A Long-term Perspective on Environment and Development in the Asia-Pacific Region

III. Future Regional Action

As noted in Chapter 1, the Asia-Pacific region is expected to be the site of the world's most dynamic economic activity into the 21st century. It is thought that this activity will lead to a rise in mutual dependence among the countries in this region and further quicken the intraregional flow of human and physical resources.

But at the same time, factors such as population increase, industrialization, and rising standards of living are projected to increase the energy consumption greatly. This is causing apprehension about an increase in emissions of air pollutants and greenhouse gases, as well as a worsening of problems associated with water pollution, hazardous waste, etc. There are also worries about a degradation of the natural environment such as forests, soil, freshwater resources, and biodiversity. The impact may be felt not only nationally and regionally, but also on the global level.

Sustainable development is the most crucial response to the region's environmental problems. The approaches to these problems may be considered test cases for the practicability of sustainable development in the region.

Although they represent a diversity of stages of economic development and industrial structures, the region's countries all have traditional lifestyles that are basically environmentally sound, as noted in Section 2.1. In efforts to achieve sustainable development, it will be vital to respect, and provide for the continuation of, these traditional lifestyles amid the changes accompanying economic growth.

At the same time, this foundation furnished by traditional lifestyles must be complemented by the vigorous promotion of new approaches to environmental problems, reflecting new concepts in policy. The following three concepts come to mind.

The first is "Eco-Partnership." It derives from the deepening interdependence among the region's countries in all aspects. Its substance consists of reinforcement of partnership among these countries in the environmental sphere through exchange of experience of value for solving environmental problems and implementation of cooperative activities with the participation of various sectors.

The second is "Eco-Technology and Eco-Investment." It proceeds from the good potential for active capital investment and introduction of new technology during a phase of high-order economic growth. It calls for energetic investment in the environment and incorporation of environmentally sound technology to reconcile the ends of economic growth and environmental preservation in the region as a whole.

The third is "Eco-Policy Linkage." It derives from the importance of alignment of environmental policy with economic and other policies in order to promote the implementation of environmental measures. In the context of environmental policy taken separately, domestic measures must be integrated with global ones. The goal of "Eco-Policy Linkage" is to assure a linkage among all such sets of measures that will assist the promotion of each.

Chapter 3 proposes specific actions in the region for the future in line with these three concepts.

3.1.1 Background

(1) The Asia-Pacific region as its own major partner
(a) Intraregional relationships

The Asia-Pacific region is making rapid economic strides. This advancement derives largely from international economic relationships based on trade and investment. Figure III-1-1 shows the trade dependence of various East Asian countries. It can be seen that this dependence is highest among the ASEAN and NIES.

Figure III-1-1 Dependence on Import/Export

In addition, the intraregional component of trade and investment is larger than the extraregional component. In the case of East Asian countries, for example, transactions with other countries in the region account for more than 40 percent of exports and the majority of imports (see Table III-1-1). Furthermore, this intraregional share is expected to expand in the future (see the Ichikawa report of ECO ASIA '93). A similar picture emerges from viewing of investment (see Table-III-1-2). In fiscal 1993, the share of all foreign investment by other countries in the region came to 41.7 percent in the Asian NIES as a whole, 56.9 percent in the ASEAN countries as a whole, and a remarkable 77.7 percent in China. The corresponding average for the entire region was 72.4 percent.

Table III-1-1 Imports by region and country (in 1993)

 

Export	U.S.	Japan	East Asia	Japan + East Asia	EU	World
Import
U.S.	-	47,999	76,300	124,299	96,044	462,171
Japan	105,405	-	133,128	133,128	57,153	363,108
East Asia	139,946	77,314	222,547	299,861	87,707	659,619
Japan + East Asia	245,351	77,314	355,675	432,989	144,860	1,022,727
EU	93,845	25,952	71,776	97,728	745,652	1,319,792
World	586,800	214,200	580,976	795,176	1,292,700	3,730,700

Table III-1-2 Amount and ratio of direct investment

 

