Institutions for Sustainable Development

Abstract

A critical discussion is presented of the dimensions of the concept 'sustainable development'. The concept is shown often to confuse constituents of well being with its determinants, and to be unclear with respect to the level and rate of growth of sustainability. The roles of population growth, technical progress and changes in preferences are often ignored. Principal threats to countries are then enumerated. The poor are identified as both the main cause and the victims of environmental degradation. Options in the alleged choice between economic growth and environmental protection are presented, and it is argued that higher growth may be needed for environmental protection. The technical question of the relation between growth and pollution, the physical question of the relation between pollution and the environment and the biological question of the relation between the environment and human beings are raised. As a consequence of these factual questions, the relation between income and degradation has to be evaluated. Several policies are then presented, including the problems of late starters, the international location of 'dirty' processes and the role of prices and of transnational corporations. Finally, the need for global institutions (such as the Global Environmental Facility) is elaborated within the context of prisoners' dilemma outcomes and free rider problems.