Over time it became clear to many that government also had to be strengthened to make it efficient, effective and responsive. The most significant obstacle to the pursuit of social objectives is what may be described as the crisis of governance. Governments not only had to have the capacity to manage macroeconomic policy but also had to be able to actively regulate market behaviour. In addition, reformers began to recognise that well-defined and functioning institutions of governance were important for the stability and legitimacy of new modes of public and community participation. Past experience with technology transfer in a variety of sectors can be used to suggest policy tools for providing enabling environments for the transfer of technologies for mitigation and adaptation to climate change that is supportive and sustainable.
Evidence exists both of barriers and ways in which barriers can be avoided and overcome.
Experience also shows that technology transfer offers many opportunities for sustainable economic and social development. Perceptions of the role of technology transfer in development have been transformed in the past twenty years, as the focus has switched from externally supplied hardware to people, processes, and the importance of local knowledge. Experience also has shown that technology transfer can be made more sustainable by ensuring that long-term learning and adaptation takes place, that conditions for market sustainability exist, that stakeholders continue to be involved, and that replicable financing mechanisms continue to function. Chapters 4 and 5 explore what enabling conditions government can establish to facilitate this change in support of the Climate Change Convention, and how other stakeholders in the private sector, lending institutions, multilateral agencies, and non-governmental organisations can perform within this framework. This chapter identifies the key elements and broad relationships and Chapter 5 focuses on the crucial financial partnerships needed.