CHAPTER 1 What is sustainable development? he most commonly used definition of sustainable development is that given by the World Commission on Environment and Development in their report, Our Common Future: Sustainable development = development that meets the needs of the present without com- promising the ability of future generations to meet their own needs. (1990, p. 87) This means that economic activity which is carried out now to meet current require- ments should not degrade or deplete the environment so much that people will not be able to meet their needs in the future. Future generations might not be able to meet their needs if the soil is degraded, nat- ural resources such as fisheries and forests are used up, or waterways are badly pol- luted. The part that is hard to define is ‘needs’. What are ‘needs’? People obviously need food, clothing and shelter—but do they also need cars, air conditioners, portable phones and speedboats? Ro they need to live on a planet with a wide variety of plants and ani- mals? Needs are shaped by cultural, com- munal and individual values. In its definition of ecologically sustainable development, the Commonwealth Government avoids the dif- ficulty of defining ‘needs’ by not mention- ing them: Ecologically sustainable development means using, conserving and enhancing the com- munity’s resources. so that ecological proc- cesses, on which life depends, are maintained and the total quality of life, now and in the future, can be increased. (Commonwealth Government 1990, preface) However, the phrase ‘total quality of life” raises similar questions to those raised by the term ‘needs’. What are the essential ele- ments of a person’s quality of life? Again, these will be culturally determined, and will vary with community and individual values. Some people consider that their lives will only have quality if they have easy a¢cess to pristine, unspoilt environments, OF are able to walk to work in pleasant surroundings.A. Tue NATURE OF SUSTAINABLE DevelorpMeNT cr y feel that their quality of - heen having air conditioning in ae cars, or being able to afford the latest fas eat. : eee has further expanded er definition by setting out some principles 0 ecologically sustainable development (Com monwealth Government 1990, pp. 3-10): Integrating environmental and economic goals in policies and activities ; This involves aiming for both economic growth and environmental protection at the same time; and assumes that these goals can be compatible. (This is discussed further in chapter 3.) In certain circumstances, where these goals do conflict, the government argues that the costs and benefits of alter- native courses of action should be com-. pared. (The problems associated with cost- benefit analysis are discussed further in chapter 7.) 2)Ensuring that environmental assets are ~ appropriately valued The government believes that, if people pay Proper prices that reflect the real value of environmental resources, these resources will not be used in a wasteful way. However, it recognises that different people will give different weightings to economic, ecologi- cal, aesthetic and ethical values, and that in some cases putting a price on an environ. mental resource might be difficult or even inappropriate. (Valuation of environmental Fesources is discussed further in part 2.) ©) Providing for equity withit 3 Bordo & equity within and between This principle raises the questions fairly the community’s assets, ural resources and hum: are shared at present and should ensure that fit of how , including nat- an-created capital, to what extent we ture generations. are (Dealing cautiously with risk and left with a similar environmen, of capital. Can future generation pensated where natural resoures Sn up, as in the case of Non-tene resources such as minerals ang gy°™% can people who are badly affect, low changes required t0 achieve sug’, be compensated? (These question addressed in part 4.) x Rog irreversibility The government recognises that it is sn sible to be cautious where environmenn) impacts might be irreversible or may be dif ficult and slow to reverse even if such out- comes are uncertain. It argues that in some cases it may be best to pay a small cost to prevent future environmental damage but that in others it may be better to put up with some environmental damage in order to get the economic benefits. (This is dis cussed farther in part 3.) Recognising the global dimension The government is not only referring to the fact that some environmental problems such as ozone depletion have global dimensions and that Australia should be careful not (0 impose environmental damage on other countries through its actions. It is also arg" ing that enduring some environmental deg: radation in Australia might be better that having polluting activities done elsewhere (This is discussed further in part 4.) In these principles and definitions, susta! able development is human centred; that it is primarily concerned with maintaining human welfare through meeting hum needs and ensuring the quality of huma? life. The io Declaration on Environment and ent, agreed to by over IIntergenerational equity The present generation should ensure that the next generation is left with an environment that js at least os healthy, diverse and productive as the one the present generation