Human Development Report 2020

Thirty years ago, UNDP created a new way to conceive and measure progress. Instead of using growth in GDP as the sole measure of development, we ranked the world's countries by their human development: by whether people in each country have the freedom and opportunity to live the lives they value. The 2020 Human Development Report (HDR) doubles down on the belief that people's agency and empowerment can bring about the action we need if we are to live in balance with the planet in a fairer world. It shows that we are at an unprecedented moment in history, in which human activity has become a dominant force shaping the planet's key processes - the Anthropocene. These impacts interact with existing inequalities, creating unparalleled threats of human development reversal and exposing weaknesses in social, economic, and political systems. Though humanity has achieved incredible progress, we have taken the Earth for granted, destabilizing the very systems upon which we rely for survival. COVID-19, which almost certainly sprang to humans from animals, offers a glimpse of our future, in which the strain on our planet mirrors the strain facing societies. How should we react to this new age? Do we choose to strike out on bold new paths striving to continue human development while easing planetary pressures? Or do we choose to try--and ultimately fail--to go back to business as usual and be swept into a dangerous unknown? This Human Development Report is firmly behind the first choice, and its arguments go beyond summarizing well-known lists of what can be done to achieve it.

This report offers a thought-provoking, necessary alternative to paralysis in the face of alarming planetary change. Its release comes as the COVID-19 (coronarvirus) pandemic simultaneously offers a glimpse of what a ‘new normal’ could hold and opens up the opportunity for humanity to change course. The report also sets out new metrics of human development to guide us, including a new, experimental Planet Adjusted-Human Development Index.

Global value chains (GVCs) powered the surge of international trade after 1990 and now account for almost half of all trade. This shift enabled an unprecedented economic convergence: poor countries grew rapidly and began to catch up with richer countries. Since the 2008 global financial crisis, however, the growth of trade has been sluggish and the expansion of GVCs has stalled. Meanwhile, serious threats have emerged to the model of trade-led growth. New technologies could draw production closer to the consumer and reduce the demand for labor. And trade conflicts among large countries could lead to a retrenchment or a segmentation of GVCs. World Development Report 2020: Trading for Development in the Age of Global Value Chains examines whether there is still a path to development through GVCs and trade. It concludes that technological change is, at this stage, more a boon than a curse. GVCs can continue to boost growth, create better jobs, and reduce poverty provided that developing countries implement deeper reforms to promote GVC participation; industrial countries pursue open, predictable policies; and all countries revive multilateral cooperation.

Every year, the World Bank’s World Development Report (WDR) features a topic of central importance to global development. The 2018 WDR—LEARNING to Realize Education’s Promise—is the first ever devoted entirely to education. And the time is right: education has long been critical to human welfare, but it is even more so in a time of rapid economic and social change. The best way to equip children and youth for the future is to make their learning the center of all efforts to promote education. The 2018 WDR explores four main themes: First, education’s promise: education is a powerful instrument for eradicating poverty and promoting shared prosperity, but fulfilling its potential requires better policies—both within and outside the education system. Second, the need to shine a light on learning: despite gains in access to education, recent learning assessments reveal that many young people around the world, especially those who are poor or marginalized, are leaving school unequipped with even the foundational skills they need for life. At the same time, internationally comparable learning assessments show that skills in many middle-income countries lag far behind what those countries aspire to. And too often these shortcomings are hidden—so as a first step to tackling this learning crisis, it is essential to shine a light on it by assessing student learning better. Third, how to make schools work for all learners: research on areas such as brain science, pedagogical innovations, and school management has identified interventions that promote learning by ensuring that learners are prepared, teachers are both skilled and motivated, and other inputs support the teacher-learner relationship. Fourth, how to make systems work for learning: achieving learning throughout an education system requires more than just scaling up effective interventions. Countries must also overcome technical and political barriers by deploying salient metrics for mobilizing actors and tracking progress, building coalitions for learning, and taking an adaptive approach to reform.

The 2020 edition of the WWDR, titled 'Water and Climate Change' illustrates the critical linkages between water and climate change in the context of the broader sustainable development agenda. Supported by examples from across the world, it describes both the challenges and opportunities created by climate change, and provides potential responses - in terms of adaptation, mitigation and improved resilience - that can be undertaken by enhancing water resources management, attenuating water-related risks, and improving access to water supply and sanitation services for all in a sustainable manner. It addresses the interrelations between water, people, environment and economics in a changing climate, demonstrating how climate change can be a positive catalyst for improved water management, governance and financing to achieve a sustainable and prosperous world for all. The report provides a fact-based, water-focused contribution to the knowledge base on climate change. It is complementary to existing scientific assessments and designed to support international political frameworks, with the goals of helping the water community tackle the challenges of climate change, and informing the climate change community about the opportunities that improved water management offers in terms of adaptation and mitigation.

The devastating impacts of coronavirus (COVID-19) on developing countries have tested the limits, ingenuity and flexibility of development co-operation while also uncovering best practices. This 58th edition of the Development Co-operation Report draws out early insights from leaders, OECD members, experts and civil society on the implications of coronavirus (COVID-19) for global solidarity and international co-operation for development in 2021 and beyond.

Continuing the thread of the 2019 and 2020 Human Development Reports (HDRs), the 2021/2022 HDR carries forward a conversation centered on inequalities while integrating other important themes related to uncertainties in the Anthropocene: societal-level transformations, mental health impacts, political polarization, but also, crucially, opportunity. The Report explores how uncertainty in the Anthropocene is changing, what is driving it, what it means for human development, and how we can thrive in spite of it. The Report argues that, in the end, doubling down on human development is central to a more prosperous future for all.

This report examines the links between inequality and other major global trends (or megatrends), with a focus on technological change, climate change, urbanization and international migration. The analysis pays particular attention to poverty and labour market trends, as they mediate the distributional impacts of the major trends selected. It also provides policy recommendations to manage these megatrends in an equitable manner and considers the policy implications, so as to reduce inequalities and support their implementation.