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The Institute for Domestic and International Affairs Economic Commission for Latin America and the Caribbean Relationship Between Economic and the Environment Rutgers Model United Nations 16-19 November 2006 Director: Sheila Ramachandra

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Relationship Between Economic and the Environment Director: Sheila Ramachandra Rutgers Model United Nations 16-19 November 2006 The Institute for Domestic and International Affairs This document is solely for use in preparation for Rutgers Model United Nations 2006. Use for other purposes is not permitted without the express written consent of IDIA. For more information, please write us at [email protected] © 2006 Institute for Domestic & International Affairs, Inc. (IDIA)

TRANSCRIPT

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The Institute for Domestic and International Affairs

Economic Commission for Latin America and the Caribbean

Relationship Between Economic

and the Environment

Rutgers Model United Nations

16-19 November 2006

Director: Sheila Ramachandra

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© 2006 Institute for Domestic & International Affairs, Inc. (IDIA)

This document is solely for use in preparation for Rutgers Model

United Nations 2006. Use for other purposes is not permitted without the express written consent of IDIA. For more

information, please write us at [email protected]

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Introduction _________________________________________________________________ 1

Background _________________________________________________________________ 2 Recent History ___________________________________________________________________ 3 Environmental Degradation ________________________________________________________ 5 Pollution ________________________________________________________________________ 8

Current Status ______________________________________________________________ 11 Unilateral Approaches to Environmental Regulation __________________________________ 13 Ethanol Production and Use in Brazil _______________________________________________ 15 The Mesoamerican Biological Corridor______________________________________________ 17 Guarani Aquifer System Project ___________________________________________________ 19 Areas of Concern ________________________________________________________________ 21

Key Positions _______________________________________________________________ 23 Central American and Caribbean States _____________________________________________ 23 South American States____________________________________________________________ 25 Developed States_________________________________________________________________ 26 Business Interests ________________________________________________________________ 27 Non-Governmental Organizations __________________________________________________ 27 Media__________________________________________________________________________ 28

Summary___________________________________________________________________ 29

Discussion Questions _________________________________________________________ 30

Works Cited ________________________________________________________________ 31

Works Referenced ___________________________________________________________ 34

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Introduction The states of Latin America and the Caribbean rely on their vast natural resources

to fuel economic development, but are depleting these important commodities at an

unsustainable rate. Natural resources have long been the basis for economic development

in the region, but generations of inhabitants have failed to grasp the fact that the value of

natural ecosystems goes far beyond their direct economic use. This shortsighted

perspective has led to centuries of detrimental use by virtually everyone, from European

colonists seeking gold in the 16th Century to modern cattle-ranchers. Current rates of

environmental degradation are unsustainable in the long-run, and air and water pollution

levels are mounting. In the 21st Century, states face the dangers of future environmental

and economic crises if they do not make substantial progress in curbing environmental

degradation and encouraging sustainable development.

A dominant opinion among Latin American policymakers is that a tradeoff exists

between economic growth and environmental sustainability, as Latin American and

Caribbean states seem to prioritize economic growth and productivity. As developing

states, they face the challenges of adjusting to market-based reforms, repaying enormous

debt to international agencies and developed states, maintaining economic stability in an

increasingly global environment, and coping with severe wealth inequality and

widespread poverty. Many states also rely on export-based industries and sectors to fuel

economic growth, and these sectors engage in more environmentally degrading practices.

Although states have formally recognized the need for increased efforts in environmental

conservation, immediate economic and social pressures often take precedence over long-

term environmental concerns.

In addition, modern environmental institutions face a number of challenges, as

they are often under-funded and lack sustained support from central governments.

Consequently, many of the environmental protection laws and regulations enacted in

recent years go unenforced. Environmental agencies and ministries often lack clear

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Rutgers Model United Nations 2006 2

mandates or have overlapping responsibilities, which can lead to conflicts and power

struggles with other governmental agencies. Due to the great diversity in ecosystems,

geo-political climates, and economic and social environments among Latin American and

Caribbean states, there is no universal solution to the environmental dilemma.

Ultimately, effective environmental management in the future depends on the

cooperation between government at the local, state, national, regional and international

levels as well as stakeholders that have a vested interest in environmental resources

including nongovernmental organizations, indigenous peoples, and industrial and

agricultural sectors.

Background The era of colonization in Latin America and the Caribbean, beginning with the

arrival of Christopher Columbus on the island of Hispaniola in 1492, has had an enduring

impact on the economic development and use of natural resources of the region. One can

trace many of the environmental problems plaguing Latin America and the Caribbean

back to the practices first established by European settlers in the 15th Century.

Spanish and Portuguese explorers in the 16th and 17th Centuries sought one

primary commodity, gold. European explorers rapidly explored and established

settlements throughout Latin America and the Caribbean in their quest to find and extract

large quantities of gold to bring back to Europe. Europeans established hundreds of gold

and silver mines from New Spain to the Andes Mountains in less than a century. A

particularly damaging aspect of the mining process was the use of mercury to separate

rocks from precious metal. Mercury not only caused severe neurological damage to

slaves but also had a long-lasting degrading effect on wildlife and the natural ecosystem

of the area.1

1 J. Timmons Roberts and Nikki Demetria Thanos, Trouble in Paradise: Globalization and Environmental Crises in Latin America, (New York: Taylor & Francis Books, Inc., 2003), 8.

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In addition to extracting precious metals to export back to Europe, colonists

introduced their own crops including sugarcane, coffee, tobacco and cotton. Huge tracts

of the best land in these new American colonies were burned and cleared to establish vast

plantations to grow and export these profitable imported crops. The production of sugar

also required substantial firewood to refine sugarcane, leading to severe deforestation. In

order to meet substantial demand in Europe, intense production quickly eroded the soil

and led to rapid colonization of new tracts of land.2 The widespread introduction of

foreign plants and also animals dramatically altered the natural landscape of Latin

America and the Caribbean.

From the onset of colonization, imperial powers typically operated their

possessions through a mercantilist relationship,

which created a dependence on foreign investment.

Europeans exploited the region’s vast natural

resources primarily to drive European economic

development. Environmental issues including

deforestation and soil degradation have their roots

in the agricultural and mining practices of early

settlers.

