Question

Has to be 750 words

3) How do nation-states deal with the challenges of improving their economy while addressing environmental issues?

Answer 1

Economic development has ignored to include environmental sustainability as a factor and thus it has led to problems of water scarcity, high levels of pollution, extreme weather phenomena and the regular occurrence of natural disasters such as floods and droughts that can have a catastrophic impact on millions of lives. Constant rehabilitation of displaced citizens, erratic food supply, contaminated water, and rampant disease among other issues could strain an economy fighting to grow, destabilizing the very fabric of our society. Thus, we need to maintain balance between /economic development and environment sustainability.

What is the economic significance of the environment?

The economic significance of the environment is evident with the range of ecosystem services that it offers.

-regulating services (climate regulation, water quality regulation).

-cultural services (recreational and religious services).

-supporting services (nutrient recycling, soil formation).

-Millions of households and economic activities utilise these ecosystem services for production and consumption.

However, despite this high economic value, ecosystem services are not traded in the markets.

Their true values are thus not reflected in the economic system.  

How to maintain balance? what state do

Agenda 21 - UNCED's blueprint for sustainable development - gives high priority to the implementation of"win-win" policies that exploit the complementarity between poverty reduction, economic efficiency and sound environmental management. Following interventions can be taken to implement this vision

Prudent Economic Policies: Economic policies such as rationalization of price subsidies, the clarification of property rights, facilitation of technology transfer may help in achieving environmental sustainability.

Rationalising subsidies will save money, improves efficiency and can significantly lower pollution.

• The low GDP growth is for sure a negative thing in many respects.
• However, in view of sustainable development, "low growth" could also imply a more "protected environment".
• Consequently, the economic and social benefits that a healthy environment offers is considerably higher than that of a GDP growth at the cost of the environment.
• Thus ensuring a quality environment can actually push income growth on a more sustainable and meaningful basis.
• Given all these, the challenge of uncertainty in determining environmentally desirable growth rate cannot be denied.
• However, maintaining 5-6% growth rate with strict environmental regulation is supposed to be a balanced one .