-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~i : r-to j Isu:w:I 44 g :i U :ia I I~~Tgoi 5 ~Mkig Deeomn Susinable:From Concepts to Action IsmalSerageldin axdAxdrew Steer, Edtors uwtb MicbaeAL Cerxea,Jobn A. Dion, Ernst Li" Sergio Margvds, Moban Muxasixgbe, and Cohn Rees A.icia He. ae, Ed'orial Co'ukaxt Th redBnkSusbWeDCloptOaPapeSeris o- - Ib~~~~~~~~~TeWodd Bmnk, Wabnir,D.C. @ 1994 The Intermational Bank for Reconstruction and Development/The World Bank 1818 H Stret N.W., Washigton, D .C 20433 USA All nghts reserved Manufactured in the Uited States of Ameria First priting September 1994 This report has been prepared by the staff of the World Bank The judgments expressed do not necearily reflect the views of the Board of Executive Dhectors or the governments they represent The first five artides and dta firstbox in this volume originally appeared in the December 1993 issue of Fmance & Development, publisfhed by the Intemational Monetary Fumd and the World Bank, and are reprnted here with penission. The graphics on the cover have been adapted byTomoko Hirata from orginal artworkbyF&D Art Edfitor Luisa Watson. The graphics in the text are by Luisa Wason, except for the art on page 20, which is by Mark Robinson. This volume was desktoppedby Kim Bieler. ISBN O-8213-3042-X Library of Congress Cataloging-in-Publication Data Maldng development sustainable : from concepts to action f Ismai Serageldin and Andrew Steer, editors; with Micael Cemea -. [et aLl. p. caL - (Envirnmentally sustinable development occasional paper series ; no.2) Indudes bibliographical reerces. ISBN 0-82L3-3042-X 1. Sustaiable development 2. Economic development- Environmental aspects. L Serageldin, [smail, 1944- IL Steer, Andrew D., 1952- . 11L Cernea, Michael M IV. Series. HD5.6iVM348 1994 338.9-dc2D 94-30977 OF ii~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~I Foreword n 1987 the Wold Bank establshed able, yet much remains to be learned A being mainscramed into the core of aional an Envnament Deparanent and number of key relationships among develop- development policymaking; and how the embarled on a major effort to incor- ment, socier% and the environment remain Bank is seeldng to asist its members in a poate enionmental conexrns imo poorly undertd, ad the Bank (and all practcal way thrgh a fourfold eniromen- its lending and advisory actvities. The other instiions that are seiiously involed tal agenda The epiogue highlights one pr- methodologies were refined for Enrnmen- in development) is ascending the step tiulaly important area for fiirter researdt tal Assessments, and by 1989 the Bank mae indine of the learning curve on numerous expanding the capitl stodc The volume is envimronental sceening of all investments institutional and policy ssues. rounded out by aselecred Wrld Bnk bbli- mandatory The 1992 WrlDevelopmen The eight essays in this volume atempt to ographyrelatingto ESD. Peport was devoted to the theme of capture our current iuldag on a number of The first fie articles appeared in a special Development and the Bnviomnn and key conceptual, methodologica, and pract- section devoted to ESD in the December rnapped our a twofold policy strategy that cal issues, and to suggest the wayforward 1993 nae Deveaopment The edits builds on the complementarities beween frm here. The fis pape bytheBank's Vice are indebted to Laum aca2e, Senior Editor economic development and sound envon- President for Environmentally Susainble ofRmane &Deoelpmen for her invalu- mental sewardship, and mimie the Development, identifies the iues and able support and assistance in tis earlier trade-offs. inJanuary 1993 a new Vice stees the need tO inegrat the apprueches project, and toAlicia.Hetznerfor manrging Presidency for Environmently Sustinable ofsociologists, ecologists, and economists n the edimrial and production processes ofthe Deveopment (ESD) was creatd to take for- susainable developmenL The succeeding currentvolume. ward the incorporation of susminabDity three ariles present each of these perspec- issues into all aspecs ofthe Bankes work. tves on susmainbiity They are followed by Progess since these events has been sub- ardcles on how our measurement of stantiaL A good deal has been learned about progress needs t be deepened- how issues Ismal Seraged how to prOmote development that is sustain- of envrormenml sustaiby are gadully Andrew Steer . .. . .i * E | In~~~~~~~~~~~~~ Contents Foreword Making Development Sustainble 1 smailSerageldin Povery and :he Environment 4 Stepben Mink Gender and Ecosystem Management 6 Joan Martin-Brown The SocologistsApproach to Sustainable Development 7 MicbaelM. Cernea The Ecologiss Approach to Sustainable Deveopment 10 Colin Rees The Eoonomists Approah to Sustinable Development 13 MobanMrMasine Mesuring Environmentally Sustinable Development 17 Andrew Steer and Emst Lutz Integraing the Environment into Development Policymaking 21 Jobn A Dixon and SeroMagzdis TheWorldBankandtheEnvironment AFourfoldAgenda 25 Jobn A Dixon andAndrew Steer Epiogue: Expanding the Capital Stock 30 tIlSergeldnin ardAdrew Steer Appendixes 1. Selected World Bank Bibliogaphy on Environmentally Susaminale Development 33 Edited byJobn Kmienberg 2. Biographies 40 V D l be 1992 at Sum t showlitdesignofbaueMent, Theprn c chaileng snd out Riowasasgnaltothewodd hat afer FoodppdcdoaAs tewoddspopu- aleedt t deades of ptng enonmtal qualiq lation eands to 9 bilon oe ie nt 40 of the wodd to the against economic growth policynker are years, food conumpuon wi double. Even wgucy of acb e*g hallybecomingaw oreoFtecruand thouh therequred rofgd offod potenilly positieik between the wo. production1.6 percet peryear-w be less xmealsusi ledeveklop HumanitrmustlearntolEvewidinthelria thanthie2percentacedfortheipast3 meaL We kAow emougb t a d ons of the phyici environmentas both a decades,agconomiss agree dat the task is prderofinputsandashibrwase. We klytobenmuch moredlfficusAce many td, but we m st alsofid must ren that even ifenvironmentl of e sources of ealier gowth ae no bager answers to the many togb Ch s dgadaon does not rch lifehreateng aible, Two optons now cm itenslling levelsicanresultiasigicantdecinein productononlkndalrudyin use,and Cejnuald tecbicalquestidw equailrofthedwodd we le in. We must padg into new ars. b the pastthre that E fce our ibtieto oter speces and decades intcation as dominated4 dhe need to protect biodiversiq. We must accounting fr over 90 percnt of agicural -ommommummonm -fndawaytoenablealApeople,nowandin growlthter anewlgmnrvludon" Asthe l992UnitedNationsConeceon the kure, wenjoydeanwater,deana, wil beableto repeattheemarble>Sgmin Envnment and Deveopment (CEDY. and fertile soils. yields is higy uncrin. The hlenge wi he Ear Summitn tio deJaneiro drew to But basic s ese conns may sem, the be not y to mise yidds but t do so in a adose,itsmessagecothewodwdbeenee wofldttodayacesatremendousbaddogin less damagingwayrhaninthepastAidy, dear. without better environmental sewd prwiding these basic amenities to the poor the environmental problems of intensication ship, deveopment wilbe underine, and and disadntaged. One billon people- (chemil and biologal runo, watr log whout aceed development in poor mosdy in developing counires-doAomot have ging ion,and die like) rseious in counuies environmental poliies wi fl. access to dean vater 1.7 blion people do some eas andwithout better polies, wil The eidence is al arond us. In Sub-Sahan not hve access to sniaon; and 2-3 m getmudhwoa AfiSlash and bur n agiculture-in t lion chidren lienuayb use of diseas Urbuio and poun. Neq fce of sng popaton gwth-are a- assodated. ith s lack ofwater and sanita- percent of e wolds increased populaton ing vicious cl of sol deadation and don. To ti situation,we are adding about will be loated in udan areas, posing kyn- impaired producdv. In ities like Bangkok, 90 million people t the global populion dable problems of social and insdtutional MeCitcyq, and Sio Paulo, the polluted air eyyearw-n, moslyin developing change, inhsmcwre investent, and pollu- mad water are posing a sious health tha countries. This rais huge callenges fr don control. Alr many municipal author- Industrl counuy emissions of genhouse policynakers a they seek to reconcle the des are overwheled by their currnt g ea tening a 24 centigrade rh needs and aspirtions of the growng popua responslilities- te tasks ahead wi only gobaltempem ouresoverthenexc y-- fonwith ie onsia ftionsofenatulworkk pw M.Mangdeanwaterailableto everybody in the next 40 years will require cadons (see "The World Bank and the questions of natural resource management. extending service to 3.7 billion more urban Entironment: A Foufold Agenda"). One thing Absent are important concems such as social residents. Preventing pollution from worsen- is sure: we will fail In our efforts unless betLer cohesion, cultumal identity, and ecosystem ing in some fast-rowing countries will progress is made to integrate the viewpoints integrity. require that poilution per unit of industrial of three disciplines: As policymnakers seek to bring together output 6al1 by 90 percent between now and * Those of the econoutsts, whose experts from each of these disciplines-as 2030. methods seek to maximize human welfare equal partners-a number or conceptual and Human encroachmea As human within the constraints of existing capital methodological questions need to be numbers and the scale of their activities stock and technologies. Economists are addressed. The key unresolved questions fall increase, so does the pressure on fragile relearning the importance of natural capital. into four broad categories: valuation, deci- ecosystems. In the past decade, 7-10 percent * Those ofthe eco1ogts, who stress sionmaking in the presence of thresholds of tropical forests and wedands have been preserving the integrity of ecological sub- and uncertainty, policy and institutional destroyed; important aquifers have been systems viewed as critical for the overall sta- design, and social sustainabliy. depleted; and coastal zones have been pol- bility of the global ecosystem. Some argue for luted at an unprecedented rate. We now the presaation of all ecosystems, although Questions of valuation know that income growth need not cause a less extreme view aims at maintaining the Hosw sbould we vaune the environ- these problems and can help reduce them. resilience and dynamic adaptabiity of natural meat? The starting point of good environ- But without better policies, the coming lie-support systems. The units of account are mental management is to recognize the costs decades will witness even worse damage. physical, not monetary, and the prevailing of environmental darnage and inject them disciplines are biology, geology, chemistry, into the decis.onmaking process. But this is "Susutinable development" and the natural sciences generally. easier said than done. As figure 3 shows, it The term "sustainable development"was * Those ofthesodo!gis, who requires the estimation not only of the direct brought into common use by the Wodd emphasize that the key actors are human benefits to humans (for example, productivi- Commission on Environment and Develop- beings, whose patterns of social organizafion ty benefits of good soils and health benefits ment (rhe Brunddand Commission) in 1987. are crucial for devising viable sdutions to of clean water), but also of the indirect bene- Calling for development thar 'meets the achieving sustinable development. Indeed, fits (for exmple, watershed protecdon from needs of the present generation without evidence is mounting that failure to pay suffi- woodlands). Further, some natural asets, compromising the needs of fiuture genera- cient attention to social factors in the devel- such as biological diversity, have "option" val- tions," the Brunddand Commission report, opment process is seriously jeopariing the ues that we are not even aware of (for exam- Our CommonFuture, highlighted the need effectiveness of vaious development pro- ple, providing new medicines in the future) to simultaneouslv address developmental grams and projects. and that are particularly difficult to estimate. and environmental imperatives.' While economists, ecologists, and sodolo- Finally, most of us believe that the natural Since then, substanial work has been gists would all agree that the others con- wodld has an "intrinsic" worth, above and undertaken to draw out the operational cerns matter (see figure 1), they do not see beyond its value to humans; here the best we implications of the concept of sustainable these concens through one another's eyes. can do is esdmate human perceptions of that development This, for example, was the An economist, for eammple, would readily value. main theme of the World Bank's World admowledge the importance of social and A number of techniques-including con- DevelopmentReport 1992. The Bank's cur- environmental factors but, as figure 2 shows, tingent valuation, replacement cost estima- rent work in this area is designed not to would interpret these concerns through an tion, and the use of "surrogate" markets- generate a general theorv of susainability, economist's lens. Social concerns tend to be have been developed for estiating the value but mather to focus on key conceptual issues reduced to questions of inequality and pover- of nonmarketed environmental services, and with potentially important operational imnpli- tr reduction, and enironmental concems to the Bank has recendystrengthened signifi- .;e 1tro -. _.d1 Oanmu i. reducrsoc Soelal CaEvobgia Sosh __Eebla E Sodal gnobiw @ Canwhg rod on nzanatcapety * Cultralmnly. ' . -. ~.w .. e Irisaitutional ' - "* Gba se -.~.i- .. . dewvlopnent 2 Sereldin This high degreeor uncertinty, however, willinpess to pay to save myriad less core of the method, which follows on the US is no remson for inacion. The dynarmics of species (minor insects and plants) Is much Environmental Protectin Agencys pioneer- poverty, demography, and economIs often less evident, and tme cost of saving all specdes ing wort, consists of deriving a common set make the costs of imaction even higher than may be prohitie Our present posture is a of indicatorsm based on impacts on human those of action. But uncertainty does de. precautionary onet a rough-andready set of health, productve asset, and ecooical mand rigorous environmental assesments, disonized and disconneted initiatives, functions. From this nrtrix of hazards, sorted drawing upon the best scientific knowledge without any sure knowledge of what might accoring to criteri such as their pervasive- available and including careful sensikivity be enough to preserve the world's unique ness (spatially and over time) and their totai analysis. A key chalenge will be to narrow generic heritage. The challenge is to bring consequences (current and future), it is pos- the range of unceainty and make the 'pre- greateranaljical rigor to this area. sible clarify the asis for esrzblishing prior- cautionary prndple opemionally usefuL ides for addressing different environmental How should weprloritre bWodi- Policy and stituDiona design hazards This methodology is stDll in its inhn- ersity? he kssofspedesisan erueme How shol we setprioris? cy thenext step is to apply it in a numberof example of irresility, and the uertiny Faced with a complex arm of environmental countries on a pilot basis. surrounding the impact of lost biological dangers and limited resources, where should Such analyses may be useful to countries diverity is an etreme ecample of our lck of a govenment start? The problems that seem as they dwaw up naio envromental knowledge. Soemspecies ar seen to be re. at first ce to be the most urgent may not acion plans dat would enable decisionmak- positories of keygenec material; others are in practice offer the best value for the es to view their oDuntry's environmental seen as of marginal genetic significance. But mone. in Eastern Europe, forexample, problems as a whole (see "Integradig the our knowledge in this 2e is quite limited. despite the obvious need m dean up badly Environment into Development Policy- How much priority, then, should we poUuted nvers, calkulations make clear that mng). Moeover, to the ett that the amign to protecdng biodisity? At one for each dollar spent, higher beefit could process is broadly participatory, the public exrme, some biologist would like to save be secured by reducng air pollution. can be made aware of the options and dan- everything. The inminent extinction of the One interesting approach to priority set- gers facing the nation. white rhino, along with threatened whales ting is found in the work of a team at Harvad What pdicies work best? Policies for cm- and elephants, has gaaized mnservaion University at has developed a framework rnmentallysustainable development fl efforts for highly visible causes. But public for ranking various abtement options. The into two categories. First are those that dear- : ~~~~~~~~~~~~r I xAL i .. .. ,z-r- .-*. .* ak ; ;..;.,.4.dsaavaan-e -as *e- * s, SrTEDII+ML-'SCTE - '-ilaii j r gif i * _ * *; _ _ ~~~~~~~~~~rto U. Ofleu*t oecm porybnrg gudlie yAuO Ims.- ? CUNS*S*SqE&Te o -1 ma W . A w w o _~M- )A Ina us tfl)eons ~~~~~~~~~ ~ ~ ~~~~~~~~~~~~Ri ~prisu4.-. 4 . & n n n& . *,, P.>s>~ ,,,~ _cs~othl .nuyeozt'_ _skslpc -r-- % nuztcv6~utj UW142# ?"rz&~a n-%r- This high degrepof uncertainty, however, willingness to pay to save myriad 'less core of the method, which follows on the US Is no reason for inaction. The dynamics of species (minor insects and plants) Is much Environmental Protection Agency's pioneer- poverty, demography, and economics often less evident, and mne cost of saving 211 species ing work, consists of deriving a common set make the costs of inaction even higher than may be prohibitive. Our present posture is a of indicators based on impacts on human those of action. But uncertainty does de- precaudonary one: a rough-and-ready set of health, productive assets, and ecological mand rigorous environmental assessments, disorgani7ed and disconnected initiatives, ftnctions. From this matrix of hazards, sorted drawing upon the best scientific knowledge without any sure knowledge of what might according to criteria such as the.r pervasive- available and including careful sensitivity be enough to preserve the world's unique ness (spatially and over time) and their total analysis. A key challenge will be to narrow genetic heritage. The challenge is to bring consequences (current and future), it is pos- the range of uncertainty and make the "pre- greater analytical dgor to this area. sible to clarify the hasis for establishing prior- cautionary principle" operationally useful. ides for addressing different environmental How should we priofritze biodi- Policy and Institutional design hazards. This methodology is still in its infan- verity? The loss of species is an extreme How should we setpriorItkes? cy; the next step is to apply it in a number of example of irreversibility, and the uncertainty Faced with a complex array of environmental countries on a pilot basis. surrounding the impact of lost biological dangers and limited resources, where should Such analyses may be useful to countries diversity is an extreme example of our lack of a government start? The problems that seem as they draw up national environmental knowledge. Some species are seen to be re- at first glance to be the most urgent may not action plans that would enable decisionrnak- positories of keygenetic material; ohers are in practice offer the best value for the ers to view their country's environmental seen as of marginal genetic significance. But moner. In Eastem Europe, for example, problems as a whole (see "Integrating the our knowledge in this area is quite limited. despite the obvious need to dean up badly Environment into Development Policy- How much priority, then, should we polluted rivers, calculations make dear that making"). Moreover, to the extent that the assign to protemng biodiversity? At one for each dollar spent, higher benefits could process is broadly particpatory, the public extreme, some biologists would like to save be secured by reducing air pollution. can be made aware of the options and dan- everything. The imminent extinction of the One interesting approach to priority set- gers facing the nation. white rhino, along with threatened whales ting is found in the work ofa team at Harvard What policies work best' Polides for envi- and elephants, has galvanized conservation Univesity that has developed a famework ronmenally sustainable development fall efrs for highly visible causes. But public for ranking various abatement options. The into two categories. First are those that dear- sueZ bal, to beevein-orediflicitmehce - :SC I MoDrnO W .-useonaulnesr ei X wi;EitiEil-:A U<~~~~-:-dgi'to &s ->i -su aAcnbl quesnofiptyak& u dni. ' '"Eio sh 'stass SM m-nizd&pkiw b 4 ~~- sWls &:; e ixedIW`-:- i embmsof p o rrCmon = E - -s- --om dF!p1 -Wp 6 -, - thO~~~~~~5ihM , _ ~~MomheaDbpnbkut The poorsewdieii 6Pe 4 Serq&Win~M(5W4 arnesinkcrndp iodsease. ey-'S poihegefbseneJevS,#' - '~I=im W &htpc nnto acofia-fdri"j '-, ' i.. iehbj poveydioghsridbIelddhrid½ -muniazndnIevpdbasrm nderkegakis&ene more hioacivhe -- z~~~~~~~~~~ _ b ti __ _ :__ - - C' dattisedmia munentsn txesources needs tiThe emhisir~&comreasra=mkes 1 t- , ..i§:*:5 - - Ž't S -- _ CT=tXtI.. - _ Ey, - -- ~ <>-~ rnliedc--xxL ;@i''n klqDevldpet5ue. e 5 4' -E 4< t* ; -tSa~~i .....