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Mili Rathor

Environmental Cost of Inequitable Development

Abstract


Following the cataclysmic aftermath of World War II, several developing nations aimed to replicate the standard accomplishments of developed countries. These nations regarded swift industrialization as the key to achieving economic growth. Industrialization was promoted through a combination of industry subsidies, protective tariffs, and state ownership across countries. Heavy industry, when established without adequate oversight from regulators, has often led to catastrophic global environmental consequences.

At present, the top two contenders among developing countries are India and China. They are the poster nations contributing more than half of Asia’s GDP collectively[1], sharing 20.5% and 26.8%, respectively, of the global wealth in Purchasing Power Parity terms. However, India is currently a fifth of the Chinese economy for development has multifold dimensions.

The principle behind ‘rapid’ economic growth is the reduction of poverty, but it failed to meet the desired equal distribution of resources, causing equally rapid environmental loss. One of India’s fundamental setbacks is being one of the largest poverty stricken populations with over 44% people[2] out of 1.4 billion people, living under the intensity of poverty. There is a need for new approaches and innovative solutions that can help to promote sustainable development and protect the environment in the face of these challenges. Promoting sustainable development practices can help to balance economic growth with conservation. 


Equity and Sustainability in Developing Economies


The consistent rate of poverty in India is an outcome of various facets of society, from  unequal distribution of resources, lack of education and employment opportunities, and inadequate access to healthcare and other essential services. The extent to which growth alleviates poverty hinges on the level of participation of poor people in the process and their share of its benefits. Therefore, both the speed and structure of growth play a crucial role in reducing poverty.

It is inevitable for rapid industrial development, that all developing and developed States are partaking in the name of economic growth, to have a devastating effect on environmental issues at global level.

While the World Bank, in the World Development Report 2024 for Economic Growth in Middle Income Countries[3], and other stakeholders envision growth rates for developing countries, there are also substantial long-term risks associated with this growth. These risks include immense pressures on commodity prices and the environment. Growth differs significantly between developed and developing countries as there exist economic, social and structural differences. For instance, in the 21st century, one such factor of growth on constant rise is  technology and innovation. Accessibility and adoption of advanced, innovative technology is taken to be a measure of growth.

Human activities have a disproportionate impact on the planet, and the capacity to respond to human-induced planetary phenomena varies within and between societies. Therefore, it is crucial to ensure not only more efficient use of resources but also a more equitable distribution of incomes and resources within and between countries. Equitable and sustainable strategies should be seen as interconnected and co-evolving.


Addressing Environmental Responsibility


A vested human right to clean, healthy, and sustainable environment has been established, globally. Such establishments affirm that an environment permitting a life of dignity and well-being is fundamental to any person and moreover a natural right. The United Nations Conference on the Environment in Stockholm, 1972 started the first, one of its kind dialogue between industrialized and developing countries regarding the pollution of the air, water and the ocean, and the well-being of people around the world at the forefront of international concerns. In India as well, it has been reiterated in several judicial precedents that to lead a quality life, the right to a healthy environment is indispensable.

The stakeholders, in this industrialization-environmental ecosystem, are all major economies worldwide including their governments, industrialists, policymakers, philanthropists as consumers of commodities linked to environmental loss. One such stakeholder is the European Union (EU), who is acknowledging the share of responsibility for environmental degradation, and is addressing it through policy measures like the Regulation on Deforestation-Free Products (EUDR).[4]To impede global deforestation and reduce carbon emissions linked to forest-risk commodities, the EUDR shall prohibit national and international trade for certain listed commodities such as cattle, wood, cocoa, soy, oil palm, coffee, and rubber. Any derivatives of these commodities will also face similar regulatory measures.

The EUDR will be in full fledged implementation by the end of this year. Policy actions at such a massive scale marks a substantial stride in mitigating the worldwide effects of rapid globalization at local deforestation costs. Tailored efforts such as these, hold promise to promote sustainable economic growth with environmental conservation.

Developed countries are starting to adopt domestic trade policies and tariff measures that mitigate humanity’s carbon footprint, fostering sustainability benchmarks. However, many industries also rely on supply chains that begin in low or middle-income countries like Brazil or Indonesia for cost-effective labor and higher investment returns. This practice of outsourcing from high-risk areas may become obsolete once policies like the EUDR are enforced. Countries like India, with their industrial development, will also face challenges in complying with such regulations and may inadvertently violate them.


Conclusion


In the hustle of gaining power, and social security in terms of wealth after the great Indian Independence, the industrial and white revolution fueled the run for rapid growth. Somewhere in that run, there have been humane aspects and repercussions that were grossly neglected and, we, prospect that the time is now for us and all our future generation to pay for the greed.

The planetary boundaries are interconnected, just as their connections to human well-being. When environmental shocks and stresses occur, they can exacerbate economic, social, and spatial inequities, which may lead the most vulnerable populations to engage in unsustainable practices. The impact loops across social-ecological systems can result in a vortex of further vulnerability and impoverishment. In shaping pathways towards equitable sustainability in the anthropocene, law and governance play a fundamental role. Therefore, policies addressing human well-being alone or environmental stress alone will not solve the problem.  Distributional issues within and between social groups, as well as across time and space, need to be addressed to achieve greater equity.


Citations



[2] National Multidimensional Poverty Index 2023, Niti Aayog, India with United Nations Development Programme and, Oxford Poverty and Human Development Initiative, G20 2023; available at – https://www.niti.gov.in/sites/default/files/2023-08/India-National-Multidimentional-Poverty-Index-2023.pdf


[3] Economic Growth In Middle-Income Countries, World Development Report 2024, World Bank 2023, available at: https://www.worldbank.org/en/publication/wdr2024


[4] Regulation (EU) 2023/1115 of The European Parliament And Of The Council – on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010, Official Journal of European Union, May 2023; available at – https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023R1115&qid=1687867231461


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