	(Unit:million$)				(%)
Investor/Invest	Asia NIES	ASEAN	China	East Asia	Asia NIES	ASEAN	China	East Asia
Asia NIES	298.3	3,956.6	21,277.2	25,532.1	11.9%	25.7%	77.3%	56.2%
ASEAN	31.0	263.1	512.9	807.0	1.2%	1.7%	1.9%	1.8%
China	51.5	244.1		295.6	2.0%	1.6%	0.0%	0.7%
East Asia	380.8	4,463.8	21,790.0	26,634.7	15.2%	29.0%	79.2%	58.6%
U.S.A	656.7	1,646.7	2,063.1	4,366.5	26.1%	10.7%	7.5%	9.6%
Japan	665.9	4,299.0	1,324.1	6,289.0	26.5%	27.9%	4.8%	13.8%
Europe	584.5	2,032.9	673.0	3,290.4	23.3%	13.2%	2.4%	7.2%
(total)	2,513.5	15,412.7	27,515.0	45,441.2	100.0%	100.0%	100.0%	100.0%

Source:Statistical Data from each countries

The region will undoubtedly continue to make rapid progress as the world's economic "growth center." At the source of this capacity for growth are economic ties of trade and investment with other countries in the region. And these ties may be expected to assume increasing importance over the coming years.

(b) Changing economic role of positioning relative to other regions

The economic growth of the Asia-Pacific region is changing its position in the worldwide context. During the 1970s and into the 1980s, the region absorbed investment from Japan and other developed countries, and all countries in it except Japan were also receiving official development assistance (ODA). By the beginning of the 1990s, the region had transformed itself from a mere recipient of investment from developed countries into an independent market with an economy that was virtually self-sufficient in the intraregional context. Korea succeeded in transforming itself from an ODA recipient into an ODA donor. In the 21st century, we are likely to see a net flow of capital from Asia to other regions, and other countries in the region will probably join Japan, Australia, New Zealand, and Korea on the list of ODA donors. The Environmental Research and Training Center (ERTC) established jointly by Japan and Thailand is aiming to grow from being an institute for a single country into the one for the entire Indochinese area. This development, too, may be regarded as foreshadowing the region's emergence as an ODA donor. In the transition from the 20th to the 21st century, the region's position relative to other regions is clearly in the process of momentous change.

(2) Differences and similarities among Asian countries

In many aspects, including climate, topography, language, culture, and religion, Asia embodies perhaps greater diversity than any other region in the world. Nevertheless, Asian countries also share many traits, and this commonality comes into sharper focus when the region is subdivided.

Japan, for example, is composed of islands, and therefore physically distanced to some extent from the other countries. This isolation was deepened by the policy of national seclusion, which lasted for three hundred years from the 17th century and cut the country off from any type of political, economic, and cultural exchange with others. Under these circumstances, Japan developed its own distinctive customs. At the same time, however, the cultural and social foundation underpinning these customs was largely of Chinese origins, which had entered the country from the mainland via the Korean peninsula. For example, the Japanese writing system uses the same ideograms as used in China and Korea. Japan, Korea and China are sometimes regarded as forming a single "Confucian" cultural sphere. In other words, these countries have much in common with each other.

South Pacific island countries provide another example of similarity. The Exclusive Economic Zones (EEZs) of the countries occupy 30 million square kilometers which is three times larger than China. Hundreds of separate languages are spoken in the region (more than 700 within Papua New Guinea and over 100 in both Solomon Islands and Vanuatu). They share, however, very similar traditional knowledge and practices. Land tenure systems vary throughout the region but are commonly based on communal land ownership patterns which control land use and the exploitation of natural resources. Special prohibitions can be imposed on certain practices or the harvest of certain species or areas.

A similar situation can be found in the region's other subdivisions. While each country or area has its own distinct character, it also shares something with others in the region. It was mentioned above that the intraregional economic linkage is likely to become even stronger, and this should give the region's countries more common ground in the economic sphere to supplementing the other common ground in the cultural and historical spheres.

The region's countries also resemble each other in respect of the pattern of economic development. Figure III-1-2 shows the "Flying geese pattern" (i.e., staggered sequence) of this development. In this formation, Japan is followed by the NIES which, in turn, are followed by the Southeast Asian countries and China.

