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The Challenges of The Challenges of Sustainable Development Sustainable Development

Part IIPart II

Dr. Kazi F. JalalDr. Kazi F. Jalal

Faculty, Harvard Faculty, Harvard Extension SchoolExtension School

Envr E-115Envr E-11510/02/0710/02/07

Lecture#3Lecture#3

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Outline of Lecture 3Outline of Lecture 3

1. Determinants of Sustainable Development• Consumption• Production• Distribution

2. Case Examples of Sustainable Development

3. Sustainable Development- Reality or Myth?

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Determinants of Sustainable Determinants of Sustainable DevelopmentDevelopment

• CONSUMPTION CONSUMPTION beyond reasonable limits set by naturebeyond reasonable limits set by nature

• PRODUCTIONPRODUCTIONcharacterized by gross inefficiencies and characterized by gross inefficiencies and mismanagement in the use of water, energy, and mismanagement in the use of water, energy, and mineralsminerals

• DISTRIBUTIONDISTRIBUTIONwhich is grossly inequitablewhich is grossly inequitable

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CONSUMPTIONCONSUMPTION“the selection,adoption,use,disposal and recycling of goods“the selection,adoption,use,disposal and recycling of goods

and services”and services”Wikipedia (2005)Wikipedia (2005)

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Some Reasons to Look at Some Reasons to Look at Consumption PatternsConsumption Patterns

- Eco-efficiency alone can not meet the - Eco-efficiency alone can not meet the natural resource appetite following current natural resource appetite following current consumption patterns.consumption patterns.

- Focus on consumption enables us to look - Focus on consumption enables us to look at what is being consumed and how at what is being consumed and how consonant is it in meeting the basic needs consonant is it in meeting the basic needs of peopleof people

- Close look at Consumption pattern will - Close look at Consumption pattern will illustrate vividly that the poor not only illustrate vividly that the poor not only consume less but also pollute littleconsume less but also pollute little

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Who consumes?*Source:ADB(2000): “Sustainable Development in Asia”

Product Developed% of share

Developing

% of share

Consumption/capita;US/India

Population 24 76

Energy 75 25 35

Food(meat) 64 36 52

Copper 86 14 245

Chemicals 85 15 28

Cars 92 8 320

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Consumer spending & population**State of the World, 2004

Region Consumption expenditure(%)

Population(%) Consumption expenditure ratio

(CER)

CER

Ranking

1.USA & Canada 31.5 5.2 6.0 1

2.Western Europe 28.7 6.4 4.5 2

3.East Asia & Pacific 21.4 32.9 0.6 5

4.Latin America 6.7 8.5 0.8 4

5.E.Europe & C.Asia 3.3 7.9 0.4 6

6.South Asia 2.0 22.4 < 0.1 9

7.Australia& NZ 1.5 0.4 3.8 3

8.Middle East 1.4 4.1 0.3 7

9.Sub-Saharan Africa 1.2 10.9 0.1 8

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Religious Revolt Against Religious Revolt Against ConsumerismConsumerism

• ChristianityChristianity““Watch out! Be on your guard against all kinds of Watch out! Be on your guard against all kinds of

greed; a person’s life does not consist in the greed; a person’s life does not consist in the abundance of possessions.”abundance of possessions.”

• ConfucianismConfucianism““Excess and deficiency are equally at fault.”Excess and deficiency are equally at fault.”

• BuddhismBuddhism““By the thirst for the riches, the foolish man destroys By the thirst for the riches, the foolish man destroys

himself as if he were his own enemy.”himself as if he were his own enemy.”

Source: UNDP, 1998

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• HinduismHinduism““When you have the golden gift of commitment you When you have the golden gift of commitment you

have everythinghave everything.”

• IslamIslam““It is difficult for a person laden with riches to climb It is difficult for a person laden with riches to climb

the steep path that leads to bliss.”the steep path that leads to bliss.”

• TaoismTaoism““One who knows he has enough is rich.”One who knows he has enough is rich.”

Religious Revolt Against Religious Revolt Against ConsumerismConsumerism

Source: UNDP, 1998

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Global obesity is on the rise!

It is a “time bomb”and a “global epidemic”Currently 1.1 billion people in this world are overweight/obese*___________________________*Global obesity websitewww.esrc.ac.uk (2006)

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Body Mass Index (BMI)* is a measure of body fat based on height and weight.