Recent History In recent decades, significant swings in economic stability and growth have had

notable implications for the natural resources and environment of Latin America and the

Caribbean. As many states in the region financed

economic growth through foreign investment, debt

crises in the 1980s sent most economies into

prolonged recessions lasting several years. When

the price of oil fell early in the decade, states from

2 Ibid, 9

Mercantilism: A system for using the economy to enrich the state, mercantilism encouraged exports and discouraged imports to amass a surplus of gold. It flourished from the age of European discovery through the early nineteenth century and closely involved governments with their economies. Source: www.politicalscience.utoledo.edu/ faculty/lindeen/glos3260.htm

Inflation: A rise in the general price level that results in a decline in the purchasing power of money. Source: www.senate.michigan.gov/sfa/ StateBudget/glossary.html

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Argentina to Mexico defaulted on foreign loans and inflation became a core problem. In

order to rescue the region’s economies from financial crises, multilateral lending agencies

including the World Bank and the International Monetary Fund intervened with aid

packages to refinance what was sometimes crippling debt.3 To qualify for these aid

deals, states had to comply with strict regulations – IMF and World Bank aid agreements

required Latin American and Caribbean states not only to severely restrict government

spending and but also increase trade balances. These stipulations harmed basic social

services and state-supported industries, and also impaired the abilities of the states to

enforce environmental regulations. In addition, in order to increase trade balances and

pay back staggering loans with mounting interest, states in the region struggled to quickly

and substantially raise exports of basic commodities and raw materials.4 These export-

driven economies inevitably induced unsustainable use of natural resources and placed

greater strains on the environment. States commonly used IMF loans to fund large-scale

projects such as dams, highways, ranching and mines. These enormous projects often

spiraled out of control as fiscally weak states encountered tremendous financial,

environmental, social and regulatory challenges.5 Although debt-relief programs of the

multilateral lending agencies had long-term ramifications, at the time Latin American and

Caribbean states had no other option to avert further financial crises. Originally hailed as

a beacon of responsible reform the IMF’s philosophy of deregulation, liberalization and

privatization has subsequently incurred criticisms from Wall Street financiers to the IMF

and the World Bank’s own economists as too premature and difficult to implement in

Latin American and the Caribbean’s emerging markets.

The early 1990s marked a turning point from both an economic and environmental

standpoint in the region. States began recovering from the in some cases severely

3 Ibid, 19 4 Elizabeth Dore, “Capitalism and ecological crisis: legacy of the 1980s” in Green Guerrillas: Environmental Conflicts and Initiatives in Latin America and the Caribbean, ed. Helen Collinson (Montreal: Black Rose Books, 1997), 10. 5 Roberts and Thanos, 20

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recessionary period of the previous decade as inflationary and destabilizing pressures

decreased; however, overall economic growth rates still lagged behind pre-recessionary

levels. The United Nations Conference on Environment and Development (UNCED),

informally known as the Earth Summit, was held in Rio de Janeiro, Brazil in 1992. By

focusing on sustainable development, it represented “the most universal and coordinated

political step taken in the early 1990s towards establishing an international system of

cooperation for mainstreaming the environmental dimension into development.”6 Latin

American and Caribbean states eagerly ratified the legally-binding documents of the

1992 Earth Summit, but have lagged in effectively implementing these environmental

policies. In the 1990s, increased population growth and urbanization became additional

challenges to implementing sustainable environmental and economic policies.

Environmental Degradation States in this region are widely known and prized for their vast natural resources

and unique ecosystems, and are considered to have the greatest diversity of species in the

world, as well as thirty-two per cent of the global

extension of closed forests.7 Centuries of destructive land

use since the beginning of European colonization have

taken their toll, resulting in the cumulative loss of millions

of hectares of plant cover. Although the region has the

highest percentage of closed forest cover, it is also losing more hectares of forest than any

other region of the world each year.8 The continuation of unsustainable agricultural,

industrial and governmental practices has severe implications for the survival of the

6 The Sustainability of development in Latin America and the Caribbean: challenges and opportunities (Santiago: Economic Commission for Latin America and the Caribbean (ECLAC) and the United Nations Environmental Programme (UNEP), 2002), 181. 7 Ibid, 82 8 Kevin Hillstrom and Laurie Collier Hillstrom, Latin America and the Caribbean: A Continental Overview of Environmental Issues (Santa Barbara: ABC-CLIO, Inc., 2004), 95.

Closed Forest: An area completely dominated by the tree stratum due to the closure of the crowns. See canopy closure. Source: www.geobotany.uaf.edu/ toolikgeobot/definitions.html

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unique and valuable natural ecosystems of Latin America and the Caribbean in future

years.

The prevailing approach for forest use has been to “mine” forests for all raw

materials of commercial value and to then move on to new tracts of forest once all

potential sources of profit have been exhausted. European colonists first practiced this

environmentally degrading approach, and many states actively promoted this practice to

promote economic growth in the latter half of the 20th Century.9 After utilizing the

existing forest resources, landholders then convert the land to agricultural use,

constituting the greatest factor leading to overall deforestation in Latin America and the

Caribbean. The rich plant cover contains much of the ecological value of forests, thus

overexploitation of land quickly erodes the soil. Historically, peasants farmed small plots

of land for subsistence and traded only in local markets. With the advent of

globalization, agriculture became commercialized as a commodity, and small farmers

could not compete with wealthy ranchers and plantation owners who produced cash crops

for export. These wealthy landowners paid little heed to local environmental conditions

and overtaxed land.10 The agricultural sector focuses on cash crops including cocoa,

coffee, sugar, tobacco, beef and cotton, and few farmers are producing these crops in an

environmentally sustainable manner. As land use devoted to crop cultivation and

livestock pasture grew by more than seven per cent in the 1990s, agricultural activity has

placed an increasing stress on the region’s forest ecosystems.11

Government policies in recent decades also promoted deforestation in Latin

America and the Caribbean. In the 1970s and 1980s many states promoted governmental

projects designed to spur economic growth that often did little more than seriously harm

the environment. In Mexico and Brazil, governments actively sought the deforestation of

enormous areas of vegetation for agricultural use and stock-raising. Tax breaks and

9 Ibid, 94 10 Roberts and Thanos, 76 11 Hillstrom, 114

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cheap credit gave wealthy landowners the ability to easily purchase land to expand

already vast ranches and plantations, and did little to promote either local development or

safe stewardship of the land. Past government policies have had enduring effects as

medium and large-scale landholders accounted for more than seventy per cent of

deforestation in the Brazilian Amazon in the 1990s. Other government activities such as

road-building have directly increased deforestation rates. Apart from the initial clearing

necessary to build a road, squatters and land speculators that move into areas near

government-constructed roads further induce illegal deforestation.12 Controlling the

illegal cutting of wood presents a significant problem in the region, as illegal logging

accounts for more than two-thirds of overall logging in the region.13 In addition, states

have promoted commercial forest plantations for logging purposes, but these plantations

have overtaken large tracts of land with rich and varied native forests.