__~.Z..C :~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ -f - -r-- ~~ ~ ~ mreachtem,inddryonem -.mreduonge~~~~atoa gDen ea,men rk.tainny, GeAder atid ecosystem management JOAN MARTIN-BROWN TheWond Bank recognizes the critical Impor- inccessible, ecoioglally fragile configurations Full Integration In the selecdon and deve. tance of fully Integratng women in ecosystem of mountains macke them most conducive to opment of technologles for community-level management to achieve development that Is small-sale production, and thus primarily applicadon both environmentaDy sustainable and equitable. eng women. Consequendy, women have * Pardidpatlon In the design and lmplemen- There are significant lInkags among environ- signifimnt roles as community leaders and con- tadon of training programs mental degradation, the status of women, and trol the resources In many mountain con.munl- E nggement In entrepreneural activities porty ilevIation. ties, while also helping to maintain the bldv- that encourage sustaInable production practkes In November 1993 the Word Bank, In pat- sity of dtse resources whenever possile. To * Assessing the microlevel. consequences nership with the Inter-AmerIcan Deuelopment Integrate women s unique expertise about for women of macroevd polices, as practiced Bank (IDB), United Nations Development seasonal and attitudina ecological linkages, and by govenments and the private sector. Progamme (UNDP), United Nations Develop- mlcu-environmental diversity, into environ- The Consultation underscored the cddtca mentFMd for Women (UN M, United mental management, planning must be decen- need for improved cnsutation been Naions Environent Prgramme (UNEP), and talized. In tis regard community organizalons women and envinrnment pograms within UN United Nations Sudano-Saheluan Office (UNSO), and paricipadon are ofgreat imnportnce. and Bretton Woods nstitudons, and die lack of hosted a thee-day Intemational Consultation' Inthiate knowledge of the resource base is a women/envionment NGO cooron. To on Women and Ecostm ManagemEnt t strength that wonen bring to envionmental address these problems, loint worenenviron- exainde the inteaction between the role d management. For example, in temperate and mentworing groups should be esUlshed In women and the enirnment In five distinct tropical forests women and men posses differ- international and regonal Instutins to ecosystems: coastal and wedand reas; res, ent knowlege bases about frt huwever, encuage Joint ininatives at the natonal and grund water, and lakus; mounahis; tempemate the seconday sms of women In many sodc- gassrots evels. A prlority for the woddng and tropical forests; and arid and semi-aid eties often restricts thidraccess to, or owner. groups is to advnce the education of women in lands The folowing highliht some of the ship of, forests. They are rarely tinedas pro- the natural scee, emonoiks, and agricul- Consultados prvotive findings. fessional lrstr, yet increasingly, ruil popu- ture-spedfic to the ecosystem or systems in Each ecosystem poses particular analytical lations are domiruted by women heads of whid thy live. Other pdorities are to mgage and mangement dcallenges in the search for househdds. Forest managers and extension in dialgues with women, envionment, and ways t niprove women's ole as ecowyem workers must be tained to emine the socia development leaders to encourage them to resource managers For example, coastal areas, and cultural contets of frt and include integrt their efforts, particudy h communi- hoxne to the mrajodrty of the worid's popultion, women and their traditional knowledge in this ty-based proms, and to nrcuit the environ- are under incasn compedng demands eamindon. At evey level of sustainable mentalhatural resourc experise of the women including from fisher, aquaulture, agiicul- fosry, women's paridpation should be main- it aD lei'els. tre, foresry, idusties, ports, tourism, and streamed. Institutions must diy interact wi waste disposal. Atempts t reconcile these Ihe water4carce, generally arsh mndions women at the naonal and gassots levels if compedng demands too oft exclude enW - of arid and semiarid lands necate nomadic theyhope to advac environmental managi ing women and result in bkddog their tradin life styles. Women are often let behind as men -men, and encourage wVoing parmerships;. donal aas to natal ruces, ecmomically trelwith their lvestockhe aofen prolonged beaten womenand men forthis pro: prducive endeavors, and food secarity. k is absence of men is an imponant ratonale for essential tDasses the resour-related rles of integrating women ni all endeavo:s related-to women in oaswateas and to incorpoate ts an-fed agriculture, erosin abatemn cop For ifrevi qfgndgradfO,Snte - infmation into envionentalandsodal. ikrigaon, andmiarketing sdtemes. Success hi mawqnentcasesthdiesi seei DA WP,=. assessments of theiinpacts of economic devel- induding women depends on vred and corn- -LWli LWGEP, LWQ and lB Final. - opm.enL. pex cultura1, physical, and sociologica differ- Report on the latemao Coin.su on Waterwhethe fom r, groundwater, . acesandinitiallimayrequieadditional -Advance WomenivEosemManagement or lak is both anessential and Umited r-out es incapaciy buidng, but in the long --.g--and to Pie C a oinio ad. resource. Water issues shouild o be eamined tem wi lead to ssa elogical manage- Strategic Plantimong Multhaw Rgionl-- * outside thir eg3al and economic: cntets, me. - .:: ;-: -: - - and Bilateral Agendes andOrganiza and women asparuserS household Th -Cinsultation's findings concluded, how- (Vas D.mn D thdNa&msEmb -- water,and asarumers, shouldbe involvedin er, that readmess of thetype ofecosystem, meruPmgr-am 1990. Forimadon-. diagnosing wha is essentl in protectingand women have common requirements if thy are denexzwraftwhg drwnnieK qtuhwM sustaining vater resources. The shoctage of -to be effective ecosystem managers: andpopua wio'seleabnleaverand Gitzr' rmined female water managers and water * Secureights to lnd and other rnuiia &blber, The- Populi Agrcultuand resehn hampers addressing imporiant- rsoures -: -virnmentl4wusinSub-Mann . a locat physical, and social dimensions ofwatr - . t h cess ttaninmenvn- 4aRs lflep Se*no .w.. mana8enmer .:t -_etaledacatDon :-:: .-' --1laTaan- 'd SImilary, monin ecosystems imposetheir nclus in thedegig andimpement- - epanhO _ WorTdB ) (reatfonb- ownsig&s aradopportunities On women. The' tionofprecrs . tg : 6 7rageldiz The Sociolt's Approach to Saile D o MICHAEL M. CERNEA _____be social components of users. Thus, the cal for "putdng people first" alternative social amngements, and devdop E U i wwwmsusyabiNy re a xo in policies and investment progrms for socal capital. m m winducing developmen4 orforassistancein Soda)orga tatiox incorporating less hinporn tban the spontaneous development, is not a radical new elements of social and insdtutional ora- sm c andG w,bnical ones call: it is a realistic one. It simply means rec- ni2aon into development means much ognizing the cenuality of the socal actors more than reciting empty slogans about "rWnxg p Ieon Wpl in projects and their insfitutions in sustinable deveop- "beneficiary participation. It demands com- im ,pwes social organization ment. Sustainabiity must be "socially con- petent social analysis and,creative socal engi- structed7-4hat is, social and economic neering-most important, figuring out which and ifreases socal caP anangements must be made purposively. For building blocks make up a social arrange- this reason building susmainability must be ment conducive to enduring development approached as a threefold task-social, em- The building blocks of social organization The case for environmentally sustainable nomic, and ecological-simultaneously. typically include the social actors themselves; development is usually argued in economic the socal contract govening reladonships and technical-ecological terrns. As has hap- A sociologistes "tolS" Cmduding conflicts) among local users and pened in other areas, many are temnpted to What does the socobglc perspective add remote stakeholders; the prevailin cultural think that if they can 'get the economics to the arsenal of tools for achieving sustain- systems of resource entidements-owner- right$" everything else will fall into place. able development? Two sets of elements, at ship, usufruct, or custodinship; authority Soothing as this econo-mythical invocation least First, it provides a set of concepts that systems and enforcement mechansms an may be, it is nonetheless one-sided. The help explain sodal acdon, the relationships infinite rae of producers' oranizations, social components of susainability are no among people, their complex forms of social from family-based systems or water users' less important Indeed, faiure to recognize organizain, their institutionalized arrange- assocations to large corporate enterprses; the determinant role of the "social actorse" ments, and the culture, motives, stimuli, and labor-exchange networks; and value and has doomed many progams trying to induce values that regulate their behavior vis a vis belief systems. development one another and natural resources. Second, If identified and known, these building The environment is at risk not from extra- it offers a set of social techniques apt to blocks can be translated and articulated into terestrial enemies, but from human beings, prompt coordinated social action, inhibit powerfti levers for action-oriented pro- induding both local and distant resource detrimental beWavior, foster association, caft grains; but if they are ipored, they can 7 wreck expensive progams and curtail sus- tainability (see box, right). These effects were confirmed once again by a study that examined whether 25 Bank-financed projects in Africa, Asia, and latin America demonstrat- ed susrainabiity after their completion. Disappointingly, the study found that over half of them (13 projects) had left no lasting developmental impact 6 to 10 years after completion and had faMed to produce the expected flow of benefits. Among the basic causes of nonsusinablity were the neglect of sociological factors in project design and the lack of supportive institutons anddgrass- roots pardcipation. In sum, the "socal scu- folding' of sustainabitiy was missing. Con- versely, all the projects that proved to be sus- ainable undertook from the outset purpo- and investments perish without trace. In users need to be organized into inaive, sive institution building. The study demon- India, for example, because these "communi- insdtutionalized, and culturally cohesive strates why sociological, as well as economic tywoodlots" were conceived without a suffi- groups to acquire the ability to manage, tig- and ecological, expertise is needed to pro- cient understanding of how stradfied the vil- ger action, and enforce adequate rules, mote susrinability in investment prmgrams. hges were, few people showed up tO plant rights, and obligatons. Social ecbies& Program designers trees on a "common" plot, but many camne tO Can traditional pattems of social orgniza- searcing for increased sustainability ofien cofect wood; in the end, the tlage" wood- tion in developing countries peforn this are not aware of the vast repertories of social kots became government woodlots, wasting role? Disappointment with prolikrating& management "tools7 and cultural levers that money and goodwilL weak, and ineffective govement agencies can be masalled to mobilize social ener has led sonme development thinkers to ado- and coordinated action under induced devel- What role should users play? cate reviving traditional institutions. Under opment programs. These tools range from One of the crucial-and stll contrversial- certain cirmstances, this social tecique creating public awareness to investing in questions is what role direct resource use's cm be sometimes effective. But ths cannot human capital; from simple consultations to should have in environmental managemenL become a universa, mintineanm strategy, fostering participatory comanagement; from Some policymakes reect the option of because foiming institutional strucures for incentive systms to institutional controls; entnusung management responsibilities to environmental management at the local level from relying on taditions to changing old the users, feanng that the resources wil be requires more than simply reviving old insti- practices and introducing inn ons; from abused; instead, they advocate state controls. umons or taditions. empowerment to increasing social cohesion; Others plead against government interven- and firm economicaly motating individu- tion, focusing only on users or markets. Building socia capital als' behavior to hamessing the power of so'- Evidence from many countries suggests The practical alternaive is to increase, diver- darity, trust, self-organization, and group- that the statist solution, applied exclusively, si, multiply, and solidify the various forms embrced values. promises more failure than success. But this of fonnal orgizaidon of rural communities. These tools can also be combined to does not imply that resource management All over the developing world, the degree of change existing social pattems and promote should be fuliy entrusted to the users. formal organization in rural areas lags far a culture of resource protection and Policymakers should determine whether the behind that of urban populations, making enhancemenL In social forestry projects, for users are always able to exercise manage- rural areas especialy vulnerable to strong instance, planners have several strategic menL Taking such ability for granted in all exogenous forces and less able to mobilize options for tree planting programs: commu- cases is simply naive. their own social potentiaL nity-centered approaches, household- The issue, however, is not just the subjec- To counteract this vulnerability, develop- centered approaches, or small group-cen- tre capacity (or lack there) of one or ment stategies can make a vast contriution tered approaches. Thesocial-not only the another individual user, or of many users, to by inesing not only in the economic and technical-strategy must be chosen from the exercse managernenL Rather, the decisive technical prerequisites of sustainability but outset and the goal should always beto factor is the presence or absence offormis of also in the fornation of the socio-orgniza- build or strengthen the institudonal arrange- social organization stuctually suited to man- tioal structures for enduring developmenL ments. When this presciption is not fol- age the environment Otherwise, the individ- Along these lines, twin socia concepts must lowed, as has happened in manyvillage ual actions of multiple users may easily com- inm development polides and actual woodlot schemes deswed to provide wood bine to produce an adverse system-level Dut- programs: organizational intensity and for fuel and to stem deforesttion, projects come. Often, atomnistic sets of individual organizadonal density. 8 CoRnea The organizational intensity of a develop- How can this degree be enhanced to administmtions have muliplied and flour- ment program defines the level of emphasis, increase social sustainabilityT ished, the creation of networks of water high or low, with which a program invests in Creating organizadons is equal to creating users' associadons, or support for exisdng socia 'software," building organizational new soci capital. Appropriate ornizadons ones, has been underrated, and, in some structures and institudonal capacity. If used are needed to enhance indhivduals' social cases, ignored. Since neglecting or bypassing as a compass from the outset, this concept capacity for coordinated action and empower existing grassroots organizations amounts tO helps calibrate the investments toward them as agents of development activides. disinvestment in insdtutions and in the social explicit institutional goals and helps avoid Organizations acoDmplish this by defining capital for devclopment, zmany of these pro- technocentic models chat overlook the mutual obligadons and member rights, by jects have been undennined, and physical socal contexL Programs that emphasize the creaing sets of specialized roles internal to irrngaton struc have deteriomed (or construction of an enduring institutional the organization, by establishing internal even collapsed) much earlier than they scaffolding for development can be called authorityand accountability stms, by pm- would have otherwise. orgnizationally intense, while those neglect- moting norms and behavioral pamms Learning from such experiences, Bank- ing it have a low organizational densityand a regarded as usefAl to dhegroup, and inhibit- fianced irrigation prects in the I980s have smaller chance for long-term impacL ing those regarded as derimental. Organi2- embraced a more orization-intensie Whenever such an intensive stategy suc- tions incorporate important accumulations of strategy, promoting the creation of water ceeds, the society involved achieves a higher human experience and knowledge, which is users' assooatons. The most stiing emm- organizational density-an enhanced capabili- social capital. And nevrand growing social ple is probably the innovative irrigation pro- ty to sustain and propel development capital is indispensable for the social sustain- gram in Pakistan, which embodies an organi- The concept of organizational density ability of development. - zation-intsive strategy that has led to high- defines, in tum, the ifequency and strength Irrigation projct-an aram in which the er organizadonal density and better resource of various forms of social orgnizations tat World Bank has long been involved-are a management (see box below). Sumilar suc- make up a grven cultural fabric and the fre- good test case for whedte or not develop- elU approaches have been applied by gov- quency with which individuals participate in wrent strategies are organization-ntensive emments and the Bank in communal irg- multiple networks of socially organize acvi- and purposivey construct social susainabili- tion schemes in the Phflippines, Sr 2anka, ties. This disiLyvaries greaty, of course, by y. Manygovernments have supported irriga- and Thaa Eastern Senegal has benefined cltukal setting and historic tine. In the tion by financng and buiding the physical frm a uniquely successful progamm aimed at Republic of Korea and Thailand, for enmple, insrucure of large irrigation syems. ceating pastoral/azing associaio that the organizational density of rural society is WithDut such an inliastructure, irigation is have effectvely improved grassands and considerably higher than in India or Senegal impossible. But if the insttudonal strucus water management An interesting parallel can be drawn are not aeated as wdl, susinable irrigation In sum, prmotinggroup frmation and between technology and organizaton. Donor cannot occur creing organizatons are not easy sodal agendes and goVernments alike have long In pracice, irrigaftion progams have often endeavors, but they are key avenues for pursued the transfer of advanced technologr dealtwith institution building by prolfferating "puttng people first and for designing through technologntensive-but not orga- govemmental bureaucracies to manage the strategies around social actors. The returns nization-intensive-2id srategies. However, irrigation sysm bfintey ess attention has from enhanced degrees of adequate social technology, which is the physkal capacity, been paid to the creation of stable, culurally organizmon are enhanced welhire, lasting cannot realize its full development potential appropriate, and instutionally enduring pat- social susrainability for development unless it is embedded within adequate pat- tens of social organization at the groots programs, and better environmental tems of socal organization-thc social capital leveL Indeed, while top-heavy irigation management tatsustius, uses, and maintains the tech- nology. Thus, creating and strengthiening adequate organizational structure, and involving thetusers of the tehnology is no less inportant an the technology itseEl Ideed, if a high degree of social organiza- tion is a strategic resource fordevelopmenr, and if organization enhances the potential of individual actors by mobilizing them and maxinizing synegy, then budding up the lev- els of organization in society is an effective way tO enhance the endurance and impact of development gains. For this reason, when choices among investment program options are being made, it is legitimate to ask- 'What is their degree of orgaaona intensiqt? The .odoiqgiu'sAppvnarb ni SnhzabfrDmlapwzmn 9- The Ecologists Apr to sSutinable Development COLIN REES ecolgists take on a ecosye Dmodering of rhe emysm (for and water qua, conserve naur re- ^Ai i. jgeteZe" BXgog exampe, deplion and polludon) eventually srces, ad support economic devdopmet Dr interf ees with the lifeiupport sysmssus- with sound environmental managelm dacisiooak they rainingthe economy. The chalge fir ecologists is how best to bRing a systeuawweperspecuve, * Asexpadingeconomic activityand measur and predict whathappes to the giDwig human populatons use incrsng relevant naural system, or ecsystern, whe a long-ten view that under- amounts of natural resourcs and produce development kes plac They might be scoresprevexdot4 and apack- evrincreasing volumes of waste, the limits asked to advise on where to lomate an indus- (or carrying capaciies) of ecosystems are tial plant and how the resulting pollutants age ofecolgicalpractices that being exceed. shouldbe treated-essenaymeaumring the reitforce sotd so economic Some development impwas wili, if das- absorptvc capadtyofa ceving lake or tic enough, cause long-tem, and even i nver. They aLso might be asked to predit deve!pmewnL versible, envnmenta changes. For em- hanrves and stocks of natui3l resources, ple, when topical forests are feed and soil based on which fictor is in least supply and Traditioa, ecology-the srmiumre and eposed, the minels (already in short sup- its avalabiity (for example, nutrients in tropi- function of the naural evimnment-was of ply) are leached by the rain and the sol hard- cal agricultural soils). When the structure and little relevance tO those interested in human ens, peventing foress from regeneadtng proesses of an ecsystem are understood, affairs But in recent years the situation has and crops from being establihed. equadons can relae essentil taits in a pre- changed, rdecdng a more sophisticated per- As a result of the new awarns, ecolo- dicive modeL ception of the way humans influence the use gists now ply a vikal role in defining human Initially, development concerns were local and conservation of nauial resources. use and managenent offorests, wedands, pollution and health whereas now concems Whereas natnl resources were once consid- and coastal ara nd in balancing the intr- a regional and globaL As ecologists become eredafree good7 and unlimited gowth pre- actions among huma, livstock, and the increingly dawn into the deuelopment vafled, today's atitudes embrace three fimda- plats and soi supportg them. Ecologist proces, dhey are helping to shape the new, menmt ecological prnciples: also have a growing involvememt in the more environmentay aware development * Humaneconomicactvyisasuys- design and implementaion ofdevelopment agenda. For them, the sra is threefokk tem that operates widtin a lager, but finite, projiecs, as govenments move to protect air (1) encouraging the integrtion of ecological 10 consideuazions into economic and s.ct orW development poicies, (2) devising antidpa- tory and preventive strategies for develp- t ment projecs, and O3) demonsatingthat dfn W S IDK 4 d mS T dt sound ecological polides also benefit derd- ~ opmenL b ds A systemwide approach Ecologists bring a stemswide perse cdive. focusing on the dynamnic tre of complex enviromental problems,with their mult- tLde of links and indireceffects Manyof . ;- these effis are manifest eiherat distant lo- catiois (downstrem effects) or nthe ft (the gdual depletion of soil numies). In forsnmanagm forexamnple, harvesting usuWy hiduces significant