Copenhagen Consensus

Copenhagen Consensus

The Copenhagen Consensus is a project that seeks to establish priorities for advancing global welfare using methodologies from welfare economics. It was initiated in 2004 by the Danish environmentalist Bjorn Lomborg, who is known for his work on the economics of climate change and global development.

The project brings together a panel of distinguished economists, including several Nobel laureates, to evaluate and prioritize solutions to the world's greatest challenges. These challenges include issues such as poverty, hunger, disease, climate change, and education.

History

The first Copenhagen Consensus was held in 2004, and it has since been repeated every four years. The project was inspired by the need to allocate limited resources effectively to address the most pressing global issues. The idea is to use cost-benefit analysis to determine which interventions would provide the greatest benefit for the least cost.

Methodology

The Copenhagen Consensus uses a structured approach to evaluate potential solutions to global problems. The process involves several steps:

1. Identification of Challenges: Experts identify a list of major global challenges that need to be addressed.
2. Proposal of Solutions: Researchers and organizations propose specific interventions or solutions to these challenges.
3. Cost-Benefit Analysis: Each proposed solution is subjected to a rigorous cost-benefit analysis to assess its potential impact and feasibility.
4. Ranking of Solutions: A panel of economists reviews the analyses and ranks the solutions based on their cost-effectiveness and potential to improve global welfare.

Results

The results of the Copenhagen Consensus are published in reports that outline the top-ranked solutions. These reports are intended to inform policymakers, philanthropists, and the general public about the most effective ways to allocate resources to improve global welfare.

For example, in the 2012 Copenhagen Consensus, the top-ranked solution was providing micronutrient supplements to combat malnutrition, which was found to have a very high benefit-cost ratio.

Criticism

The Copenhagen Consensus has faced criticism from some quarters. Critics argue that the focus on cost-benefit analysis may oversimplify complex global issues and overlook important ethical and social considerations. Others have questioned the assumptions and data used in the analyses.

Impact

Despite the criticisms, the Copenhagen Consensus has had a significant impact on the discourse around global development priorities. It has highlighted the importance of using economic analysis to inform decision-making and has influenced the allocation of resources by governments and international organizations.

Also see

• Bjorn Lomborg
• Cost-benefit analysis
• Global development
• Welfare economics
• Sustainable development goals