Although the vast forests of Latin America and the Caribbean boast the highest

biodiversity and species richness in the world, the inadequate assessment of the value of

these lands by both policymakers and private interests has contributed to the high rates of

deforestation in the area. The practice of assessing forests purely by their commercial

value does not account for the numerous other vital functions of forest ecosystems

including carbon sequestration, non-timber

forest production, climate moderation, and

the maintenance of species that have

chemical and medicinal uses.14

Deforestation has posed major detriments to

biodiversity and the fragile ecological balance of natural ecosystems in Latin America

and the Caribbean. Economic as well as population growth in the region have also placed

high pressure on forests. Overall, the trends in agricultural practices and government

12 Ibid, 101 13 The Sustainability of development in Latin America and the Caribbean: challenges and opportunities, 85 14 Hillstrom, 86

Carbon Sequestration: The ability of forests or other natural systems to "sink" or store carbon, thereby preventing it from collecting in the atmosphere as CO2. Forests absorb carbon when they break down CO2 during photosynthesis. Source: www.pacificforest.org/about/glossary.html

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Renewable Water Supply: Water continuously renewed within reasonable time spans by the hydrologic cycle, such as that in streams, reservoirs or other sources that refill from precipitation or runoff. The renewability of a water source depends both on its natural rate of recharge and the rate at which the water is withdrawn for human ends. To the extent water is withdrawn faster than its source is recharged, it cannot be considered renewable. Source: www.cnie.org/pop/pai/glossary.html

policies of the 20th Century generally lacked a sustainable approach to environmental

management, which will prove to be an inhibiting factor to economic growth.

Pollution In terms of freshwater resources, the Latin American and Caribbean region boasts

the highest availability of water supplies in the world. Although the region has only 8.5

per cent of the world’s population, it has one-third of the world’s total renewable water

supply.15 Some of the world’s most extensive watersheds are in the region, including the

vast Amazon River Basin that covers more than six million square kilometers.16

Unfortunately, the perception of seemingly unending water supply has promoted wasteful

and careless use of water resources and has

masked growing problems of diminishing water

availability in certain areas. During the 20th

Century, the rate of water extraction and

consumption increased much faster than the

world rate and outstripped the level of growth

attributable to population growth. This

unprecedented demand for water has led to

increased competition for useable water resources. Extraction has exceeded the

restoration of groundwater to aquifers rendering the consumption level unsustainable.17

Economic and population growth has also contributed to the degradation of

existing resources as competition for water supplies has increased between various

sectors of the economy and domestic households. Agriculture has historically

represented the single greatest consumer of water, although consumption levels have

somewhat decreased from ninety-five per cent of total water consumption in the mid-20th

Century. As the majority of land in Latin America and the Caribbean is devoted to

15 The Sustainability of development in Latin America and the Caribbean: challenges and opportunities, 111 16 Hilstrom, 131 17 The Sustainability of development in Latin America and the Caribbean: challenges and opportunities, 115

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agriculture, this dominant economic activity largely determines the environmental

conditions of water resources. Reliance on chemicals in the agricultural sector of the

region including fertilizers, herbicides and pesticides has severely degraded freshwater

systems. In rural areas, agricultural run-off has become the primary culprit of ground and

water pollution. Trends indicate that the use of agrochemicals has risen

disproportionately with respect to overall growth in the sector in recent decades.18

Despite the abundance of water resources in Latin America and the Caribbean,

states have generally lacked appropriate infrastructure for sewage treatment. As a result,

many states have only treated a small fraction of liquid wastes arising from human

settlements and industrial activities, and millions of tons of toxic liquid pollutants have

been dumped into regional water systems. This practice has not only damaged the

quality of surface water and harmed fragile water ecosystems, but has also permanently

reduced the availability of useable aquifers. This trend presents a troubling outlook for

the region, as cleaning severely polluted water sources is quite costly.19

In addition to these unfortunate practices, mining has contributed to pollution in

Latin America and the Caribbean for centuries. Since many states have relied on this

industry to provide valuable foreign investment and spur economic development, they

have consequently implemented few regulations regarding the manner in which ore is

extracted. Unsustainable mining practices have had dramatic detrimental effects on water

systems and other natural resources, as large mining operations have dumped millions of

metric tons of toxic waste materials directly into local river systems throughout Latin

American states.20 Small-scale mining has also historically had notable negative effects

on natural ecosystems in the region, especially in Brazil, where thousands of independent

poor miners, known as garmpeiros, search for gold in creek beds and deep rivers using

mercury to extract gold. Garmpeiros have illegally invaded indigenous and ecological

18 Hillstrom, 145 19 The Sustainability of development in Latin America and the Caribbean: challenges and opportunities, 117 20 Hillstrom, 146

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reserves in their search for gold, and years of mercury contamination has severely

impacted the Amazon River basin.21

Air quality represents another byproduct of inappropriate environmental

exploitation in the region, especially in urban areas. The trend of urbanization in the 20th

Century has led to seventy-four per cent of the region’s population living in urban areas,

making the region the most highly urbanized in the world. This combination of

economic and population growth has increased overall consumption patterns. The

demand for manufactured goods and automobiles has risen substantially in the past

decade, leading to mounting emissions of chemicals that degrade air quality during

production, not to mention the emission of pollutants during normal operation.22 The

primary cause of declining air quality in the region is the dramatic increase in motor

vehicle use in the past there decades. A particular concern is that many of these

automobiles still operate on leaded fuel, leading to unsafe concentrations of lead in the

atmosphere. In addition, the majority of vehicles on the roads every year in urban centers

are more than ten years old and lack adequate pollution mitigation technology.23

Emissions output from the industrial sector has also grown over the past decade,

especially from enterprises ranging from textile plants to oil refineries. Due to the lack of

effective regulatory mechanisms at all levels of government, many high-polluting

enterprises have continually caused damage to local environments and nearby human

settlements. That said, large multi-national firms bring greater environmentally-

sustainable operating practices to the developing states of the region. Multi-national

corporations operate under the close supervision of an international consumer market and

the high regulatory environment of states that are members of the Organization for

Economic Cooperation and Development (OECD).24

21 Roberts and Thanos, 153 22 Hilstrom, 201 23 Ibid, 204 24 David Wheeler, Racing to the Bottom? Foreign Investment and Air Pollution in Developing Countries (The World Bank, 2001), 9.

