Sustainable Development Goals and Total Factor Productivity

#SDGAction42600

Description

Intro

Aiming to increase the share of Total Factor Productivity (TFP) in Turkey's economic growth and to present a political framework, UNDP introduced the Support for the Development of a Policy Framework for TFP Project in 2015 and completed in 2018. Within the scope of the project, UNDP Turkey also aims to fulfill its duties of assessing the subject of TFP in terms of global targets and the 2030 Agenda; identifying the potential links of such studies to TFP; and bringing a sustainable development approach to the attention of relevant parties in the context of TFP.

Objective of the practice

TFPÃ¢â‚¬â„¢s generation of effective outcomes must be considered in relation to the sustainable development approach. When economic growth is not shaped by a perspective of social justice and when it doesnÃ¢â‚¬â„¢t take into account environmental sustainability, it can create negative social and political consequences and cause destructive impacts on the environment. It may not be possible to assess the arising social and environmental impacts and address the obstacles in the way of economic welfare with a development approach which does not anticipate the relationships between the environment and socioeconomic development. Such an environment leads to the creation of environmentally, socially and politically vulnerable sectors that are not robust enough. In order to avoid this, the direction and manner of growth must be identified through a sustainable development approach. 
The study aims to raise the awareness of the sector representatives of institutions related to TFP and other related institutions on the issue of SDGs. Thus, it is encouraged to act within a sustainable development approach concerning actions and plans related to TFP with the actors of the national and global development process urged to assume responsibility of their roles in the process. Six main (Goal 1, 5, 8,9, 12 and 17) targets directly related to TFP has been focused on for this purpose. 
GOAL 1: While increasing TFP, the main goal should be to enable the participation of all men and women in economic growth in accordance with the principle of leave no one behind and inclusive growth and to ensure they fairly benefit from this growth. 
GOAL 5: Different policy areas related to TFP such as the use of labor, company management quality, investment climate, incentives for innovation and entrepreneurship are closely related to gender equality and womenÃ¢â‚¬â„¢s empowerment perspectives. Therefore, the policies regarding these areas should be carefully developed to include gender equality perspectives. 
GOAL 8: Economic growth equality stipulates the realization of inclusive and sustainable economic growth taking into account social and environmental justice. It harbors an inclusive understanding of growth that ensures everyone benefits fairly from economic welfare. 
GOAL 9: Industrialization, technological progress, infrastructure investment and innovation are crucial drivers of TFP. An increase in TFP that is based on sustainable development is particularly important for the realization of targets contained in Goal 9 including job-creation, inclusive and sustainable economic growth and promoting progress in industry. 
GOAL 12: Non-sustainable consumption and production habits, especially in societies where economic prosperity is high, are pushing the limits of the planet. Areas such as research and development, innovation and technological improvement which are addressed within the TFP approach must be considered in a way that is open to the propositions of the green growth approach. 
GOAL 17: SDGs can only be achieved through a multi-stakeholder structure and global partnership and cooperation. Promoting international trade and encouraging developing countries to increase their exports are matters that are closely related to a just, open, universal and fair trade system for all as well as the integration into the global market.

Partners

The implementing partner and the main beneficiary of the Project is the Strategy and Budget Office (SBO), the Presidency of Republic of Turkey. SBO is the main authority to prepare the Development Plans of Turkey. During the TFP Project, other than the main beneficiary, other government institutions, NGOs, private sector companies, sector representatives engaged in the project activities and supported the policy framework preparation process.