experiences. Owing to the massive and irreversible rate of Joss of species and habitats at present, we have an additional responsibility to give the highest prioity to conserving the world's natural envi- ronment and species. Conservation of biodiversity and ecological integrity Conservation of biodiversity and the protection of ecological integrity should be a fundamental constraint on all economic activity. The non-evo- luionary loss of species and genetic diversity needs to be halted and the future of evolutionary processes secured. Constant natural capital and ‘sustainable income’ Natal capital [e.g. biological diversity, healthy environments, freshwater supplies, pro- ductive soils) must be maintained or enhanced from one generation to the next. Only that income which can be sustained indefinitely, aking account of the biodiversity conservation Principle, should be taken. Anticipatory and precautionary policy approach Policy decisions should err on the side of cau fon, placing the burden of proof on technolog- ical and industrial developments to demonstrate thal they ore ecologically sustainable. Social equity Social equity must be a key principle to be ap- plied in developing economic and social policies ©spartofan ecologically sustainable society. mits on natural resource use Sauce: ed. Hare 1990, pp. vii ‘WHAT Is SUSTAINABLE DevELorMENT? 5 AUSTRALIAN MAINSTREAM ENV! [RONMENT GRO} PRINCIPLES OF SUSTAINABLE DEVELOPMENT ne will need to be limited environment to both supy and assimilate wastes. by the capacity of the ply renewable resources Qualitative development Increases in the qualitative dimension of human welfare and not the quantitative growth in tesource throughput is a key objective. Pricing environmental values and natural resources Prices for natural resources should be set to recover the full social and environmental costs of their use and extraction. Many environmental values cannot be priced in monetary terms and hence pricing policies will form part of ¢ broader framework of decision making, Global perspective A global perspective is needed to ensure that Australia does not simply move its environmental problems elsewhere. Efficiency Efficiency of resource use must become a major ‘objective in economic policy. Resilience Economic policy needs to focus on developing a resilience to external economic oF ecological shocks, A resourcedriven economy is unlikely fo be resilient. External balance ‘Ausralio'seconomy needs io be broughtinto bat ance. Extemal imbalance creates pressure to deplete natural copital and could undermine te prospect for an ecologically sustainable economy Community participation Strong Sy participation will be o ee prerequisite for effecting 2 smooth transitior PT ecologically sustainable sociely The scale and throughput of material resources6 THe NATURE OF SUSTAINABLE DEVELOPMENT countries at Rio de Janeiro in June 1992, has the following first principle: Human beings are at the centre of concer for sustainable development. They afe Cn roductive life in har- ted to a healthy and pr mony with nature. (UNCED 1992, p. 1) Sustainable development does not guarantee the needs or quality of life of animals oF other living organisms, except in SO much as this will benefit humans. For some environmen- Tulists this concept does not B0 far enough. ‘They argue that all living creamure® have an inherent right to exist that is separ fi their usefulness or value to humans This idea daeee accepted by all environmentalists and isnot explicitly stated in the principles set for- ward by environmental, groups. ronmental groups in ‘The four largest enviré $ ‘Australia (the Australian Conservalit™ Foandation, Greenpeace (Australia), The Fulderess Society and World Wide Fund for Nature—Australia) have put together 2 lise of principles for sustainable development that have some overlap with and also some differences from those of the Common- wealth Government. Perhaps the most sig Hificant differences lie in their call for conservation of biodiversity and ecological integrity, and for limits on natural resource use. Their principles are reproduced in fall on page 5. The international environmental organi- ston that originally put together the World conservation Strategy in 1980 (IUCN, UNEP and the WWE) have also put oe a set of principles for sustainable develop- ment. These were published in 1992 in a report entitled Caring for the Earth: A Serat- egy for Sustainable Living, and ate reproduced on pages 7-8. These principles, like those of cal BF nce Oo ' coups, place the Austral f biodivers more emphas! ity and the €a! ‘mainten’ spacural Limits re differences of emphasis and iGearly significant overlap vawealth Government's development and snainstream environmental nces in philosophy and ipecome more obvious at the spe: Tevel, However, it is the general 1 environmentalists and government and, indeed, business groups Bow the broad goals and concepts assoc. ape with sustainable development that has afade it such a popular and widely used Term, These goals and concepts are clabo- rated throughout this book. One key point of agreement between environmental groups, business groups and the government is that economic actiovity and environmental quality are closely inter- related. Sustainable development involves the recognition that environmental factors have not been given