Figure III-1-2 GDP per capita in Asian countries compared with Japan and Korea (Unit : US$)

At the same time, this development has been accompanied by the surfacing of environmental problems in these countries through a similar pattern. Figures III-1-3 and III-1-4 include the trends of economic growth for Japan, China and Korea, and Figure III-1-5, the stages of development of environmental policy in these three countries. The same sequence described above has been followed these three countries as regards the stage of environmental problems and policy to counter them. More specifically, Korea formulated policies similar to Japan's with a time lag of some 12 - 14 years, and China some 21 - 24 years later. The other countries in the region will presumably exhibit the same pattern of onset of environmental problems and policy response to them as this flying geese pattern development proceeds.

Figure III-1-3 Energy consumption per capita

Figure III-1-4 GDP per capita

Figure III-1-5 Changes of environmental policy

(3) Common problems

Many of the countries in the region are facing the same environmental problems, the population issue being one of the most serious. Although the population growth rate has dropped considerably, this region will be still the most populous in the world, with over half of the world's population. Most countries are making tremendous efforts to control population, and some of them have succeeded in cutting the population growth rate. China, Indonesia and Thailand have successful family planning. However, the population growth rates of many countries, particularly of LDCs, (least developed countries) are still high. Rapid population growth is harmful to not only of environment, but also of economy.

Degradation of natural resources is another common issue in the region. Forests, wetlands, and other important ecosystems are being threatened in many areas. Degradation of top soil and fresh water resources are serious issues throughout the area and will be even more critical in the next century. Coastal zones, for example, support a variety of human activities. Reefs and lagoons are the prime source of subsistence protein for a large portion of the region. Their high yield potential has been reduced throughout the region by a wide range of activities, such as overfishing, pollution, landfill, mangrove damage, and sedimentation.

Climate change and sea level rise are also common issues of grave concern. Island countries are particularly vulnerable because they include many hundreds of low-lying islands and atolls which are the home of most of their populations. Extremely scarce supplies of potable water and very limited areas of arable soil would be seriously affected by global warming which seems to have been caused not by themselves but by industrialized countries.

3.1.2 Policy proposals

The Asia-Pacific region is composed of countries that represent considerable diversity in various aspects. At the same time, however, these countries are finding common ground and continuing to grow economically while maintaining close mutual ties in the industrial and economic spheres. As there is the same mix of differences and similarities in the environmental field as well, the success of the proposals depends on reinforcement of partnership among not only governments but also parties in other sectors for promotion of exchange of experience, knowledge and technology.

(1) Exchange of experience

The same pattern of environmental problems tends to repeat in each country as industrialization proceeds. A late start in economic development is not entirely disadvantageous; it also has certain advantages. One is that the country in question can better avoid the mistakes made by those preceding it in the sequence of economic development. It can draw on the experience of predecessors to revise its own course. If it moves ahead without trying to learn from the experience of forerunners, it could very well encounter the same kinds of problems as they did.

Instructive here is the situation surrounding the Minamata disease in Japan. Although the disease was first reported in 1953, it took a remarkable 15 years for official recognition that it was caused by the mercury used in the process of synthesizing acetaldehyde. In the meantime, many people became victims of this industrial pollution. By applying Japan's experience, other countries can prevent industrial pollution due to mercury. There is no need for a repetition of the tragic history of the disease's first 15 years in Japan as well as the long and difficult period that followed.

Conversely, the developed countries must share their environmental experience with the developing ones and encourage sustainable industrialization in them. There is no guarantee that the most developed country will have the most suitable technology. When the stage of industrialization between it and the developing country differs by a few decades, it may not be advisable to apply the latest technology in the latter without modification. This is not to say that the latter should use technology that is a few decades old; it may find appropriate technology in semi-developed countries. Cooperation between developing and semi-developed countries could conceivably yield great benefits. Three examples follow:

(a) Expansion of technical cooperation by developed countries with developing ones

Promotion of cleaner production and energy efficient technologies through international cooperation should be given a high priority in the interest of making development sustainable. International cooperation in this field would not only bring big cost savings but also help transfer technologies. There is a particularly crucial need for greater efficiency in distribution of electrical power.

(b) Technology transfer by middle income countries

Because the development gap between middle income countries and developing countries is not so large, the former may have more to share with the latter in the way of issues and experience in overcoming environmental problems than do developed countries. There has not been much cooperation between middle income and developing countries in the environmental field so far, and it should be encouraged, in the future.

