Group3_C | SDG 9: Industry, Innovation and Infrastructure

Group 3 Section C

Archit Jindal BJ20131 | Poornesh Hathwar BJ20155 | Pushkar Khatod BJ20159 |
 

Roshan Hemachandran BJ20163 | Saloni Malhotra BJ20166 | Swapnil Prakash
 BJ20175

The objective of SDGs or Sustainable Development Goals set by the United Nations in 2015 was to reach a more sustainable future for the people, attain prosperity, and build a better future for the planet. As a part of this blueprint, which includes 17 SDGs, "Industry, Innovation and Infrastructure" is the Ninth. Its objective is to "Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation."[1]

The term "Infrastructure" includes the basic structures and physical systems necessary for society's functioning. On the other hand, industries are responsible for creating job opportunities, distributing wealth, reducing poverty, and driving economic growth. The manufacturing industry, in particular, accounts for over 14.2% of the total jobs in the world.[2] Innovation, a term that has taken more importance in the recent past, results in technological breakthroughs, raising the existing industries' capabilities while also creating new ones.


WHY IS SDG 9 IMPORTANT

Despite tremendous growth in all sectors, a large section of the population is devoid of basic necessities.

Especially in under-developed and developing countries, this is one of the most critical issues acting as an impediment for the overall growth and improvement in the standard of living. Additionally, in general, industries produce hazardous waste in abundant quantities in solid waste, E-waste, chemical waste, radioactive waste, etc. Infrastructure development also contributes significantly to climate change.

Without a sustainable way to grow these sectors, humanity is soon looking at imminent danger on multiple fronts. These are the primary reasons why Industry, Infrastructure, and Innovation have been included as a part of the SDGs. The outcomes of several other SDG targets are dependent on SDG 9 for this reason.


As of now, globally, the GDP share and the employment associated with manufacturing have been reducing. If the trend continues, we will not achieve the Agenda 2030 for SDG 9. Thus, the countries have decided to invest in developing infrastructure, cross-border cooperation, and promoting small enterprises to ensure sustainable industrial development and achieve a course correction. Additionally, leveraging the technological advancements to upgrade the existing infrastructure and industries is equally important. Governments across the world are thus coming up with focused initiatives in this regard. (E.g., Start-Up India and Make in India)

CHALLENGES WITH SDG 9

The story of industrial innovation has been an integral determinant of the course of our history as a community. From the steam engine's onset to today's truly global production chains and processes, the industry's innovations and developments have changed our economies and helped lead to significant changes in our societies. That said, without sustainable practices and infrastructure in place, our growth has left vast sections of people wanting for more. Greater than 937 million of the globe's population in 2017 do not have access to electricity. [6]  For many lower-income countries, the current existent infrastructure constraints affect firm productivity by roughly 40%.[6]

 



The challenges to Industry Innovation and Infrastructure are many. However, efforts to overcome these obstacles are underway but would require significant funding and political influence. This part of the blog provides a quick view of the vital challenges critical for progress on this SDG and tall of them, in general.

One main challenge is increasing Internet access by micro and SMEs in developing countries, especially LDCs. Sometimes, access does not translate into usage because of issues concerning affordability, low literacy rates, scarce local content, and a lack of trust. Building skills of individuals and the enterprises, developing relevant Internet content, strengthening vital regulatory frameworks, and promoting trust can help improve access leads to enhanced usage.

Another challenge relates to inadequate transport, which leads to higher trading costs, decreased export competitiveness, and roughly less attraction for foreign direct investment, particularly in landlocked developing countries (LLDCs). And overcoming this challenge requires cooperation, multimodal transport, transport corridors, and an efficient transit facility. Additionally, poor access to infrastructure, particularly transportation, energy, and electricity, hinders development, diversification, and value addition in agriculture & agro-industry in rural areas.

