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Responsible sovereignty takes the long-term interests of the world as a whole into account when formulating national policy disciplines that can be negotiated only at the WTO. Most countries accept the necessity of a strong multilateral body to referee the rules of world trade while knowing that regionalism is here to stay; one way forward is to gradually “multilateralize regionalism”. 38 Responsible sovereignty While most governments support the principles of multilateralism, they are also understandably concerned with preserving national sovereignty. Overly strict adherence to the primacy of national sovereignty can encourage cross-border rivalries and zero-sum thinking. Countries on their own are less able to defend themselves from the contagion effects of financial crises or the ill effects of global warming. National action does not ensure that a country’s citizens have access to global public goods. Some governments are unable to sufficiently protect the human rights of their citizenry. A better strategy is responsible sovereignty—that is, taking the long-term interests of the world as a whole into account when formulating national policy. Most global public goods depend on the effective management of cross-border consequences and an adequate provision of national and regional public goods, and thus on national institutional capacity and a willingness to cooperate regionally and globally. Countries must take into account their respective international responsibilities in providing public goods and avoid undermining the collective welfare and the well-being of other countries, such as through pollution or other abuses of the global or regional commons. Responsible sovereignty includes taking steps towards collective endeavours—such as trade liberalization and climate change mitigation—that, if designed effectively, could greatly enhance global collective welfare. In a highly interconnected world, effective national decisionmaking cannot be carried out in isolation from regional and global policies. National policies have regional and global consequences; examples include protectionist national responses to international economic downturns and the failure to regulate overfishing and ocean pollution. At the same time, regional and global policies provide a context for national policymaking. Countries and regional and multilateral organizations must come together and align national policies towards common international goals. In an increasingly globalized and interconnected world, this is a matter of enlightened selfinterest: decisions taken at the national level today can affect people in all countries for generations to come. If national leaders are unable to look beyond narrowly conceived immediate national interests, the potential gains from cooperation will be lost, and the costs of inaction will mount. National policies will undermine rather than reinforce and complement each other. Examples include public spending and stimulus policies in the wake of the global financial crisis: coordination by central banks around the world to lower interest rates in concert helped avert further deepening of the worldwide recession. The South, due to its rising economic stature and political influence, is an increasingly important partner in global decisionmaking. The rise of the South, accompanied by stronger cross-border links, makes decisionmaking more interdependent than ever. The North and the South must find common ground for meaningful progress on today’s pressing global problems. Responsible sovereignty also requires that states honour agreed universal human rights and obligations towards people residing in their territories and ensure their security and safety. The Responsibility to Protect initiative, for example, is an attempt to develop a new international security and human rights norm that can address the international community’s failures to prevent and stop genocides, war crimes, ethnic cleansing and crimes against humanity. In this view, sovereignty is seen not just as a right, but also as a responsibility. While a positive step towards establishing guiding principles on global governance in human security, the initiative lacks procedures to ensure that the principles are upheld. 39 There are no agreed thresholds of violations or atrocities that would automatically activate international interventions. This mismatch between principles and procedures highlights the importance of building capacities into 116 | HUMAN DEVELOPMENT REPORT 2013
international governance systems to hold governments and political systems accountable to the people they represent. Without binding mechanisms for holding states accountable to their citizens, the legitimacy of institutions such as the United Nations Security Council is brought into question. But agreement on a principle of responsible and mutually supportive sovereignty will be forthcoming only if the preconditions of global fairness and justice are met. New institutions, new mechanisms The rise of the South presents opportunities for innovative new structures for development partnerships and new approaches to development policy, both globally and regionally. The substantial foreign reserves accumulated by the leading economies of the South could be leveraged for development financing in less developed countries, for example. New mechanisms for aid, trade and technology exchange within regions of the developing world can usefully parallel and complement existing arrangements. The countries of the South themselves could take greater leadership roles in the global policy dialogue about the most urgent international development needs and about the most effective ways to meet these 21st century challenges. Infrastructure development banks The rise of the South is also creating new possibilities for financing equitable and sustainable human development. Brazil, China, India, the Russian Federation and South Africa, for example, have proposed a BRICS Development Bank that would draw upon their considerable reserves to finance projects in developing countries. 40 Like the European Bank for Reconstruction and Development, such a bank could offer a range of instruments, including loans, equity and guarantees. In addition to financing productive projects, this flow of resources would also assist with global financial rebalancing. An important use for such reserves would be building infrastructure. To meet urgent needs, infrastructure spending in developing countries must reach $1.8–$2.3 trillion a year by 2020, or about 6%–8% of GDP, compared with current levels of $0.8–$0.9 trillion a year, or about 3% of GDP. 41 One means of enabling and facilitating such investments would be through a development bank for infrastructure and sustainable development. That could bolster developing country borrowing to finance economically productive infrastructure. Because borrowers need to be concerned about debt sustainability, efforts are required to go beyond domestic government borrowing by leveraging other forms of financial assistance. A new institution could crowd in the right type of capital through guarantees and other instruments. 