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					Sustainable Development and Environment in a Globalizing World
Opening Presentation of the Course:Ontwikkelingssamenwerking in theorie en praktijk: De VU in de Tropen

Joyeeta Gupta
Institute for Environmental Studies, Vrije Universiteit Amsterdam UNESCO-IHE Institute for Water Education

vrije Universiteit amsterdam

Structure

   




Geopolitics: Key features Environment and development: the dilemma’s Sustainability dilemma’s of countries Globalisation and impacts Distribution of environmental space and the climate change regime Towards constructive cooperative relationships

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Geopolitics - 1: The world
UN member states 35 very rich countries; The rest from very poor to high middle income countries
191

The South

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Geopolitics - 2: Negotiating blocs
G-77 OECD Rest

of the world

OECD

ROW

G-77

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Geopolitics - 3: Relations
     

Peace (High politics) Environment Development Finance and debt Trade Private international law

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The key goals
How

Environmental pollution

N S

to achieve sustainable development? Theory says -- by leapfrogging and learning from past mistakes! (Mistake optimism argument: problem defined in terms of technology, easy to correct incrementally, gives direction, confidence in North’s leadership, reconfirms possibility of unchanged lifestyles for rich)

Development

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Environment and development
However: 

 



the inverted U curve does not yet hold for global problems, delinking may be followed by linking, imitating production and consumption patterns of the North might not solve the problem; avoiding mistakes is costly

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Demographic transition theory

GDP
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Economic Take-off theory
  



subsistence economies, transitional stage - specialization and surplus take-off - industrialization and investment increases, development of political and social institutions, maturity, diversification, high mass consumption, service sector dominant.

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Diverging Income Theory

Rich countries
Those in the middle

Poor countries Time
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Political stability theory Rich countries
Variant 1: democratic- no hunger Variant 2: dictatorial - hunger

Poor countries

GDP
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Sustainable Development
  



Present and future generations Economic, social and environmental “Law of Sustainable Development” –  Sustainable use  Precautionary principle  Equity and poverty alleviation  Common but differentiated responsibilities  Participation  Good Governance  Integration But what is sustainable development?

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Southern Sustainability Dilemmas

   

Development: modernising without westernising? Poverty- I: surviving without squandering? Poverty-II: begging without mortgaging? Privatisation-empowering private sector to solve
problems

public


  

Ecospace: equity without responsibility Economic: short-term gain without long-term loss? Negotiation-I: negotiate pragmatically without being
corrupted?

Negotiation-II

empowering G-77 without being weakened

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Northern Sustainability Dilemmas

       

Development: further development without sacrificing? Wealth - 1: spending without squandering? Wealth - 2: assisting without compensating? Wealth - 3: polluting without paying? Privatization: empowering private sector to solve public
problems

Ecospace: property rights or human rights Economic: short-term gain without long-term loss? Negotiation-I: negotiate pragmatically without being
committed?

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Globalisation
coverage Explosion of foreign direct investment trade World wide web Integrated Financial markets Changing labour migration Common governance system

Media

Greater wealth for all

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But, globalisation can also lead to
Gaps, cleavage, exclusion

markets Disempowerment Debt Unequal treaties Marginalisation Dependence

Closed

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The polluter pays principle
polluter pays The money is used to compensate and/or clean up the pollution Adopted by the OECD Not adopted at international level
The

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Ecospace: environmental utilisation space




There is a limit to how much resource extraction and resource pollution can take place globally.The environmental utilisation space is limited. The question: How should this limited space be divided among countries and peoples?

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Ecospace and property rights in water
does one share transboundary waters?
How

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The key issue in the climate change regime is:

does one allocate emission rights?

