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05 June 2023

Discover the third interview featuring people that have collaborated with PAGE at a given time. The purpose is to voice experiences, opinions, and insights on how the green economy is evolving and how the green economic transformation is being implemented around the world. Meet Elsa Galarza, who has been collaborating closely with PAGE since 2013.

 

“At the forefront of the Inclusive Green Economy in Peru: the challenges from engagement to implementation”

Mrs Elsa Galarza is an economist from Universidad del Pacifico, Peru. She owns a Master of Science in Agriculture Economics at Iowa State University, United States, with specialized studies on environmental issues at Harvard Institute of International Development; INCAE, Costa Rica; the World Bank Institute and Wageningen University UR, Holland. Currently, Mrs. Galarza is the Director of the Graduate School of Public Management at Universidad del Pacifico. She was the Director of the Research Center of Universidad del Pacífico and Principal Professor at the Economics Department. In the public administration, Mrs. Galarza has been Minister of Environment (2016-2018) and Vice Minister of Fisheries (2009-2010). Besides, she has been advisor of the Minister of Agriculture, and the Minister of Economy and Finance, and has integrated several committees for technical support for public sector institutions.

Q1. When was your first contact with the PAGE team?  

My first contact with PAGE was through Ronal Gainza in September 2013 approximately, when this initiative was just arriving in the country.  In the first conversation with the PAGE team, we presented the Universidad del Pacífico and its research center, and our experience in the development of macroeconomic models and in issues of environmental sustainability and public policies.

Q2. What was the IGE perception at that time?

The Inclusive Green Economy (IGE) was a new approach at that time, because environmental aspects were mentioned but rarely quantified. Moreover, macroeconomic models only considered social and economic components. Up to that point communication between officials of the Minister of Economic and Finance and of Minister of Environment improved substantially. The inclusion of environmental sectors such as water, forests, climate in economic models was a major advance for sustainable public policies.

Q3. How has IGE evolved in Peru since then?

As we perceived it from the beginning, IGE was a long-term process and therefore the importance of the participation of the academy. The process of developing the model itself was going to take time, but it was also just a start. Over the years, the Universidad del Pacífico and other institutions such as the Center for Strategic Planning -CEPLAN and the Ministry of Production – PRODUCE, have continued working with the Peru-T21 model and more sectors such as energy have been incorporated. Having these models allows public policy decisions to consider the environmental approach in decisions in a very concrete and evidence-based way.

Q4. Tell us about your engagement with IGE in Peru and the different roles you played in advancing the IGE in your country.

As a professor-researcher I led the team that worked in the process of creating the Peru T21 model. It was a very enriching process because we worked with colleagues who are experts in macroeconomic models with microeconomists, specialists in environmental issues, which meant mutual learning. The process of developing the model also allowed articulation with public officials from various economic sectors, generating links between academia and the public sector, which to this day have been maintained.

As an advisor and Minister of the Environment, I was able to promote PAGE so that the process of inclusion in various sectors can continue and be considered in decision-making. At the same time, the aim was to train more public officials in the functioning of the IGE. The advantage of having been in the design of the IGE model and the beginning of the PAGE initiative allowed me to promote the initiative at a decision level and sustain the importance of the tool to have better sustainable public policies.

 

As an advisor and Minister of the Environment, I was able to promote PAGE so that the process of inclusion in various sectors can continue and be considered in decision-making. At the same time, the aim was to train more public officials in the functioning of the IGE. The advantage of having been in the design of the IGE model and the beginning of the PAGE initiative allowed me to promote the initiative at a decision level and sustain the importance of the tool to have better sustainable public policies.

Q5. What are the challenges and opportunities to advance the IGE in Peru in the coming decade?

Despite the political and institutional uncertainty that Peru is going through, the IGE is an opportunity to rethink our development in a more sustainable way. The Covid19 pandemic showed us that our economy, despite having been in continuous growth, needs to be strengthened so that basic public services can allow the population to be more resilient in the face of various adversities. Likewise, adverse climatic events that affect public and private infrastructure, and the well-being of the population make it evident that the development model must have a comprehensive approach that makes it more sustainable in the long term. In addition, Peru is a country that has a high diversity, not only in natural resources, but also in geographical, climatic and cultural aspects, which gives us a lot of potential for our development.

The challenges are enormous. The great diversity also implies a high complexity to carry out the development processes. In this sense, the IGE is an approach that allows a better balance of policies, evaluating investments and impacts on economic, social and environmental aspects and the positive and negative relationships that are generated. To the extent that the instruments with an IGE approach are developed in more detail, and the various technical teams of the sectoral ministries take them into account, it will be possible to have better evidence that allows progress in sustainable development.

Q6. What is the strength of a programme like PAGE?

I believe that the main aspects of the PAGE programme are based on two aspects. The first allows to convene diverse public stakeholders and facilitates their communication through training on different aspects of integrated green growth. This allows all stakeholders, public officials, academia, technicians, private sector representatives, to have an strong involvement in PAGE initiatives. The second refers to the fact that PAGE seeks to generate evidence using the best knowledge available in the countries and, at the same time, seeks to generate greater capacities. In this sense, programs such as PAGE are necessary because they allow medium and long-term actions that help build institutions and capacities in the countries around sustainable development.

 

 

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