BMI = w/h2

w = weight in kg h = height in meters

BMI CategoriesUnderweight < 18.5

Normal weight 18.5 – 24.9

Overweight 25 –29.9

Obese >30

*http://www.nhlbisupport.com/bmi

http://www.cdc.gov/nchs/nhanes.htm

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Worldwide trends in child obesity**Source: Int. Assoc. for the study of child obesity, March, 2006

Most recent Proj. 2006 Proj. 2010

overw./obese overw./obese overw./obese

AFRICA (03) 1.6 / 0.2 - - - -

AMERICAS (02) 27.7/ 9.6 40.0/13.2 46.4/ 15.2

E.MED (01) 23.5/ 5.9 35.3/ 9.4 41.7/ 11.5

EUROPE (03) 25.5/ 5.4 31.8/ 7.9 38.2/ 10.0

SE ASIA (02) 10.6/ 1.5 16.6/ 3.3 22.9/ 5.3

W.PACIFIC (00) 12.0/ 2.3 20.8/ 5.0 27.2/ 7.0Figures are all in % of total child population

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PRODUCTIONPRODUCTION

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Current Industrial Production Current Industrial Production Patterns: Patterns: 5 Basic Problems5 Basic Problems

1 Using materials & processes causing Using materials & processes causing environmental degradation and health environmental degradation and health hazardshazards

2 Inefficiency of production causing system Inefficiency of production causing system loss and environmental degradationloss and environmental degradation

3 Failure to reflect negative externalities in Failure to reflect negative externalities in product costproduct cost

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Current Industrial Production Current Industrial Production Patterns: Patterns: 5 Basic Problems5 Basic Problems

4 Subsidies on energy, water, & fertilizers Subsidies on energy, water, & fertilizers which mostly benefit the non-poorwhich mostly benefit the non-poor

5 Transaction costs are significantly higher Transaction costs are significantly higher for the poorfor the poor

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New Agricultural Revolution New Agricultural Revolution (Green 2 Revolution)*(Green 2 Revolution)*

1 Redistributive policies that favor access of Redistributive policies that favor access of the poor to land and modern inputsthe poor to land and modern inputs

2 Increased public expenditure in less Increased public expenditure in less favored agricultural landfavored agricultural land

3 Increased attention to the needs of small Increased attention to the needs of small holder farms and landless laborers holder farms and landless laborers including creditsincluding credits

* All elements have significant impact on poverty reduction

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New Agricultural Revolution New Agricultural Revolution (Green 2 Revolution)*(Green 2 Revolution)*

4 Increased investment in rain-fed Increased investment in rain-fed agricultural areasagricultural areas

5 Decentralized agricultural research, Decentralized agricultural research, development, and extension system development, and extension system focusing on soil and water managementfocusing on soil and water management

* All elements have significant impact on poverty reduction

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DISTRIBUTION OF DISTRIBUTION OF RESOURCESRESOURCES

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World Development Report 2006: Equity & Development

• Inequality of distribution of resources results in poverty & weakens prospects for development

• To correct the situation WB recommends ensuring more equitable access by the poor to health care, education, credit, land rights and justice system – among others

• Increase the level of development assistance which is more effective in reducing the income gap between the rich and the poor

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Civil Society’s Role Civil Society’s Role

Share information and resources with other groups Share information and resources with other groups about common environmental and political about common environmental and political concerns to raise awarenessconcerns to raise awareness

Form user groups to manage CPRsForm user groups to manage CPRs Demand industries to clean up & hold businesses Demand industries to clean up & hold businesses

accountable accountable Increase group empowerment ;mobilize youth Increase group empowerment ;mobilize youth

potentialpotential Demand governments and developers to take Demand governments and developers to take

seriously the rights and needs of marginalized seriously the rights and needs of marginalized peoplepeople..

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Sustainable Development- a Sustainable Development- a Reality or Myth?Reality or Myth?

