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More Money Alone Won’t Solve Sustainability

Despite rising GDP and the benefits of globalization, these factors alone are not enough to ensure environmental sustainability – in fact, urbanization tends to worsen the situation. This is the key finding of a new Corvinus University of Budapest and HUN-REN KRTK study, based on data from 149 countries.
Budapesti Corvinus Egyetem

Researchers from Corvinus University and the HUN-REN Centre for Economic and Regional Studies (KRTK) assessed progress on the United Nations Sustainable Development Goals (SDGs). Imre Fertő and Gábor Harangozó analyzed data from 149 countries covering the period between 2000 and 2023. Published in Scientific Reports in March, the study explores in a complex way the relationships between GDP growth, various aspects of globalization, urbanization, and ecological footprint. 

The results are cause for concern as we reach the halfway point to the 2030 deadline for achieving the SDGs set in 2020. Only 15% of the goals are on track to be completed on time, while nearly half are significantly or moderately off track. 

The analysis identified five converging and one non-converging country clusters based on their SDG performance. Hungary is among the 48 countries in the top-performing group (Cluster 1), including Austria, Indonesia, and Switzerland. Cluster 2, which includes the U.S., Bulgaria, and Jordan, consists of 39 countries that have made significant progress but require further efforts. The remaining countries were grouped into moderate progress clusters (22, 12, and 4 countries, respectively). The non-converging group includes three countries: the Central African Republic, Chad, and Lebanon. 

One of the study’s most important findings is that countries with a higher ecological footprint generally perform worse on the SDGs. This highlights the unsustainable nature of current global consumption patterns and emphasizes that real progress can only be achieved by transforming consumption habits. 

Money Isn’t Everything – And Globalization Has Two Sides 

The study confirms that a higher GDP per capita positively affects SDG performance. Wealthier countries can allocate more resources to sustainability initiatives, improving their outcomes. However, the researchers caution that economic growth alone does not guarantee environmental or social sustainability. 

The analysis shows that economic, social, and cultural globalization supports the flow of knowledge, technology, and resources, often leading to better SDG results. Developing countries, in particular, can benefit from improvements in education and healthcare. Conversely, the study also points out that financial globalization may increase inequality and environmental pressure. 

Urbanization Needs Smart Management and Tailored Solutions 

According to the study, poorly managed urban expansion negatively impacts sustainable development. Rapid urbanization places increasing pressure on infrastructure and natural resources, worsening environmental conditions. Sustainable development in major cities presents a particularly difficult challenge for policymakers. 

There’s no universal formula for sustainable development. It’s an extremely complex issue that requires decision-makers to take a balanced, integrated approach across economic, social, and environmental dimensions,

 the authors emphasize. 

The researchers recommend that the best-performing countries maintain economic stability while focusing on environmental and social sustainability. For those lagging behind, targeted measures are needed to stimulate economic growth, manage urbanization, and reduce ecological footprints. 

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