enough considerati in the past and that this may have a long term. detrimental impact on economic activity and living standards. Most societies depend heavily on economic ining and man- activity such as agriculture, mi ufacture to satisfy the needs and desires their populations. Ithas Jong been recogns that economic activity can damage the ore ae ceise mow being recognised Oe environmental degradation can,in cura economic activity. What was previo” as a one-way relationship is HOW being as a two-way interaction. ot al Tt ig this relationship Which oc explored in more depth in the next ° is on th’s groups. approac cific policy agreement betwee!respect ond care forthe community of es principle teflects the duty of care for other people 0nd ‘other forms of life, now and in the future. Itison ethical principle. It means that devel- 't should not be ot the expense of other youps oF later generations. We should aim to share fairly the benefits and costs of resource use ‘ond environmental conservation among different ‘communities and interest groups, among people cop ote poor and those who are affivent, ond behveen our generation and those who will come. after us. All life on earth is part of one great interde- pendent system, which influences and depends ‘on the nonliving components of the planet— rocks, soils, waters and air. Disturbing one part of this biosphere can affect the whole. Just as human societies are interdependent and future generations are affected by our present actions, 0 the world of nature is increasingly dominated by our behaviour. It is a matter of ethics as well «95 practicality to manage development so that it does not threaten the survival of other species or eliminate their habitats. While our survival depends on the use of other species, we need ‘not and should not use them cruelly or wastetully. Improve the quality of human life The real aim a development is to improve the Quality of human life. It is a process that enables wan beings to realize their potential, build self confidence and lead lives of dignity and fui ment. Economic growth is an important component of development, but it cannot be a Goal in itself, nor can it go on indefinitely. though people differ in the goals that they would set for development, some are virtually uni- ‘tsa, These include a long and healthy life, edu- fan ‘access fo the resources needed for a nt standard of living, political freedom, guar Onleed human rights, and freedom from WHAT is SUSTAINABLE Devetormenr " violence. Develo ;PMeNt is real only ii lives better in all Hel eked these respects ere the Earth’s vitality and diversity onseneationbased “development needs. ind lude deliberate action to protect the stucture, mctions and diversity ofthe world's natural sys tems, on which our species utterly d requires us lo: Pari) * Conserve lifesupport systems. These are the ecological processes that keep the planet fitfor life. They shape climate, cleanse air and water, regulate water flow, recycle essential elements, create and regenerate soil, ond enable eco- systems to renew themselves; + Conserve biodiversity. This includes not only all species of plants, animals and other organisms, but also the range of genetic stocks within each species, and the variely of ecosystems; + Ensure that uses of renewable resources are sus: tainable. Renewable resources include soil wild and domesticated organisms, forests, rangelands, culivated land, and the marine ‘and freshwater ecosystems that support fisher ies. A use is sustainable if itis within the resour: ce's capacity for renewal. Minimize the depletion of non-renewable resources Minerals, cil, gos and coal are effectively nor renewable. Unlike plants, fish or soil, they cannot be used sustainably. However, their ‘life’ can be extended, for example, by recycling, by using less of a resource to make a particular product, ‘or by switching to renewable substitules where possible. Widespread_ adoption of such es tices is essential if the Eorth is to sustain bil at more people in future, and give everyone oT of decent quality. i? ¥ i ac within the Earth's carrying cap peaks etntion is difficult, but i ee tite limits to the ‘carrying capacity’ of the Eo 7 INTERNATIONAL ENVIRONMENTAL ORGANISATIONS, PRINCIPLES OF SUSTAINABLE DEVELOPMENT—_—_—_—— Oy 8 THE NATURE OF SustaINABLe DevELOPMeNT ecosystom: eto advance in 2 ational way. A nat sanaystoms—o the impacsthahey andihe bir heY Oe CO Schieving sustainably shors| Pogo interests, ond seek to identity ag) Sphere as a whole can withstand without dor 981048 deteriovation. The limits vaty fiom regron _ievohe ot A © region online ep oe eaany_ vet problems belere hey ors, Hm be ado, People thore are ane! how mech food, water, ive, continually redrecting is ous in response ‘energy and raw materials each uses and wastes. loenpersare fl is. National Meas. oe people consuming alotean cause as much ures shoul Ree damage as a lot lo consuming @ litle. eat each regi integra Pal He i eer eneandMesives"oking account of the interactions camong on intobalance with nature's capacity mystbedevel gir, water, organisms and human actvitigy coped alongside technologies that enhance thot recognize that each system influences eng capacity by careful management influenced by larger ond smaller sytene- Change personal attudes and practices whet ecological, economic, social