Implementation of the Project/Activity

The project was implemented by UNDP Turkey Office. The Project team composed of Team Leader, Deputy Team Leader, Project Coordinator as well as individual consultants. The project executed in close coordination with Steering Committee Members composed of government officials as well as NGOs, sector representatives. UNDP Turkey Gender Specialist participated to the team during the preparation stage of the study, which dwells upon the relationship between TFP and SDGs. She scrutinized all the background studies conducted during the implementation of the Project. Background studies include the field study, which is the result of interviews conducted with 3000 companies, benchmarking study analysing the trends and norms in global value chains, country studies examining the best practices, thematical and sectoral workshops realized with all stakeholders, etc. By building on these studies, Green Paper was prepared and introduced to public opinion. After the consultations and with the feedback of the Scientific Committee composed of academicians, Green Paper was converted into White Paper and presented to SBO as a policy framework for the increase of TFP in TurkeyÃ¢â‚¬â„¢s economic growth. During the Green Paper consultation process, many feedbacks were taken to strengthen the policy framework in relation to SDGs. In line with these feedbacks, it was decided to study more on the relation of TFP with SDGs and strengthen the policy framework presented. Therefore, the study analysing this relation was developed as an Annex to the White Paper and presented to the all stakeholders.

Results/Outputs/Impacts

This study was launched as a means of raising the awareness of the sector representatives of institutions related to TFP and other related institutions on the issue of SDGs as well as the main public institutions developing policies to increase the share of TFP in economic growth. Since it is the policy framework that will be reflected into the 11th Development of Turkey, its effects can be seen in the mid-term and long-term. However, it is the good news that all governmental institutions develop their practices and implementations in line with the direct guidance of the Development Plan and therefore the results of this study will have chance to be seen countrywide. Additionally, UNDP had chance to reiterate once more the importance of SDGs in many platforms, in which private sector participated and directed them towards implementing their actions and practices within an SDG approach as the long-term goal of sustainable economic growth fed by increased TFP.

Enabling factors and constraints

The most important enabling factor for this study to be launched was the consultation process of the Green Paper. As indicated, the need of analysing the relationship between the SDGs and TFP emerged during the consultations. This need was raised not only by UNDP Turkey, but from public and private institutions as well. Therefore, this ambition and willingness was the most important factor in conducting this study.

There have been constrains during the implementation as well. Although there was an important level of enthusiasm for the launch of this study, there had been objections from the beneficiary for this study to be published as an Annex to the White Paper. However, by the efforts of UNDP Turkey, the beneficiary was persuaded, and the study was finalized as the second annex of the policy framework.

Sustainability and replicability

For the sustainability, it was decided that SBO will benefit from policies and priorities of White Paper in future main policy documents. Parties agreed on the adoption of White Paper as a credible policy document. All the studies including the White Paper and its annexes were presented to SBO. SBO will use these them as reference documents while preparing the 11th Development Plan.

Conclusions

The Sustainable Development Goals determine the necessary priorities that should be taken into consideration in all phases of development in order to ensure that every person who is currently living and likely to live within the time period until 2030 properly benefits from non-discriminatory, equal and fundamental rights and freedoms. These goals can be connected with a wide range of levels, scopes and processes, from individual livelihood or recreation activities to development of regions, economic welfare of countries and global economic transformation movements. The place and the way to create these connections are closely associated with the extent to which we undertake this responsibility as individuals and organizations. 
Total Factor Productivity is one of these processes and should not be considered independent from the Sustainable Development Goals and underlying approaches such as human development, sustainable development, inclusive growth and green economy and should not be realized without taking these factors into consideration. This document should be considered as a study that is related to implementation of the Sustainable Development Goals. The descriptions which were based upon six chosen goals should be regarded as examples that indicate possible correlations between the goals and the fields of activity. There are significant duties and responsibilities falling to all stakeholders from individuals, countries and companies to industries, academia and non-governmental organizations so as to implement this critical framework that gives us the opportunity to live in an equal, non-discriminatory and peaceful environment. The Sustainable Development Goals, which we created altogether in accordance with our own priorities in order to grow and develop consistently without leaving anybody behind, provide us with the framework required to fulfill our duties and describe concrete steps. Herein the duty that falls upon is to undertake this responsibility.

Other sources of information

Information regarding the TFP project, White Paper as well the study on the Relationship Between SDGs and TFP can be found at http://tfvp.org/gb/

SDGS & Targets