Speech by Maria Suokko, UNDP Resident Representative

Towards Small-Scale Innovative Ecosystems in Kosovo Conference, 20 Nov 2019

Ladies and Gentlemen,

Colleagues and Friends,

I would like to thank the Embassy of Finland and UBT for the great cooperation in organizing this exciting event! Such a great opportunity to exchange ideas and explore new partnerships!

For us at UNDP, ecosystems are critically important for solving global challenges. We cannot tackle these challenges through working with the “usual suspects”. Development organizations and development banks cannot do the work alone – we need to reach out and actively build new partnerships that will allow us to deliver the change that is needed. We need to be able to create partnerships also with the “unusual suspects” – be able to bring onboard everyone who is interested and can help us in achieving the SDGs. This means research institutes, start-ups, CSOs, citizens, philantrophists, diaspora and private sector.

Today’s last panel discussion focuses on the importance of fostering innovation for achieving the Sustainable Development Goals (SDGs). I will talk about:

1)      SDGs as a shared framework – and the urgency to accelerate our efforts;

2)      Why innovation is critical for achieving SDGs; and

3)      How we can foster innovation by working together

Even though, today, the focus is on small-scale ecosystem – in our case, Kosovo – the fact is that we live in a dynamic and inter-connected world, experiencing changes that are profound and rapid. As each country and region is faced with it its own peculiar challenges, we are all guided by a joint blueprint. If fulfilled, it promises us a sustainable future — a healthy planet where all people can live productive and peaceful lives. That blueprint is Agenda 2030 - an ambitious development plan agreed upon by the world leaders in 2015.

And there has been progress. Since 2015, hundreds of millions of people have been lifted from absolute poverty, the mortality rate of children under 5 years have fallen significantly, immunizations have saved millions of lives, and the vast majority of the world’s population has gained access to electricity.

But today, we are “seriously off-track” in achieving the SDGs. One of the obstacles on the way is insufficient financing. Public funds will never add up to even close to what is needed. We are talking about a funding gap of 2.5-3 trillion dollars per year in developing countries – between the current level of funding and what would be required to achieve the SDGs by 2030.

Kosovo, too, has committed to this global development agenda voluntarily through the SDG resolution that was adopted by the Assembly almost two years ago - but there is still quite some way to go for achieving the SDGs.

Although Kosovo has made good progress in developing a functioning market economy, it has not translated to well-being of all its people. The economic growth has not translated into new jobs. Almost half (49%) of the young people in Kosovo are unemployed. Many choose to leave Kosovo instead of building their futures here. 80% of Kosovo’s women are not actively participating in the labor market.

People’s lives are seriously impacted by environmental degradation – as a result of accumulated industrial pollutants, inadequate waste management, uncontrolled construction and unsustainable use of natural resources. Almost all of Kosovo’s electricity is produced by two aging lignite plants, releasing tons of ash into the air every hour.  

Achieving the SDGs - in Kosovo and globally - requires a greater commitment and cooperation across all sectors and actors. The good news is, SDGs are becoming increasingly owned by all actors - as they are meant to be.

Why is innovation critical for achieving the SDGs?

We need to accelerate development in order to meet the 2030 deadline for achieving the SDGs. There is not enough time nor resources to continue with business as usual. We need to accelerate innovation to meet the SDGs.

Emerging technologies and approaches can help to make development more impactful, allowing us to reach results faster, at a lower cost.

To make innovation happen – and to bring it up to scale – we need to work together.  Agenda 2030 itself shows the complexity of sustainable development. It highlights the inter-connectedness of economic, social and the environmental issues.

Responding to wicked global challenges requires integrated solutions, broad cooperation and multi-disciplinary approach. For example, Climate Change is not just an environmental issue. And on the other hand, responding to the climate challenge can yield multiple positive results. Reducing greenhouse gas emissions has the potential to also create new jobs, build more livable cities, and improve the quality of life for all.

Innovation isn’t just about fancy hi-tech solutions. It is not just about young people doing cool things – although it’s also that!

Innovation means new ideas or new ways of doing things. Innovation means new ways of working together. Getting out of comfort zone.

How can we foster innovation by working together?

To accelerate development, we need to identify and scale bottom-up solutions. We also need to invest in what can initially seem as risky, but highly important initiatives that bring solutions to social problems.

We need to nurture a culture that allows new thinking and approaches to emerge. We need to understand and appreciate complexity.

As Kosovo’s economy is growing, we need to pay more attention to the quality of the growth. The impact is has on environment and on people’s lives.

One solution in responding to Kosovo’s development challenge is circular economy. Shifting from linear to circular economy offers the potential to avoid waste, keep materials in use, and re-generate - rather than degrade natural systems. And it has the potential to boost growth and create much needed new jobs.

There are two great examples of Kosovar businesses which embrace the concept of designing circular economic processes that minimize waste production. In this last panel, we have representatives of two companies operating in Kosovo which are using waste as a resource in their production processes.

Another solution is innovative financing

As technology is evolving, new forms of finance are also finding ways to development. Impact financing, crowdfunding and blockchain provide us completely new opportunities. Currently, UNDP is piloting the use of blockchain for diaspora investments, supporting crowd-sourcing for local start-ups, and piloting many other financial instruments. We are actively seeking for opportunities for diaspora to invest in sustainable solutions – such as renewable energy – instead of real estate.

Today’s panel will focus on ecosystems for circular economy – examples on how innovative solutions and partners are already there - but need to be better inter-connected to bring the system change. As we have heard earlier today, to be able to transform the whole ecosystem and beyond, we need to be improving and transforming education – to create people that are fit for the new industrial revolution.

It is our joint responsibility to nurture conditions which are conducive to innovation – and seek partnerships - that provide new opportunities for all. Particularly for those left furthest behind.