A New Social Contract – The Gulbenkian Foundation advancing intergenerational fairness
Section
Case in Brief
The issue
Fair policy and distribution of resources for all generations is an issue of concern for both policymakers and the public. Yet policy is always rooted in the present moment. The rights of young people and future generations are not always the highest priority. But current crises and uncertainties require a long-term view to ensure sustainability, societal wellbeing and fair opportunities for all. There is need for a more holistic approach to address the interests of both today’s and tomorrow’s generations.
The context
Changing demographics, economic challenges, environmental pollution and the climate crisis are placing heavy burdens on younger and future generations. Yet there is a lack of understanding of the problem, and no data on how different generations are affected by current decisions. Moreover, present conditions favour short-term thinking in policy and programme planning.
The path forward
Foundations should raise awareness about intergenerational fairness; promote research to offer adequate data and insights; think about the long-term impact of their own decisions; focus on prevention; and work in cooperation with local communities, policymakers and young people.
The Gulbenkian Foundation: A snapshot
This international foundation, based in Portugal, promotes the development of individuals and organisations through art, science, education, and charity, for a more equitable and sustainable society.
Mindset
- Long-term thinking
- International impact
- Acting systemically
- Focus on cultural and scientific heritage
- Convening power and partnerships
Overview
The Portugal-based Calouste Gulbenkian Foundation sees sustainability as closely linked to intergenerational fairness, a social contract that advances just distribution of resources between current and future generations.
In 2017 the foundation identified sustainability as a key pillar of its strategy. During this period of tectonic change when the foundation divested from fossil fuels by pulling €636.1 million from oil and gas, the inter-generational fairness initiative was born. Since then, the foundation has placed intergenerational fairness on the national agenda and inspired a wide range of stakeholders to think and act long term. The initiative has prompted research, public debate and hands-on insights into what a new social contract between generations could look like and how policy can embrace a long-term view.
Challenge
Future generations have the right to live in a healthy, vibrant environment and have access to adequate food, clean water and sound housing. Yet they cannot vote. They have no decision-making or financial power. They are not at the table when policy is being designed. They have no voice in public debate. While there are commitments and international declarations on upholding the rights of children, such as the UN Convention on the Rights of the Child, there are no clear mechanisms and procedures to act on behalf of children and young people and take their interests into account, and to access the impact of policy. The promises to those yet to be born remain unfulfilled.
The common assumption that young people and future generations will be better off than their parents is cracking across Europe. The climate crisis, growing inequalities and ageing populations are putting current welfare systems under strain. The ratio of pensioners to workers is growing. The economic, environmental and social challenges facing young people and next generations are becoming more salient across European countries.
Already in 1987, the Brundtland Commission’s report “Our Common Future” defined poverty, environmental challenges and population growth as related cross-cutting issues that cannot be addressed in isolation. They offered a definition of sustainability that centres current and future generations: “Sustainable development is not a fixed state of harmony but rather a process of change in which the exploitation of resources, the direction of investments, the orientation of technological development and institutional change are made consistent with future as well as present needs.”
The Gulbenkian Foundation launched the intergenerational fairness initiative at a time when it felt that the broken social contract had started “foreshadowing a conflict between generations, which represents great danger for democracy in the 21st century”, and that it was imperative to take an intergenerational approach (“A Commitment with the Future”, Gulbenkian Foundation, 2023). However, at the time there was a lack of data on how different generations were affected and on which aspects of intergenerational fairness were particularly challenging.
Approach
- In 2017, the foundation identified sustainability as a key pillar of its strategy, and linked this to intergenerational fairness, a social contract that advances just distribution of resources between current and future generations. Part of this was the decision to divest from fossil fuels and pull €636.1 million from oil and gas investments.
- The foundation conducted a broad study on the presence of the topic in the public realm and reviewed the perceptions and opinions of citizens and policymakers on intergenerational fairness.
- To close the research gap in Portugal, the foundation commissioned a number of studies on intergenerational fairness to understand major sources of inequality in Portugal. Four key areas with high impact on people’s lives were identified: housing, public finances, the labour market and the environment. Furthermore, a study was developed to identify the social, economic and political conditions that allow the implementation of long-term policies.
- The foundation cooperated with the School of International Futures to develop a framework for intergenerational fairness to ensure fair policies in the future. The framework is an innovative tool to assess the impact of public policy on different generations, measuring all the costs and benefits. It was accompanied by a detailed how-to guide with step-by-step instructions for assessing a policy (see framework below).
- An Intergenerational Fairness Index was developed in cooperation with partners, which includes two additional measurement areas: health and poverty.
What Steps You Can Take
- Understand the problem and engage with a wide range of stakeholders
- Initiate internal discussion and think of the long-term impact of your decisions
- Identify major sources of inequalities and provide real-life data
- Offer concrete proposals and solutions
- Walk the talk and regularly assess your own practices
Results
Impact on the national agenda
In 2022, the current President of Portugal, Marcelo Rebelo de Sousa, announced his intention to champion intergenerational fairness, while his staff received capacity-building training in May 2022 to learn how to assess the long-term impact of policy. The intergenerational fairness framework is now accessible to policymakers in Portugal to review the long-term impact of their decisions on future generations. In collaboration with universities and think tanks, the Gulbenkian Foundation provided accurate data illustrating the need to act to ensure the sustainability and well-being of the Portuguese society over the long term. Several other organisations were trained to apply this tool to their own areas of work and to real questions of high priority to Portugal. Among them the Bank of Portugal, the Public Finance Council and the Court of Auditors.
Groundbreaking research
The research commissioned by the Gulbenkian Foundation painted a bleak picture for the most educated generation ever. From housing and public finance to employment, taxation, social benefits, housing costs and environmental degradation, young people are under increasing pressure and carry the burden of an ageing population. The meagre economic and employment opportunities prove that the life chances of young people are worse than those of previous generations.
The intergenerational fairness initiative has also prompted academic research. While in 2018 there was only scarce academic research dedicated to the topic, there is now a network of academics advancing this agenda. The Intergenerational Fairness Index, released in September 2023, provides necessary metrics for Portugal to compare data and track improvement over time.
Ripple effects across the foundation
Furthermore, the initiative led to internal discussions within the foundation: How future-proof and long-term were its own decisions? Sustainable Gulbenkian emerged within the context of these discussions, aiming at aligning internal processes and practices with the values and goals set for external programmes and cooperations. Gulbenkian, an operating foundation, reviewed its energy consumption; use of water and plastics; food supply; and transport, and improved its sustainability practice. The decision to divest from fossil fuels, made by the board of trustees when the discussion about sustainability and intergenerational fairness was starting, had a profound impact not only on the foundation’s investment strategy but also its commitment to address the climate crisis.
Good to Know
Other regions of Europe are also focusing on intergenerational fairness. For instance, in 2015 Wales passed the Well-Being for Future Generations Act, outlining seven well-being goals including prosperity, resilience, health and regional cohesion. The act encourages policymakers to take a long-term, integrated and collaborative approach to advance the social, economic, environmental and cultural development of Wales. To ensure accountability, Wales has a Future Generations Commissioner who works across policy areas.