or poi, OF rT living jinably,, le . Toasoyhe whic ng sisoob pet onde people os he cota elon ny jour, Society must promote valves that support the: eo Ke 2 oe economic, techni. new ethic and discourage those that are incom Cant’ polilcol factors that affect how they use patible with a sustainable way of life. Information | cluralresources; must be disseminated through formal and infor. * flate economic policy to environmental cony mal educational systems so thatthe policies and | Ingcapacity, secre nonded fot the sunival and wellbeing of 7 iMc*ease the benefis obtained ftom each sock the world’s societies can be explained and _ Offesources; aes + promote technologies that use resources more efficiently; Enablecommunitiestocarefortheirown + ensure that resource users pay the full socal environments costs of the benefits they enjoy. Most of the creative and productive activities of individuals or groups take place in communities. Create aglobalalliance Communities and citizens’ groups provide the No nation today is selfsufficient. If we ore most readily accessible means for people to take achieve global sustainability a firm alliance mst socially valuable action as well asto express their be established among all countries. The levels concems. Properly mandated, empowered and of development in the world are unequal, and informed, communities can contribute to deci- the lowerincome countries must be helped '0 sions thot affect hem and play an indispensable develop sustainably ond protect their evict p20 part in creating a securelybased sustainable ments. Global and shared resources, especoY the atmosphere, oceans and Sood het the society : : tems, con be managed only on Provide a national framework for common purpose and resolve. The chico integrating developmentand conservation applies at the intemational a wel ak Alisocietesneed.afoundationofinformationand national and individual levels. Al notion knowledge, 0 framework of law and institutions, to gain from sustainability—ond a1 Gnd consistent economic and social policies if if we fail to atiain it. Source: UCN, UNEP, WWE 1991, pp. 9-12.aaa CHAPTER 2 The environment and the economic system Tenet YY ost economic activity uses up materials and resources, including forests and min- ‘nals. It requires energy, which also uses up resources such as oil and coal. It also creates vaste products which have to be disposed of into the land, the air or the water, often cre- ating pollution. As economic activity grows and expands, the readily available materials and resources get used up and the environ- ment deteriorates as a result of the pollution. Table 2.1, which is based on information sup- plied by the Worldwatch Institute, shows some of the trends that were occurring during the 1980s, Economic activities that are dependent on 3 heathy environment, such as agriculture, forestry, fishing, tourism and recreation, are ety affected if the environment is — Other industries are indirectly eae as it becomes more expensive to itain Fesources and because pollution an, the health of the work-force. Sus- sitable development is therefore very much vt ensuring that the economic activity supplies communities with food, shelter, manufactured goods and services can be continued into the future. Including the environment For economists, sustainable development means incorporating the environment into the economic system. David Pearce and his colleagues, in their report on sustainable development to Margaret Thatcher, the Brit- ish prime minister at the time, said that the principles of sustainable development meant recognising that ‘resources and environments Serve economic functions and have positive economic value’ (1989, p. 5). Considered as 3 component of the economic system, the environment is seen to provide raw materials for production and to be a receptacle for wastes from production. The traditional definition of an economic system was confined to interactions between households, firms, the financial system and government (see figure 2.1)- Sustainable development is about the integration of the environment into the ¢co- nomic system; consequently, the discussion10 THE NATURE OF SUSTAINABLE DEVELOPMENT ——~ Figure 2.1 Traditional model of an economic system Production | Hovserous | Consumption Products Source: Thampapillai 1997, p. 3 This has now been modified to include environmental resources (see figure 2.2). Figure 2.2 Modified model of an economic system. [———- Wastes Products Environmental inputs Source: Thampopillai 1991, p. 3. surrounding. sustainable development bor- rows heavily from the language and concepts of economics. For these reasons, much of the discussion of sustainable development describes nature and the environment in eco- nomic terms—as natural resources or natural labour and other inputs, Environmental inputs Labour and other inputs ind other resources The notural environment Wastes capital, and as part of the community's stock of assets. Margaret Thatcher described envi- ronmental protection in these terms: No generation has a frechold on the earth. All that we have isa life tenancy—with full repait- ing lease’ (Harris, S. 1991, p. 3).SS ampapillai lecturer in economics a ie ie Gniversity, says in his text Envi- at cquari sent! Econormies ‘leary, the natural environment is an impor- Genfommpanent of the economic SpstMy and