Compensation strategies to enact new governance frameworks for sdg transformations

Abstract

There is an emerging consensus at international level that systemic transformationsare needed to achieve the Sustainable Development Goals (SDGs). Suchtransformations require paradigm shifts in policies, with appropriate governanceframeworks to implement them. Fundamental transformations are likely to generatewinners and losers; the latter may act strategically to deter transformation.Most governance literature points at mutual gains negotiation methods to preventtheemergence of losers and create 'win-win' package deals. In this article a differentand less researched - approach will be discussed: (economic) compensationstrategies. Drawing on the political economy literature of reform in transitioneconomies, I propose three compensation strategies to buy out or weaken theopposition of strategic losers - big bang, optimal sequencing and divide-and-rulegovernance reforms - that can help to frame discussions around the political feasibilityof new governance frameworks for SDG transformations. The paper suggeststhat careful consideration needs to be given to thedesign of these compensationpackages, since history tells us that buying acceptance for reform can involvenotjust variation in economic outcomes, it can also have long-term politicalimplications and distributional effects.