Trade-offs and synergies when balancing economic growth and globalization for sustainable development goals achievement
Imre Fertő and Gábor Harangozó
(HUN-REN KRTK and Corvinus University of Budapest)
United Nations Sustainable Development Goals (SDGs) have increasingly become a focal point of global policy discussions. However, halfway through their 2030 target, global progress remains significantly off track. Our recent study explores the intricate interplay between globalization, economic growth, urbanization, and ecological footprints, revealing essential insights and policy implications for achieving sustainable development.
The United Nations established 17 Sustainable Development Goals in 2015, encompassing economic, social, and environmental dimensions. Despite international consensus, recent reports indicate that only 15% of targets are on track, while nearly half are moderately or severely off track. Such limited progress raises pressing questions about the factors driving or hindering sustainable development.
Utilizing data from the global SDG Index across 149 countries between 2000 and 2023, We employ a club convergence analysis to uncover distinct patterns among country groups. Their analysis reveals five converging clubs, each reflecting varying degrees of progress toward sustainability, alongside a small non-converging group including nations like the Central African Republic, Chad, and Lebanon, characterized by considerable challenges.
The researchers find that higher GDP per capita and globalization positively influence SDG outcomes, highlighting economic growth as an enabler of sustainable development. This aligns with the notion that wealthier nations possess the resources to invest effectively in sustainability initiatives, thereby enhancing their SDG performance. Yet, the authors caution against a simplistic interpretation: growth must be carefully managed to ensure environmental and social dimensions are not compromised. This finding partially supports the Environmental Kuznets Curve hypothesis, which suggests an eventual positive environmental turnaround as nations grow richer, though the relationship proves complex and context-dependent.
Globalization emerges as a double-edged sword. On one hand, economic, social, and cultural globalization facilitate the dissemination of knowledge, technology, and resources essential for sustainability. Countries with higher globalization indices typically report stronger SDG performance, benefiting from improved resource allocation, educational opportunities, and medical advancements, especially in developing regions. On the other hand, certain aspects, such as financial globalization, pose risks of exacerbating inequalities and environmental stress if inadequately regulated.
Conversely, rapid urbanization presents significant hurdles. While cities drive innovation and economic productivity, unchecked urban growth strains infrastructure, intensifies resource use, and increases ecological footprints, negatively affecting sustainability efforts. This emphasizes the need for sustainable urban policies and infrastructure development that proactively mitigate ecological impacts.
The ecological footprint, representing resource demands of populations, offers further clarity. Nations with higher ecological footprints consistently show lower progress toward SDGs, underscoring the unsustainability of current global consumption patterns. This trend highlights a critical challenge: balancing consumption with ecological capacity, emphasizing the importance of sustainable production and consumption policies globally.
Significantly, our research advocates for tailored policy interventions, emphasizing that one-size-fits-all approaches are inadequate. High-performing nations should prioritize policies maintaining economic stability while ensuring continued environmental and social sustainability. Conversely, lower-performing countries need targeted interventions boosting economic growth, improving urban management, and reducing ecological deficits.
This comprehensive analysis sheds critical light on sustainable development’s multifaceted nature, offering actionable insights for policymakers. Economic growth and globalization indeed hold substantial promise for driving SDG achievements, provided their inherent challenges, especially those related to urbanization and ecological sustainability, are strategically addressed.
As the global community approaches the crucial 2030 milestone, Our findings reinforce that successful progress demands nuanced understanding and targeted strategies, harmonizing economic, social, and environmental priorities to build a genuinely sustainable future for all.
Fertő, I., Harangozó, G. Trade-offs and synergies when balancing economic growth and globalization for sustainable development goals achievement.Scientific Reports 15, 8634 (2025). https://doi.org/10.1038/s41598-025-93360-3