ta atthe natural environment the economic omyould not be able to function. Hence, no treat the natural environment in the swe treat labour and capital; that and a resource. (1991, p. 5) syste wees same Way js, as an asset David James, Commonwealth Government fasessment Commission, has said: former Commissioner of the Resource Any economist will tell you that the environ- tment really ought to be classified as a resource; hence it should fall firly and squarely into the policy arega concerning the allocation of prources. (anagement of the environment is ‘essentially an economic problem. (1991, p. 2) With better management of natural resources we could obtain a larger supply and wider range of goods and services. This is the central notion of sustainable development. It THE ENVIRONMENT AND THE ECONOMIC System 11 involves making decisions about the optimal composition of the economy’s capital stock, including human capital, man-made capital and natural resource stocks. We should be attempt- ing to manipulate the total capital stock in such a way that the welfare of society is maximised. (1991, p. 4) While James, as an economist, puts forward an obviously economic definition of sustain- able development, that adopted by the Brundtland Commission is not so different: “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.’ James points out that economists are interested in the environment to the extent that it can ensure a continuous supply of goods and services to meet human wants. This seems to be the intent of the Brundtland ‘Commission’s definition of sustainable devel- opment, which makes no specific mention of the environment. Nort all environmentalists are happy with Table 2.1 Global economic and development trends in the 1980s. THE ECONOMY Production Global output of goods and services increased from $US15.5 trillion in 1980 to about $US20 tilion in 1990 Trade World exports ofall goods increased by 4 per cent each year '0 reach mote than $US3 trillion in 1990 THE ENVIRONMENT Fores Each year the earth's tree cover diminishes by bout 17 million hectares, an areas the size of Austria a Fach yesrebout 24 billion fons of topsoil fom croplond oe Fos abou! the amount qs on Australia’s wheatland es limate The amount of carbon dioxide, the principal greenhouse gos 1" the atmosphere is = rising by 0.4 per cent each year , Ai Qualiy Jar Jetson reached healrhveotening levels in hundreds of cles and crop damaging levels in others Source, Brown et al, 1991, p. 7.’ ee at 12 THe Nature OF SUSTAINABLE DEVELOPMENT what they see as a takeover of the environ- mental agenda by economists. They believe that the environment has value beyond its ability to provide for human needs or wants, and that it should be protected for other rea- sons as well. (These issues are considered fur- ther in part 2.) Poverty, affluence and the environment ‘As well as the interdependence between eco- nomic activities and the health of the envi- ronment, there also seems to be a link between the state of a region’s economy and the state of its environment. For example, the Brundtland Commission argued that poverty was a major cause of global environmental problems and a result of global environmental problems. People who are dependent on the land for growing their food can become poor \S and unable to feed themselves if the land they are working on becomes degraded and unproductive. On the other hand, people who are extremely poor and need land for growing their food may cut down trees, over- work the land and degrade it because they have very few other choices. (These issues are considered further in part 4.) Population growth, one of the major fac- tors affecting the environment (see chapters 15 and 16), is closely interrelated with pov- erty. Population rates fall if people are more confident that the children they have will live and if they are not dependent on having chil- dren for their future security. This requires access to food, health care, education, social welfare and rising levels of income for the poorest people in the world, The argument that poverty causes environ- mental degradation is contested by some people, particularly environmentalists and social activists in low-income countries, They Agwerrd Cosernes argue that affluence has a far greater impact on the environment because people with money to spend consume more of the world’s resources, such as energy, minerals and forest products. These high-income people also benefit most from polluting activities, such as manufacturing and mining in their own and other countries. (These arguments are con- sidered further in part 4.) The interaction between the state of a nation’s economy and its environment is depicted in figure 2.3, The state of a nation’s economy influences not only its resource use and the impactiit has on the environment, but also the attitudes people have to the environment. As econo- mies grow and people have higher living stan- dards, more money to spend and more leisure time to spend it in, they will increasingly demand a range of environmental goods and resources—such as clean beaches and wilder- ness areas—for recreation and tourism. It is also argued that people in poor coun- tries want these things, too, and are in fact more dependent on them for their liveli- hoods. For them, protection of forests and ‘waterways is more likely