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Air pollution also has a significant impact on public health as it permanently

affects the lives of more than eighty million people throughout the region. States face the

added challenge of coping with the health problems associated with air pollution without

the financial means to provide adequate social services. While large urban centers such

as Mexico City, Rio de Janeiro, Santiago and Buenos Aires have made substantial

progress in controlling air pollution in the past decade through antipollution initiatives

and updated emissions regulations, states have not extended these programs to medium-

sized cities. Unless states make a concerted effort to improve air quality, the mounting

number of vehicles in urban centers will continue to threaten past progress.25

Current Status Since the Earth Summit in 1992, states in Latin America and the Caribbean have

had a mixed record of performance on economic and environmental agendas. While

states have undergone significant economic reform to cope with the effects of past

economic crises, the rates of growth and development has not been sufficient to recover

from earlier recessions, especially with the added stress of population growth. Although

productivity has increased in recent years, levels of relative poverty have generally

remained unchanged. Overall, economic and social conditions to promote sustainable

development in environmental terms are no better than the conditions that prevailed

during the 1990s. As urban settlements grow by more than five per cent annually, the

rapid urbanization of the population has led to the proliferation of environmentally

degrading makeshift human settlements.26 Urban populations are increasingly

contributing to air and water pollution in the region. Additionally, increased agricultural

production is leading to worsening environmental conditions in the countryside despite

the fact that rural populations have stabilized.

25 The Sustainability of development in Latin America and the Caribbean: challenges and opportunities, 128 26 Ibid, 122

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States established modern environmental institutions after the 1992 Rio Summit;

however these agencies are often characterized by shortcomings that prevent effective

environmental management. States often created these new environmental bodies by

consolidating existing governmental agencies under a broader mandate. In essence, they

created new ineffectual bodies to replace old ineffectual ones. Consequently, new

environmental agencies have an excessive number of responsibilities, but lack the

capacities to carry them out.27 Mandates of different governmental agencies, for example

the ministry of environment and ministry of forestry, can conflict and lead to unnecessary

inter-agency power struggles that waste time and resources. A lack of transparency and

accountability in governmental agencies also impede effective policy implementation.28

Most significantly, environmental institutions chronically suffer from a lack of sufficient

funding. States may have adequate environmental regulations, but generally lack the

resources and financial capabilities to effectively enforce them.

Despite obvious shortcomings, the Earth Summit led to advances in terms of

environmental regulatory frameworks in Latin American and the Caribbean. Many states

have enacted legislation concerning responsibility for damaging the environment in civil,

administrative and criminal regards. Environmental laws are increasingly incorporating

impact assessment studies and evaluations before significant projects can be undertaken,

yet throughout the region, states have only recently begun to integrate the approach of

environmental conservation and sustainable resource use with mainstream policies.29

The following examples, including Costa Rica’s Payments for Environmental

Services Program, Brazil’s ethanol production programs, the Mesoamerican Biological

Corridor and the Guarani Aquifer System represent unilateral and multilateral

environmental initiatives taken by states in the region since the 1992 Earth Summit.

27 Ibid, 162 28 William Ascher, Understanding why Governments in Developing Countries Waste Natural Resources, 42, no. 2 (2000). Academic Search Premier, via EBSCOHost, http://search.epnet.com 29 The Sustainability of development in Latin America and the Caribbean: challenges and opportunities, 163-164

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Although many these initiatives were established in the 1990s, they all continue to grow

and flourish in the 21st Century.

Unilateral Approaches to Environmental Regulation In recent decades, Costa Rica has earned a reputation as an environmental safe

haven in Latin America and the Caribbean for acting as a pioneer in legislating and

implementing innovative environmental programs.

Costa Rica has high levels of biodiversity although it

is the second smallest state in Central America. The

state currently has an extensive and ambitious

conservation program that protects more than ten per

cent of its land mass.30 In 1996, Costa Rica adopted

a new regulatory framework for forestry use called

“Payments for Environmental Services” (PSA).31

This law relies on “polluter pays” and “beneficiary

pays” principles and represents a shift towards

market-based financing mechanisms for

sustainability. Government programs reward participating landowners through payments

for environmental services including carbon sequestration, protection of watersheds,

biodiversity conservation, and the provision of scenic beauty. Financing sources include

a five per cent tax on fossil fuels, payments from private industrial buyers, as well as

international sources. The National Fund for Forest Financing (FONAFIFO) administers

funding for PSA.32

30 Rhett Butler, “Costa Rica: Environmental Profile,” Rhett Butler, http://rainforests.mongabay.com/20costarica.htm (accessed April 24, 2006) 31 Simon Zbinden and David R. Lee, “Paying for Environmental Services: An Analysis of Participation in Costa Rica’s PSA Program,” World Development 33, no. 2 (2005): 256 32 Anthony Snider, et al., “Policy Innovations for Private Forest Management and Conservation in Costa Rica”, Journal of Forestry 101, no 5 (2003): 21

Costa Rica

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Current program instruments include reforestation and forest conservation. A

landowner participating in the reforestation program allocates a portion of his land for the

planting of trees, and he receives payment for maintaining a survival rate greater than

eighty-five per cent. Under the forest

conservation program, the landowner

enters into a contract with the

government, during which time the

landowner transfers his forest use rights

to the government and cannot engage in

logging or other activities during that

time period. To implement these

regulations, the PSA program assigns forest engineers an intermediary role between

landowners and the government, charged with establishing management plans for

participating areas, performing control and enforcement tasks, and disseminating

program information.33

Since its implementation in 1997, Costa Rica’s PSA program has experienced both

successes and veritable failures. By the end of 2001, landowners had submitted more

than 284,000 hectares of land to the PSA program, amounting to almost six per cent of

total national territory. More than 40,000 forest owners have benefited from the program,

and there has been a persistent excess in demand since program implementation.34 The

gross deforestation rate had significantly decreased by the beginning of the 21st Century,

and reforestation efforts resulted in a net gain of forest cover.35 Despite these

encouraging statistics, the PSA program has yet to adequately fulfill its original goals of

generating income and employment in rural areas as well as providing support and

outreach for small and medium landowners. PSA program instruments tend to favor

33 Zbinden and Lee, 257 34 Ibid 35 Snider, 19

Polluter Pays: The principle which states that those who cause industrial pollution should offset its effects by compensating for the damage incurred, or by taking precautionary measures to avoid creating pollution. Source: www.evomarkets.com/ghg_glossary.html Beneficiary Pays: Cost sharing principle where those who benefit from an action pay for part of the action in direct proportion to the benefit they receive Source: www.malleecma.vic.gov.au/glossarymcma.asp

