Advancing a Green and Fair Economic Transformation: The role of macro-economic modelling
25 May 2023 - 30 June 2023
The Partnership for Action on Green Economy (PAGE) and United Nations Development Coordination Office (DCO) are collaborating to deliver a training, starting on May 25th, on Advancing a green and fair economic transformation in a crisis-driven World: The role of macro-economic modelling. The objective is to strengthen the capacity of key stakeholders working on economic policy and national planning to use and interpret different modelling approaches for supporting a green and fair economic transformation, leveraging global PAGE tools and expertise
Achieving the 2030 Agenda requires a new type of economic transformation, one that is inclusive, diversified, and job-intensive that leaves no one behind, protects the planet, and strengthens the ecological foundations of economies.
The implications of the Covid-19 pandemic and the war in Ukraine have fundamentally changed the circumstances in which countries take decisions on economic policy. In this context, the margin for inclusive green economic policymaking is becoming tighter. Many Governments have reconfirmed their long-term commitments to decarbonization. However, fiscal pressures and the immediate needs of covering energy demand and ensuring food security make it more difficult to put in place the policies that are needed to lay the ground for a low-carbon, inclusive and resilient economic pathway.
Macroeconomic modelling is a powerful tool that allows one to assess the investments required to deliver on these goals and targets in an integrated and synergistic manner. Macroeconomic modelling for a green and fair economic transformation is used to inform policy and investment assessments and decision-making processes, employing existing techniques commonly used by economists and public policy specialists, and adapting them to provide analysis of economic, social, and environmental impacts.
Purpose of the Training
Macroeconomic modelling can support governments in designing better policies that balance short- term political demands with longer-term development priorities. It helps to promote an integrated approach to addressing economic, social, and environmental challenges for sustainable development through informed policymaking. Modelling results can also provide information on trade-offs, economic opportunities, and fiscal space, among other elements to enable the transition required to achieve the 2030 Agenda.
The aim of the training is to help developing countries around the world develop robust in-country capacities for macroeconomic modelling and better position governments to use modelling tools quickly while responding to unforeseen crises and the resulting economic shocks. The training will enhance the capacities of a focused group of participating countries for using various modelling tools and techniques that can help facilitate a green and fair economic transformation while building synergies with the support currently being provided through the UN system and other partners.
The training programme does not limit its focus or prescribe a specific model for countries to adopt or develop but rather discusses a variety of modelling tools and techniques in order to look at the process holistically. The objective is to build upon existing macroeconomic models which participating countries might already have in place, build bridges between existing or proposed sectoral models, and identify pathways through which these tools can be best augmented to achieve maximum impact using limited resources.
Content and Structure
The training programme is intended to provide focused and tailored support to 10 countries which have been selected through an open application process. The target audience for the training programme includes Government Officials, UN RCO Economists, representatives of national think tanks and academic institutions engaged in modelling, as well as representatives of UN agencies or other international organizations which are providing modelling support to the Government
The course is structured around six modules. The modules cover the following topics: i) Introduction to macroeconomic modelling for a green and fair economic transformation, ii) Exercise Module: Identifying and applying the proper variables for specific inclusive green economy outcomes, iii) Optimally using existing models iv) Informing inclusive green economy policy processes, and strategies including green financing instruments and fiscal tools, v) Working with limited data and using models to respond to economic shocks vi) Capacity building for macroeconomic modelling for a green and fair economic transformation
The entire training programme will be delivered online through Zoom. The course pedagogy is adapted to full-time working professionals engaged in ongoing or proposed modelling processes in their respective countries. Participants are provided with the opportunity to learn through various experiences: absorbing (reading and listening); doing (activities); interacting (socializing); and reflecting (relating to one’s own reality).
- 25th and 26th May
Introduction to macroeconomic modelling for a green and fair economic transformation
- 1st and 2nd June
Exercise Module: Identifying and applying the proper variables for specific inclusive green economy outcomes
- 6th and 9th June
Optimally utilising existing models
- 15th and 16th June
Informing inclusive green economy policy processes, and strategies including green financing instruments and fiscal tools
- 22nd and 23rd June
Working with limited data and using models to respond to economic shocks
- 29th and 30th June
Capacity building for macroeconomic modeling for a green and fair economic transformation
After completing the training programme, participants will be able to:
- Discuss how macroeconomic modelling can be used to make informed policy decisions in the context of multiple crises and limited data availability.
- Analyse the core characteristics of existing macroeconomic models and the extent to which they can be modified and/or complemented to facilitate a green and fair economic transformation.
- Identify appropriate (new) models for supporting green and fair economic policy processes and strategies.
- Interpret results of macroeconomic models to inform policy processes, strategies and assessments relating to a green and fair economic transformation.
- Discuss how macroeconomic models can be used to support the design and implementation of green economy related fiscal tools and financing instruments.
Upon completion of all 6 modules, an online assessment will be administered to all participants.
Participants from the 10 shortlisted countries will be eligible to secure a certificate of completion while additional Participants will be eligible to receive a certificate of participation, both upon meeting specific assessment criteria.
Participants will be requested to provide feedback regarding their experience in the training. The post- training survey developed by UNITAR and PAGE agencies will help tailoring the training for future audiences and should be completed within two weeks upon completion of the training.