to be a matter of survival and subsistence than one of aesthetics and recreation. Development and economic growth In the past, development has usually been equated with economic growth. (See page 14 for definitions.) This is because one of the main goals of a modern society has been to increase living standards, and it has been thought to be right and proper for society to develop in a way that would achieve that goal. Economic growth in many countries over the last century has met the needs of millions of people for food, shelter and clothing. It has also given many people in the world access to a: Cofate STATE OF THE ECONOMY low income increasing populations displacement of people overuse of some resources eg, land, timber STATE OF THE ENVIRONMENT environment a survival issue —_————_> THE ENVIRONMENT AND THE ECONOMIC SYSTEM 1 3 2.3 The interaction between the economy and the environment. high income increasing consumption more resource use more polltion environment o quality of life issue Z basic needs, improving their standard ofliving and the quality of their lives. Most governments in the world aim to achieve economic growth; the Common- wealth Government of Australia is no excep- tion. The need for economic growth is accepted by the Labor, Liberal and National Parties as an objective which is beyond ques- tion. The Commonwealth government, in its the applicati intligence and good maragomern osu of seme i with current problems ean enable Sa Browth to continue for a considerable period of time, to the benefit, rather than to the des. riment, of mankind. We argue that without Such growth the disparities among nations so regretted today would probably never be overcome, that ‘no growth’ would consign the poor to indefinite poverty and increase the Present tensions between the ‘haves’ and the ‘have-nots’. Nevertheless, we do not expect economic growth to continue indefinitely; instead, its recent exponential rate will prob- ably slow gradually to a low or zero rate. (Kahn, Brown & Martel 1989, pp. 178-9) The limits-to-growth arguments have been largely discarded even by many environmen- talists. This was due partly to the exagger- ated pessimism of the early writers who prophesied imminent disaster that did not happen (at least in the short-term); partly to their focus on the depletion of resources such as oil and minerals, which has not man- ifested itself (see chapter 4); and partly to the success of well-financed think tanks such as the Hudson Institute in debunking these arguments. The debates over whether there were limits to growth were no longer found in mainstream discourse by the end of the 1970s. . Sustainability in the 1980s renewed interest in sustainabili c 3980s moved away from the original at ‘onomic growth cannot | new formulation which king it so. The ception that ec sustainable to a seeks to find ways of ma18 THe NATURE OF SUSTAINABLE DEVELOPMENT limits-to-growth model has been replaced with the sustainable development model, and the ‘gloom and doom’ scenario has been replaced with one of hope. The changed use of the term ‘sustainabil- ity’ in itself indicates the differences between this wave of environmentalism and the car- lier one. Earlier environmentalists had used the term to refer to systems in equilibrium: they argued that exponential growth was not sustainable, in the sense that it could not be continued forever because the planet was finite and there were limits to growth. In contrast, sustainable development seeks ways to make economic growth sustainable, mainly through technological change. In 1982, the British Government began using the term ‘sustainability’ to refer to sustain- able economic expansion rather than the sustainable use of resources. This new for- mulation recognises that economic growth can harm the environment but argues that it does not need to. This new formulation still offends more radical environmentalists, such as Mohamed Idris: ‘The term ‘sustainable’ from the ecological point of view means the maintenance of the integrity of the ecology. It means a harmo- nious relation between humanity and nature, that is, harmony in the interaction between individual human beings and in their inter- action with natural resources. _The term ‘sustainable’ from the point of view of non-ecological elites means ‘how to continue to sustain the supply of raw materials when the existing sources of raw materials ran ‘out.’ (1990, p. 16) Wolfgang Sachs argues in a similar vein that by ‘translating an indictment of growth into a problem of conserving resources, the con- flict between growth and environment has been defused and turned into a managerial exercise’ that forces development planners to consider nature (1992b, p. 21). However, for more conservative environ. mentalists and for economists, politicians business people and others, the concept of sustainable development offers the oppor. tunity to overcome previous differences and conflicts, and to work together towards achieving common goals rather than con- fronting each other over whether economic growth should be encouraged or discour- aged. The Commission for the Future argues: Rather than growth or no-growth, as the debate about environment and development has sometimes been cast, the central issue is what kind of growth. The challenge of sus- tainable development is to find new