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better-educated, wealthier landowners who possess larger tracts of land due to

administrative responsibilities, title requirements and favorable conditions for

biodiversity. The ultimate long-term success of an incentive-based program such as the

PSA will depend on its ability to reach and provide a viable economic alternative to poor

subsistence farmers.36

Ethanol Production and Use in Brazil As the world’s largest producer of

ethanol, Brazil is a global leader in

promoting the use of renewable energy

sources to reduce dependency on fossil

fuels. Brazil was one of the first states to

establish a national program to support

ethanol production. It first implemented the PRO-ALCOHOL program in 1975 to

promote the production of sugarcane, which can be converted into ethanol through

fermentation. Despite high prices of sugarcane

and slumps in consumer confidence in the

1990s, ethanol has surged in popularity among

Brazilian motorists with the introduction of the

flex-fuel motor in 2003. First introduced by

Volkswagen, this technology allows consumers

to use either alcohol, gasoline, or a mixture of

both to fuel their vehicles. In less than three

years since its introduction, more than seventy

per cent of automobiles sold in Brazil have

incorporated the flex-fuel motor system.37

36 Zbinden and Lee, 270 37 Rohter, Larry, “With Big Boost From Sugar Cane, Brazil is Satisfying its Fuel Needs,” New York Times, April 10, 2006, late edition, Lexis-Nexis, via Rutgers Libraries, http://www.libraries.rutgers.edu

Brazil

Ethanol: The most widely used renewable biofuel today. Ethanol is made by converting starch crops into sugars, the sugars are fermented into ethanol which is then distilled into its final form. Its main uses are to enhance vehicle performance and as a fuel oxygenate to improve the emissions profile of gasoline. Source: genencordev.zoomedia.com/wt/gcor/glossary

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The ethanol industry presents lucrative economic prospects as well as a host of

environmental implications for Brazil in the future. The state expects to become energy

self-sufficient during 2006 by increasing sugarcane production. High energy yields from

sugarcane and production methods have given Brazil’s ethanol the lowest production

costs compared with similar programs. Brazilian ethanol producers expect to remain

competitive with crude oil as long as oil prices do not drop below USD $30 per barrel, a

prospect that seems very unlikely as crude oil prices hover well above that level.38

Consequently, Brazilian domestic demand for ethanol is soaring and international

demand is also on the rise, and analysts consider Brazil the only state capable of meeting

these energy demands in the near future.39 Ethanol has the potential to become another

major export-based commodity for the Brazilian economy, and conservationists worry

about the environmental implications of further promoting the intense production of

sugarcane. Ethanol production has generated more than one million direct and indirect

jobs and saved Brazil more than USD $20 billion in oil imports. Also, ethanol use has

led to a notable decrease in greenhouse gas emissions and improvements in air quality.

Expanding areas of sugarcane cultivation can lead to further land degradation; however

Brazilian officials argue that the environmental threat is not severe. Sugarcane farmers

are able to reuse land that has already been degraded and abandoned by the cattle farming

industry.40 Environmentalists argue that the surge in sugarcane production, in response to

mounting domestic and international demand, may push the cattle industry further into

forested areas of the Amazon and promote illegal forestry use as cultivated areas quickly

expand. Ultimately, while ethanol will no doubt produce great economic benefits for

Brazil, its success as an environmentally-friendly alternative to fossil fuels will depend

on the government’s ability to effectively enforce environmental legislation and promote

sustainable production methods.

38 Ibid 39 Mario Osava, “High Hopes Over Rising Demand for Fuel Alcohol,” Inter Press Service News Agency, December 15, 2004, http://www.ipsnews.net/interna.asp?idnews=26693 40 Ibid

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The Mesoamerican Biological Corridor The Mesoamerican

Biological Corridor (MBC)

is a regional initiative

launched in 1997 that

includes areas in the states

of Central America and the

five southern states of

Mexico. This region covers

768,990 square kilometers

and contains diverse eco-

systems from coral reefs to

grasslands. Although

Mesoamerica contains only one half of one per cent of the world’s land, it has seven per

cent of the world’s biological diversity. Proper environmental management of the region

is crucial for future years. The program focuses on sustainable social and economic

development to promote ecological conservation and recognizes that “wildlife

preservation efforts cannot be addressed in isolation from socioeconomic realties that put

pressure on fragile natural resources.”41 In order to be truly effective in both

conservation and sustainable development, this ambitious effort requires multi-tiered

cooperation between numerous stakeholders. These stakeholders include public agencies

at local, regional and national levels, the private sector, civil society organizations, as

well as rural populations and indigenous peoples.42

The basic framework of the MBC centers on the establishment of different of

zones to promote its various policy goals. Core Zones are areas strictly reserved to

41 Hillstrom, 74 42 Kenton Miller, Elsa Chang and Nels Johnson, Defining Common Ground for the Mesoamerican Biological Corridor (Washington, DC: World Resources Institute, 2001), vii.

Mesoamerican Biological Corridor

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protect wildlife and natural ecosystems. Currently, about eleven per cent of the region is

formally designated as protected areas. These areas are then surrounded by Buffer

Zones, which serve as transitional zones between reserves and land used for commercial

purposes and economic development.43 Buffer zones aim to absorb the destructive

effects of economic activities in proximity to core zones. Corridor Zones link the various

Core Zones and focus on environmentally sound land management practices to ensure a

“high level of biological connectivity.” The Multiple-use Zones are dedicated to human

uses, including human settlements, agriculture and managed forestry, but policies

promote the sustainable management of land and natural resources.44

As environmental issues span several national borders, the Mesoamerican

Biological Corridor initiative has the potential to serve as a vehicle for the development

of multilateral environmental policy, but it faces several challenges. Future success is

contingent on continued funding from various international organizations and foreign

governments along with sustained cooperation among its various stakeholders. The

failure of any of the primary stakeholders to cooperate on some level with each other,

including conservationists, governments or rural populations, could jeopardize the future

of the initiative. This endeavor has already shown success in acting as a catalyst in the

region for improving states’ overall environmental performance, as in the case of

Guatemala’s first legal mechanisms to support conservation and responsible natural

resource use.45 Although the Mesoamerican Biological Corridor is still in the initial to

medium-term stages of planning and implementation, it represents an important regional

approach to environmental management in Latin America and the Caribbean that

attempts to reconcile the interests of biological conservation with sustainable social and

economic development.