changes in the fore est ecostm (as measuredbysuchinica- cnaca-be rsastopsoi depth and ifitraion capd- b chnges lso occroffsite, vith i lass lead- ing to a potenial deacease in fish production exmelv expensie tim-consuming, and Although EAs mnayontinue to be the p- and reduced resevoir sorage capacty of imnpossile, evironmental policies dominant evironmental plnning techniue For the past ten to fifteen years, ecolgis amed at anidpatng sign ficant ecologl for the foreseeable future; akey drwback is have rciedon natonal convation strae- and socoeconomic impacs-rater than that they opemre on a piemel, secaol gies, evinmental promfies, envirDmental simplyreacg t them-have aken on new basis, often preduding a comprehnsve and sector reviw, and ecological or naturl importance. For example, tropid fosts, ingated view (for example multple use of resources profiles to help move susrhuble- grasslands, cora reef, mangroves, and may natural resources and th capaciryto cmsid- use higher on the polik agenda and other unique babiats are rapidlybeing er comMOn wase colecton, treatment, and stengthen the relevant agences in many desoyed; speces exincion is aceleratig; disposal systems). iewise, the dere to com unims These tools also have poved use- and in eight ofthe word's seventeen ocean which a partiar projecs exploition of ful in determining the optimal use ofnatural fishingareas, thearnountoffish caught resources (eneg and rw materials) is at resours on a susainable basis, the natr betwee 1987 and 1989 exeded the lower variance with overall regional needs may go and dynamics of social and technological range of the estmated suinable cacc unappmised. An important step towzd f6ul change, trade-offs between total exploitatien But the application of aticipatory and integraton of ecogial factors into main- of naurl resources and theirconsevaton, preeative environmntad poces mises sr-m emnomicddkagmustnow and benchmak indicators in the integon more difficiuties Such policies may equir be to expand the application of environen- of conserton with devielopmenL action in advance of both scientific certain- ml asessments so tbat they can provide In the last two to three years, the Wodd ties and poliical acceptance of demonsuated guidance to pocy-based lending-which, Bank, aIong with otheraid agencies, has adver impac Morver, the knowledge afier proect lending, is the scond-argest adopted anotherof the ecologists' tools: needed to predict environmental damage is use of Bank resource environmental action pln APs). Bv Mach often weak orabsent To address these diffl- 1994, some fthir e developi countries cuaties, ecologists increasingly rely on envi- Good ecology/good economics had cmpleted such plan, and others were romenal assessments (EM) aimedatdeter- Utmte, ecologist wil be effecte in in the prcess of preparing them. These mining the potendaly significant environ- influencing polic only if they cm demon- phns descibe a countrjs main environmen- menial impacts of a proposed development strate that sound ecologiS policies wil pro- tal problems and idenfy policies, instituion- projec Snce October 1989, the World Bank mote, not hinder, sustiable economic al measurs, and invments that address has required thatal proposed invesment development This requires a parmership them. Although these plans ae still in a for- projec bsreened in this manner, leading wh economs-a pamership that is being mauve stage; they are beginning to playa to the redesign of numerous projects- In the developed, in tmating both the economic role in prvting serious and irreverible Lower Guayas Flood Control Project in cost ofdamaged ecosysems and the eco- enomnmental degradon. Ecuador, for example, a flood control chan- nomic benefits of conseig such systems nel was rerouted to spare a rese that cona- (see bor above). Prevention better than cure ta'med the threatened Homed Scamerbird Even so, the stuture of govenment As policymkr have come to realize that and the last ofwestem Ecuador's tropical dty decisionmaling often works against the best cing degraded ecological systems is fores policies being adopted. Natmal resoure The Ec f : . .. ..Appmacb :sto WMeDaapmet 11 agencies-whidc typicaly are chrged widt ment performance are in short supply. This environmental policies cutting across the both regulating and promoting natural may explain whya central agency with broad urisdictiorml lines of exsting agencies can be resource use-ave fund it difficult to move powers to prtect the environment is oft identifed and alyzed. in all this, economic from eqtiraion to sustinable use, in part unable to pesuade, for example, a forestry analysis has a major role to play. Through because of the intense competition for department to develop forests on a sustain- natural resource asessments, economic increasingf Scarce budgetary resources and able basis, or an agriculture department to tols can help determine the desirability of the consequent pressure to produce results regulate the use of ferdlizes and pestiddes. envioment-reated projecs, their design that can be reflected quickly in improved The answer to these problems lies in and location, the need for inoducing new econoniic performance In addition, well- restructuring these institutions. Consensus incentives or renoving misguided ones, and defined and geneallyaccepted measures of suggests thar a new lhcliyar the highest lev- the policy insruments necesay forsusruin- enironmentl and natual resource manage- els of poliqcy brmulabon is needed so that able development i2 Roes The Economist's Aprahto MOHAN MUNASINGHE ~~.mtironmeirtalecmomon Economic growth stfi overshdows the only recently that we have begun to apply * kis be&ps move ascls othier objectives, following the example of these concepts to developing countries and, HEN ~~~~~~~~~~~the industralized countnies tht began to in the pr3cess, influencer decisionmalting er to sNstWaiable devei- racide their environmental problems only mainlyat the project level. In the pes few opment by better incoporulig afer achieving maajor economic objectives year environnertal economistm also have But poilcmakers worldwide incrasingly are begin to take an interest in macaoeconomic eiwu,ymnentaland social COU- uying to find sustainable- options. The goal is policies. ce s iWocwnfdda - , t maximize the netwelare of economic 'Whie the underlying basis of thi activitis while mnainktaiinor incrasing the approach is economic optimization and effi- SiokWW& g.I It involves a nOvel stockr of ecoomic, ecological, and sociocul- cent resource ailocaton, practitoners recg- synthesis of exisfti ecoxow& w turlasets over time (to ecure the sustain- nize that these concepts may not be easy to abilit of income and intragenerational equi- apply to some envirornmental and socia princPles and their exteniwiff ty) and providin a safety net to meet basic objectves-such as preserving the dynamic ______________ ~~~needs and protec the poor (thereby advanc- resilience of ecologica systms to withstand ing intergenerational equiLD. Environmnenal shocks, promoting public pacticipation, or Historically, the development of the industri- econormcs contributes to this search by help- reducing conflicts En these cases they often alized world focused on econormic output, ing to incorporate environmental and socia rely on othe techniums such as nmulticrite- so, nou surprisingly, the postwar model concerns mnto economic decisionriaking. &t n analysis, to failitate trade-offs among dif- adopted by developing countres was gwrowh offers poliymiakers both a bette way oftmac- fermnt goals. dominated. But in the 1960s the equitable ing envirornmenta and social imnpart, and growth model was developed to incorporate improved decisonmiakng tools. Tracing hupacts social issues such as poverty alleviation and Environmenta economics as a field is not The first way environmental economics inlcomfe redistribution. En the 1980s the really new. Over the past two decades, exist- improve policy anaysis is by helping to trace modrel was broadened again to embrace the ing economic principles have been built on the impacts of decisions at various levels. concept of sustainable development- and exteded, particularly in valuing environ- Project Tewe Traditionally, economists relcinganceasing concern about the envi- mental and social impacts that often are niot have reidW on cost-benefit analysis to help ronment. well reflected in market transctions But it is determine whether a project is worth - - ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1 undertaking Follownng the Bank's 1989 What Can be done' The value of an ester- vantaged groups, hae proved more usefu. guidelines on environmental assessments mlity can be assessed based on its shadow Sectoral leveL Studies show that sector- and recnt advances in valuing impacts, this price or economic oppotunity cost, and a wide actions- waterand energy pricing pol- type of analysis increasingly is being adapted dcarge imposed. But iftthis is not possible4 des, in nstment programs invlving a senes to better acount for environmental and policakers can mpose reguions and of projects, oradminisErative measures such social concerns, despite special problems. standards that set phyal limits on per- as improving land tenure-often have Firsh some inputs and outputs are not cived extenal damages, or betterdefine stronger emironmental and social impacts correctly pried by the mareL One emple property ghts, thereby encoumng than individual projects. is etealihs-the beneficial (or hamill) impwved mural resource mangemnenL The basic rule for efficient pricing of a effects hat are imposed on others but can- Second, with well over 1 billion poor scarce resou (or serice) such as wer (or not be reimbursed by (or charged to) the worldwide living on les than $1 per day, transport) is that pice should equal the cost originator. Unfortunately, extermalities are naional policymakers often seek to reduce oFproviding a marginal (additional) unit of often difficult to measure in physical and the income gap betwee rich and poor outpuL However, in many countries such monetary terms. Another example is open- groups. This g amy jusf grang greater resources are subsidized aising prices dos- access resourc-ypically, assets usable by weight to benefits and costs that acrue to erto efficient levels is essential to reduang all without payment, such as a lake or public the poor relaive to the ridL Such formal thcirwasefi use, thereby realizing both highway-which are difficlt to value and weihing schemes seldom are used in pro- economic and envimrnmental gims. Envirn- tend to beovrepkited since user charges jct evalation. More direct methods, such as mental-economicanalysis has helped in this are negligible. povertyassessments and targetg disad- regard First, it rinforcs the need forboth effiet pricaig and adiional chages tO 'Ski <-g cover exterl im pacts Forexample, if auto- valuation techni uesf ri ulng tf-heT Dnmn mobile exhaust cuses respiratory problems, _; - ..> o S 1 marginal cost-basedfuel pricesshouldbe ~~~~ ~~~supplementedby poliurio nec -M,xbali. W:- Co_mistba'mu*t huuatkeurbt ~ tc ml .ri.A sponding to the additionalenvronmlent or *B, d,a. E- | heah damge. Second, this type of wsis - flhlvcr ...-~~. K2I~ ~,Wq~d1~yIC~ t4%%mk~ encourages long-run, comprehensive ~~-s ~ ~ ~~ resource planning. _________ ___ ____ _________ __ Ž- - 2~t'PS.Z ako coumandc leveL Economywide .i - Ž ii policies (both secoraland maconomic) *ibi.vC - b aveaneffec on the naturalsoucebase, 7h. .ostu.*i1uuaustoninaass'actmvsmumanwcI.nrsacteacwaemmv$k. but the complicad ipteractions are not wel -a. binava Vald 11 iCUVIE 1 understood. No simple generl are possibe, but manry his of environmen- tal damage stem from marker faures and WI - d v4 polcy distortions, exaeLbated by poverty. .Dki or eeaEissao a dM m-tlS = OVidS.~r9 a :tM0mtdU, mlrviiso Broad polic reforms tbat promote efflcienry 7t~MudSsW~&< or reduce povertyalso should help the envi- §Žuucsuilakitflsdsm.akaty.tu.uund.d aNNum,.ronmeric but some refoms may have nepa :n~bm.ntw~tFubcsainmpiagaiIinp&.d.nwaunmt i ,ve environental effecs, depending on w~sa~#r #p _ir= dg (and o bcl consEints _Se_'iid by;:s- ji_ _ H 0 _ (that is, biadequately defined property or . ~~~~~~~~~~~~~~~~~~~~~~~~~~resourcr rghs). inuytmastNm ant. - ~The solution is nor necessarily to modify the origal bruader poicies (which have "~' tSmiI~ ~re~1sS~u~w ~of~p~qysey) rmj.ra.oane-'t o conventional socioeconomic goals), but j i- ~ ratherto design complementary measures ~-aunt sta s az:coEz ,- a Palak. '' that wAil mitigate the negative efts or PiVflt _Eq _estef =rapmny bwe pa muiiifarred n~keemrflkbarhaads~c enhance the positve impacts of the original policies on the envonment (see 'Are Econ- ',._iwililWlUl mSstdaaca Un ,'aftMbq 9iof -;S;_ |_ b omywikle Policies Good for dte Envirn- pytt*- menLQ byMohan Munasinghe, Wlfido Cuz, andjerny a forFmance&elo- At;i~b.z~dam*1u tn rd red mdhadbnwmtflc Eva CSeptember1993). _sCtWN~it'P&.& .'eSihua r~jfly Many aspects of macroeconomic poliy i arebased on the standard system of national 14 Amasigbe accounts (StA). To incorporate hitherto Better dedsionmaidug tools techniques is an individual's willingness to neglected environme '-' impacts into GNP Environmental economics also offers policy- pay for an environmental service or resource. and other related measures of income and makers a variety of tools to alue impacts and (In economic terms, this is the area under outpuz the SNA should be envomnentally improve development decisions. the Hicksian demand urve that indicates adjusted. A start has been made thmugh Vaziation tebfWquea The basic aim how demand vaies with price while keeping satellite acounts containing environmental of enviromnental valuation is to determine the user's welre level constanL) A reated data that will supplement traditionl SNA the totl econmic due of a resource (se measure is what people are wiling to accept data (see 1Measuring Environmentally figure 3 in "Maldng Development Sustain- as compensation for environmental damage. Sustainable Development). ablej. Tomal eonomic value has two parts: Valuation methods maybe categorizd, as Iawuaonal leveL Regional impacts use dlue and nonuse value. Use values can shown in table L (such as add main) and global issues (such as be broken down into three types: (1) direct Mullrteria anlysia Sometimes a ozne ayer depletion, global warnin& use dlues, determined by the known contri- single citerion-putting costs and benefits in biodiersitv loss, and polution of intema- butions an environmenral asset makes to monetary terms-cannot be used. This might tional waters) have raised conrns These production or consumption (food, ree- be the case for biodivrsity loss. Another penrs and long-term problems have led ation); (2) indirect use values, including the approach, called multicriteria analysis, draws to new ideas on uncerrinty, irreverblity, benefits derived from fimctional services that on nonmonetary measurements. It clarifies and time discounting. Foreample, even the environment provides to support current the most important attributes orgoals, elimri- when impacts are unceain, susrainbily production and consumption (for example, ates many imrevant options, and makes the suggests that Eimits should be imposed on ecological functons); and (3) option dalues, final aade-off process more tnripaent, resurce degradation, particulaly if fiture or the wilingness to pay now for future ben- while also providing the decisionmaker with consequenS could be irnevsile and cam- efits expected from an existing asset (biodi- more fleability of choice (see bosbclow). strophic This preautionary appmach under- versiy) Nonuse values occur even though CAplic Currendy, almost 200 lies the emerging consensus on limiting the valuer may have no intention of using a Wodd Bank proects are subjected to envi- greenhouse gas emisiions tO avoid possible resource; one cawgory-existnce values- ronmental analyses each year, of which about global warming. Efforts are also underway to arises frm the satisfaction of merely know- 60 undergo comprehensive environmental impre miugation medanisms to mobiDlze ing that the asset exists (for example, are assessments. The practical use of a wide a allocate resours efficiendy and equi- species). mnge of tehniques is being rested in severa tably (for exmple, the Global Enviromnent The nex hurdle is to estmate these val- Bank studies involving forestry, agricuture, Facility). ues The basc concept underlyig valuatio ener, and water projects. one ample is S _~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- BSCG ;x4s 4xeX;; t -5F!- * .Th& "P sC- 'i. 'K - -4.: *:-;1 ? .1- 0' I W IN-DS.tl- -- JrAomtksApoa1kiamultrbbomkDaop 1r @ ~~~~~~~~~~~4iI_PUt -''''K,~,b ~~~~~~~~~~~~~~~~t 1 X. ? - a ;;.~~~~~~~-~'Aa A-; :7Z~ x|X ~ ~ ~ ~ ~~_ -X|w wdna bett efts,-ancLrheeenud ''z .. . ... . , -- ,,.,4qswm jt ., , r :. ihS Etbnueo wmpe;n-uan5 .~~~~~~~~~~~~~~~~~ . - t - t.. .fler~~~~~~~~~~~~ - - * . . , . : . - . i - _ . . . ., - . :t e ar m ,t . . . 6f the study on Madagascar, which investigated mainable development is the action impact involving exchange rate depreciadon may forest management policies involving the mauix (table 2 provides a gready condensed make timber exports more profitable and proposed creation of the Mantadia National version). The matrix promotes a mure inte- lead to severe deforestaton of open access Park The study demonstrated how a variety grated view, by meshing economic decsions areas. Possible remedies might indude intro- of valuation tools, including effects on pro- with emnvironmental and social impacts. The ducing complementary policies that control duction (opportunity cost), travel costs, and organization of the table facilditates the tac- access or assigning property rights to the for- contingent raluation could be applied under ing of impacts and coherent artulation of est, dhereby encouraging better manage- difficult developing country conditions. The policies and projects, while the individual meaL Project 1 (1 hydroelectric dam) may study found that: elements focus attention on valuation and also eacbate forest loss through inunda- * Using the land that would be set aside odher methods ofassessing specific impacts tion. The answer perhaps wold be to modi- for the new park, the average local house- to determine action priorities. fy the dam or implement a shadow project to hold produces 487 kilograms of rice worth As a firs step, a preliminary matrix maybe reaflorestan equivalent area elsewhere. In about $128 per yearfrom I to 2 hecares of prepared, using existing daa to assess the this fashion, the table helps articulate a con- land. Fuelwood, the only other economically most significant impacts (even qualitatively, sistent set of more sustinable policies and impormnt forest product collec is worth as shown in table 2). Next, the tools of envi- projects that address serious issues atall lev- about $58 per household pervear. The net ronmental economists maybe used to quan- els, in order of priority. cost imposed on villagers by creating the ify and value the manicudes of such park ranges from $90-110 perhousehold impacts more precisely, reining the matrixL Formore infor7ation, see Environmenta per year, based on both the oppGrtunity cost TIhen policies and prqects may be sytnati- Economics and Sustainable Deveopment, by of foregone production and contingent valu- cally modified to make them more sustain- tde abo, World Bank Enuimnment Paper ation estmates. able For example, economywide reforms no., 1993 * In the foreign touristsurvey theaver- age vLsitor had 15 years of education, eamed V |; over 559,000peryear, and spentalrnost ______ $290lXpervisittoMadagsa.Touristswere m- . willing to pay $80-20 o visit he proposed -, - _ - _ _ i _; . new park, primarily to see lemurs unique to * Thenetwelirelossto2lIvillarom : acrating the park wasabout $0.6 milion, usng a present value of 10 percenL ForallU frign tourists, the corresponding benefit - p - -, was ovr$2 fmiion. '--v Results such as these will help detemnnine it___:_______ how scrce forestand capial resrces can _ _ _ _ _ _ 7 __ '_7_7-_77 be better alocated and provide guidance on c' future prcing policy for par protection, bio- Li divesity management, and evenue genera- *¾-k* J'_?7 tL 2-i A - tion. But they ao highlight an interesting iss particularly fora country that is both __ ' economically poor and ecologically rich. '1~- Willingness to payis fundamental to the eco- K vzj nomicappr but tends to oveemphasize '- I2 Z; = - the greaterability to pay ofticher foreign visi- tors. fconfcm clim nto paQ;--C ; >^rkrl a;c w J. determined purely on this blsis, the tendency = ' would be tO exiude poor local viagers (with t _3 minimum monietary cmeston). Here, d the social-equityaspect ofsustainabledeve__ opment can be invoked to protect the basic -' -' _ _- tights of local residents, perhaps by ensurmng a minimum degree ofaccess to park areas _ - a - . A unifyn matrix= One tool that unifies the key elements of the - -- e1 me noissapp6 to susahi-ln 16 Mmm,o Measuig Environmentally Sustainable Development ANDREW STEER AND ERNST LUTZ broader understanding judgment on tmrds in human wdel-beg stndardizing definitions, but mud remains of deveIxti and poverny- Aggrqate tobedone. income figures do not necessar idcate Eximentu If growth in aggra requirs broader mea- trends in dte inadence of povery. While te income significntly damages the environ- s of developm t tbat mcorelatdon between national income gowti ment, it maycounteract some (or possibly and poverty reducion is srong, and earlier all of the wel gns from income gowti encapsuldae soc equity, and notions of income inequity tending to rise at and undermine fture growth prospects. ea co r Ca early stges of development (the "Kumets Knowledge about envirnmental conditions Curve') have now generallybeen debunked is particarlyinadequate, due partly o con- must be taken tbat aggreate (see WoriDeoeopmemt Reports 1990. cual problems (For example, how to meas#res of progress do not 1991), household surveys are wquired to define soil depledon, loss of namr habitt, wue ri shed light on income and ex diture pat- and air pollution) and party to the ha that cour,ealmore thait they emuaL temmofthe poor. Reasonablygood progress medhanims often simplyare not in place to Btpromising work is u has been made in the past decade to stan- measure the mw facts- Increased effot have- dardize survey methodologies, and about been made in the past few years to help way to 'ge the natio frLtofycountries (acunting for 80 per- counies with evironmental monitong dccouns cent of the population of developing coun- and to compile intentonally comparable tries) now undertake household suveys, saiscs. For example, the