The concept carries the promise of a new economic growth paradigm that is friendly to the earth’s ecosystems and can also contribute to poverty alleviation. Viewed in this framework, it is compatible with the older concept of sustainable development that has been mainstreamed into the United Nations’ work for decades. But it also entails risks and challenges, particularly for developing countries, for whom economic development becomes more demanding and the fear arises that the new concept could be used to reinforce protectionist trends, enhance the conditionality associated with international financial cooperation, and unleash new forces that would reinforce international inequalities.
Patrick Rey
Principal-agent models take outside options, determining participation and incentive constraints, as given.
- 07/24/2024
- Working Paper