On SDG target 9.5, worldwide R&D expenditure has grown, with investments in R&D equalling 1.7% of global GDP in 2014, as noted in the SDG Progress Report [5]; however, there are significant disparities among regions. Differences also exist around the number of researchers per million people, with a worldwide average of 1,098 researchers in 2014, 3,739 per million in developed countries, and only 63 researchers per million in LDCs. [5]

RELEVANCE OF SDG 9 TO INDIA

This SDG is especially relevant to countries like India since we have been extensively involved with domestic developmental projects. The Government of India's flagship interventions like Make in India and Start-Up India and Pandit Deendayal Upadhyay Shramev Jayate Karyakram is currently fuelling innovation and sustainable industrial and economic development across the country. This is aimed at increasing India's footprint in the overall economic developmental movement and improving the country's traditional production and domestic output.

Make in India, an initiative by the Indian government to encourage private entities to manufacture in India and incentivize dedicated investments into manufacturing products. The program has been relatively successful, witnessing significant foreign direct investment growth (FDI) after its initial launch. The total inflow was approximately USD 222.89 billion between 2014 and 2018. This was initially implemented to facilitate investment, foster innovation, enhance skill development, protect intellectual property & build best in class manufacturing infrastructure.

FACTS AND FIGURES

Infrastructure development may appear to be a less critical sustainability issue than the other problems covered under the Sustainability Development Goals (SDG). A glance at the existing infrastructural conditions, even in the developed countries, may convey the need to consider it an SDG. In some low-income countries like Ethiopia, infrastructure constraints cut business productivity by approximately 40 percent.[3] Worldwide 2.3 billion people still lack access to necessary sanitization, and more than 4 billion do not have access to internet facilities. [3] The fact that 90% of the latter belong to developing countries is contrary to the thinking that infrastructure challenges exist only in underdeveloped countries. [3]

PRICE OF INACTION

The price of inaction for this SDG is steep as a failure to improve the infrastructure and develop technology may translate into inadequate sanitation, poor health, and limited access to quality education. Thus, an inability to attain SDG 9 would ultimately lead to the failure of SDG 3 (Good Health) and SDG 4 (Quality Education). Considering that industrial development is the core driver for increasing employment and advancing sustainable development, inaction would make poverty eradication much more challenging. Thus, resulting in a weak economy and the failure of SDG 1 (No Poverty) and SDG 8 (Economic Growth). We can understand that inaction towards SDG 9 would start-off a virtuous cycle of failure of the synergetic SDGs. The concept of synergetic SDGs has been established in a recent study, which found a noticeable positive relationship between multiple SDGs.[4]

After forming the Paris Agreement and its goal to reduce CO2 emission, numerous efforts have been made to decrease it, but the pace of decline is far lower than the required levels. Apart from shifting to renewable and green resources, we need to use the existing resources efficiently, which is impossible without proper technological and infrastructural development. Therefore, the interdependency between infrastructure and eco-friendly practices make the attainment of SDG 9 necessary.

Recognizing the significance of infrastructure and undertaking a systems approach will underpin infrastructure and the planet's resilience. It makes the infrastructural development immensely significant for the futureproofing of our existing assets. London's Thames Estuary 2100 strategy is one of the leading examples of infrastructural development that can control the current risks and adapt to future climate changes.

ANALYSIS

There have been significant strides around the world towards the achievement of the objectives of SDG-9. In the least developed countries, the agricultural sector remains the primary employer. However, the manufacturing industry now employs more than 500 million worldwide, with this figure rising rapidly. Investments in R&D from low-income countries have doubled from USD 1.9 billion to USD 3.9 billion, and the number of researchers per million is also on the rise. Despite these improvements, a lot still needs to be done to reach the goals by 2030.

In India's case, several initiatives have been taken by the Govt. of India. The government has been focusing on Tier-2 & Tier-3 transport connectivity through the Udaan program. More than 600 km of highways were constructed, and new ports are planned in Trivandrum, Kerala, and West Bengal. The impetus on North-East's development has been an essential pillar of the current government's strategy. Capitals of three states in North-East are currently being connected via rail, and SARDPNE is being undertaken to build a Trans Arunachal Highway.

In Meghalaya, MGNREGA has been instrumental in reaching out to 90% of households and entails the development of last-mile connectivity. The novel initiative to use the MGNREGA funds to develop roads for connecting the markets has been well received. The program also consists of identifying the bottom 20 from every village & help them in their livelihoods.