Global Enviroa- producing fairly professional poverty assess mental Monitoring System, managed by the 7begrosstnalproduct does not aHow menst Nonetheless, it is st ildicult to com- UN Environment Program, colltes data on forthe heat of our cbildrer4 the qualty o.f pare the incidence of poverty across coun- air and water pollution in some 150 coun- iheir adutionW ortbejoyoftdhirpay. It ries. tries. But in mostsituations, resoumcs have does not indude the beauty of ourpoeby or Hxm resovwces Inaeased aggre been inadqUaE, and the qualiy of infrma- the strngtof our mamonages the itef- gate income does not always buy improved don and comparability across countries gwnce of ourpubflc debate or the integrity of human resource indicatos. Recent concens remains poor. ourpubc officials It nu es neither our about dedining educatonal ainmet in SociapoHi4 and spirtua wutnorouzrcouzrage, neitberourwiwdom industri countres illustrate this point, as aspects of wegkm Measures of ueco- norourleamint neither our compassion does the apparent vaiation in human devel- nomie welfare fail to capture the social, nor our devotion to our cotry it mea- opment achievements at similar income political, and spiritual aspects of hunan well- smuseevytin in short rccepttat wbicb leves (see, for example, Tbe Prcw of being, which often are much more impor- makes life worthwile Nations UNICEF, September 1993). Data on ant. Many of these aspecs cannot be mea- -RobertF. Kmeny, 1968 key indicator-such as infant mortaliy, liter- sured in any quantitative sense, of cours acy, school ollment, and access to med- which may tend to diminish their importance Meas of the oveall income and output oF ical Facilities-are available for almost al in ie minds of policyankers. Recent years a nation-the national accounts-give a high- countries, but the rdiity of these data have seen the refinement and growing use of ly imperfect indication of a nadon's well- varies gteay, with indices often calculated indicators of politidl and civi liberties, gen- being. Besides the well-mown gaps in cover- indirecdy from highy parial data and some- der and racial bias, and the incidence of age, such as unpaid houseild wort, at least times from extrapolation of earlier esmas. crime and violence; At the same tine, a grow- foursets of additional iformatin are Significant resources are being devoted tO ing number of governments and aid agendes required tO make any ldnd of conclusive strngthening field measurement and to have been developing and using the tools of 17 social assessment in investment planning and to such work have been modest and reseach Basic Indicators' table-the HDI has pro- appraisaL. These tools have tended to focus prams often poorly coordinated. voked an outpouring of views (many ctidcal) on project-evel decisions (such as how socal Care needs to be taken in searching for on its methodology and findings, thus sery- and cultural cohesion might be affected by aggregate measures of progress, so that the ing its purpose wel. particular investment programs). Much less is single indices chosen do not conceal more known about the socal impacts of broader than they reveaL Housing is an eample. Greeni the accounts deveopment trends, such as urbanimtion Traditionally, simple measures of housing Deriving aggregate indices using a common and market liberalizaton. have been the norn: Do people have hou- numemire is conceptually preferable to the Where does this state ofaffairs leave poll- ing-yes or no? But with the movement away ordinal appmah of the HDI but is pracdcally cymnakes? Clearly, they need better basic hom direct government provision of housing much more difficulL Adjusting the national facts on the development concerns listed wward "enabling strategies," and a growing accounts to reflect broader development above, but they also need to see these basc recognition that housing involves much concems is one commonly proposed mute. has aggregated into polq-relevant indica- more than bricks and mortar, it became dear N credible approach is avilable to make tors of progress. Both of these stps-mea- that richer measures were needed. This real- adjustments based on social or income distri- surement and aggregation-pose tough dmal- ization led, in 1990, w the aeation of a butional concerns, but methods for making lenges for the noneconomic dimensions of Housing Indicators Program, sponsored envirnmental adjustments have been ai- developmenL This artide reviews some of joindy by the UN Center on Human Settle- able for some time. Adjustments to take into the acrrent issues in the search for develop- ments and the World Bank account environmental lhccors are particular- ment indicators and describes one particular- Dam have now been collected from fifty- ly warranted. Fust, unlike human develop- ly promising area in which the aggretes are iee cDunties covenng 80 peent of the ment indiators, which are generally positive- environmentally adjusted. word's popunlatio, drawing on exensive ly correlated with income, eavironmenta surveys of demand and supply factrs and conditions sometimes worsen with economic ludicatora of development the recognition that there are many dimen- growth If the benefits of increased income One of the reasons for the excessive focus on sions to good housing (for example, reason- are offset by detenorating health conditions, tie economic aspects of development is that able space and vendtion, access to a foot- it is desirable to subtrac from income a me- it is easier to measure what is tcansmaced in path, proxmity to employment, affordabili- sure of the current costs of such damage the markplace dan what is noL What to ty). Whle attracted to the possibiliy of deni- Second, to the extent that national accounts measure and where tD measur it are more ing an aggregate measure of housing ser- data are used to gain a pictr of the econo- inmiiive, and the "numeraire" (common unit vces, researchers on this project have con- mys capacity to produce on an ongoing of account) enabling agggation is straight- eluded that in the absence of a meaningfil basis, it is necessaryto recognize chat such frward-money. numeaire, any such aggregate inde would capacity depends on natural (and human) Such easy calculations are not available for not help poliymakers. The methodology capital as well as on humanmade capital many other aspec of development, espe adopted is being extended to otherareas, stock Net capital accumulation figures thus cially social conoerns and envronmnental induding urban environmental issues, water, need to reflect the changing stocks of al issues. For example, with over 300 different sanitation, and transportaton, forms of capital. omm pollutanmany of them hgly local- Ifadding apples and oanges is a problem At this stage most effos at naturl ized-how can pollution in anyaggregace at the subsectoral level, it is much more so at resource and environmental accounting have sense be monitored? Or, in view of the many higher levels. Proposals have been made over been restriced to creatng physical accounts pes of soil degradation (erosion, sulini2- the years for aggregating mesures of educa- tat parllel conventional national accounts tion, loss of moisture or nutrients, and water- tion, health, nutrition, income, and civil liber- rater than estimating the money values of logging), how can the aggregate stare of a ties. However, in the absence of a substantive resource loss and environmental danage, nation's land resources be captured? numenire, most of these proposals have thereby adjusting the "ore" accounts them- Aggregation, of course, requires a involved merelyadding together normalid selves (figure 1). numemaire In this regard, important wok is indices. Critics of these indices argue that Norway, for example, the countryiwith now underway to derive relationships Cdose- such aggregations are inevitablyarbitrary and perhaps the longest interest in resource response functions) bween vanous forms thus potentially misleadig. Supporters, how- accounting, has put its efforts into refining of environmental damage and human healtkh, ever, contend thar even if the indices are physical stock estimates in key sectors such economic productivity, and human amenity arbitrary, the purpose is to force nonmone- as oil, minerals, fish, forstry, and hydrpow- values, which would provide a numeraire, try elements of wel-bing to the forefront er. The Netherands, another countryvwth a teebyenabling aggregation Thus, for of development policy. The Human history of concen in this area, has endeav- exumple, different pollutants would be multi- Devlopment Idex m(HIM) of the UN ored for over a decade (so far unsuccessfilly) piedby both theirhealth impacts and the Development Progmme, the best nown of to denive monetarymeasures ofthe loss of affected populaion. Areas affected by differ- such indicators, illustrates this poinL By environmental functions." France is trying ent types of soil damage would be multiplied aggregating indices of life expectanqc, educa- the most ambitious system yet-"patrimony byestimated impacts on such faaors as tional attainment, and per capita income- accounting'-which is aimed at analyzing and future yields. However, resources aOlocated the same indicators used in the World Bank's descrbing the naual environment in its 15 SkerandLiu three basic dimensions: economic, social,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ and ecologicl. The system is to have sevenA levels, ranging from specific resource data at KN|" GeIi~hstaou~c6n level one to aggreate welfare indicators at .W level seven. However, only limnited resoursces -< niomna cort havre been available for imnplemnentation, ..~ c n which so hr has been limited to the physical x' ' 4"; :^> Sii',"i 'Imacts fls e dataatlevelon.Sforrsin1hisflI dhave n aoa '*-' nion abatement expendt Wres, although t .accounts ~Z delto depletin de|pletion President Clinton recently committed his m>S admiinistration to produce environmentally Enlomra EnvIronmeFtl Envrometa adjusted accountis durig his term. <§,--........., . Nevertheleiss, there is now movement on Rr-SlOI ;0Wi several fronr&. One reason is that in Agenda E t hnction vtabalbn 21,te ao pl>nicy douet of the Junei ernvironmental and soda! dimensions in the 2 DP1 - NOP minus resource depletion |E accounting framework, including at least fi<* A r~~ ; satellite systems of natural resoure in all tI EOP2 3 EDP1 ITius enomnonta deradaton . member States." Second, in 1993 the UN Statistical Commission adopted a revised t Systemn of National Accounts (SN) afters decade of work, altering theaccounting pro- _ =ect= cetnesfir lbmember countries. -, t thiecore accounts, it is suggested thatthey r; ___ prepare "satellt" accounts, comprising both ld h '' u e K_'q u physical and monetary units, consistet ith _ DJecember 1993 the UNStatistical Office - - 3 = = /EnzrmedInEcnmAccowtbu t@t p*r-0 which provides detailed gidnce.l_ R AsD part f teprepaations for thSN- P1 uthed UN StatisticaleOource an conr auhoi howpractioschal the rnewmehdolg and fme hadokwudb.Terslso h w cas stde (bce up byanotherestudy in19 Thailand) proved not only the viability of the A~~~~~~~~~~~~~ approach but also the sensitivity of the find-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- ingsro ~ ~ ~ ~ ~ ~ T asupin made.. : -g extraction) from NDP. The second (EDP2) "Green" accounting also ofrers poll- Figum 2 iurther deducted estimates of the monetary cyinakers insights Into the long-term Shrining Investment? value of environmental tegradation (such as productive capacity ofa nation- Eaumakd Impacts of adjustmant for dapradatton of air and water pollution, waste disposal, soil through the Investment and capital hummnmade and natural capital In Mexico for 1985 depletion, and groundwater use). accounts. Figure 2 shows the estimated Perct o GODP These calculations are much easier said impact of resource depletion and envi- ;eGrosMedi than done. Numerous judgments were ronmental damage on Mexico's produc- required in choosing methodologies for esti- tive base in 1985. But care must be talk- 20 tX mating money values for both depletion and en in interpreting the findings. A care- A degradation, and in most instances indirect less interpretation might condude that 15 I estimates were required. For example, ideal- with an apparendy negative real invest- i ly, the impact of pollution on health and ment rate after adjusting for national future productivity would be estimated and a resource depletion and environmental 10 monetary value placed on such costs (dis- degradation, the productive capacity of counted back to the present, when damage the economy had actually declined. But s occurred in future years), which would then such a conclusion would require that be deducted from income and investment. other aspects of the nation's productive Unfortunately, knowledge is inadequate for capacity also be assessed. Human capi- o such calculations even in the most advanced tal formation and technological industrial countries. Instead, an indirect mea- progress are particularly important. n sure-estimating the cost of reducing poiu- Broadening our understanding of pro- aTIat tion to "acceptable" levels-ins used. A simi- ductive capacity to indude these ele- dcMa In% nail..'puduolvepcy.mic Itelude. In ar approach was employed tO calculate the ments should have a high priority. am a cailmionahn ad m- COStS of soil erosion, but a host of conceptual mn! Aurr.g A Cm0 Smtor MudcVchap. 6 h Enst chailenges and mediodolgical choices A richer measure W' .d, Towt bp4wcdAccom hf e Eiit*cWieii An remain. It is dear that a broader umlerstncing Ia1-W'" SmW&I (WEhIg. ttC: Weld In the case of Mexico-a reladvely ad- of development requires b.oader ma- vaced developing country with severe envi- sures of development. Heaver invesunent indicator of progress, especilly for govem- ronmental problems-EDP1 was estimated as than in the past is required sirnultaneously at ments of democadc countries, in which citi- 94 percent of NDP for 1985 (the onlyyear for three levels: basic data colection, research zens are betterable to voice their preferences which data were adequate), and EDP2 was into the relatonships between such data and on how a nation's wealth and income should estimated at 87 percent of NDP (see table in human welfire and economic development, be allocated. There is even some indication figure 1). In Papua New Guinea-a country at and the derivation of policy,relevant india- that rising incomes promote such regimes. a relatively early stage of development, with a tors at difrent leves of aggregation. However, neither income nor any other kVxe extactive industqy-EDP1 was estirnat- In emphasizig the limitations of overal single indicator can or should encapsulate ead at 92-99 percent of NDP for the 1986-90 income asan indicator of development, how- develpment progress A richer set of indica- period and EDP2 at 9-98 percentT hese fig- ever, it is important not to "thmw the baby tors is needed, and remedial efforts are ures raise awareness of the need to adjust for out with the bathwater." Income is still the urgendy required on those components of environmental costs but in themselves give best measure of people's command over development that cannot be measured in the little guidance to policmakers. Sectoral many of their commodity needs. Appropi- marketplace. accounts, however, provide more insight ately adjusted, real income remains a useful For detaikssee Peter Barnelmus Ernst Lau andJan van Tongeren, Envimnmental A; lmting .An Operationa Penspedv',-in - I. ; _ JsmailSerageldin and Andrew Seer, eds, Valuing the Environment Proceedings of the 5 ~ -'O First Annual Intemational Conference on Environmentally Sustainable Development f t S -(Wasbingonr D.C: World Bank 1994); $ Sbaobua Cben, Gaurav Dag andMartin Ravallfon, Is Pvery Inceasing in the Devel- opingWodd? World Bank Polcy Resab Depament Working Paper (Washington, !t-< + X - Ql:D.C WorldBank, 1993); EmstLutz ed, To- ward Improved Accounting for the Environ- -miQ___ ' , u . S PrJf ment Wasington, D.C: TorldBank, 1993). 20 SteerandL Integrating the Envionment into Development Poll JOHN A. DIXON AND SERGIO MARGULIS e tradtional ap- (and, in some cases, exploitation of the We now realize that the links between proaib, wiereby envi- resources of colonies) led to rapid economic economic growth and the environment are development. No attempt was made to complex, and an effort must be made to ronmenal co erns undestand the connections between growth understand and untangle these connections. are addessed As add-onsJto and the environment. Analytically, a 'black Rather than assuming abladc bo" that box" model was assumed whereby economic hides the connection between economic developmentpoUqaking, growth inevitably produced environmental changes and environmental outcomes, poli- needs to be replaced by one in damage. In fact, a hundred years ago the cymakers now explicidy identify connections common pictorial representation of moderni- between economic policy and the envimn- which the costs of e evwlonmen- ty and economic progress wms factory smoke- ment. This knowledge can create more favor- tat and social damage are sacks emitting clouds of black smoke. able envimnmental outcomes as well as per- Envimrnmental concerns-polution ofthe mit stional assessment ofthe remaining embedded in the decionmadng air and water or natural resource degada- trade-ofs between growth and environmen- prcessfrom the beginning, don-were treated as "add-ons," if they ere tal objeccives. Figure 1 iDustrates some of considered at all. When environmental prob- these links. Environmental impacts are deter- lems became severe enough to receive atn- mined by the scale and structure of the econ- In the two years following the Rio Eth idon, the approach used was to set an end4of- omy, as wel as by the technologyand effi- Summit, countries around the world increas- pipe emissions or technology standard. At ciencywith which resources are used. Some ingly agree that addressing environmental the firm leve, this placed the emphasis on of the feedback loops are positive; for ean- and soial concerns is an imporant priority treatment rather than producing less waste. ple, increasing efficiency in resource use for governments and citzens alike. But until recently-and in many situations even Figure 1 today-these problems have been addressed Economic activity and the environmrent as "add-ons," after the core of economic deci- sionmaldng has been made. Evidence is Rb9ng ncores Incns mounting that this approach is inefficient- wIllIngness and abiIty to Invest and often inefective. A new approach is / in emironn_I prolcn highy desirable in which the cos of envi-- /hanes a c Ef7i1er tScy ronmental and socil damage are emIen wed w a c inall calculations from the beginning, and thereby taken into account much earlier in sce of out" gyn eWcle the decisiornmadng process. A start is being (pou'nX X of the X n X iloint r made in this direction. i caplb) ~~~~~~Pollution anr Opening the -black box" lng costs Tmditionall, we had a simplistic view that e growdt was unavoidable but bad for the envi- u=nem ronment. Take, for example, the industrialoth revolution in the West in which heavy indus- try, fieled by natul resource extraction Suw SrwSndThom, fmmuglD amwtTharLa Fordng. f : = , ...... . . . . .~~~~~~~~~~~~~~~~~~~~~~~~~~2 both conserves natural resources and address environmental problems. Three pat- dioxide levels in the air, initially worsen but produces fewer negadve environmental terns emerge: then improve as incomes rise and mitigating impacts per unit of output. Other links are a Some environmental problems, such as steps are taken. Most forms of airand water negative-such as the growth-reducing inadequate potable water or poor sanitatdon, pollution fit into this category, as do some impacts of major pollution control expendi- decline as incomes increase. Inceasing types of deforestation and encroachmernt on tures. Figure 1 illustrates the numerous incomes provide the resources for public ser- natural habitats. To make improvements, points at which policy intervendons can vices such as expanded sanitation, improved countries must deliberately introduce poli- reduce environmental impacts. water supply, and rural electrificadon. In des to ensure that additional resources are In addidon, we now realize that although addition, when individuals no longer have to devoted to dealing with these environmental economic growth often results in increased worry about sunival, they can devote their problems. pollution and consumption of resources, resources to profitable investments in * Sonic indicators of environmental stress growth also will facilitate solutions. Figure 2 inproved environmental services and con- worsen as incomes inaease. Exampies from the WorldDevelopment Report 1992: stivation; these positive synergies between include emissions of carbon and nitrogen Deueopment and the Environment illus- economic growth and environmental quality oxides and municipal solid waste. Abatement tates how rising economic audvity can, with must not be underestimated. is relatively expensive, and the public percep- the right policies and institutions, help * Some problems, like particulate and sulfur tion is that the costs of inaction are low- often because they are borne by someone Figure 2 else. The key, once agan, is policy. Usualy Environmental indicators at different country income levels there are few incentives to cut back on emis- sions orwaste, and until such incendves are Urban populatlon without put into place-through reguladon, charges, Population without safe water adequate saniltaon or other means-d ge will continue to Perent Percent inease. 100 70 mrae so ~~~~~~~~60 So) Malnstraming the cvvmn 60 40 in naloi policy pL n 40 3 Opening the "black boe and seekdinggreater 20 ~~~~~~~1 0 transparency between economic policymak- o 0 ing and envonmental impacts create the 100 1.tDOO 10000 100.000 100 1t000 10,000 100t000 possibiEtyforincorporaigenvomnental Per capita Income (dollams. log scale) Per capita Income (dollars. log scal)w;; oricroaig niomna concerns in all levels of economic decision- Urban concentlrations Urban concentraions making. To do this, poirymakers are con- of particulate matter of sulfur dioidde fronted by two important tasks. Initially, gov- Mkirograms per cubic mneter of air Micrograms per cubic meter of air ernments need tO correcty identify national 6D ~ ~ ~ ~~.1-priorities, ttaris, dcdde what needsto be 1,500 60 pdone nd inwhat order, second, they mtist 1,000 ~~~~~~~~~~~~~~~~~~~~~modify national ecnonomic policy (see figure 2D ~~~~~~~~~~~1) to promote positive synergies and mini- - - ~~mize adverse environmenital impacts (the t,O 'how" of improved environmental manage- 100 1,000 10,000 100,000 100 1,000 10.000 100.000 ment). Per capita Income (dollars. log scale) Per capita income (dollars, log scale) Set The costs of not tak- Carbon dioxide emissions ing the enMvronment into account are ohfn MunlcW wastes per capita per casp very high For example, in Hungary, air polu- Kilograms Kiograms tion and add rain result in US$100 million 600o 1 5 eyearly in agricultural losses, and another Soo 1s US$50Omiffion in damage toforest. 