43 Hillstrom, 75 44 Miller, Chang and Johnson, viii 45 Hillstrom, 76

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Guarani Aquifer System Project Concerns regarding water availability and proper management of water resources

have become increasingly urgent in the 21st Century with the combined pressures of

population growth and increased economic development on available water resources.

States in Latin America and the Caribbean have begun to recognize the need to transition

from a sectoral to a regional approach to freshwater management as major water systems

and aquifers generally span national boundaries.46 A number of models have failed to

show progress due to a lack of sufficient funding and institutional conflicts, however the

Environmental Protection and Sustainable Development of the Guarani Aquifer System

Project represents a promising regional initiative in terms of sustainable water

management. The World Bank is the implementing agency and the regional executive

agency is the Organization of American States – Office for Sustainable Development and

Environment. The General Secretariat of the Project is responsible for carrying out

project components between 2003 and 2007.47

The Guarani Aquifer is a critical source of freshwater for the Latin American

states of Argentina, Brazil, Paraguay and Uruguay. Although it encompasses more than

460,000 square miles and is one of the largest aquifers in the world, these states are

depleting the Guarani Aquifer at an unsustainable rate. This project has given much

needed recognition to the issue of groundwater management. Groundwater is a critical

resource because it rarely needs treatment prior to consumption due to natural biological

filtering processes. In contrast, surface water is very susceptible to contamination from

agricultural run-off, industrial and domestic effluents and requires expensive water

treatment.48 The long-term objective of this project is the sustainable, integrated

management and use of the Guarani Aquifer System for current and future generations.

46 Ibid, 138 47 The General Secretariat, “Guarani Aquifer System // Project,” Guarani Aquifer System Project, http://www.sg-guarani.org/index/site/proyecto/pto_introduccion.php (accessed June 11, 2006) 48 Latin America and Caribbean Region - Guarani Aquifer Project - International Waters MERCOSUL (GEF) Vol. 1 (English) (World Bank, 2001), 2.

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Guarani Aquifer

In order to develop an effective joint management framework, states have implemented

and coordinated data gathering networks

to continually assess groundwater

availability and quality from the aquifer.

States have recognized the importance of

greater participation by nongovernmental

organizations and business stakeholders in

effective decision-making and

management regarding the water resource.

The Guarani System Citizens’ Fund

provides funding to nongovernmental

institutions and academic institutions

creating a collaborative framework

sustainable even after project completion.49

The four South American states using the Guarani Aquifer System have

recognized the importance of regional cooperation on trans-boundary water issues. The

project represents a first step in terms of regional groundwater management, and serves

as a catalyst in encouraging greater dialogue on other water issues between the

participating states and reforming individual states’ water management models.

Ultimately, this project is environmentally focused in nature, but pays heed to the

economic water needs of the participating states. Recognizing that the uses of the

Guarani Aquifer System in the future will inevitably have some detrimental

environmental effects, this project aims engage in in-depth studies of these effects and

promoting policy coordination to minimize their adverse qualities.

49 Ibid, 4

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Areas of Concern While Latin American and Caribbean states have embarked upon promising

environmental initiatives in recent years, it is premature to determine whether many of

these ventures will truly be successful and sustainable in the long term. Economic and

population growth represent the two greatest threats to natural resources in the region.

These trends only exacerbate environmental problems that policymakers have yet to

sufficiently address. Specific areas of concern for the future range from unsustainable

logging in Amazonian forests to poor water management in cities. In order to

successfully address these concerns, states in the region must effectively stretch limited

funding and juggle economic, social, political and environmental goals that often conflict

with each other.

In the case of water management, privatization of water resources has become a

growing trend among Latin American and Caribbean states. Although the region boasts

some of the most plentiful freshwater resources in the world, pollution, geography and

social inequity significantly impede access to water supplies. Water supply concerns are

particularly acute in the region’s fast growing urban areas where burgeoning populations

drain existing aquifers at unsustainable rates. In addition, both local and federal

governments have largely failed to address other factors that aggravate water loss, such as

the widely unregulated industrial contamination of available water supplies and

infrastructure leakage that drain away more than fifty per cent of the water supply in

urban areas.50 Instead, many states in the region have turned towards water privatization,

a liberal market-oriented framework favored by the World Bank.

Since states began supporting water privatization in the early 1990’s, it has

generally been met with strong public opposition. The effects of water privatization in

Latin America and the Caribbean have been similarly documented worldwide in other

developing states: reduced water quality, rate hikes, cut-offs for customers that cannot

50 Maude Barlow and Tony Clarke, “The Struggle for Latin America’s Water,” NACLA Report on the Americas, July/August 2004, Academic Search Premier, via Rutgers Libraries, http://www.libraries.rutgers.edu

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pay, huge corporate profits, and general corruption and lack of transparency.51 In 2000,

the giant engineering firm Bechtel set up a subsidiary water company in Bolivia.

Consumers suddenly faced over two hundred per cent rate increases. Subsequently,

widespread public protests forced the state to reverse Bechtel’s privatization efforts

although the firm has since sued the state for twenty-five million dollars in lost profits.52

In 2001, the Mexican government introduced the Program for the Modernization of

Water Management Companies (PROMAGUA) with generous loans from international

financial institutions such as the World Bank to promote the privatization of water

resources in cities with more than one hundred thousand people. The program attracts

private investments by providing generous subsidies and since inception has spread to

twenty-eight of Mexico’s thirty states and covers seventy per cent of the entire urban

population. With PROMAGUA’s growth, Mexican residents have simultaneously

experienced escalating fees from private water companies and deteriorating water quality

as these firms neglect investment in pipe infrastructure. Although public resistance is

growing, water privatization continues to spread across Latin America and the Caribbean

as private water corporations enjoy the support of states and multilateral lending

agencies. States in the region have not yet found an effective way to balance the need to

manage shrinking water resources with the goal of economic liberalization and market

reform.