The Asia-Pacific region is characterized not only by rich diversity but also considerable similarity. There are many aspects within Sub-regions in which natural and social conditions have more in common than in other regions. The region's indigenous tradition, experience, and technology would probably be more receptive to campaigns to conserve ecosystems than counterparts from other regions in many cases. The subregions also resemble each other in the strains placed on ecosystems and natural resources. Korea stands out even in the global context for having increased its area of forest in the process of industrialization. As a part of the so-called sema-ul un don, new village movement, the government promoted the adjustment of a change from the "slash-and-burn" method of cultivation as well the relocation and resettlement of such farmers. Afforestation was undertaken simultaneously. These measures helped the country's forests to recover. This experience contains valuable lessons for countries faced with a decline of forestland.

A deepening of intraregional exchange will presumably turn up other such cases which have significant implications and could be shared with other countries. Such horizontal cooperation could be built through exchange and information sharing among governments, research institutes, and NGOs. (c) Promotion of information circulation through Internet, etc. (ECO ASIA Net proposed by the Environment Agency)

Internet is a formidable tool for promoting the circulation of information among governments, research organizations and other concerned institutions. In the United States and certain other countries, research institutes in the environmental field are already using it for transmission of information to other parties. Full use of Internet would make for a smoother distribution of information in the Asia-Pacific region as well.

(2) Exchange among companies, NGOs, and local authorities

(a) Environmental Concern in investment and trade, and corresponding programs of intercorporate exchange

In the Asia-Pacific region, economic growth is accelerating as mutual economic relationships among the countries expand. These intraregional relationships are expected to have an even greater impact on the environment. It is estimated that, in 1993, direct foreign investment into East Asian countries for the year came to about 45 billion dollars. Of this, the intraregional share (i.e., the share of foreign investment within the region) accounted for about 32.9 billion dollars. Similarly, intraregional trade now amounts to over 400 billion dollars for the year (see Table III-1-1). This enormous flow of funds has both positive and negative consequences for the intraregional environment.

Investment and trade which takes full consideration for the environment could do much to improve it. Expanded investment and trade leads to a rise in income levels which, in turn, is associated with a rise in environmental awareness and pursuit of a better environment. The expansion of economic exchange also promotes the transfer of environmental protection technology. In contrast, investment and trade expansion without adequate concern for the environment could magnify the adverse consequences.

To encourage trade and investment activities with a positive environmental impact, the countries of the region must increase their exchange of information on environmental policy and technology. Governments should be encouraged to develop schemes for cooperation that will minimise the negative impact of investment and trade.

Another key task is the construction of Eco-Partnership linking private companies. Some prospects on this front are as follows.

• Exchange and technological tie-up between companies possessing environmentally sound technology (EST) and those lacking it

  Companies with advanced technologies should be encouraged to transfer EST when establishing subsidiaries or joint ventures in developing countries, or forming technology tie-ups with developing-country companies.

• Environment-related information sharing and dialogue

  Companies in developed-countries tend to have a keener awareness of the environment than companies in developing-countries, as well as being in possession of EST. This awareness and technology could be transferred through a deepening of intercorporate exchange related to environmental protection.

• Cooperation with the implementation of environmental management systems

  The ISO 14000 series specifies requirements for an environmental management system, to enable an organization to formulate a policy and objectives which take into account legislative requirements and information about significant environmental impacts. These standards, like other international standards, are not intended to be used to create non-tariff trade barriers or to increase or change an organization's legal obligations. The standards request the certified company to strive for continual improvement of environmental performance.

  It is hoped that the ISO 14000 series will be effective incentives to conserve both the local and global environment. A number of companies in developed counties are prepared for them. Close international relationship among companies could stimulate those in developing countries to obtain the certification. The improvement of their performance could contribute to environmental conservation in the region.

• Measures among small and medium enterprises

  Even as the above trends develop, small and medium enterprises (SMEs) which are short of funds, technology, and information are likely to meet problems. Pollution problems caused by SMEs are often very significant and difficult to be dealt with. Although both financial and technical assistance and proper enforcement of regulations are necessary, mechanisms and also needed to promote the cooperation and support for SMEs. A network among SMEs, government agencies and NGOs could, for example, facilitate cooperation, particularly the provision of information.