400 Individuals are also affected by air pollution 300 ~ ~ ~ ~ ~ ~ 5'and degraded landscapes a recent World 200 10__ _1 =iEa1iN 100 Bankcstudy found thatrthe annualicosts in 0 0 Mexco lry of heath-related effecrsofa 100 1,000 10,000 100.000 100 1,000 10,000 100,000 Per capita Income (dollars. log scale) Per capita income (dollars log scale) pollution might be on the order of US$1 bil- lion. In other cases amenity and reaeational an Estmite 2ra bsdn OCYel1ta hl values were also imporant. In Santiago, Si: Wadd B.s nfW WDeveWfapnn In! lfDewsWarsdi Ere *=Msn(NeOW Ymt cOxMd U*er,f*n, Chie, air pollution is recognized as creating a Prss. 1992, 11. double loss: it is responsile for numerous 22 Dixon andMardfs to set priorities (see box below). Estimaes Itt'c~~~~~~~~~~~~ - ~~~~~were made of the gross annual costs ofa 'tj number of environmental problems, and soil Frequntly he@muradve dmarco dutaWnefcbsraefiis5 erosion was idenified as the largest environ- Ih 4eD ecbelE66i3 ;Dms, mental damage cost. .?rerb1hiaskenfledtde: hazgcta4daoutrunlngenvzmnUmsenuepobl&&'tr a.. .aa. I ~ rOtFounatCy, inmany cases good eoDnomic '| D' 4 poicy also ca be good far the environment -'NNPecto(c ii tat Policies that reduce or ehnuinare subsidies health unpac( Cmcluding both prenre eve~A4tA~tr,O mot eioa pas ooo naycncan produce direc sings to the nation ass, fit when tw economy as well s eniro nmental imprve- _ ___ ~~~~~~~~~~~~~~~~~~~ments. These arecalled "whvwin" solutions because they benefit both the environent _nponat -. have helped he politi- fits ad Even wheand the economyand are eom mples of the cal illto *auirL . ontes i a EAP wwt6itbich fte41e does not iden- positive links inusrnted in figure 1. addased at nc. RalngthtEmte god supleoftheus o gaittfve it- Subsidies formnergy andwater are examples -aoui -shavetobeusdcarefillly polic naof tworof the mostrpronising candidates for wi- wit policy reforma For eammple many health impacts aCduding both premature ever, most ntional pas do not anale countr- subsid energy, thereby promot- deah and siknmess) and causes a psychic environmental problem and ivestment ing irefficient energy use and inpreasing loss, when rcsidents oDmplain tat they opinsthin an economrc famework, and eone probleis associatedwit fuel "ne't see the Adesea Both imnpacts ar thereby ignore the trde-offs betee bene- poductionand combusion whle beang important and have helped create the poti- firs and costs. Even when a country sets pri- r econormic costs from the subsidie. cal will to take atfiorL critme in a NEAP, it frequently does not iden- Energy subsidies hin developing coDuntries Not all environm e ntal problems can be tythe aitrea used. The Nigema NAP is one amount to some $230 bilon annuallr, a- addressed atonce. Reain that limted good enmple of the use of qual ite- rcty pricing m lecd ty tnag ffs to refa real resourcs have to be used caey, policy- ra to set enviromental prorities; the crite- costs oFproduction wotu d save an estimated makers must set priorities fr environmental yin are evaluated boih quantifajin 4 and $125 bilon perye2a r Although subsdies ar intevntons and then selc the correct qualitatvely (sce b above). Equity con- a problem wat countries, te inmpacts of response from their Rpey tcolsrc cerns, for exmple, are measured bytne subsides, both economic and emiromen- Recently, nmny ountres have been involved number of people affectd by diffe forms tl are particay severe in the poorer in the process of prepa,lg national enviran- ofenironentl degradion. countries, in which growth i energy mental strategies, paty as a result ofAgnd Back-of-theenelope esimates from a deand is emely high.. 21, adopted at the 1992 Rio Earth Suninio number of countries suggest tt The cs of Water is alo commonly subsdied, ain These planing ercse take many dfferent environmental problems can be as high as 5 leadng to inefficient use, environment forms. The Bank has contributed to s t pect ofa countys grs domestic prod- problems, and shortages; in manyareas For effort by supporting preparation of National uct (GDP). Consideration of economiC COStS exmnple, in Cyprus, Morocco, and a nLumber Environmental Actoio Pa (NEAPs) by is thus eetial in identif~ing prorties and of other water-sarce counies, prces Interational DevelopmentAgenicy (IDA) selecting efficient and effective policies. In charged for wiater reflect orly asmall propor- countries. The Bank is also encouraging the Ghana NEA, eoDnomic anaysis ws used tion of the actual cost of supplyig wate International Bank flor Reconstruction and Development (IBRD) countries to prepa - NEAP- or equivalent docume. By Ma-ch 1994,33 countries had completed NEAPs; an equal number should be cDmpled by the end of 1995. Ideally, environmental priorities should be- identifiedon the basis of osrsand bencfits The costs of difflerent environme- I prob--0 lems give one measur of the benefits society receives from preventing the same problems- from occurring. Prevention is not costless, however, and the environmental benefits have to be cmnpared to the expenses associ- ated with new policis or investments How- uigtra&wtbefrme-wwwtMfDwdopmenttyuwkbng 23 This kads to inefficient water use, which is per capiu inmcme level was similar to days tortions persist around the world? The particularly nlarming in a country aced with heavily polluted, middle-income countiies answer is that bv ignonng envirnmental severe water shorages and sharply rising like Mexico orTaiwan. Japan now enjoys the concens, individuals and firms receive di costs of new supplies In Morocco, for exam- bent of a much dear and healthier financial benefits from using the air and ple, a recent analysis found that irrigation environment, and annual polution control wateras a dumping ground for wastes, or by charges covered less than 10 percent of the costs are reduced to a more afordable leveL over-hanrsting forests or fish stcks. These cost of new supplies, and urban consumers How much environmental control is bath indhidual gains come at the expense of lrg- paid only half the new water cosL Reducing desirable and affordable? The challenge is to ersodal costs. the subsidy and increasing water prices balance overlystringent standards that may Implementing improved policies will nor would decrease water demand by about a retard growth and be too expensive for the happen without improved information, pub- dird and reduce the ugovnents fiscal sub- benefits created, with lax standards that lic paricipation, and the creation of political sidy. There is an ecnomic impact, however, mpose majorhealth and resource coss on wilL Sometimes it takes a disaserto create reducing the subsidy would also lead to a the population and lead to high dean-up the will to act-the Minamat disease episode small decline (about 0.65 percent) in GDP. costs in the futr An eseim for the injapan, which creaed awareness of the Although each 'in-wine policy is good for United States indicates that emvironmentl dangers of unregulated disposal of toxics in economic efficiency and the environent reaiadon was responsible fora drop in GNP the enviroment, or the Bhopal chemical dis- and can generally pay for itseLE it maybe growth of 0.191 percentage points over the aser, which focused aention on the loca- politically difficult to implemenL Many period 1973-85. Sometimes the investmnts tion of industral facilities and need for addi- reforms often involve losems (r emmple, in new technology are quiddy recoverd. In tional saguards. Dorestation in the the finmer who received free irrigation aer, Japan, for example, the steel industry Brailin Amazon has focused wordwide or the consumer of heaily subsidized fue), switched from polluting open heah fur- attention on the problems of tropical forest and theirressance can slow poliqrchange. a-Cs to the basic oxygen finace. This managment, pmtection of biodversity, and Baking the negte inks For change reduced air polution and produced greehouse gas emissions In other cases eysiamion withamactive wiwin" major energy sving, such tia, for the local nongovenmental onizations (NGOs) opporunmes, however, there are many Nippon Steel Companyalone, its initial $100 or -tizen-led "greer' movements prssure more uations in which policy reformn is million investment was repaid in two t three politicians to make needed changes. necessary to break a negative lInk, the 'win- yers. Whatever the cause, inframation on environ- lose" situaon. These policies borce individu- Economicanalysis can help identy the mental degadation and its impacts is esen- als and fims to interlie extnalities, nd environmenl damnge associated with diF- tial to create the national wil for policy take into account the evironmental cmme fkrent levels oFpoflution. his infonnation is reform and a willingness by individtmls and quences of dteiractions. To do this, one has used in the "polluter pays" prindple-the firms to accept peronal finanial cos to t go beyond the blck bo and dearly "Pigouvian tax-in which the msts of specif- obtain lrersocial benefits. Only then will it ace the links, and responsibiities, between ic environmental damage are esimated and become possible to implenent polices to economic av-1vities and envinrmental prob imposed on polluters. With this new make meaning change. lems. Whereas in the past indusies uteated approach, each industry or economic actity the airand wa as Losdess sinks for their can decide whedterto continue to pollute, Note polution, they now increasingly realize that and pay the appropriate chawge, or reduce its L Thepoldion "bubble" san eminirn- they have an obligation to take environmen- output of polution. Innovae policies are ment manqgement concept in wbicb an tal damage costs into accounL being developed tO expand the ability of imagnay bubble is pzedrowa city and Setting emission standards ornambiet ev- fims to respond. The use of Trnsfrole a retambient airpollrdion lkre in that els is a fist sep toward fouing firms to inter- Pollution Permits and the development of spaest Rathber than te rgion or con- nalize pars of the coss of environmental the pollution "bubbW"' allow firms to work r of eac po&ber individuaIa, tefocas damage These steps are not cosdess, howev- together to reduce polution more efficiendy is on thepollution ke! in the broaderair- er. Sizable expenses are asswated with regu- and cost effectily. shed and efftcienr wys to reach the twget latory meas and assoiated investments leveL Polluters ca belp reacb the e- to reduce polution. in developed countries Creating the wiR for action Ibed levei by workig with one anotber,jbr these investnents typically aveage 2 to3 If we can now open the back box dace ecaamp!k by ewrcbw%ngndablepennia percent of annual GNP, although the costs the links whereby improved development Tbis approach giueseih ( inf-,rdig tbe maybe higher in the early years.Japan, for policymang yields both economic and envi- most cost4lcemt way to rwlce overaltpol- example, made major investnents in air and ronmental benefits, why is faster progress ltion. waer polution control in the 1960s, when irs not being made Why do subsidies and dis- 24 Dixo adMwdk The World Bank and the Environment A Fourfold Agenda JOHN A. DIXON AND ANDREW STEER beprecedingpapers in 1. BunnDG ON 1HE POSmVE investment(fcilitating technology ansfer D Xthis volmae have SYNERGE BErWWI DEVELOPET and moreefficient use of reourcs), AMND TH ENVIRONMENT improvedmanageentofstrownedunili- attempted to capture TheBankrecogniz imporance of sup- ties (o reduce waste and eand the cover- au-ren Wft k t on key am c pomng development activities and polices age of envronmental services), and maco- that 21so have lare potentil benefits for the economic stbiity that helps investors devel- tual and nethodologwa issues environment The search forsyeg op a longer-term outlook. toetng to 0 t eW between development and the environment The following dussion of the Banlks is a centrl mssage from the Rio Earth activities in these two areas will be selectv sut awbU. But how does the Summit Two proposiios are now wdely Ailer presentation is found in The compan- World Bank t*e largepst 2geed:v ion publicadon to this volume,4Makfg a, Mvpeong in pwp" mauDpoeer- vewopme Saable The World Bank providr of deelopment ty addrgpopionpVCw, and awwnteni4Faa1994 finane and advisoy ser nes deaping hwman rewr essemkld firenvm memmsibty. A cenal lnvestig in people in the wort4 seek to put tbese theme of the WridDevelopment Repon Addressng pp dffos growtb prsaples 1ea eue 99Ž Developrand theEnvironment as and developfag human rasounes P1 >1lCnI1 "1 evelYdaY *velw as Agenda 21 is the strong rlationship It is now widely acepted that the irks Practke? among povery reducdon, population between paverty, high populaton growth, growth, and environmental stewa%dship. and arvironmental degradation are irular Inproved primary health care, education, and mutually reinforing. Interventions in The World Bank's enironmental activities- ami planning, sanitation, wer supply, and tis area indude rsource development which intvohve policy dialogue, lending, tech- rural development, fbr eaunple, are cental invetments that seek to improve the maten- nical assisance, reseach, and aid coordina- elements of anysragforsustai e al wlleing of the poor, human develop- tion-comprise a fourfold agenda development Alocation of property rights ment interendons that improve health, L Assisting countries in building on the and improving the stams of women also yield nutritional, or educadonal status; and social positive links beteen economic develop- high envirnmental returns. development intervetions to ensure that ment and the environment b. Promoting the eficaent ere of res3ures the poorest are not exduded from the bene- %Assisdng countries in breaking the neg- beneft both theemdnmentrnd the econ- fits of developmenL New World Bank lend- mime links between economic development omy. Most government sdii subsidize the ing in education, for enmple, is about $2 bl- and the environment consumption oi wIuu reources such as ener- lon peryear (fscal 1993 and fscal 1994). 3. Addressing potentally adverse environ- gy, water, wood, and agricultural chemicals. Targetg poverty reductiot mental impacts of Bank financed projects Although they mybe jusfied in specific sit- Lending specificaly targeted to the poor and 4. Confronting global environmental chal- uation, iese prctices lead to inefficient most vulnerable, monitored under the lenges, primarly though paricipadon in the resource use and fiscal costs while ceating Bank's Program of Tageted Interventions Global Environment Facility (GEE). unnecesary environmental problems Other (PTI), totalled some $95 bilLion for over 130 This arnide summarizes recent activities in inporant polides that can yield environ- projects during the past tro years. For each of these areas. mrental and efficiency gains indude those instance, lending for populaton programs directed at pomoting more open trade and has inaeased-over 60 populaton projects, 25 representing more than $1 billion iri commit- vate investmnent in environmental protection for rurla electrification over the past twenty ments, are now under implementation. In inceases with secure land tenure. The Bank years. In certain areas, renewable energy other cases modest amounts can have major is thus expanding its support to projects that sources also show promise for example, the impacts. To reach dtse usully ignored by dar property dights, whether it is land Bank is supporting a major program for the formal credit sector, the Bank provided holdings of poor farmers or land tides for renewables including solar energy) in India, $2 million in gant finds in fiscal 1994 toward urban squatters. In Mozambique a recent and this year financed two geothermal pro- setting up the Grameen TrusL This Trust will lan supports government efforts to darify jecs in the Philippines. provide seed capital and start-up funds over land ownership and plan infastructure and Ei'nudfxg natural resource sub- the next 5 years to some 30 or440 micro-ed- other investments to assist the resettlement sidea Energyyis only one type of resource it schemes modeled on the very successfud of retumees after the civil war. In Chile an that is often subsidized and used inefficient- Grameen Bank in Bangladesh. The Grameen inrigation development project is improving ly. Other underpuiced resources indude Bank. is an innovative, micro-evel program the efficiency and opeadon of irrigation water and sanitation, and agriultural inputs that provides credit to the extremely poor, schemes by reguarizing water rights. land such as pestict and fertlWzers. YImplicit who are almost always women in rual areas. classification componems are contained in subsidies are also now increasiny recog- Strengthening agriclural recent projecs in Guinea-Bissau, Indonesia, nized, such as those given t logging enter- researeb and extenso Increasing crop Paraguay, and Uruguay. prises from inadequate stumpage fees. yields and adopting new technologies can In the water sector, misguided irnigation improve the welfare of fanners, reduce envi- Promoting efficiency, while subsidies encourage overuse with resulting ronmental damagc and reduce the pressu enhancing the environment environmental problems and inadequate tO convet nw land to agriculture The Bank The Bank has also continued to support suppie for many finners Urbn warersup- lent uver $4 bilion in the past year for some countries' efforts to promote more effident ply and sanitation are plagued bylow user 48 agricultural sector projects. To support use of resoucs, thereby leading tO less fees that set up a vicious cycle of low rev- international agricultural research, a wide- waste and less consumption of raw materials. enues for the public utilities, poor and insuf- ranging revitalization of the Consultaive Eforts in this area are focused on improving fident supply of services, and consumer dis- Group on International Agricultural Research energy fficiency, diminating subsidies in satisfaction. Water losses from leakag or ille- (CGIAR) was launchedi The Bank nay con- other sectors, and undesanding the links gal diversions are rampanL For erample in tribute up to $40 million peryear to the between economy.wide polices and the most Lain American dties up to 40 percnt CGIAR and wvll help match otherdonor con- enmmnment of the tarol wag supply is unamcounted for tributions. The CGIAR system of 17 agricul- Increasing eneu eff,cyg and (vesus only 8 percent in Singapore, a city tural reearch cenrs around the world is remwving subsiis Under present with an emtemely efficient public water utili- reonenting its work towards developing trends, consumption of commerca energy ty). Foregone water revenues in Latin more sustiable land and water manage- in developing countries will rise sixfbld in the America are estmated to cost up to $15 bil- ment pactices, improving gbal genetic next foryys, posing great environmental lion per year. resource bank, and targeting water scarity chllenges. Improved energy efficiencyd ear- Sinilar mles of natural resource subsidies and its management ly is viral, and the World Bank is very active in and their negative impacts on the environ- inwestigg in water supply and sani- helping its members in this efforL Supply ment (not to mention lost reenues) can be tafo Anoher mnajor lending ara with side efficiency can be enhanced by improved told for many other naturl resources indud- imporwnt synegistic effects for the environ- management in powergeneration and by ing forests and fisheries. Seveal recent Bank ment is watesupply and sanitation projects, reducing losses of electricity (amounting to loans are designed to help countries as di- which provide significant economic, social, over 25 percent of total electricity produced verse as Bhutan, MexEco, and Poland improve and envronmental retuns. Major invest- in many counties)-and both are centrl to natural resource pricing and management. ments in the past year to assist large munici- the World Bank support to the sector. So Underst the links betweex polities to expand potablewater supply, too, on the demand side, are pricing Essues. e onmywidepolicis and the end- improve sanitation sevices, and stengthen Subsidies on energy use in developing coun- ronnent Economywide polices also have public utiities include projects in Algeria; tries and countries in transition amount to important impacts on how natural resources Shanghai, China, Sumaya, Indonesia; and around $230 bilion per year (see previous are used and levels of air and water pollution. Mexico. The Shanghai prqect, for example, article). Reducing these would improve eco- In the past vear the Bank has underaken a will help Chins largest city invest in mea- nomic efficiency and improve the envimn- review of the links between economywide sures to halt the rapid deterioradon of sur- menL Eliminating energy subsidies in Eastern policies and the environmenL Among the face and ground water. Earlier projecs in Europe, forexample, would reduce air pollu- main -Issc3s learned are India and Indonesia were designed to don in half from 1990 levels. * Measures for restoring macoeconomic increase potable water supplies to some 7 The health impacts of biomass combus- stability genfrallywill yield environmental million inhabitants of villages, a majority of tion can be very severe. Extending modern benefits, since instability undermnines sustain- whom live below the poverty line. energy sources to the pooryields important able resource use. CJauing propery rigbts of the efficiency, environmental, and health bene- v Removal of major price distortions, pro- poor. There is growing evidence that pri- fits. The Bank has lent more that $2 billion motion of market incentives, and relaxation 26 Dfron adSer- of other consuaints, which are among the Finally, lending for sFge I main features of adjustment-related reforms, environmental insdlution World Bank environmrent lending, fiscal 1986-94 generallywili contribute to both economic building which traverses and environmental gains. the "brown" and "green' Annual * Unintended adverse side effects may agendas, amounted to occur when economywide reforms are another $270 milion and 2.500 2P undertken if other market or institutionial included projects in imperfecdons and distortions persisL There- Bolivia, Chile, China, The 2;000 23 fore, specific measures that remove such pol- Gambia, Ghana, Korea, icy, market, and insitutional difficulties not Morocco, and Padistan. 