products, processes, and technologies which are envi- ronmentally friendly while they deliver the things we want. (1990, p. 27) Economic growth can be achieved in 2 number of ways, some of which have more impact on the environment than others. These are the main ways: + Produce more goods and services by using more natural resources, capital and labour. «Increase population so there are more workers and consumers. « Increase productivity so that more goods and services are produced for the same amount of natural resources, capital labour. (Miller 1990, p. 577) Sustainable development aims to achieve economic growth by increasing productivity without increasing natural resource us¢ f00 much: The key to this is technological change. Whether or not this can be achieved will be discussed in part 5. Instead of being the villains, as they were in the 1971 ey and industry are.n to provide the solutions to envi- mental problems. Consequently, the flict between economic growth and envi- oe rotection has been suppressed. ‘example, the Ecologically Sustainable pest! lopment (ESD) Working Groups argue inst there being such a conflict: ‘This iprerdependence of the economy and the Mironment counters a common view that the economy and the environment are i peed ro each other’ (1991b, p. 2). ‘What is more, economists have largely raken over the language of the debate—to such an extent that a speaker at an OECD sorkshop in 1990 observed that ‘one can wack the evolution of environmental con- cer over twenty years by watching it move from the back page of major newspapers to the front page, and now to the financial page’ (Long 1991). For those environmen- filsts who see business people and econo- mists as part of the problem, this situation is exceedingly frustrating. Sustainable devel- opment is to them, an oxymoron—a contra- diction in terms. They condemn the sponsorship of the Earth Summit by multi- national corporations, they despair at the lack of discussion of the role played by eco nomic growth and business corporations in environmental degradation, and they abhor the reduction of environmental values to Monetary values and the commodification of nature. now see Continuing debate over limits 'o growth pisiness groups tend to emphasise the need forconomic growth in their policies on ainable development. For example, the {ternational Chamber of Commerce argues lat: Is Ecc ‘ONOMIC Growry, SUSTAINABLE? 19 balance s, is necessary ichieve growth that is sustainable. In turn, versatil i pest vest, dynamic, esponve and Profitable businesses are required asthe dr 18 force for sustainable economic develop- ment an for providing managerial technic cial resources to ‘bu resolution of environmental hallenees Business thus shares the view that there should be a common goal, not a conflict between economic development and environ. mental protection, both now and for future generations. (ESD Working Groups 199la, p. 219) : Such views have also been reiterated by the ESD working groups, The manufacturing group, in its Final Report—Manufacturing, argues that economic growth provides the * resources for the new ‘cleaner’ technologies, (o™ the capital to invest in ‘green’ products, and the leisure to enjoy them, not to mention an enhanced quality of life for all Australians. (199]a, p. 54) ‘The International Institute for Environ- ment and Development argues that for low- income countries there is no conflict between economic progress and environ- mental protection. The case for economic growth is more obvious in low-income countries, where there are many | people whose basic needs for food, clothing and shelter are not being met. Jim MacNeil the secretary-general tO the Brundtland Com- mission, argues that: cent imperative of the vest few decades is further rapid gro a a ie tenfold increase in economic sity aia ver the next 50 ye poe 1 as to begin 10 the most urg and aspirati as wel20 THe Nature oF SUSTAINABLE DEVELOPMENT erty. If such poverty is not no way to stop the accelerating decline in the planet’s stocks of basic capital: its forests, soils, species, fisheries, waters and atmos- phere. (1989, p. 106) However, economic growth does not nec- essarily eliminate poverty. The economic growth that has occurred worldwide over the last twenty years has not decreased the poverty within developed nations; and the richest nations in the world still accommo- date some of the poorest people. Such pov- erty results from distributional problems rather than from a nation’s lack of wealth. In 1973, the president of the World Bank, Robert McNamara, said that although the world had just experienced ten years of unprecedented economic growth ‘the poor- est segments of the population have received relatively little benefit ... the upper 40 per cent of the population typically receive 75 Per cent of all income’ (Sachs 1992a, p. 6). The need for growth in high-income countries is even more controversial. US economists Barkley and Seckler wrote in the carly 1970s that: the more developed nations of the world have Row reached a state where all reasonable and rational demands for economic goods have been or can be satisfied. As a result, the vir. tues of added economic growth may be an illusion because growth does not come free, In fact, the costs of added growth ate climb, ing quite rapidly as the pressures against cen. ‘ain resources, and