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Recent Studies on Future Scenarios for Recent Studies on Future Scenarios for Sustainable DevelopmentSustainable Development

“Which World? Scenarios for the 21st Century: Global Destinies, Regional Choices” -Allen Hammond of the World Resources Institute, 1998

“Bending the Curve: Toward Global Sustainability” -Global Scenario Group, Stockholm Environment Institute, 1998

“Great Transition: The Promise and Lure of the Times Ahead” -Global Scenario Group, Stockholm Environment Institute, 2002

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Sustainable Development 2050Sustainable Development 2050

Scenarios Essential Characteristics

Constructed from various sources

1. MARKET WORLD •GDP growth•Technological innovation•Increased FDI•Global economic integration•Market-based instruments for environmental protection

2. FORTRESS WORLD

3. TRANSFORMED WORLD

•Government control against social wrong-doings and unconstrained markets•Meeting basic needs for all

•Fundamental change in social values and cultural norms•New coalition for power sharing and working from grassroots up•Market force still remains effective tool for economic growth—not a substitute but a supplement to the following•Economic, environmental and social choices determined by people in a participating and democratic manner•Promote and maintain solidarity, peace and justice in the world

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Critic’s view of SD

• SD is more about establishing global peace and democracy than intergenerational equity

• The World is not going to run out of natural resources

• The real state of the world is better than what the environmentalists think

• SD can be damaging for the poor• Ineffective development assistance is a major

hindrance to SD

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IFI’S LENDING STRATEGYHARD SECTORS SOFT SECTORS

LOW INCOME COUNTRIES

Basic physical Infrastructure, energy, transport.

(High investment, high risk)

X

Social infrastructure, health, education, environment protection.

(Low investment, medium risk)

XX

HIGH INCOME COUNTRIES

XXXXLarge scale energy, transport, industry & other infrastructure development

(very high investment, no risk)

XXX(Low investment, no risk)

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Definition of EHMs

• “Economic hit men (EHMs) are highly paid professionals who cheat countries around the globe out of trillion dollars. They funnel money from the World Bank, the US Agency for International Development (USAID), and other foreign “aid” organizations into the coffers of huge corporations and the pockets of a few wealthy families who control the planet’s natural resources…”

-John Perkins, 2004

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TOR of EHMs

• “Claudine told me that there were two primary objectives of my work. First, I was to justify huge international loans that would funnel money back to MAIN and other U.S. companies (such as Bechtel, Halliburton, Stone & Webster, and Brown & Root) through massive engineering and construction projects. Second, I would work to bankrupt the countries that received these loans (after they had paid MAIN and the other US contractors, of course) so that they would be forever beholden to their creditors, and so they would present easy targets when we need favours, including military bases, UN votes, or access to oil and other natural resources.”

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End of the confession

• In the concluding part of his book, John Perkins stated:“This story must be told. We live in a time of terrible crisis- and tremendous opportunity. The story of this particular economic hit man is the story of how we got to where we are and why we currently face crises that seem insurmountable. The story must be told because only by understanding our past mistakes will we be able to take advantage of our future opportunities….. Most important, this story must be told because, for the first time in history, one nation has the ability, the money, and the power to change all this. It is the nation where I was born and the one I served as an EHM: The United States of America.”

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CASECASE STUDIES*STUDIES** * Smith & Jalal (2000): Sustainable Smith & Jalal (2000): Sustainable

Development in Asia; Asian Development Development in Asia; Asian Development BankBank

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Rainwater Harvesting in Alwar, Rainwater Harvesting in Alwar, Rajasthan, IndiaRajasthan, India

““largest mobilization of people for environmental largest mobilization of people for environmental regeneration”regeneration”

ProblemProblem::

Drought-stricken villages with dry wells and a low water Drought-stricken villages with dry wells and a low water tabletable

Project: Project:

In the mid-1980s, Tarun Bharat Singh, a local voluntary In the mid-1980s, Tarun Bharat Singh, a local voluntary organization, assisted a village in building 3 small rain water organization, assisted a village in building 3 small rain water harvesting structures called check dams. Check dams store harvesting structures called check dams. Check dams store monsoon rains, irrigate fields, and allow water to percolate monsoon rains, irrigate fields, and allow water to percolate through the ground to increase water table. through the ground to increase water table.

Source: Agarwal et al, 1999; Agarwal and Narain, 1999Source: Agarwal et al, 1999; Agarwal and Narain, 1999

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Rainwater Harvesting in Alwar, Rainwater Harvesting in Alwar, Rajasthan, IndiaRajasthan, India

ProgressProgress:: Now 3,000 water harvesting structures in 650 villages.Now 3,000 water harvesting structures in 650 villages. Villagers and TBS regenerated 6,500 mVillagers and TBS regenerated 6,500 m2 2 of land.of land. Groundwater tables have increased by 6 m on average.Groundwater tables have increased by 6 m on average. Forest cover increased by 33%Forest cover increased by 33% 5 formerly seasonally dry rivers flow perennially5 formerly seasonally dry rivers flow perennially Agriculture is more productive and self-sustainingAgriculture is more productive and self-sustaining Average annual per capita income increased by $19.78Average annual per capita income increased by $19.78 For every dollar invested in check dams, economic For every dollar invested in check dams, economic

production in villages increased by $4.20.production in villages increased by $4.20.