25 only are enviromentally benefical in their Institutional development 1M500 own right but also are cridical complements in Chile and Mexico, for is to broadening econornywide reforms. example, is aucial as 1 12 these counries gapple 19000 2. ASSISTING COUNTRIES IN. with the environmental ENvMONMENTAL siEwnRsD P problems brought on by 500 6 The Wodd Bank actively assists countries to rapideconomicgrowth 2 5 impmve environmental managemenL Three and industrizamtion. 0 elements are involvedi providing financial SeqpporWrg ew- 1986 1987 1988 1989 1990 1991 1992 1993 1994 resources for environmental investments, rousezualPianut& prviding support for national and regional The Bank is also support- Cumulative emironmental plnning, and deepening and ing countries as they pre- MLgons o US. dollas disseintining knowledge about ewimrnmen- pare national environ- 9.a tally sustainable development mental action plans Inesting in the exvirnmeuL In (NEAPs). By mid-1994 8,000 the two years since the Rio Earth Summit, over thirty countries had 7.000 the Bank commiuted a record S4A billion in prepared NEAPs or equiv- 6 new loans and credits for 48 projects specifi- alent documents, and the r"o* rally designed to strengthen countries' man- number is anticipated to 5.V00 70 agement of the envinmenL This amount double by the end of 4b000 brings the current active porfolio to roughly 1995. Anumberof the $9 bilion for some 120 pmarily environ- firstaction pl are now 3,0 45 mental projects (see figure 1 for information entering the implernenta- zooc 33 on both annual lending and the total envi- tion phase. In addition to 11000 t5 ronrnental portflio). national plans, rpeonal . The Bank finances tbreebad types of plans and stagy have 0 1986 t t9U 19K 19901991 1992 1993 199 envirnental pmjects. Over the past two also been developed& A a. R4mb pqL years lending frporludon conrol and the regional environmental urban environment (the trown" agenda) action plan vwas prepared amounted to $2.7 billion and induded Lge for the nations of Central and Eastern Europe agticultural pest management1 Applied projects for polution control in diverse (and approved bya major miisteil confer- research in Chile, Indonesia, and Mexico has countries induding Algria, Brazil, China, ence in 1993); in Asia, a recent Bank study yielded unportant insights into the links Ii, Indoneia, Korea, Meximc, Togo, and focused on the identification of an environ- between environment and development, Turkey. In Mexico, for example, the Bank has mental strategy for this rapidly growing especially the connection between urban air lent 512 bilion for four projecs to imnprove region. and water pollution and heakh effecls. air, water, and solid and haardous waste Bulding tVe knowledge base. Envi- managemenL ronmenta policies, projects, and plans are 3. MrhnGAK G ADVERSE IMPACIS In thesameperiod,lending6fornazr only as goodastheknowledgeuponwhich Tobe effecive,theBank'slendingmustbe rsozres and the rural en mnment (the they are based. The Bankes program of policy environmentally and socialy sustinable. To "green" agenda) amounted to l.A billion analysis and research has resuted in seveal ensure this outcome, it is essential that the and included projects in Bhutan, China, important policy and best-practice paper Bankassess and mitigate unwanted environ- Egypt, India, Pakistan, Pobnd, and Turkey. that have become operational during the mental impacts. This goal is reflected in the The Third Forstry Development Prqect in past few years. These include a water resour- use of project and regional or sectoral envi- Bhutan is helping this small landlocked coun- ces manayenent paper, an opemtonal policy ronrnenal assessment (EA) and the special try improve managmgent of forests, its most direcive on forestry, an agriculture sector attention paid to the challenge of reset1le- important natr resource- review paper, andan operational diective on menL T.heWorddiBankadfbeE nerw AFo4fldAgwd rV MAanstreaming environmental Addressig rseslement issues The 4. ADDRESSING GLOBAL AND assessment ofprojects Since 1989, al special problems of resettlement continue to REGIONAL PROBLEMS investment projects proposed for Bank receive attention. involuntary resettlement Bank attention to global and regional envi- financing have been "sreened" for their has accompanied devebpment in both ronmental concerns has expanded drmati- potential environmental consequences. As a industrial and developing countries. Bank- cally over the past frw years, whether result of screening, more than halFofall pro- financed programs account fora smaDl share through intrnational agreements such as jects are then subjected to environmental (around 3 percent), but sdll signifint num- the Global Envirnmental Facility (GEF) or analysis. A review of envirounental assess- ber, ofpeople who wil be displaced by through its own lending operations. ment (EA) experience in the past two years development projects woddwide. Operations Mangingglobalprobems. Through confinns that borrwers are making more in the Bank's active portfolio are expected to its role as an implementing agenqc of the productive use of envimnmental assessment involve the resetdement of 2 million people Montreal Protocol and the Global in Bank-financed operations. One indication over the next 8 years The Bank has a respon- Envionmnental Facliy (GEF), the Bank is of this is the increasing percentage of recent- sibility to help borrowers ensure that every addrsing four sets of issues: (1) global lyapproved operations requiing full envi- effort is made to reore, and where pos:ible warming, partilaly the effecs of green- ronmental assessment; more projects in impmve, their livelihoods. house gas emissions from the use of fosil more sectors and subsector are being scruti- A Bank-wide resetdement review, cover- fuels and the destruction of carbon-seques- nized through enrironmental assessments. ing 192 projecs, was completed in Apri 1994 tring fores; (2) kiss of biologcl divesity Bank eprience in the use of environ- and released to the Board of Directors and through the degradation of naturl habitats mental assessment to enhance project design the public2 The review found that the Bank and the overuse of natural resources; (3) pol- is grwing This enhancement occurs in had adieved signifiant progress in tree luton of interatnal watr through oid three main ways: major areas: influencing the rettlement spills and the accumulation of wastes in 1 By having FA be part of te project policies of borrow countriesassistingbor- ocea 3nd international rnver systms; and identification and eady preparation process, rowers in avoiding or reducing the scale oF (4) depletion of stratospheric ozone due to thus contributing direcdy to other technical disphcement and helpingborowers emissions of chlorofluorocarbons (CFCs), and feasibility studies improve the abil of resetdlers to restore halons, and othergases. 2 By using E&to analye and recommend thir incomes. However, the review also As one of the GEF's three implementing alternadves even if Ekis not a cental part of fbund that actua perfoma by borrowing agencies (togethrwith the United Naticns prqec prepation agencies often has not met agred standards. Development Programme (UNDP) and the 3- By identil jing additional components The Bank's management recommended United Nations Evirnment Progmmme and measures to enhance a projects environ- concrete remedial actions including (UNEP)), the Bank is responsible for manag- menal dimensions imprved initil analysis of resetlement ing the Facits portolio of inestmnent pro- Examples of goo practice ame found in issues, increasing borrmwoer ccmmiment jeas, ny of whkih are co-financed by regu- recently approved proects in Brazil (urban enhanced project monitoring,andadditional ar Bank loans and cedits The Bank has transport), Croatia (highways), Estonia funding- helped the GEF to emerge as an importnt (district heatng), Indonesia (urban develop- Enbaced soia anlsis of catlyst for the integration of gobal environ- ment), Menco (solid waste management), prpjea There is agrowing recognition mental concens into national development and Parguay ( ral resource manage- tha the particpation of stakeholders in goals Thrugh grants and concessional find- ment). Marked progress has also been the selection and design of prects can ing, the GEF enables developing country gov- acieved with respect to public consultation inprove decsonmaking, strengthen owner- eruments and priae. -npanies to addres in the EA process although improvements ship of projects, and help poorand disadvan- gb environmental issues that they would are still required. However, one weak link taged grups. The Bank has coordinated otherwise be unable or unwiling to under- continues to be the analysis of project alter- efforts to incorpotate socia conces into its take, in the process demonstraing a new nadves from an environmnental perspeti development work by using the techniques appmach to global cooperation. lnthodcing sectoral and regional of social assessment (SA). Not only are the In March 1994 representaties from more EAs Anew dimension is the inceasing use poor often the primaiynamral resource than 70 countries agreed to restructure and of sectoral and regional EAs. Sectol ase managers, but also they are the least able to replenish the GEF, and donors agreed to ments are parlrhdpfol in projecs avoid ham from changes in theirenviron- provide more than US$2 billion to the Core involving a large number of subprojects (for menL Efforts have been made to explicidy Fund for commitment over three years. example, mads, irrigation, and industrial and indude the social dimension in such areas as These fimds wil be contributed over and agriculltura credit lines), many of which may communityforestryand biodiversityconser- above resources channeled to regular official not have been identified at the time of vation in Bazil Colombia, Ecuador, India, development asitance. appraisal. The past yearalso witnessed and Siberian Russia AParicaaion Impovg ana,sis o4of regial presentadon of the first two regional envi- Sourcook is being prepared to document isss The Bank's work on protetng ronmenal assessments to the World Bank's best practice for improved participation in regional commons focuses prinarilyon Board of Direcms. projects? regonal seas and riverbasin progrms. 28 Din and .Ser Implementation of environmental action pro- mental concens into the Bank's work, most to their implementaton on the ground; a grams for the Balkic Black, and Mediter- of the eent increasewas in the regonal stronger focus on the development of institu- ranean Ses and the Danube River Basin Country Departments tional capacity for envirommental manage- accelerated over the past year The Bank alo Enviromnmental concerns are everyones meat at the country level; a greater recogni- helped launch new regional initiatives for the responsibility, and training of Bank staff in don of the need to embed environmental Aral Sea in Central Asia and lake Vitoria in environmental issues is also growin. Anew concerns into sectoral vork; and an EastAfricz; these initiatves required coordi- course, "Fundamentals in Environmental increased emphasis on the social aspects of nating actions among several countries to Management;" was introduced and is taught environmentally sustainable developmenL protect these precious common resourcs six times each year. An additional 21 environ- Since the Rio Earth Summit @he Bank has In addition, the Blank has dedicated increas- mental courses have been taught over the made important progress in this transition, ing efforn to issues of soil degdadation and past year, many of them more than once, but more remains to be donre desertification at the regional level, as ilus- with almost 600 staff participating. There remains a large unofinished inteulec- trated by its active role in the drafting of the Reacbing oat to tMe internat tual agenda. manybasic relationships International Convention to Combat Desert- comnunty. Implementing the Banlks envi- between developtment and the environment ification, begun by the 1992 session of the rounental agenda requirs buiding partner- remain poorly undesood, and the Bank is General Assembly of the United Nations and ships and effecive communication with the stil on the stp indine of its leaing curve completed injurie 1994 internatiornl community. The Bank has on numerous key institutional and policy sought to incease dialogue with nongovern- issues. Meetng the rapidly growing requests Building capacity for the task mental oranizations (NGOs) and improve from borrower countries for technical and implementing the Banks lare enwironmen- coopeatnon with other members of the UN proje assistance requies ongoing strength- cml agenda reqres the insdtution to sysn Expanding Bank-NGO discussions ening of the Banks technical skllls base s.egthen its interali cpacity for environ- have been fruitil forad concernedand have Fmally, the rapid expansion of environmental mentalwork and to improve commumniaon addressed abroad range of-often controver- lending and the Banks relative ineperience and collaboration with the international cm- sW-issues such as the links between adjust- vith environmental projects will require a munity. To respond, the B-ank has changed ment and rmaoeconomic poicies and the stronger emphasis on supervision and build- its instutional structure, inceased environ- envronment; the preparation of NEAPs, ing partnerships widt otes. mental staffing, and developed new lines of resetdtement, ad public access tO informa- exral communication. tion. Notes Strbening ineral capacity. A The Bank firmly belives tcat openness L VordBak, Water Resources Manage- major instiutonal change was the unching about its actiities fstes accounbly and ment A World Bak Polcy Sudy (Wasbig of a newice Presiency forEnvironmenmally transparency in the development pxoess, ton, D.C: oddBank, 1993); WoTIdBWzk Sustainable Development (ESD) injanuary ficilitates coordination of interested pares, Operatzonal Pokicy436G 'orestryAgdrc- 1993. Ihis move was combined with stimulates usefid debate among poliqmakers I re and Nat Reurces Departrnent stengthening of environmnenal aqpabilities and affected populaions, and broadens Agriclture Sector Review (%Wsbhint4 D.C: in the departments direcdy responsible for undesanding of development challenges- Agricue and Natural Resoures project prepaation and supervision. The aR of which ultimately enhance the quaiityof Departrent WoridBank 1993); World EMD Vice Presidencyin particularwas Bank-supported operaos. To this end, the Ban Opeaional Policy 403 'Agridamdal charged with providing poliqguidance, gnr- Bank has established an independent PestManagmena ing tehial support to projects under Inspecion Panel, and has adopted a new pol- .2 EiwvmnmetDqepment Resettle- preparaion and implementation, and dis- icy on information disclosure that makes a mentand Development The Bankwide semimaing best pracrices for the Banles over- greater range of environmnent-related docu- Review of Projecs Ivolving Involunmry all environmental wok. mets publicdy aaile. Resettlement; 1986-1993 (Wasbingon D C To meet its growing environmental corn- brmmentDepartmnen4 WorldBank mimems, the Bank has grea strengLhened The chalenge ahead 199. its skills mix From only dtee staffa decade An important transition is underway in the 3. Endronm tDepartnenr Partcipation ago, the complement of technical enviro- World Bank7s environmental worL The key Sourcebook (Wasfhgton, D.C: Envirn- mental staffnowstands at almost 300- In line elements inU.ude a shiFt in emphasis from mentDepartmen World Bank, ForOb- with the policy of mainstreaming environ- - the design and codification of Bank policies comrfr). -. e ; ; 0 0 E 7*WortdB*w beEndB cmwtAfou eda 29 Epilogue: Expanding the apital Stock ISMAIL SERAGELDIN AND ANDREW STEER ustanable deveopment Meetng the need for productive jobs, wrer, wedands) tha prvide a flow of usefi means ensung tbt eduaion, health, and infstunm requres renewable and non-renewable goods and ser- gains in productvty, pra-pDor mrgcfmg of Wice, which maybe marketed orunmarker- vw generations bave progams, and :n epansion of the capital edb As we have moved from an "empty aZS many oppan ornes as we stodL But sustanble development also wora to a ful world," these environmenral- as many opprhadties a we requke that such progress besuoned ly provded assers have become inaeasirigly bave. Ensuring that tbis wiN be today's progress must not be achieved at the sarcex thus itis appropriate hatatention possiblefor the acreasedpop- exase of the tomorrow's citzens. This is a shoud shift from concem about the adcqa- moe diffit concept to grapple mrth Here cy of human-made capikal to conern about uLations oftbe futur requires agan, it is helpfil to fcus on the need to the adequacy and efective use of nanral cap- increasing tbe worLd's stock of preserve-nd given the exped furure itL The selrces derived from naumml capital gowth of populaion, to expand-the capita can begmadyarpmnded when such capital is IcAy "Four types of eV" stock to ensure the option of enjoying at cultivated-clh is, combined with human- -whicb are often sng - leasct the same flow ofincome and semesin madeandrhuman capitaL as in agriculture. the fatutre as exist today. However, care must be taken that icreased .pemets but weak subslutes yields deved from inaceaing applications of for o- anotber- eed to be Four pes of apitl other ctowrs do not mask an underlying We need to recognize at least four categories deterioraion of the basic naturl capita reognized ofcapital huwanmade or abrict capita stc There is growing evidence that this (ndhines, factories, buildings, and infia- may be happening in many parts of the structure), natural capital (as discussed in world, for eample, in amble agriculture and Sustainabledevelopmentisaoutdevelop- manyworks of environmental economis), forestry, where continued increments of ment progress; it certaiy is not a doctrine human capital Cmvestments in educatdon, complementay inputs are ensunag eer- of no-growth" environmental protectionism. health, and nutrition of individuals), and increasing yields while vital ecolbgical and But iris about a particular form of progress. social capital (the institutional and cultmral physical services are being eroded. Specificaly, sustainable development places bases forasociety to fmnctionj. Substitutng non-natural capital for natural the focus on two groups of diseranchised Humamnade capitaL Most economic capital is possible in the short to medium people: the poor of today and the genera- analysis fixuscs on the first category, human- term but eenually is limited. Thresholds tions of tomorrow. Its goals are to increase made capital which is also the most measur- can be crossed, after which yields will opportunitie, improve livelihoods, and abIe. Consitent with ourtendencyto 'tea- dedine, often sharply, rgardless of how reduce the risk of disease or impoverishment sure what we measure," more efforts have many other inputs are supplied. eepenng -for the 1 billon people who live below the gone into ensuring a rising stock of this type our undersanding ofsustainability in such line of acute poverq and the 2 billion who of capital than an other. For this reason dis- situations oFcultivated nanual capital is a lve not much above it, for the 1.7 bIlion who cussions of sustainable development rightly high priority4 lack even basic sanitation savices, the IA bil- tend to focus on the other firms of capitha Human cop" In the lst three lion who breate badly polluted air, the hun- since it is there that remedial analysis and decades vey consideale progress has been dreds of millions of farmers who are threat- action are needed. made in rcgnizing the importance of ened bysoil depleton ornatural disturbance, Natural capitaL This is the stock of human capial formation; investment in peo- and the 2.5 billion who yet cannot enjoy the environmentally provided assets (such as ple is now seen to beavety high return benefits of moden energy soil, sub-soil minerals, forests, atmosphere, irvestmentr epecially in developing sod- 30 eties. The entire mainstream paradigmn of don and measurementwhich face fomiidable dons the same, if not more, opporunites development has been expanded to include methodological obstacles, but, happily, head- than we found ourselves. In other words, the investment in human resources as an essen- way is being made stock of capital tat we leave them, defined tial, possibly the most essential ingrdient of In a andmark study presented i Making to indude al four forms of capital, should be development strategyl. Democy Work Civic Tradtions in the same if not lauer than what we found investments in health and education and Modern at, Professor Robert D. Putnam of ourselves. This new paradigm immediately nutrition are increasingly cental parts of Harvard University and colleagues have made opens the door forsubsttuting one fom of national invement stratqpes. Nevheless, a convincng case dat the exstence of cvic capital for aother. Arubly; it is the most we still have difficulties, methodologically, to community is not only the precrsor and wordtwhile to reduce some natural capital, define the monetyvalue of such invest- guarantor of goodgovernance but also the for example, reducing the amount of oil in ments, even if ingenious proxies, such as the key to sustained socioeconomic develop- the ground, to invst in inceasing human discounted differential income steam, are ment? capital, for exmple, educating girls. The used. However, even the most conservative Strong civic ommmunity is defined as a question then becomes, in the language of measures in such praxies lead to an over- preponderance ofvoluaryborional development economists, of the degree to whelming positive value to such invesrnent& associadons in contast tobierarbicaf ver- which we cam: Less dear is te link beween such invest- dcal aso nti and the dws4 of these * Measre each kind ofcapital merts and the shifting emnomic ralites of voluntary horizontal insdtudons dtroughout * Define the production fimction, in an aging population profile in the industrial- the society. The Putmr study found a matrix terms of the degree of substitutabtiy and ized countries and the persistce of unem- of voluntry horizontal asociations in pros- complementarity between the dirent kinds ployment and underemployment in many perous, rapidly devdoping nohern Dly of capital, and how these may change in a societies, both industizedand developing, while the less developed, less