  (b) Construction of cooperative relationships through NGOs

  In the Asia-Pacific region, NGO relationships with government and companies have often been portrayed as confrontational. In the process of social and economic maturation, however, these relationships are becoming more oriented toward mutual complementation. In countering environmental problems and poverty, there is a need to reaffirm the vital role that can be played by NGOs with firm local roots. Japan makes efforts to support NGO activities through grass-roots grant aid and the Japan Fund for Global Environment. It is imperative for all countries to continue supporting non-profit NGO activities.

  There is also a need for expansion of cooperative relationships among NGOs themselves. The establishment of venues for exchange of opinion and experience among NGOs confronting similar difficulties helps to increase the capabilities of each.

• Information exchange

  NGOs are often key players in urban and rural environmental programs, particularly in community based activities. Although many NGOs are engaging similar activities in the region, there is still not much exchange of information. The requirements in this area include the establishment of fora and provision of means for such exchange. Joint NGO programs would facilitate mutual exchange of experience and knowledge. International organizations are promoting cooperation among NGOs. UNDP, UNEP, the World Bank, and ADB, for example, are implementing a number of programs involving NGOs and providing fora for NGOs activities throughout the region. Those kinds of activities should be further encouraged.

• Promotion of environmental education and awareness

  NGOs have a major role to play in enhancing awareness of the environment among the general public. Exchange of educational materials and know-how in this area would add impetus to these activities.

  (c) Exchange among local authorities

  In many cases, the national level is too broad for approaches to environmental problems. In such cases, cities and other local authorities can play a major role in the quest to achieve sustainable development. These bodies are closer to the people and in a better position to sense their needs and to take finely-tuned action. Because of this, measures on this local level are often more appropriate.

  Cities in the Asia-Pacific region are rapidly growing in population and face many similar problems in such aspects as transportation and the living environment. Sharing of experience and knowledge among these cities would assist the resolution of these problems. A fine example is the Metropolitan Environment Improvement Program (MEIP) implemented for major Asian cities by the World Bank and the United Nations Development Programme (UNDP).

• Urban environmental planning in the Asia-Pacific region

  Elements of the existing intercity network, such as MEIP, sister-city and other ties, and the International Council for Local Environmental Initiatives (ICLEI), should be harnessed to establish a forum to discuss and joint action to resolve problems faced by these cities in common.

  (3) Joint activities

  Here, the term "joint activities" is used in a broad sense differing from that of the term "joint implementation" used in UN Framework Convention on Climate Change.

  (a) Implementation of joint projects

  Investment for environmental protection often does not yield benefit over the short term, and is consequently apt to have a low priority in national policy. Implementation of projects together with other countries would promote transfer of funds, technology, and know-how, and prove more effective than implementation by each separately. For example, in its Official Development Assistance Charter, the Japanese Government has listed environmental protection as one of the fundamental objectives of its ODA, and indicated its willingness to more active ? support projects contributing to this end. Similarly, the World Bank, Asian Development Bank, and other international institutions involved in development have shown support projects conforming with the objective of sustainable development. Investment for environmental preservation in cooperation with donors instead of independently would widen fund-raising avenues. And international schemes of cooperation would accelerate the transfer of technology and know-how.

  (b) Development of Environmentally Friendly Products

  As Asia-Pacific trade and investment gather momentum, it is important to cultivate trade contributing to sustainable development and markets having a positive impact on the environment.

  In developed countries, consumers are inclining toward products that are gentle to the environment, even if they are slightly more expensive (see Figure III- 1-6 and Table III-1-3). In the Asia-Pacific region, standards of living are swiftly rising along with economic development. Because environmental awareness tends to rise with personal income levels, the demand for environment-friendly products in the region will probably increase. Quite possibly, once an international market of this sort takes shape, efforts of cultivation would turn up many more promising products, such as desks made of old rubber trees and paper made of sugar beet and banana fibers. Such products and markets for them could be created through cooperation linking NGOs engaged in grassroots activities with companies and, when necessary, governments.

  Figure III-1-6 Recycling Ratio in Japan

  (4) ECO ASIA focal point

  It is recommended that an ECO ASIA Focal Point (EAFP) be established in each country and region, to facilitate the above activities. Its structure and mandate should be decided by each country and region. It is desirable to involve not only relevant government agencies but also local authorities, private companies, NGOs, indigenous people and other interest groups. One possible role is as a focal point for cooperation with EAFPs of other countries or regions, and as a coordination center of national activities.

  Table III-1-3 Acceptability of environmentally sound goods