Source: Agarwal et al, 1999; Agarwal and Narain, 1999Source: Agarwal et al, 1999; Agarwal and Narain, 1999

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Rainwater Harvesting in Alwar, Rainwater Harvesting in Alwar, Rajasthan, IndiaRajasthan, India

Social ImpactSocial Impact::

Project has helped reverse some of the negative social impacts Project has helped reverse some of the negative social impacts associated with environmental degradation. As a result, there isassociated with environmental degradation. As a result, there is:

reduced migrationreduced migrationincreased attendance in schoolsincreased attendance in schoolsreduced crime ratesreduced crime ratesincreased participation of women in village decisionsincreased participation of women in village decisions

Source: Agarwal et al, 1999; Agarwal and Narain, 1999Source: Agarwal et al, 1999; Agarwal and Narain, 1999

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Improved Cook-stoves Program in Improved Cook-stoves Program in the People’s Republic of Chinathe People’s Republic of China

BackgroundBackground::

Initiated in the early 1980s, covered almost 76% of rural Initiated in the early 1980s, covered almost 76% of rural households after 15 years of implementation without any households after 15 years of implementation without any direct government subsidy.direct government subsidy.

StrategiesStrategies Work began in areas where people showed desire for Work began in areas where people showed desire for

improved cook-stoves.improved cook-stoves. Research and development were geared toward designing Research and development were geared toward designing

stoves to match local conditions of fuel, cooking, and stoves to match local conditions of fuel, cooking, and heating needs. heating needs.

Source: Parikh et al, 1999; Yao, 1999; Natarajan 1999Source: Parikh et al, 1999; Yao, 1999; Natarajan 1999

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Improved Cook-stoves Program in Improved Cook-stoves Program in the People’s Republic of Chinathe People’s Republic of China

StrategiesStrategies Regular, systematic, and consistent monitoring and Regular, systematic, and consistent monitoring and

evaluation have been an integral part of the program since evaluation have been an integral part of the program since its inception.its inception.

Government contributions are small (about 15%) and Government contributions are small (about 15%) and restricted to training, administration, and promotionrestricted to training, administration, and promotion

Flow of money between bureaucratic levels is minimal.Flow of money between bureaucratic levels is minimal. Production of the critical parts of the combustion chamber Production of the critical parts of the combustion chamber

is centralized to ensure long-term, high-efficiency stove is centralized to ensure long-term, high-efficiency stove performance.performance.

Source: Parikh et al, 1999; Yao, 1999; Natarajan 1999Source: Parikh et al, 1999; Yao, 1999; Natarajan 1999

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Case StudiesCase Studies: Lessons LearnedLessons Learned

At the grassroots level, necessary conditions for At the grassroots level, necessary conditions for SUSTAINABILITYSUSTAINABILITY of of DEVELOPMENTDEVELOPMENT are:

• Well targeted programs (in terms of area & population)Well targeted programs (in terms of area & population)• Minimum bureaucracyMinimum bureaucracy• Supportive role of the governmentSupportive role of the government• Active role of the community, NGO, and private sectorActive role of the community, NGO, and private sector• Stakeholders responsibility and sense of ownershipStakeholders responsibility and sense of ownership• Strategy for commercializationStrategy for commercialization• Replication of success storiesReplication of success stories

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Case StudiesCase Studies: : Results AchievedResults Achieved

• People (particularly the marginalized groups) derived People (particularly the marginalized groups) derived economic and environmental benefitseconomic and environmental benefits

• Investments are paid off over a short period of timeInvestments are paid off over a short period of time• Occupational hazards were minimizedOccupational hazards were minimized• Cooperation and understanding between affected Cooperation and understanding between affected

communities, NGOs, and private sector increasedcommunities, NGOs, and private sector increased• Market and policy failures were minimizedMarket and policy failures were minimized• Development became meaningful and sustainable.Development became meaningful and sustainable.