effcive south dynamic context The negative and corrosive impacts of such of Ialy is cacteried by autocatic veril * Define Cm the absence ofa common phenomena on the social fabric and well- institutions. numemire) an ex;change rate" for the differ- being of sociey as a whole, not only the indi- But which is cause and whid is effect ent kinds of capita, accepting that it tOo, viduls concerned, deserve more reseatch Does northern Italy hve a dense network of maybe dynamic and policyanention. horizontal institudons (choral societies, soc- * Define sa abiin tems of a con- Socal capftaL The lst observalion cr clubs, parent-teader asciations) ten of thresholds whin which the more effi- leads direcdyto the fourth form of capitaL because it is rich and can afford them? Or is it cient (highest remm) activities could be flthouta dege of common identification rich because it has good, responsive govern- selected, in such a way thatindidual invest- with the fonns of govemanceand of cultural ment nurtud by long-stnding citizen ments and entirersategies could be mean- expression and social behavior that make a involement in many such voluntary msdtu- ingfilly evaluated. sciety more than the sum of a collection of tions? The evidence suggests fe latr. The Such an approach ultmady maybe cotn- individuals, itis impossible to imagine a func- 20ear sudy documents a strong causl link prehensiveand rigorous, but it is a long way .inmng social or economic order. The myriad between ciVIc traditions and the effectiveness off.A good way to thik about proceding is institutions that we take for granted as essen- of gavernments to promote sustained socioe- in a series of short steps. We have already tial premises of a fInctioningsociety must be conomic development The Italian case has made great strides in incorporating human grounded in a common sense of belonging potentially vital relevance fora deeper under- capital into conventional economic analysis, by its members, and the institutions must standing of how to promote etvironmentally and we are starting to incorporate vrious relect a sense of legitimacy in their media- sustainable deveopment Questions remain aspects of natural capital This is where we tion of conflicts and competng daims. In as to how to measure social capital, andas to should invest our prmary effions now, signifi- shon ifthat social capital is inadequate, the whether and how it is possible o 'invet in canty improving our underanding of the resulting falures make it impossible to talk of such capitaL Similady, the causal impacts- itedikages betwen these three kinds of either economicgrowi, environmental sus- for good or bad-ofeconomic development capital. Social capital will take longer to elab- tainaiiy, or human wellbeing. Examples on civil society still are not known. These orate, and in the meantime can be left o the are all too painfully evidenf from Somalia to areas of research need to be addressed. political processes in each countyto arbi- Yugoslavia to Rwanda. trate. But what constitutes this socal capital? It Sus ability and the This brings us to the deinidon of sustin- is a difficult question, and the definition is capital soc ilitv in terms of the maintenance of these dearydiffrnt from and broader than that How does the above view of capital stock four ts of capitalwhile producing an of individual human capitaL It is based on enlighten our understanding of susrinabili- increasing stream of benefits o individuals inclusion, particpation, and the promotion tyf k dealy enables us to set aside the sim- and society as a whole. of an enabling environment. Yet it is more plistic view that susaiiry reires leaving SustainabiliEy has several levels-weak, The most ambitious work to date on this sub- to the next generation ecty the sam.e sensible, strng, and absurdly stront- ject has been the eflfrt to deal empirically amount and composition of natural capital as depending on how stricdy one elects to hew with the link between good governance and we found ou ceves, and to substitute a more tO the concept of maintenance or non- developmenL This requres efforts at tefini- promsig concept of gmng futue genera- deining capitaL3 Ep-AcRqnnft4Gtb Cap (t --S-Oc 31 - > m*;t-= -* - f - - f 7. I. , - Weaksswaifrabiity is maintaining total separAtely. Thus, for natural capital, loss of interminable debate about the pefect for- capital intact without regrd to te compoi- forest in one a a should be mplaced by new muhtion! With th appmach must come a don of that capital among the four different forest of a similar type dsew re, and major effort at impromving ourdata bases for inds of capitaL This would imply that the receipts from depleting oil should be invest- the different ldnds of capital, especially the different kinds of capital are substitutes, at ed in sustainale ener production. This physicat stocks and flows of natural capital, least within the boundaries of current levels assumes that natural and man-made capital and the interaction of these into coherent of economic activity and resource endow- are not really substitutes but complements in views of ecosystem integrity and resilience at menL most production functions and that even the regional as well as the g-W leveL Sensible sustainabliqy woud require that within capital types, there is limited substi- It is a tall order, and it will be a long jour- in addidon to maintaining the total level of tutability. Thus, a sawmill (human-made capi- ney before the concept ofsusminablity capitl intact, some concern should be given m is worthess wiut the complementary sketched here is opertional in a meaningful to the composition of that capital (among natural capita ofa foresL sense. But the longst journey stts wi a natural, human-made, human, and social). Absurdl stung sustainabilitr would single step, and on this journey many steps Thus, oil maybe depleted so long as the never deplete anything. Non-renewable have already been takem receipts are invested in other capial, for resources-absurdly-could not be used at example, human capital development, ese- all; for renewables, only net annual growth Notes where, but, in addition, efforts should be tes could be hamrvsted, in the form of the L See Worldark, World Development made to define critdcal leves of each type of overmate portion of the sto&k Report 1991: The Challenge of Development capital, beyond which conerns about substi- Prgatism has to be our abiding concern (New York: Qgbnl Un yen Pre.% 1991). tubiiy culd arise. These levels should be in both the deveJopment of new measure- 2 Robert D. Putnam (wi.b Robert monitored to ensure that patterns of devel- ments and methodologies and in the pursuit Leona and Raffuaea IC NanettO, Maling opment do not promote a decimation of one of policies and investments. Operationally, Democacy Worl Ciic Traditions in Modern kind of capita1 rgardless ofwhatis being thistransltes into encourng the growth Itl (Prncefom Princefon UnivertlyPres; accumulated in other forms of capitaL This of natural capital by reducing our level ofcur- 1993). degree of susainabilitystlil assumes that rent exjioitation; investng in projects to 3 i imad Srage Herum Dafy, and humanm-nde and nanta capital are to a relieve pressure on naural capital stocks by Robert Goodan4 7e Concept of Ern- large extent substitutable, but rcnz that expanding cultivated natural capital, such as menk Stusnabiy, "in Prncples of Sus- they are also complementary. The full func- tree plntatons to relieve pressue on natur- tainable Development, ed Wouter van tioning ofthe system recqrs at least a mix al fores; and byincreasing investment in Dieren(AnzseniantzsrituzforEndon- of the diffent kinds of capital. Since we do human resources, particularly of the poor ment and SysemsAna(s4 Fortcomg not know exacdy where the boundaries of who are boti the victims and the unwittig 1994) these cntical limits foreach type of capal lie, agents of economic degradation in manyof 4 RobertM Soloaw, 'AnAmostPracdcal it behooves the sensible person to err on the the poorestsoceties on eardL Step toward Susimat iiy."4O0bAnniuer- side of caution ir. depleing esources (espe- Metiodologically, itis beaer to foglow the sm yLectw (esourcafortbeFuwnoe, cially natural capital) at too f6t a rate. wise advice of Nobel laureate Robert Solow, WasbingWon D.C, October1992). Sirongwsahmbily requires maintaining who advoaed a senes of imperfct steps to diflerent sub-components of capital intact improve our current woilk rather than an 32 Srnek&nandSeer APPENDIX 1 Selected World Bank Bibliography on Envionmentally Susainable - Development EDITED BY JOHN KELLENBERG Major World Bank Policy tries can improve bath the provision and the Critical role the sector can play for rhesus- Statements quality of inastructure servies are the sdb- rained alleviation of poverty jusfies conun- jeas of this WML The eport identifies had- uedantention by theWord Bank. Povertr: WorldDevelpmnrtReport equate instittional incentives (fr improving 199. New York Oxfrd Universit Press, the provsin of kifasmcrUe as the basic Ener 1990. cause of poor past performance. This volume addresses the most pressing Dein Ffie nqy, anid Corvatiox in issue facing the deveopment communitvy MauJng Deveopuent Susta Ibe tbe Develping Word A Word Bank how to reduce poverty. The most effecti Word Bank Gcp and the Enrmaeat Policy Paper. Washinn, D.C: Wodd wayto achieve apidand politicallysustaiu- Euhnvirnnent Deanet Annal Report Bank 1993. able improvements in the quality of life for Waslangton, DC World Bank, 1994. The demand for energy is gowing rapidly in the poor fcuses on ensuring productive use This annual reportL ustrates the emerging developmg countries. Tis paper concludes of the poor's most abundant asset-labor- fourfold agenda of the World Bankes work in that coitinuing efforts to address country- accompanied by the provision ofsocial ser- relation to the environmenL The report wide poliq and intitutional issuts are the vices, especially pnmary education, primary emplasizes the need to assist countries in most importnt mrns by which to ma)imize health care, and family planning. environmental stewardship, to uinimize the ener efficiency gan in developing coun- advere impacts of World Bank-financed ties. Deveopme and tbe Eviwmenr investments, to build on the synergies WorldDevelomentRepot992 New between development and the environmen=4 Environmental assessment Yor: Oxford Unesy Press, 1992. and to address regional and global environ- This Report is the fundamental statement of mental challenges. E a As w Sourscebook. World Bank views on the links between VoL 1, I, and IlL Washingto, D.C.: development and the environment It stes Sectoal Policy Papers Enviomnent Depattmenat, Todd Bank, es the need to rake advantage of "win-win" 199L links between efficient income growth and Agriculture The purposes of the World Bank's policy and the environment, and where tradeoffs exist procedures for environmental assessment betwem income growth and enironmental Agriculural Sector Revw. Washington, are to ensure th development options qulaity, the costs and benefits of altenatve D.C.: Ariculture and Natural Resourcs under consideation are recognized early and policies must be carefiullyassessed. Department, World Bank, 1993. taken into account in project design. Volume This review was prepared in response to I addresses policies, procedures, and cross- Infxatrcduforfej elopment World growing concen in teWorld Bank about sectoral issues; Volume I1 preset sectoral Devopment Report 1A New York: the dedine in volume and performance oF guidelines; and Volume I focuses on Energy Oxford Uniersity Press, 1994. lending for agriculture. The review points out and Industy projects The link between infastructure and develop- that agcultue is a problematic sector in ment andways in which developing coun- which success is elusive but agues that the 33 Forestry Nutriton Department, World Dank, Rapid demographic growth will add 600 mil- - Forthcoming 1994. lion people to cities and towns in developing Anistig FsW Refom: Implemenng This paper examines the changes in popula- countries during the 1990s, about two-thirds the World Bank's Forest Sector Poicy tion dynamics and in the policy environment of the expected total population increase. Washington, D.C.: World Bank, Forth- that have produced a consensus that popula- This paper analyzes the fiscal, finandal, and coming 1994. don policy objectives should be integrated real sector linkages between urban economic This report is a review of World Bank forest with broader social development goals, and activties and macroeconomic performance. sector implementation experiences over the that population strategies should build on past three years and gives a prdiminary the linkages between demographic behavior Reglonal Policy Papers assessment of the guidance and direcion and socia and economic progress. provided by the Bank's 1991 Forest Polky EndvnentalAction Programme,fr Paper. After examining critical questions Ranseleentnd Developmenb The CextralandEasternEurope. Washington, raLsed about the World Banks role in the for- Bankwlde Reviw of Prects Inwvling D.C.: World Bank, Forthcoming 1994. est sector, the review affirms the directions Inwlunty Resettlemt 1986-199 The Environment Action Progamme pro- set in the 1991 policy and calls for greater Washington, D.C.: Environment Depart- vides a framework and guide for identifying efforts to disseminate the Bank's perspective ment, World Bank, 1994. the highest priority problems in Central and on needed reforms. This report analyzes involuntary resettement Eastern Europe as well as for developing operations under Wodd Bank-financed realistc, efficient, and cost effective solu- hbe Foresty Senor. AWorld Rank Polcy deveopment projects between 1986 and tions. The report is intended to serve as a Paper. Washingon, D.C.- World Bank, 1993, based on a Bankwide review caried basis for each county to set its own envirn- 199L out in 1993-94. It presents the scale and mental priorities, and to improve and pro- The need for prtecion and conservation of composition of resettement under Bank- mote cooperation among Eastem and natural forests has led to a substantial review financed projects, assesses the implernenta- Western nations. of the World Barnks policies. This policy tion of resettlement programs, and docu- paper identifies two key chalenges: to slow ments steps taken to improve performance- A ParnershipfiorEnvironmextal the alarming rates of deforestation, especially Progrs The World Bank in Lathn (although not exdusively) in the tropical Water and uban develpment America and the Cibbean. Wasington, moist forests, and to ensure adequate planti- D.C: World Bank, 1994. ng of trees to meet the rapidly growing de- Towe-dtEnubonmental Strwiefor latinAnenica and the Caribbean flce envi- mand for fuelwood in deveoping countries. Cit Urban Management Program Series ronmental problems chat have attracted 18. Washington, D.C.: World Bank, 1994. worldwide atention. Global interest has Participation and social policy This paper descobes a strategic approach to focused particularly on the loss of tropical urban enviromental planning and manage- rainforests. However, air and water pollution Paricpation Sourebook Washington, ment that is based on participation, building direcdy affect far more people in the region. D.C.: EnironmentDepartment, World commitment and choosing effective poliq This report elaborates means to simulane- Bnk, Forthcoming 1995. interventions. ouslynimprove economic and environmental This resource is intended to help World Bank management, reviews the World Bank's task managers, as wel as othas collaboraing WaterResourcesManagement AWorld investments to support these effrts, and with them, to spport participatory Bank Policy Paper. Washington, D.C.: stresses the urgcy of strengthaeing insuitu- approaches in the development process. world Dunk, 1993. tdons and improving peoples pardcipation in This policy paper urges that a new approach projects. Te World Rak and PaRtipatfom be taken with regards to projects financed by Repo of the Legari Group on the World Bank and member countries. Such The Popuamou, Agricultre and En vi Participatry Development Washington, a policy seeks to address problems related to romnt Nexs in Sub-Sabaran Afi*a. D.C.: World Bank, 1994. fragmented public investnent programming, Agriculture and Rural Development Series Participatory development is a process excessive reliance upon ovxtended gov- no. L Washington, D.C.: Africa Techmical through which stakeholders influence and emient agencies, lack of financial account- Deparstent, World Bank, 1992 (rev. ed. share control over development initiatives, ability and user particpation, and invest- Fortming 1994). and the decisions and resources that affect ments and regulations that have neglected This paper explores the interlinkages them. This report detafls the work of the water qualiq, healtb, and environmental between populaton gowth, agncultral Learning Group on Partidpatory Develop- conces. sagnadon, and enviromnental degradation ment, which was launched in December in Sub-Saharan Afica It postulates the policy 1990. Urbam Policy and Eonmic changes that have to be implemented to DeveAopentt Au Agendafor the 1990Ls A make itensive, market-oiented arculture Popultion in Develpig Counwtri World Bank Policy Paper. Washing, profitable. Such economic growth in rural Washington, D.C.: PopuWlaton, Health and D.C: Warld Bank, 1991. areas is necessary to create an economic sur- 34 AAendtx I plus usable for environmental resource con- biologists, and funding agendes. More than Proceedings of an International servation and to provide the economic basis thirty projects to conserve bliodiversity were Conf mince hdd at the World Bank, for the demographic transition to lower pop- supported by the Global Environment Wasbington, D.C., April a nd 3, 1992. ulation fertflity rates. Facility during Its pilot phase. These guide- En4ronmentally Sustainable lines serve to Integrate principles of conser- Development Proceedings Series 3o. 1. Toward an Enmnrmental StrateVfor vadon biology with socioeconomic analysis. Washington, D.C.: Vorld Bank, 1994. Asi World Bank Discussion Paper 224. The role of culture-"a people's technology, Washington, D.C.: World Bank, 1993. Environmentalby Sustainable Its manners and customs, its religious belieFs This paper discusses the nature and magni- Devdopment Procdings and organization, its system of valuation, tude of environmental problems in Asia, Series whether expressed or implicit"-was the explores technical and policy approaches to theme of this World Bank conference, co- solving these problems, and documents Serageldin, ismall, and Pierre Landell. sponsored by The Government of Norway, World Bank experience In assisdng Asian Mlls, eds. Overcoming Globd Hunger: The Government of Sweden, The Rockefeller countries to deal with environmental prob- Proceedings of a Conference on Actions Foundation, UNESCO, and the World Bank. lems. to Reduce Hunger Worldwide hosted by The causes of social phenomena are studied the World Dank and held at The Bender and understood in the context of a broad- Global Policy Papers Arena, The American Univrsity, Washing- ened analytical perspective that transcends ton, D.C, November 30-December 1, economics, but does not abandon it. Facing te lobal Eirmmment 1993. Environmentally Sustinable Cbdlen1ge: A Progress Report on World Devdopment Proceedbin Series no. 3. Envionmentally Sustainable Bank GIbEnvlEurment Operation& Washington, D.C.: World Bank, Forth- Development Occasloial Paper Wasnon, D.C.: World Bank, 1994. coming 1994. Series This bimonthly publication profiles up-to- The Hunger Conference was planned in a date information on developments in the participatory fshion over months of discus- ene, Michae M. SodolV, Anthelpo- World Bank's environment work. In addition, sions among nongovernmental institutions. logy, and DeaveAmenk An Annotaed the report relects the Bank's collaboration The conference brought together hunger Ribieography of World Bank Publitcatons with the Global Environmental Facility to experts from all over the world who present- 1975-9n9 Fvironmentally Sustnable integrate global environmental concerns into ed papers, coDected here, and participated in Dcvelopment Occasional Paper Series no. the World Bank portfolio of projects. a frank airing of views, including disagree- 3. Washington, D.C.: World Bank Forth- ments. Out of this conference arose a clarer coming 1994. Greenborn Gas Abatemetb IDvestwent understnding of how the involved groups True development must be people-centered ProJet h(ObOring and Evaluation can proceed jointly, in a more phased and and gender consciaus. This compendium Guidelines Washington, D.C.! Global realistic way, against short- and long-term makes easily available the breadth and quality Environment Coordination Division, world hunger. of the non-economic social work done at the Environment Departnent, World Bank World Bankl 1994. Seedin, Jmail, and Andrew Steer, eds. The Global Environment Facility is a multilat- Valuing the Environuen: Proceeding of Nara, Deepa. Te ContrbutoOn of end funding program created to support pro- the First AnmW h.eradona Peopk's Partcidpato EWCe from jects that yield environmental benefits but Conference o avnm wental& 121 Rural Water Supply Proj Ec m- would not otherwise be implemented Sus DevelApment held at The rmmenlly Suainable Development because of inadequate economic or financial World Dank, Washington, D.C, September Occasiond Paper Series no. 1. Washing- returns to prject sponsors. This set of 30-October 1, 1993. imentlly ton, D.C: World Bank, Forthcoming 1994. guidelines addresses one of the four types of Sustinable Devdopment Proceedings This study is based on systematic quantitative projects: biodivesity prsation, pollution Series no. 2.ttshingmnn, D.C.: World and qualitative nalysis of 121 rural water reduction of international waters, green- Bank 1994. supply projects funded by many agencies house gas emission reduction, and control of Successfl develupment can occur onlywhen throughout the developing world. The analy- ozone-depleting substances. the social and ecological aspects of develop- sis shows that beneficary particpation con- ment are integrated with economic aspects. sistently was the most significant factor con- Gulde sforMonltoring and Evau- The necessity for attaching an economic tributing to functioning water systems and allan of GEF Bodluersly Prjes value to the depletion of natural resources enhanced local capacity. Washington, D.C. Global Environmet and the priority ofwater as an environmental Coordination Division, Environment concern were the main themes of this two- Additional