42 New institutions will be more effective if they work in concert with existing regional and global institutions, filling gaps in funding and investment. Chapter 4 presented an accelerated progress scenario that set ambitious targets for raising the Human Development Index (HDI) value in all regions by 2050 through a series of public spending initiatives. This scenario assumes about 20% improvement in infrastructure by 2050, universal access to electricity by 2030, elimination of solid fuels as the primary source for heating and cooking in the home by 2030, renewable energy production 50% above the base case by 2050 and universal access to mobile telephone and broadband by 2030. The largest projected increases in HDI value under this scenario are in Sub-Saharan Africa (65%) and South Asia (47%; figure 5.1). Current average public investment in Sub-Saharan Africa and South Asia is around 7.7% of GDP. 43 Allocating a small fraction of the international reserves of the nine G20 countries of the South could provide substantial additional resources for public investment in infrastructure in Sub-Saharan Africa and South Asia (figure 5.2). Depending on the share of reserves allocated, public investment would rise 17.6%– 52.8%. In fact, allocating just 3% of liquid international reserves of the nine G20 countries of the South would increase the share of public investment in these countries 4.1%–11.7% of GDP, close to the average level of public investment for all developing countries. 44 For reserve-holding countries and their sovereign wealth funds, investing in developing The rise of the South presents opportunities for innovative new structures for development partnerships and new approaches to development policy, both globally and regionally Chapter 5 Governance and partnerships for a new era | 117
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W N S E Human Development Report 20
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Human Development Report 2013 The R
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Human Development Report 2013 Team
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Finally, the Report also calls for
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Heather Simpson, Ben Slay, Mounir T
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3.6 India’s Supreme Court issues
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Overview One of the most heartening
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and sustainability are fully incorp
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Without investment in people, retur
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opportunity to reap the full benefi
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Woods institutions, the United Nati
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Introduction When developed economi
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leading economies—Brazil, China a
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comparable access to information, e
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mobile phones: cellular banking is
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“The political problem of mankind
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BOX 1.1 Fairness, macroeconomics an
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BOX 1.3 Amartya Sen, Nobel Laureate
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FIGURE 1.1 Income per capita is ris
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BOX 1.4 Subjective indicators of we
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FIGURE 1.4 There is notable variati
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FIGURE 1.6 Most regions show declin
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Progress in human development achie
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BOX 1.7 Social competencies: human
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TABLE 1.3 Inequality and satisfacti
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Not all countries have the precondi
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“When the music changes, so does
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BOX 2.1 The South’s integration w
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FIGURE 2.1 As a share of world merc
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BOX 2.2 Acquisitions by the South o
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FIGURE 2.3 Between 2000 and 2010, I
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FIGURE 2.4 Export earnings per capi
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BOX 2.6 Final assembly is about mor
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Instead of having a centre of indus
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FIGURE 2.6 Emerging market economie
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Developing countries trade more amo
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“We cannot expect that all nation
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TABLE 3.1 Selected developing count
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Page 88 and 89: Having weathered the Asian financia
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Page 92 and 93: Advancing health requires more than
Page 94 and 95: Universal public health and educati
Page 96 and 97: • China. The Minimum Livelihood G
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Page 100 and 101: concerns will make for a complex en
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Page 112 and 113: BOX 4.2 China and Ghana: who benefi
Page 114 and 115: FIGURE 4.8 countries thus converge
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Page 118 and 119: Areas of global international conce
Page 120 and 121: Addressing climate change requires
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Page 126 and 127: facilitates reserve investments and
Page 130 and 131: FIGURE 5.1 Under the accelerated pr
Page 132 and 133: Good policymaking requires greater
Page 134 and 135: A fair and less unequal world requi
Page 137 and 138: Notes Overview 1 Atsmon and others
Page 139 and 140: 25 Blinder 2006. 26 UNIDO 2009. 27
Page 141 and 142: which is 61.7 deaths per 1,000 live
Page 143 and 144: References Abdurazakov, A., A. Mins
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Page 149 and 150: Labor Administration. Geneva: Inter
Page 151 and 152: Human Development Report 2013 The R
Page 153 and 154: Statistical acknowledgements The Re
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Statistical references ADB (Asian D
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Core features of the model pertinen
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Countries and HDI ranks in 2012 and
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