Another area where environmental and economic goals have come into conflict is

rainforest conservation. The Amazon tropical forests in Brazil are home to the greatest

biodiversity in the world and the state has engaged in a number of conservation programs

and implemented environmental regulations to protect these forests. At the same time the

state is also pursuing economic goals in the rainforests such as the “Advance Brazil”

development plan, which includes building highways, dams, mines and other industrial

51 Maude Barlow and Tony Clarke, “Water Privatization: The World Bank’s Latest Market Fantasy,” Global Policy Forum 52 Maude Barlow and Tony Clarke, “The Struggle for Latin America’s Water”

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developments that pose major detriments to the Amazon rainforest.53 Land tenure laws

promote squatting and clearing forested areas for agricultural purposes. IBAMA, the

Brazilian Ministry of Environment’s enforcement agency, has perpetually lacked

adequate funding and support to combat illegal logging in the Amazon, which constitutes

an estimated eighty per cent of total logging.54 Although the state managed to reduce the

destruction of rainforests in 2005 by almost one-third as compared to 2004, this

conservation milestone came at a heavy price. In the Amazonian state of Pará where the

government has cracked down on illegal deforestation, thousands of workers who earn

their livelihoods from the forests have no work and businesses lie idle as poverty

spreads.55 The state of Brazil has yet to find an effective way to coordinate the efforts of

its various ministries in order to balance the goals of environmental conservation,

economic growth, and the reduction of poverty.

Key Positions In many ways, the environment can be seen as a luxury good to poor developing

nations. Forests represent a waiting stock of valuable resources in terms of lumber, but

also represent an impediment from expanding agricultural operations. What these states

often do not recognize, or are unable to realize, is the environmental value of these lands.

While in the short term it may be profitable to harvest these areas, in the long run,

maintaining these virgin forests may prove even more valuable. As such, there is often a

marked difference among states along the spectrum of economic development.

Central American and Caribbean States Central American and Caribbean states have initiated environmental programs to

varying degrees, and Mexico is a leader in the region in such efforts. For example, 53 Greepeace International, “Amazon,” Greenpeace International, http://www.greenpeace.org/international/campaigns/forests/amazon (accessed April 4, 2006). 54 Rhett Butler, “Rainforests of Brazil—An Environmental Status Report,” Rhett Butler, http://rainforests.mongabay.com/20brazil.htm (accessed April 24, 2006) 55 “How Green Was My Valley,” Economist, April 29, 2006, Academic Search Premier, via Rutgers Libraries, http://www.libraries.rutgers.edu

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emissions standards and regulations have led to a notable reduction of air pollution in

Mexico City, one of the largest cities in the world. Mexico must also comply with

environmental standards of the North American Free Trade Agreement (NAFTA).

Central American states are generally characterized by high rates of poverty, and pressing

economic and social problems have overshadowed environmental efforts. Costa Rica is

an important exception, as innovative incentive-based conservation based programs and

an extensive national party system have earned it a strong environmental record while at

the same time promoting economic growth. From a regional standpoint, the

Mesoamerican Biological Corridor represents an important multilateral initiative in the

region. In addition, due to severe losses from hurricanes in past years, many states in the

region are investing in early warning systems and improving disaster relief agencies to

mitigate the destruction from future natural disasters.

Caribbean states typically have very fragile environments, and some governments

have recognized the urgency of the ecological situation by strengthening environmental

institutions and integrating them into physical policy planning. These measures promote

sustainable tourism, biodiversity conservation and integration of coastal and marine

resources.56 The Bahamas National Trust has reseeded original hardwoods in its Exuma

National Park in an effort to promote eco-tourism. In contrast, Haiti has been overcome

by political turmoil and rampant poverty and lacks sufficient resources to promote

environmental conservation while satisfying burdensome debt service from developed

states. As many Caribbean nations are heavily reliant on the tourism industry, these

states are looking to find a delicate balance between promoting environmental

conservation to sustain but not hinder this vital economic sector.

56 United Nations Environmental Programme, “GEO-2000: Chapter Three: Policy Responses – Latin America and the Caribbean – Laws and Institutions,” United Nations, http://www.unep.org/geo/geo2000/english/0183.htm (accessed April 3, 2006).

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South American States Among South American States, Brazil plays a prominent role in promoting

environmental programs, but its efforts are far from sufficient. The state has taken

numerous steps to protect its Amazonian rainforests. An important policy is the Brazilian

Environmental Crimes Law, which actually applies administrative and criminal sanctions

in the regulation of natural resource use. Strong environmental interests give further

support to ecological policies in Brazil, however the state has pursued inconsistent

environmental policies, including federal funding for industrial developments in the

Amazon and land tenure laws that favor squatters and ranchers. Other members of the

Southern Common Market (MERCOSUR) have shown support for and made progress in

sustainable development policies, but have been less active than Brazil. For example,

Argentina, Uruguay and Paraguay have pursued less stringent Environmental Impact

Assessments than the MERCOSUR treaty has made mandatory.57 The rise in economic

productivity and growth in major South American states presents challenges to

environmental agendas, which governments have not reconciled with economic interests.

President Hugo Chavez of Venezuela plans to build a major gas pipeline and an

electricity transmission line across the state, which has major environmental

repercussions for the Amazon region. South American states also receive a significant

amount of foreign direct investment and do not want to deter foreign firms with strenuous

environmental regulations. These states also have not taken a strong stance in preventing

unsustainable human settlements in major urban centers such as Rio de Janeiro, Santiago

and Buenos Aires.

Despite its high biological diversity, Colombia has given a low priority to forestry

management due to political turmoil and violence. The state has also engaged in

environmentally degrading aerial fumigation programs to deter the illicit coca trade.58 In

contrast, the small states of Guyana, Suriname and French Guiana have the lowest

57 Greenpeace International 58 Butler, “Rainforests of Brazil—An Environmental Status Report,”

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population densities in all of Latin America and the Caribbean and harbor few threats to

their environments.59

Developed States Since the 1992 Earth Summit, developed states have voiced concerns for

international environmental conservation

and sustainable development, but actual

efforts have fallen short of objectives. The

United States has demonstrated its wariness

of multilateral environmental agreements

since its reluctance to participate in the 1992

Earth Summit and 2001 retraction from the

Kyoto Protocol. At the Johannesburg World

Summit on Sustainable Development in

2002, the US urged strengthening existing

environmental laws rather than establishing

additional commitments. It strongly

advocated private sector engagement in

facilitating trade and voluntary public-

private partnerships as an approach to

sustainable development as opposed to conventional methods.60 In addition, the United

States remains the largest financial contributor in absolute terms to the Global

Environment Facility, the mechanism through which the World Bank funds a great deal

of international environmental protection.61 European states favor strong environmental

regulation and conservation in Latin America and the Caribbean, as they are influenced

