then provides some perspectives on how the linkages might be improved over time. The paper takes the view that the most coherent institutional framework for both poverty reduction and environmental protection is likely to be one that is relatively decentralised, and based on a modular (networking) structure. The implication is that this framework should rely mainly on domestic and regional governance institutions, rather than on global ones. Effective management of environmental problems (both national and international) also implies a judicious mix of strong government institutions, smooth-functioning markets, and well-targeted infrastructure investments. The business and labour communities are therefore crucial. Other elements of civil society, notably the NGOs, also have important roles to play. Global environmental governance will have to overcome significant resistance insofar as the interests of the developing countries are concerned. Developing countries will need to be convinced that it is in their best interest to participate in global environmental institutions. The best way of making this case is to link (local) poverty reduction objectives explicitly to (both local and global) environmental protection goals. Bringing greater coherence to international trade, investment, and development co-operation policies could make an important contribution to strengthening these linkages. Investment is particularly important here – in the future, investment governance will likely prove to be more important for poverty reduction than environmental governance. Focusing on global environmental governance will not be enough.