The state of Maharashtra has been another trendsetter in the field. Under Delhi-Mumbai Industrial Corridor(DMIC), infrastructure development projects like stormwater drainage in MIDC estates, sewage treatment, and waste collection are the steps being undertaken for Sustainable Industrialization. The state has strained water resources and is adopting the models used by Israel & Singapore for sewage treatment.

Govt of India has also been moving towards the Public, Private Partnership in the infra sector. This was reflected in the uptick from 21% to 37% from the 10th five-year plan to the 11th five-year plan. Apart from the PPP model, a significant number of projects are also following the Built Operate Transfer (BOT) model and a hybrid annuity model. These models focus on the private sector involvement for fostering innovation & inclusive industrialization.

In recent years, dedicated programs like Tinkering LabsAtal Incubation Centers & Atal Grand Challenge under the Atal Innovation Mission has been undertaken to foster sustainable development.


 WAY FORWARD


These are a few actionable steps that we can take to achieve SDG 9 targets

These steps enunciate that India and the world is putting in efforts towards achieving SDG-9 of its "outcome" targets, but a lot still needs to be done in this direction.

The recent corona pandemic has highlighted the urgent need for resilient infrastructure. The critical infrastructure in India remains far from adequate. India is distinctively placed to deliver on its commitment to focus on Innovation, Infrastructure despite being the faster-growing economy in the world. Information and communication technologies have been on the frontlines of the COVID-19 response. As the pandemic reshapes how we work, go to school and shop for essentials, it is now more important to bridge the digital divide for the 3.6 billion people who remain offline, unable to access online education, employment, or critical health and sanitation advice.

Following are the immediate actions that can be targeted:

  • Build Basic Digital access, including infrastructure and skills
  • Regulators need to update the policy norms to digitally coordinate across sectors, e.g. financial, competition, data security
  • Cooperation across borders: Multilateral collaboration needs to be strengthened to facilitate experience sharing and capacity support, particularly for LDCs

Digital technologies can be harnessed in support of sustainability in the fields of finance, operation, etc. The government's approach to the use of technological advancements should be to build on the growing interest in sustainable investment. Policymakers must encourage the increasing interest in sustainable investment. Measures such as sustainability standards of operating, sustainability risk disclosures, etc., can be used as parameters in these policies.

As for the far future, innovation and technological progress is crucial to finding lasting solutions for economic and environmental challenges. So new strategies need to be implemented that will support the use of new technologies like artificial intelligence, biotechnology, blockchain, and robotics to accelerate the achievement of the 2030 Sustainable Development Agenda.

Even before the outbreak of COVID-19, global manufacturing growth has been steadily declining. While information and communication technology are essential for sustainable growth, development pathways can become more challenging, as new technologies may create fewer jobs. To counter these trends, countries should pursue labor-enhancing development pathways by incentivizing investment in industries that feature decent work opportunities.

A new sustainable approach is needed to ensure that technological change supports the implementation of the SDG - one that prioritizes people and at the same time prioritizes inclusion to tackle gender biases.


References

https://www.undp.org/content/undp/en/home/sustainable-development-goals/goal-9-industry-innovation-and-infrastructure.html

https://in.one.un.org/page/sustainable-development-goals/sdg-9/

https://www.sdgfund.org/goal-9-industry-innovation-infrastructure

https://sdgacademy.org/goal/industry-innovation-and-infrastructure/

https://developmentfinance.un.org/sites/developmentfinance.un.org/files/FSDR_2020.pdf

https://www.un.org/sustainabledevelopment/infrastructure-industrialization/#:~:text=Goal%209%3A%20Build%20resilient%20infrastructure%2C%20promote%20sustainable%20industrialization%20and%20foster%20innovation&text=Least%20developed%20countries%2C%20in%20particular,in%20scientific%20research%20and%20innovation

https://niti.gov.in/indias-commitment-to-the-sdgs

https://www.iisd.org/articles/infrastructure-industrialization-and-innovation-why-sdg-9-matters-and-how-we-can-achieve-it

https://niti.gov.in/writereaddata/files/Report_SDG-9.pdf

http://ris.org.in/pdf/SDGs_Report_Chapter_9.pdf

Video inspiration: https://www.youtube.com/watch?v=eEOdMq2Gk54&ab_channel=MAPFRE

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