How

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The Climate Regime
 

Key dates: 1992, 1995, 1997, 2001, 2005! Key aim:  stabilise GHG conc.;  divide responsibilities;  set up cooperative mechanisms like TOT, GEF, AIJ, JI, CDM, ET

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Shifting paradigms
L ead ersh ip p arad ig m C o n d itio n al lead ersh ip
JUSSCANNZ waiting for the key DCs The EU waiting for JUSSCANNZ

P artn ersh ip w ith o u t U S

N

USSCANNZ
The South waiting for the North to act

CEITS EU

S
E U fo cu ses in tern ally

S
E U as b rid g e b etw een N o rthS o u th E U fo cu ses o n IC p arties

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Possible Instruments in the Climate Change Negotiations

Emissions

Trading Joint Implementation Carbon Taxes The EU bubble

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Emission Trading: theory






Fix total emissions; divide it among parties and allow them to trade. Effective: because the total emissions are not exceeded; Efficient: because countries can sell their excess and buy when they have shortage.





The main problem is how to allocate among parties:  On a per capita basis  On ‘grandfathering’ basis  On something in between The other problem is how feasible is it?

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Joint Implementation: Theory


Definition: Allow a foreign investor to invest in another country. The GHG emissions reduced as a result are then attributed to the foreign investor. This allows the foreign investor to seek the cheapest way to reduce emissions.

Problems:

lines  How to share the credits  Is it additional?  Is it neocolonialist?

 Base

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Carbon Taxes
A

tax is added on to the product. This increases the price of the product and thus encourages efficiency.

problem is that each country has different fiscal systems and adopting a uniform carbon tax is not very easy.

The

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The European Union Bubble


The EU has adopted a common target which is then divided among member countries. At present the division has been influenced by the tryptich method and bargaining.

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Current situation in the climate change regime.
   

Joint Implementation among developed countries Clean Development Mechanism between developed and developing countries Emission Trading between developed countries The Bubble within the EU

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So:




What do you think is the most elegant, efficient and environmentally effective method to reduce the emissions of greenhouse gas emissions ? If the total amount of greenhouse gas emissions is seen as 200 units and there are 200 countries of which 35 are developed and the rest developing, how should the emissions be divided among countries?

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EU and its contribution


Plus  emissions below 1990 levels;  potential space from some new EU countries;  Lots of policies in place, including with stakeholders;  ET internally



Minus






what happens if coal lobby in Germany is strong and anti-nuclear lobby in France is strong? What about new entrants without targets and the right to grow of less developed EU countries? Policies in general implemented weakly.

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India: Is it making any contribution?

Since     

1990: Liberalisation in 1991 Unbundling of electricity boards Establishment of pricing Commissions Renewable energy programmes Liberalisation of cement, aluminium, iron and steel sectors;

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China: Is it making any contribution?
  



Has decoupled its energy use from GDP Is undergoing major transformations Is closing down small, inefficient power plants and end-use plants ..

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China and India: Afraid to make commitments
 



Data base very weak In a state of structural transformation; difficult to predict future; Some parts advanced, others not

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Global expenditures and priorities

•World Bank •UNDP •UNEP •UNCED •GEF -

•Basic education 6 B $21 B •Cosmetics USA 8 B 2 B •Water/san. 9 B 242 M •Ice-cream in EU 625 B 11 B 500 M •Repro. health 12 B •Military 780 B

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Tragedies of Governance - 1








Tragedy of Principles:  Gap between principles and action Tragedy of Over-Production  If production increases, prices fall Tragedy of SAPs  Reduce subsidies on health/education; shift to export products; devalue currency Tragedy of Food Aid Regimes  Policies are driven by domestic policies in powerful countries

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Tragedies of governance - 2










Green revolution  Increases productivity; but increases costs of inputs and has environmental impacts; Gene revolution and Pharming  Increases shelf life, but privatises knowledge Tragedy of free trade  Not free, but corporate managed EUs Common Agricultural Policy  Subsidies, export subsidies, dumping Tragedy of fishery governance  Subsidised fishing in distant waters

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Conclusion: Towards constructive solutions
   



Law: Working towards rule of law globally Politics: By developing democratic principles globally Society: By investing in human health and education world-wide Economics: By internalising environmental costs Technology: By investing in new technologies

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Acknowledgements


Netherlands Organisation for Scientific Research for funding on the:  VIDI Project: Intergovernmental and Private International Regimes: Good Governance, the Rule of Law and Sustainable Development  IDPAD Project:Alternative Development Paths: Scope for Mobilising International Resources for Funding the Power Sector in India

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