on the environment a5 4 whole, increase. The developed countries may have reached a level at which the coms vf additional growth in terms of labor and lose of environmental quality exceeds the benefite (1972, p. 18) ‘Ted Trainer, a well-known Australian limits- fo-growth advocate, argues that our levels of resource use, production and consum in Australia are already unsustainable example, Australians on average alreaty the equivalent energy of about seven to of coal per person. If everyone in the wn used this much, world energy produtio’ would have to be quadrupled. This would mean, he claims, that the world’s supplies ot coal, oil, gas and uranium would quickly ny, out, and the greenhouse gases in the atmos phere would increase alarmingly. Environmentalists Winin Pereira and Jeremy Seabrook (1991) also dispute the idea that high living standards, which they define as ‘the widespread consumption of large volumes of goods and services’, can be sustained. They argue that no matter how much recycling and reuse occurs, the energy component in all manufactured goods and services cannot be recycled and inevitably creates pollution. They say that: Economic growth can be made compatible with environmental enhancement only if the emission of pollution is less than that which can be assimilated and transformed by the natural environment. In order that resources may be conserved, all articles must be manu- factured so as to be fully recyclable. Further, they must be manufactured, transported, used, and recycled with energy from renewa- ble sources only. (p. 2) However, complete recycling is not possible, since some materials are always lost through Wear and tear, and corrosion. Moreover, Trainer says that even if pollution generated by manufacturing could be cut by 30 per cent, while manufacturing grew at 3 per cent Per year, the gains would be lost in thirteen Years—and there would be twice as much Pollution as we started with in twenty-three Years’ time. At this rate of growth (3 per Sent), Australia would be producing eightmes as many goods in 2050 as it is now, While Trainer agrees that there needs to be rowth in some areas, such as solar tech- nology, two key questions need to be asked: «What specific limited developing? : « What would constitute sufficient develop- ment? things need Another argument for economic growth in high-income countries such as Australia is based on the pressures of the international system. It is claimed that economic growth is necessary to remain competitive, and to attain and maintain employment levels. This argument is valid, given the current eco- nomic system within Australia and interna- tionally. Also, there seems to be no mechanism to share the available work equi- tably; meanwhile, unemployed people are forced to undergo humiliations and depri- vations of various sorts because of the prev- alence of a work ethic that brands them as lazy or unworthy. This means that we seem to be locked into a system that requires eve- ryone to be working at producing goods or services—whether they are needed or not— and that people need to be persuaded that they want these goods and services. There seems to be little scope and even less encouragement for people who prefer to work less and consume less. Whether they believe economic growth and environmental protection are compati- ble, almost everyone agrees that there will inevitably be situations in which the goals of ‘conomic growth and environmental pro- ection are irreconcilable and choices have to made. Such situations are at the heart of Most conflicts between environmentalists 5 Economic Grown SUSTAINABLE? 21 and developers. The Com: ernment, in its 1990 di sustainable development, role of governments to make those choice between incompatible u: ompatible uses as they arise, The Bovernment’s policy on resolving resource. use conflicts of this nature is articulated in the Resource Assessment Commission Act 1989, which states that both environmental and economic considerations should be taken into account in such decisions, and that: monwealth Gov- scussion paper on argues that itis the Resource use decisions should seck to optim- ise the net benefits to the community from the nation’s resources, having regard to efficiency of resource use, environmental con- siderations, ecological integrity and sustaina- bility, the sustainability of any development, and an equitable distribution of the return on resources. (quoted in Commonwealth Govern- ment 1990, Appendix 7) It also states that: It is necessary to evaluate the risk to fature economic prospects if business investment and growth is prevented or discouraged. In some cases it may be worthwhile paying the price of some environmental damage to ensure present and future economic benefits. This will be particularly relevant in commer- cial development of non-renewable resources, where at least some transient impact on the environment is inevitable. (p. 9) This use of cost-benefit analysis in making such choices and trade-offs is discussed in part 2. The debate over limits to growth, and whether economic growth is compatible with environmental protection, will be con- sidered further in chapter 4 through the ‘examination of a case study on mining.2 THe NATURE OF SUSTAINABLE DEVELOPMENT 2: Meadows, Donella i W. UN 1972, The r4 dicament of Ma Trainer, Ted 1985,