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p. 15 of 57 BACK | NEXT I. The Changing Environment II. Driving Forces of Change Population Explosion Urbanization and Industrialization Income Growth and Inequality Technological Changes Governance Institutions, Policy, and the Market Toward Sustainable Development III. Options and Opportunities IV. Toward Policy Integration V. Call to Action

Asian Environment Outlook 2001 : II. Driving Forces of Change

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Governance

Countries within the Asia and Pacific region depend on a range of systems of governance to perform critical functions such as identifying societal goals, securing resources, and mobilizing participation of the public and private sector. Although broad assessment of governance systems is fraught with difficulty, several dimensions of governance have been identified as contributing to environmental problems within the region.

The experience of the 1997 and 1998 Asian financial crisis stressed the importance of transparency and accountability within government and the relation of government to the private sector and the public. Transparency and accountability are necessary to mitigate possible government corruption and mismanagement as well as the lack of requisite regulatory oversight over economic processes. Effective governance also depends on the availability of high-quality information concerning economic processes and related environmental effects.

Historically, central government organizations have been the cornerstone of institutions of governance within the region. Many countries are now recognizing the value of more inclusive processes of governance that provide greater scope for direct participation by the public and nongovernment organizations (NGO) (Seymour and Faraday 2001). Civil society, including environmentally-oriented NGOs of citizens groups and NGOs representing small businesses and trade associations, have increased in number and influence in the region. But the slow development of inclusive governance in the region has hampered efforts to reconcile competing societal goals.

An example of early successful environmental activism in Asia was the Chipko Movement in India in the mid-1970s, which successfully stimulated a 15-year ban on tree felling in Uttar Pradesh. Despite many such examples, many governments in the region, while welcoming civil society assistance and the provision of services, remain suspicious and hostile toward activist advocacy groups. The proliferation of NGOs has provided new opportunities for civil society participation in environmental governance, but the impact to date has not translated into improved environmental quality. There is also emerging concern that civil society organizations are not necessarily representative of or accountable to the constituencies that they serve or the citizens on whose behalf they advocate.

The global trend toward inclusive governance presents new challenges to regional governments. First, central governments have been slow to assign and devolve roles and responsibilities to civil societies (see Box 2-6), local communities, and the private sector. Second, it is important that responsibility be accompanied by delegating resources and authority (Agarwal and Ribot 1999). Third, most countries in the region have failed to establish and enforce a minimum national framework for development. This framework would ensure that local level departures from national goals and objectives are monitored and checked. Fourth, devolution from central government to local authorities and communities will not achieve much in the absence of good governance and transparency at both levels. Governance at the regional level also has implications on the international level (see Box 2-7).

One of the most important driving forces for change outside of the government is the private sector. However, when resources have been privatized without adequate safeguards, the results have often been disastrous for the environment, especially in the areas of mining and natural resource extraction. Through logging and mining concessions, companies have been granted the access and responsibilities to exploit vast areas and volumes of natural wealth. Many concessions have been granted by governments in areas where property rights are disputed. Many forest-dwelling or dependent communities have asserted ownership over the same forest resources assigned by governments to the private sector (Brunner and others 1998). Similarly, mining concessions have allowed operators to dispose of toxic mine wastes to land and water resources claimed by indigenous groups (Broad and Cavanagh 1993).

Awarding concessions over valuable natural resources to military affiliates and “cronies” of national leaders has led to the flouting of regulations designed to mitigate the environmental and social impacts of resource exploitation. Low rates of economic rent capture have resulted in significant profits for concession-holders that often allow them to enjoy disproportionate political influence and immunity from prosecution.

In addition, many resource extractive industries operate in remote areas, where government presence and services are minimal. As a result, private companies become the de facto providers of services to local communities despite questions about their capacity and accountability to the affected communities. As many concessionaires also finance their own security, there is justifiable concern over human rights violations, especially when environmental concerns have led to confrontation with indigenous groups.

In other areas, especially finance and management of infrastructure and service provision, progress has been hampered by a failure to draw upon the full resources of the private sector. Failure to price water and other resources relative to actual supply costs has distorted the market for critical resource inputs in both urban and rural areas. The increasing trend toward privatization of public services is likely to continue as governments become increasingly unable to meet the infrastructure demands of rapidly increasing urban populations.

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