Publications Department, World Bank, 1992. day conferenc Monitorng and evaluation of biodiversity Andeon, DenLis. Economk Groulh and conservation programs is a topic of major Seageldin, lsnil, and June Taboroff, tle Evironren. Working Paper Seis concern among consewationists, planners, eds. C are andDeveloment inA. 979. Washington, D.C.: Office of the Vice : .,-SBv -~ ~ y -;f" * a a a p b e b u D z 5 0- Presdent for Devdopment Economics, the Books." inance & Dewopment 30(1) to (a) natural resources management-paric- World Bank, 1992. (March 1993). uladywatei forests, and fisheries; (b) the The paper argues that efficient solutions to This article argues against lowering the dis- environmental implications of development environmental problems improve a coun- count rate in evaluating investments in envi- programs; and (c) the development of try's economic growth prospects, and, con- ronmental protection. While policies to human capital through investments in form- versey policies that improve economic address greenhouse warming should be ing grassroots orgnizadons and promoting grwth prospects will enable envirrnmental enacted immediatel the authors cdim that participation. problems to be addressed. meedng the needs of future generations vwill be possible only if investible resources are acver Kevin, Mohan Munasighe, Mary BernstenJanls D. Akermatt channeled to projects and programs with the Dyson, Nicolas EglL Axe ftulez and Approace to Polluio Con!o and highest environmentl and economic rates of Francois tlicdius, eds Comservahion of Waste Managemet Rguatoy and return. VW& and CentralfAtriRanirest Economic Inuents. Urban Manage- Ibid Bank Eironmnent Paper 1. me-t Prgram Series 3. WashIngton, D.C.: Braaty, Susan, Gloria DaWis, Susan Shen, Washington, D.C.: Word Bank, 1992. WTdd Bank 1993. and Cotb Rees. Conseig Bilic Selected papem presented at the Conference The paper presents an overview of the most D- vensl A Srate,gfarPratected Areas on Conservaion of est and CentralAfrican common strategies and poliq instruments- in the Asa4acgc RegiL Wadd Bank Rainforests in Abidjan in 1990 discuss issues regulatory and economic-used in develop- tchnical Paper 193. Washingt, D.C.: ranging from the most recent scientific ing and developed countries to achieve pol- 'trld Bank, 1992. knowledge on Ainforests to African goven- lution control and waste managemen objec- This paper posits that setting up comprehen- ments' emerging forest stategies, the con- tives sive and wd-managed protected areas sys- cerns of internaional nongoverunental tems is the most pracfical way to preserve organizations, and how to pmmote greater Bhatnagar Bkuvan, and Arey WWiams, the greatest amount of the world's biological coopeation among all groups concerned. eds. Panlifpatory Developm ent and the divesity and the ecological processes that 4B w4eotntDirefonsfJr define and mold it Cropper, Maureen, and Chades Griffitls Change Wlwd Bank Discussion Pap "The lenuction of Populdon Growth 183. WAshinton, D.C.: WtM Bank; 1992. Cernea, Miael, and Scott Guggenheim, and Envionmal Quaitlbp ation This volume conuins the revised and edited eds.sAnhrVoplial Approacs to Economks84(2) 1994. papers presented at an international work- _ rlbmccfPlfcg Practice and The study of interactions between popula- shop on participatory development, held at Tbeort Boulde$ CoL :stview Pru tion grwth and the envimrnment has a long the Jibrid Banlkc Wshington, D.C, ir: 1992. 1993. hiso Thi artcle addmsses the issue of Expenence shows that projects tend to be This volume summanizes different approach- whether population pressures have a signifi- more sustiable and yield higher returns es tO resetdement from theoretical and cant eflect upon environmental degradation. when they involve the intended beneficaries. applied perspecives. It shows how recent The authors examiine the effect of such pres- The papers exploreways char individuals, resarch has advanced thinking on the best sures on deforetdon in sixtwour develop. communities, and public and private institu- ways to analyze involuntary displacement ingcountnes. tions can enhance participatory develop- and on the role of displacement in the devel- menL opment process. Lruz, Wifrido, and MohanMunasinght Ecorspfldelbies and the Enrvi- Blrdsal, Nancy and David Wheelez -Yade Cernes, Michael The UrbmanEvimrwent ront Wasigto D.C.: Eonment Fblicy and Idusti iblution in Lahin antdPudation ieocauion. mild Bank Departnent, world Bankl, orthcoming Americ: Where Are the Poilution Discussion Paper 152. Washington, D.C 1994. Havensrjonr of Envomsent and Tord Bank, 1993. Although macroeconomic policies are not Develoment 2(1) (Wimter 1993). Ths study examines social and environmen- directed towards influencing the quality of Economics and environmentalists alike com- tal consequences resulting from the i1volun- the natral environment, they ay affect it monly assume hat greater economic "open- wry relocation ofvarious populatir seg for good or bad. This paperagues chat there ness" will lead to inceased industrial poiu- ments due to urban development are significant payoffs for both the Woad don in developing counties. This paper chal- Bank and its browers in attempting to bet- Ienges the pollution haven" hypothesis, Crnea, Midcael, ed. Putng PeopleFir& ter understand such impacts and to act on aring that bbealization oftrade regimes SocologIcal Vriabes ia RuralDevelop d them and incrrAed foreign investment in Lain ment 2d ed. New Vwle Oxford Uniesity Amerit. have not correlated with poilution- Press, 1991 Dasgupta, P, and KG. Mil Poverty itensive industrial developmenL This book addrsse sociological and anthro- nWImn and the Enionental pological issues chat are central to induced, Resome Base. Environment Pap 9. Birdsal, Nancy and Andrew Steer la or planned, rural developmenL This edition Washington, D.C.: Environent Depart- Now on Global Warming-But Don't Cook highlights more explicitly the issues related ment, wAd Bank, 1994. 36 App en dt1 This paper identifies possible links bewenm Wodd Bank and the Forest Reearch Institute Disregard of common prperty resources rural poverty, ferility behavior, and the local MalaysiL The paper's main message is that and their productive potential is a major environmenmal resource base in poor coun- behind the crisis in Asian forestry lie failures missing dimension in rural development tries by drawing on empincal evidence from that are asciated with economic policy, strategies in developing countries. This anthropology, demqgraphy, economics, and institutional change, and technological paperargues that due to the convergence the environmental sciences. The authors improvementL between potental common property argue that poverty and institutional failure resources-centered policies and the emerg- are both moot causes of environmental El-Asbry, Mohamed T. 'Meeting she New ing concerns for partidpatory development, degradation and that the latter may well be a internatiomal Environmenal Challenges- environmental sustainability, and poverty cause (and effect) of high fertDity rates. The Role of the Global Environment alleviation, common propery resources Facilit. Address to Nordic Policy could be made an effecive component of Davis, Shelton EL, ed. lntdgenous Ves Semina, Scadinavian Seminar College, rural devdopmentstrategies in areas such as ofJamd and MetEnvioment World Copenhagen, Denmark, October28, 1993. the dry egions of India- Bank Discussion Paper 188. Washington, This speech aims to refocus the attention of D.(C: World Bank, 1993. governments on an instmment for helping 1Knbeg John, and Herman Daly. This report introduces the envirornental val- developing countries deal with their poten- Couning User Cast in EUIuatNOg Pro- ues and perceptions of a small number of tWal contributions to maintining the global jees Involving Deplto qfNatural indigenous peoples living in geographically commons. The history and future goals of CapftaL Envirment Working Paper 66. dispersed pans of the world. These pesec- the Global Environmental Facility are set ouL Washington, D.C.: Environment Depart- tives have great significance both for national ment Wodd Bank, 1994. policies toward indigenous peoples and for FalDox, anucois, and L Talbot Crsis To the extent that Wodd Bank prcject evalu- intenationaly-funded development proects. and Opportunit: Environment and ations fail toaccount for the opportunitm cost Development in AJla. Londoan: Earth- of depleted nanual capital, economic rates of DixonJohn, Luise Fallon Scuma, Richard scan Publications tLd, 1993. return on projects will be misleading. Citing A. Carpenter, and Paul B. Sherman. This book desaibes the process bywhich twenty-three mineral, energy, forestry, fish- Ecmomik Anxabu of Environmental environmental concerns are incorporaed in eres, and livestck precs, the authors SImpacft London: Earthscn Publcations, the economic and social development of encourage the use ofWodd Banlcbest prac- Ltd, Fortoming 199t African nations.A special emphasis i placed tices? This is a revised edition of a book on eco- on National EnironmentalAction Plans nomic valuation oFenvironmental impacts (NEAPs), a process of environmental plan- emas, VCtWor, and othersEon- first published by Earthscar in 1988. The ning developed inAfinca, largely bv Afcans, metalInfwo na Sysesfor Coast forthcoming edition contains text examples, that is being undemke in other devoping Zone Manaemenz Wodd Bank TechnicaT vignettes of caes, and nine ful case studies and developed counties. Paper. Washgto D.CL: Wcrld BDnk, of the application ofeconomicraluadon Forthcoming 1994. techniques to environmentld impacts. Hetige, Hlmamala, Robert Lucas, and The authors provide a detailed technical Da-id Wheder The Toic Intensity of ovview of environmental monitoring Dixon, John, Louse Falon Scura, and industr Production Gba Paterns, requirements and available measurement Tom vWant HolE 'Meeting Ecolgcal and Trends and Trade Policy' American and sing techniques as well as recom- Economic Goals: Marine Parks in the EconormReview Ppers andProceed- mend practical data manageenmt statgies Caribbean." Ambie 22 (-3) (May 1993). hng (May 1992)- for developing an enironmental infmation Marie parks increasingly are being estab- This paper investgates recent changes in the systn for marne and coastal resource man- lished to prote endangered marine ecos- intentional distrution of industrial pollu- agemenL tems and the biological diversity that they don. The authors examine the reblonship supporL This paper examines the trade-o between the toxic intensiy of industrial pro- Kreimer, Alra, and Mohan Munasioghe, between proion and use, as well as duction and the level of economic develop- edsEuih enmetalManagement and means of producing economic benefits whilc ment, the impact of Organisation for Eco- Uan Vulnerabil, World Bank Dis- still yiding protection benefits. nomic Co-operation and Development envi- cossioa Paper 1S8. Washington, D.C.: ronmenmal regubltions on global changes in World Bank, 1992. DliSva, Emmanuel, and Simmathiri toDc intensiy, and the relationship between This paper discusses issues concerning the Appmnab. For" Managemenfor tade policy and the toxic intensity of indus- relaionship between environmental degra- Sustainable Development EDI Policy trial production in developing countries. dation and disastervulnerbitv in urban Seminar Report 32. Washington, D.C.: centers as wel as effective, enironment- World Dank, 1993. Jodha, N.S Common PropetResouraer based stategies for manag nsk. This report is based on the papers and dis- A MissigDimension qf Devopment cussions of a seminar organized by the Slrte4g Worid Dank Discussion Paper lIsen, Bjorn. WorldFossil Subdies and Ecnomic Development lsmitte of the 169. Washngon, D.C world Bank, 1992. Global Co-oxzmsiuoneq Working Paper Sdcu WbrWBankB.ibk-nzpl-mzFswhvmn:-ta*Iyas eDaeopnt 37 -, R'- ½ .. S ,' W=..K U. T- ? Series 1256. Washington, D.C.: Office of accounting framework. It alo describes the Pearce, David W., and Jrmyj. Warford. the Vice President for Development progress in recent years in conceptualzing Word wiout End: Ecommics, Envion- Economics, Word Bank 1994. and implementing the proposed approahes men4 and S staabhle Deveopment. The author presents evidence on the level of and measures. New Yorin Oxford Univity Press, 1993. fossil fuel subsidies and their implications for This book explores how growth can become cubon dioxide emissions. He condudes that Mink, Stephen D. Poverty, Popadaio, environmentally sustainable Subjects range substantial fossil fuel subsidies prevail in a and the Envronment World Bank from how to measure sustainable develop- handful of blge, carbon-enitting countries. Discussion Paper 189. Washington, D.C.: ment to the reltion between popuation and Removing such subsidies could substantially Waold Bank, 1993. environment to market paradigms and pollu- reduce national carbon emissions in some By stressing the overlap between poverty tion to terns of trade and the environmenL countries. alleviation and reduced environmental and demographic sesss, this paper points to Sharma, Narndra, ed. Managfng the Larson,JerL FINacIdIMec sfor the paramount importance of promoting World's Forests Dubuque, Iowa. Kendall Susrrdnable Conservatio APTES broadly based income grwth strategies and and Hunt, 1g92. Woding Paper no. 1. Environmental increasing investments in human resource This book provides numerous perspectives Poicy and Planing Series. Washington, development. on world forests and on the politcal econo- D.C.: Africa Tecmical Department, Wodd my offort nagemenL DiVerse views on Bk, 1993. Munasinghe, MohaEavironmenta key fotestry issues, and solutions needed to The paper explores die use of trust funds, ECCnoGIC and Sutainable accelemate the transition to the sustainable endowments, and foundations for finanng Development World Bank Environment use of forest products are presented. biodiversity consaion. It describes the Paper no. 3. Washingon, D.C: Wodd issues involved in seting up long-erm finan- Bank, 1993. Serageldin, snaiaL rThe Challenge of a cial mechanisms andgi detailed examples This paper reviews concepts and techniques HolistcVisvim Culur, Empowement, of five conservation funding mechanism for the raluation of emionmental impaca and the Devlopment Paradigm." In operatng in South America and the that enaMble environmental considerations tO Cudrere ad Development in AJic- PhEippines. be explicidy considered in the conventional Proceedings ofan IntnIona cost-benefit calcuus used in economic deci- Conference held at the World Bank, ,Jtoman Josei Rapi [rban sionm rking. Washbigton, D.C, Apil 2 and 3, 1992. w A _entlAs ent Lenonsfiwf Erironmea Susainable Develop- Cii in the Dev lopin WorM VoL I and Norsn, Ellot. Gobal Marine eBfoogia ent Procengs Series no. L small 2. Washingto D.C.: World Bank, 1994 DiveniWr A StrateyforBr ig Sa andjue TaboroX eds. This two-vlume series presents a low-cos4 Consevton ino Decision Makg Washington, D.C:. World Bank 1994. rapid, ocally managed and participatory Washiagton, D.C.: Liland Press; 1993. This address presents a vision of develop- mans of rapid uban environmental assess- he book aims to proide up-o-date infor- ment thatgoes beyond the economic 2nd ment. Volume 1 presents techniques and mation and the wisdom of world experts to financial aspects of development to encom- summarizes results from a number ofcities; leader, in govemrments, industries, interna- pass increased partidpation, accountability, Volume 2 is composed oftools that can be tional governmental orgizations, and non- and insdtutional pluralism among develop- diectlyapplied in the field by practitioners govermtal organaions that are respon- ment partners. and researchers. sible for saving, studying, and using the wealth of marine lif It serves as a compan- Sergldin, mlL 'Agiulhre and Eow, Patrick, eda. Inter malnTrade ion volume to Glo Biodivrsity Str En Sustainable and th Environment World Bank (1992). Developmente"i fgr4gzrre and Discussion Pap 159. Washington, D.C.: Environmeta Cbalenges Proceedngs World Bank, 1993. Oates, Wallce E, and Maurn L qffbe the ThrteenhArult Sect9or This volume is concemed with the intema- Cropper. -Environmental Economiic A SiPowuaJitendra P. Srasta and tional aspect of environmental policy and SurveyYJJoua ofEwnounicLfteratawe Harold Aldeman, eds Washington, D.C.: the relationship between environmental con- voL x (June 1992). World Bank, 1994. cems and nations' use of the standard tools The artide reviews the theory of environ- This speeh preents a framework for envi- of international economic poicy. mental regulation focusing on key poficy ronmentally sustainable developmentand instruments for the control of extemalities: addresses the role of the World Bank in pro- Lu, Enst, ed. Toward Improved effluent fees, subsidies, and marketable emis- moting long-term susminabdry. Acoau ogjbr the Environment sions permits The authors also address the WashiIgto0, D.C.: Wld Bank, 1993. measurements of the benefits and costs of Serageldin, I DmalLfDevelopent This volume deals with the question of how environmental progms and review cases in Partner AMi and Cooperation in the to better account for natual capital in an which benefit-cost analyses have been used 199sa Stockholn: Swedish Inzernational integrated waywithin the usual economic to set environmental standards. Dedeopment Authority, 1993. 38 AppenI Real progress lies in empowering the poor, Sora, Piritt4 Conmpe wess and ronmenL Halting policies that foster avces- the weak, and the marginalized to become EhdromnentalStandardsr Some sive resource use, darid g property rights, the producers of their own bounty and wel- Explatory Result Worldng Paper accelerating education and family planning fare, not the recipients of charity or the bhne- Series 1249. Washington, D.C.: Office of pmgimn, accelerting agricultuml extension fidaries of aid. This book describes the multi- the Vice President for Development and rearch, and investing in sanitation and faceted world of development assisunce, Economics, World Bank, 1994. water supply are policies that are both eco- gleans lessons from four decades of interna- This paper argues that contuary to common nomically efficient and good for the envirn- donal aid efforls, and addresses the specific perceptions, higher environmental standards menL case of Sub-Siahran Africa as the most pro- in industrial countries have not tended to found development challenge. lower their international competitveness. Yates, Alan, and Agnes Kiss. Using and Among the author's findings about what SustahbigAfrka's Sol Ariculte and Seageldin, smal Sawing *Afria'sRain- determnines tmde flows in environmentally Rura Development Series no. 16. forests 2d ed. Washington, D.C.: Of fice of sensitive goods, Sorsa notes that environ- Washington, D.C.: Agriculture Depart- the Vice President, Environmentally Sus- ment spending is unlikely to have caused ment, World aunk 1992. tunable Development, World Bank, 1993. shiFts in compamative advantage in most This paper summarizes the inforation pre- This book addresses the root causes of industries. sented at a seminar on UMan4ging the Fer- AfMica's deforsstauion It is derived from dos- tility of African Soils: Meeting Economic and ing remarks to the Conference on Conser- Steer, Andrew 'The Enonment for Environmental Needs," cosponsored by the vation of West and Central Africa Rainforests Development" Fbinace & Development World Bank's Afica Technical Department It sponsored by the African Development Bank, 29 (2) (June 1992). reviews the sttus of knowledge about dte Internaional Union for the Conservation The belief that the environment serves as a African sois and managenent technologies, of Natu (IUCN), and the World Bank, and constaint on economic development has identifies gaps in that knowledge, and pro- held at the African Development Bank in gen mway to acknowledgement of the aon- poses actions required to fili those gaps. Abidjan, Cote d'Ivoire, November 5-9, 1990. plementarity oFdevelopment and the eni- SdeeWTodfdBw.:kBlM zkgrponBlowmnenaalySusainabletweopmem 39 D . . . - - . : APPENDIX 2 Biographies Michael AL Cerneais the Workd Sergio Margulis is a Natural Resource Universityand the Food Reearch nsitute at Banks SeniorAdviser for Socl Policyand Economist in the Land Waterand Natural Stanford University, where he earned a Ph.D. Sociology, woildng in the Enironment Habitats Division ofthe Environment Department He holds a Ph.D. from the Depamnent of the World Bank. He holds a Colin Rees is Chiefof the land Water and University of Bucharest He is the editur of Ph.D. from the University of London. Natural Habiats Division of the Environment Punt People Flm Sodologcal Variables Depament of the World Bankl He holds a in Deveuopment Joan Martin-Brown is Advisor to the Ph.D. from the University of Wisconsin. He Vice President, Enviroamentally Sustainable headed the Environment Unit at theAsian John A. Dixon is a SeniorEnviron- Development, at the World Bank She was Development Bank fron 1981-88. mental Emnomist in the Polution and educated at Georgetown University and the Environmentea Economics Division of the John F. Kennedy Sciool at Harvrd Univer- IsmaH Serageldin is Vice President, ironment Deparment oFthe Wor3d Bank. sity. She was Assoiate Regional Director for Environmentally Sustiuble DevdopmenL He was educated at the Unriversity of North Arnerica and Chief of the Wasfington He was educated at Cairo University and Cafornia at Berkeley and at Harvard Office of the United Nations Environment Harvard University, from which he hokds a Uniersity, where he earned his Ph.D. Programme (JNEP) for twvele yeats PhD). He has written widdy on issues of poverty, equi4, environment, and sustain- John Kelenbergis a consultant in the Mohan Mnsinghe is Chiefof the abiy. Directos Office ofthe Enironment Banks Polution and Evronmenta Emno- Depament of the Word Bank. He is a PhD rn mics Division He has postgraduate dgees Andrew Steer is Director of the World candidate atJohns Hopkins Univsitq. from Cambridge, Mll, and McGilL From Bank's Environment DeparwmenL He was 1982-86 he was SeniorAdvisor to the Presi- educated at St. Andrev's Uniesity, Cam- Ernst Lutz is a Senior Economist in the dent of Sri LankL bridge Univesity, and the University of land, Water, and Natural HabiUts Division of Puenshrania, from which he holds a Ph.D. the Environmeat Department at the Wodd Stephen D. Mink is a Senior Economist He was Staff Director ofDeve opment and Bank He holds a Ph.D. from the Univesity in Middle East and North Africa Country Te Envronment Wor(dDevelopment of Califomia at Berkeley. Deparment 1, Agriculture Operations, of the Report 1992 World Bank He was educated at Princeton 4"