living in poverty increased, largely due to population growth (Kates and Dasgupta
2007; Rivano 2014; Camfield et al. 2013) (Chap. 1 Vol. 1).
Most of the sustainability challenges in Africa require investments in (and financing of) key economic sectors (Adams 2009) (Chap. 1 Vol. 1). For example, external
finance played a central role in promoting resilience to economic and financial shocks
in the continent during the past decades (UNCTAD 2018). This includes finance
obtained through foreign direct investment (FDI), aid in the form of official development assistance (ODA), short- and long-term loans, portfolio equity and remittances (UNCTAD 2018). FDI is currently the largest source of external financing in
developing countries (39% of total financing), with ODA being the financing main
mechanism for the least developed countries (LDCs), accounting for 36% of total
financing compared to 21% from FDIs (UNCTAD 2018). Nonetheless, Kates and
Dasgupta (2007) identify the failure of international institutions in providing sufficient investment and aid for overcoming multi-faceted sustainability challenges such
as access to markets, education and lack of resources, among others (Chap. 1 Vol. 1).
New development agendas have sought to promote international collective action
and coordinated efforts, with safeguarding or even increasing levels of FDI and
ODA being a key priority (UN General Assembly 2015). Despite the geographically
uneven progress, the Millennium Development Goals (MDGs) implementation
process identified that international cooperation is an undeniably powerful mechanism for tackling sustainability challenges that are too great for any single nation to
address unilaterally (United Nations 2015; Camfield et al. 2013). More specifically,
coordinated action through FDIs played a key role towards the progress made in
meeting some of the MDGs in Africa, and has been a key element in developing and
implementing national development policies (Asongu and Nwachukwu 2017;
Fowkes et al. 2016; Lim et al. 2016).
Following the MDGs, the sustainable development goals (SDGs) have culminated
in a common framework to coordinate efforts for targets that have been commonly
agreed both by developed and developing countries. With its 17 goals, 169 targets and
213 indicators, the SDGs pose an ambitious challenge, not the least due to their complex
interlinkages (ICSU 2017; Zhou and Moinuddin 2017; IAEG-SDGI 2016) (see Chap. 1
Vol. 1). These interlinkages reflect the interconnectedness of the earth system and
global political and socioeconomic processes, established in the Anthropocene (Steffen
et al. 2004), as well as the multi-scalar nature of common pool resources (Duraiappah
et al. 2014). There are six essential elements of SDGs for addressing sustainability
challenges in Africa, namely (1) ensuring healthy lives, knowledge and inclusion of
women and children; (2) ending poverty and fighting inequality; (3) growing strong,
inclusive and transformative economies; (4) protecting ecosystems; (5) promoting safe
and peaceful societies and strong institutions and (6) establishing global partnerships
for sustainable development (United Nations 2014).
However, the rapid population growth, urbanization and other demographic and
socioeconomic transitions continue to shape the dynamics of livelihoods in the
region (UNDESA 2014) (Chap. 1 Vol. 1). Poorly planned solutions may result in
higher transaction costs and inefficient investments (Adams 2009; Rasul and Sharma
2016; von Braun and Mirzabaev 2016) (see Chap. 1 Vol. 1; Chap. 4 Vol. 2). In
particular, individual SDGs often address overlapping issues that are equally
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2007; Rivano 2014; Camfield et al. 2013) (Chap. 1 Vol. 1).
Most of the sustainability challenges in Africa require investments in (and financing of) key economic sectors (Adams 2009) (Chap. 1 Vol. 1). For example, external
finance played a central role in promoting resilience to economic and financial shocks
in the continent during the past decades (UNCTAD 2018). This includes finance
obtained through foreign direct investment (FDI), aid in the form of official development assistance (ODA), short- and long-term loans, portfolio equity and remittances (UNCTAD 2018). FDI is currently the largest source of external financing in
developing countries (39% of total financing), with ODA being the financing main
mechanism for the least developed countries (LDCs), accounting for 36% of total
financing compared to 21% from FDIs (UNCTAD 2018). Nonetheless, Kates and
Dasgupta (2007) identify the failure of international institutions in providing sufficient investment and aid for overcoming multi-faceted sustainability challenges such
as access to markets, education and lack of resources, among others (Chap. 1 Vol. 1).
New development agendas have sought to promote international collective action
and coordinated efforts, with safeguarding or even increasing levels of FDI and
ODA being a key priority (UN General Assembly 2015). Despite the geographically
uneven progress, the Millennium Development Goals (MDGs) implementation
process identified that international cooperation is an undeniably powerful mechanism for tackling sustainability challenges that are too great for any single nation to
address unilaterally (United Nations 2015; Camfield et al. 2013). More specifically,
coordinated action through FDIs played a key role towards the progress made in
meeting some of the MDGs in Africa, and has been a key element in developing and
implementing national development policies (Asongu and Nwachukwu 2017;
Fowkes et al. 2016; Lim et al. 2016).
Following the MDGs, the sustainable development goals (SDGs) have culminated
in a common framework to coordinate efforts for targets that have been commonly
agreed both by developed and developing countries. With its 17 goals, 169 targets and
213 indicators, the SDGs pose an ambitious challenge, not the least due to their complex
interlinkages (ICSU 2017; Zhou and Moinuddin 2017; IAEG-SDGI 2016) (see Chap. 1
Vol. 1). These interlinkages reflect the interconnectedness of the earth system and
global political and socioeconomic processes, established in the Anthropocene (Steffen
et al. 2004), as well as the multi-scalar nature of common pool resources (Duraiappah
et al. 2014). There are six essential elements of SDGs for addressing sustainability
challenges in Africa, namely (1) ensuring healthy lives, knowledge and inclusion of
women and children; (2) ending poverty and fighting inequality; (3) growing strong,
inclusive and transformative economies; (4) protecting ecosystems; (5) promoting safe
and peaceful societies and strong institutions and (6) establishing global partnerships
for sustainable development (United Nations 2014).
However, the rapid population growth, urbanization and other demographic and
socioeconomic transitions continue to shape the dynamics of livelihoods in the
region (UNDESA 2014) (Chap. 1 Vol. 1). Poorly planned solutions may result in
higher transaction costs and inefficient investments (Adams 2009; Rasul and Sharma
2016; von Braun and Mirzabaev 2016) (see Chap. 1 Vol. 1; Chap. 4 Vol. 2). In
particular, individual SDGs often address overlapping issues that are equally
162
J. Lopes et al.