59 The Sustainability of development in Latin America and the Caribbean: challenges and opportunities, 92 60 Jutta Brunnee, “The United States and International Environmental Law: Living With an Elephant,” European Journal of International Law, 15, no. 4 (2004): 635 61 Ibid, 621

Kyoto Protocol: The result of negotiations at the third Conference of the Parties (COP-3) in Kyoto, Japan, in December of 1997. The Kyoto Protocol sets binding greenhouse gas emissions targets for countries that sign and ratify the agreement. The gases covered under the Protocol include carbon dioxide, methane, nitrous oxide, hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride. Source: www.eia.doe.gov/glossary/glossary_k.htm Agenda 21: Agenda 21 is a plan of action for the preservation of the Earth that was adopted at the UN conference on the environment and development at Rio de Janeiro in 1992. No fewer than 181 countries signed the document. Agenda 21 not only aims to solve environmental problems but also covers the economic and social injustice in the world. Democracy, equality and the fight against poverty play an important role. Source: www.miljo.skane.se/eng/a/pa11.htm

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by public environmental concerns. While they have not fulfilled all of their financial

obligations of Agenda 21 since the 1992 Earth Summit, the European Union and

European parliaments fund a variety of environmental projects throughout the region.

Business Interests The diversity among business enterprises in Latin America and the Caribbean has

led to a variety of environmental views depending on firms’ economic sector and size. In

recent years, firms have integrated sustainable development approaches into business

management practices in order to act environmentally responsible. Business interests

throughout the region have demonstrated support for sustainable development through

the establishment of business councils and national centers for clean production and

technology.62 Large multinational firms promote environmentally-friendly practices in

order to maintain a good reputation of social responsibility and comply with OECD

standards. In contrast, poor small businesses often do not give much consideration to

environmental conservation and protection. Overall, regardless of how environmentally

responsible firms want to be, businesses from ranchers to miners and pharmaceutical

companies favor policies that promote easier access and use of natural resources in the

region.

Non-Governmental Organizations Thousands of non-governmental organizations have developed in recent decades

focusing on environmental conservation and protection. Major international

environmental NGOs, such as the World Wildlife Fund and the Nature Conservancy have

contributed to significant policy change in many Latin American and Caribbean states

and continue to be influential in policymaking at many levels of government.

Environmental NGOs generally share the same broad objectives of forest and

biodiversity conservation as well as sustainable development, but differ in how they

62 The Sustainability of development in Latin America and the Caribbean: challenges and opportunities, 174

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reach these goals. Some NGOs, such as Greenpeace International, act as watchdogs and

alert the public when states or economic sectors engage in destructive environmental

practices. The Nature Conservancy focuses on the conservation of parks, and others

simply promote environmental education and fund research studies.63 The World

Wildlife Fund engages in projects to explore alternative methods to agricultural

production and logging practices that are sustainable and less destructive to the

environment. For example, through its “protect-manage-restore” approach to forest

conservation, WWF promotes certified logging through the Forest Stewardship Council

(FSC) as well as forest restoration.64 Ultimately, environmental NGOs prioritize

environmental conservation over the promotion of economic development and business

interests with regard to natural resources, but also recognize the importance of

sustainable development.

Media The media has the capacity to greatly influence public opinion about

environmental issues and put pressure on policymakers to address important issues.

When the media does report on environmental issues, it generally does so in a pro-

environmental framework, however the amount of media coverage can vary greatly from

time to time. For example, the media was very influential in exposing Brazilians to a vast

amount of environmental information prior to the 1992 Earth Summit and led to a

dramatic increase in public awareness of environmental concerns in the 1990s.65

63 Blaca Torres, “Transnational Environmental NGOs: Linkages and Impact on Policy” in Latin American Environmental Policy in International Perspective, ed. Gordon J. MacDonald, Daniel L. Nielson, and Marc A. Stern (Boulder: Westview Press, 1997), 166. 64 World Wildlife Fund, “WWF – Responsible Forestry: Certification,” World Wildlife Fund, http://www.panda.org/about_wwf/what_we_do/forests/our_solutions/responsible_forestry/certification/ (accessed April 4, 2006). 65 Eduardo J. Viola, “The Environmental Movement in Brazil: Institutionalization, Sustainable Development, and the Crisis of Governance Since 1987 in Latin American Environmental Policy in International Perspective, ed. Gordon J. MacDonald, Daniel L. Nielson and Marc A. Stern (Boulder: Westview Press, 1997), 98.

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Summary The future of natural resources and the environment in Latin America and the

Caribbean is uncertain. States have formally recognized the need to adopt stronger

institutions and mechanisms to promote environmental conservation and sustainable

development, however actual efforts have lagged far behind policy objectives. The

current consumption of natural resources and rates of degradation to the environment in

the region is not sustainable in the long run. The region has experienced the detrimental

effects of human activity for centuries. European colonists left an enduring mark on the

region by their environmentally degrading practices of gold and mineral mining, cattle

ranching, and single crop plantation farming. The domestic economies of the region have

primarily had export-driven economies with a dependence on foreign investment.

In recent years, social and economic trends have significantly impacted the

effectiveness of environmental policies in Latin America and the Caribbean. States in the

region have experienced swings in economic stability and growth in the 1990s was not

sufficient to recover from past recessionary periods. Consequently states have placed

priorities on economic stability, productivity and debt repayment. Despite the fact that

most states ratified legally-binding documents aimed at fostering sustainable

development and environmental conservation, deforestation and soil degradation from

agricultural and mining activities continue at alarming rates. The increasing trend of

urbanization coupled with population growth has led to increases in air and water

pollution.

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Discussion Questions • How do states’ economic goals compare and contrast with their environmental

goals? • What effect will improved environmental regulation and conservation have on

economic productivity? • Identify failed attempts to protect the environment. What caused them to fail?

Was it a lack of funding? Lack of a will to make difficult decisions? Lack of support from outside entities?

• What are the tradeoffs, if any, between economic growth and environmental

sustainability? • What capabilities and resources do modern environmental institutions lack that

impede their effective management of environmental concerns? • What incentives do states have to allow the exploitation of natural resources? • How have the interests of businesses and the industrial sector influenced

environmental policymaking? • What role do non-governmental organizations play in impacting environmental

policies? • Why have governments failed to enforce laws and agreements protecting the

environment?

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Athanas, Andrea. “Role of Business – The role of business in biodiversity and impact

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