Background: The Call for a New Development Paradigm and the Response of the G20
The Development Working Group (DWG) of the G20 was established in 2016 as a coordinating body and policy resource for advancing the 2030 Agenda for Sustainable Development. Despite efforts, only 15% of the Agenda is on track, and high debt levels in middle- and lower-income countries are hindering substantial progress in expanding sustainable and climate finance at scale. Inequalities, extreme hunger, and poverty have worsened since the Covid-19 pandemic, and wealth distribution has become more imbalanced, as shown by the nearly US $1.7 trillion in global dividends distributed by the top 1,200 listed companies in 2023—more than double the amount in 2010.
The 2030 Agenda aims to tackle the many interlinked crises the world is facing, including inequality, climate change, biodiversity loss, poor governance, and social fragmentation. These challenges are deeply rooted in economic systems that prioritize short-term financial gains over long-term sustainability and wellbeing. They cannot be resolved without addressing the systems that give rise to them.
Embracing the critical need for a new development paradigm, in 2023, G20 Development Ministers adopted the G20 High Level Principles on Lifestyles for Sustainable Development, further endorsed by G20 Leaders at the New Delhi Summit. These principles underscore the importance of integrating development, climate, and biodiversity agendas and establish the importance of scaling Life Economies—economic systems that recouple growth with societal wellbeing and environmental health, fostering inclusive development, inter-generational equity, and ecological sustainability.
Life Economies prioritize long-term benefits over short-term profits, promoting shifts in values, mindsets, and behaviors among individuals, businesses, investors, and institutions. They encompass various innovative models, including the Bioeconomy, Blue Economy, Doughnut Economics, Green Economy, Impact Economy, Regenerative Economics, Social and Solidarity Economy, Stakeholder Capitalism, and Wellbeing Economy, among others. By aligning economic activities with the SDGs through sustainable consumption and production, ethical finance, wellbeing measurement, and other means, Life Economies offer a path to sustainable and inclusive growth that benefits all members of society.
Central to Life Economies are ‘purpose-driven’ or ‘for-benefit’ models of enterprises, such as social enterprises, sustainable businesses, cooperatives, community interest companies, and numerous others, which have, importantly, been legally recognized by all G20 members over the past two decades. Innovations like impact investing, wellbeing measurement, corporate governance reforms, circular economy, ESG, venture philanthropy, and blended finance are also driving this new paradigm.
The G20 has also endorsed the formation of the Global Alliance for Life Economies Research & Innovation (GALERI), first envisioned in 2022 during the G20 Indonesia and formally launched in 2023 at the G20 Global Summit on the LiFE Economy in New Delhi. GALERI fosters global engagement, coordination, and collaboration among governments, think tanks, academia, international organizations, philanthropy, business, civil society, and other actors to accelerate the growth of inclusive and sustainable economies. GALERI aims to create a wide space for collaborations to effectively support policymaking in G20 countries, guide global processes in developing norms, and create global public goods, particularly in research and innovation. This includes advancing understanding and the practice of impact measurement and investing; responsible management and new forms of corporate governance; innovations in economic and development policy; and alignment of blended finance, development finance, climate finance and philanthropy with the SDGs; among others, with an emphasis on collective action and community participation.
This side event will explore how growing Life Economies can unleash innovative solutions and unlock greater capital to advance the 2030 Agenda and address DWG priorities under the Brazilian G20 presidency, including fighting inequalities, ensuring access to water and sanitation, and promoting Triangular Cooperation. It will bring together diverse stakeholders from G20 member countries, G20 engagement groups, international organizations, and Life Economy experts and practitioners. The event will provide an opportunity to share knowledge, build partnerships, and develop strategic actions to advance Life Economy solutions, complementing efforts on just and green transition, wellbeing, and social inclusion.