2 The Environment and Development: Outline Basic Issues regarding environment and developmentEconomic Models of the environmentRural development and environmentPoverty and environmentUrban development and environmentPolicy options in developing and developed countries: Case Study on debt swaps
3 The Environment and Development: Basic Issues Sustainable development and environmental accountingPopulation, resources, and the environmentPoverty and the environmentGrowth versus the environmentRural development and the environmentUrban development and the environmentThe global environment
4 Economic Models of the Environment Traditional model advocates that so long as all resources are privately owned and there are no market distortions, resources will be efficiently allocated. Therefore, there will be misallocation in a CPR market.Properties of a perfect property rights market and does it exist in developing countries?What about issues of equityModel for regional environmental degradation and the free-rider problemAny limitations to the above model??
9 Poverty and Environment Poverty is viewed as encompassing both income and non-income dimensions of deprivation, lack of empowerment, and extreme vulnerability to external shocksEnvironment refers to the living and non-living components of the natural world, and to the interactions between them, that support life on earth. The environment is a provider of goods and services and is also a recipient of waste products
10 Poverty and Environment: Concerns Poverty and environment linkages are dynamic and context-specificRural poor are concerned with secure access to and the quality of natural resourcesUrban poor are concerned with access to clean water, energy, sanitation, and security of housingPoor women are concerned with safe and close access to potable water and energy supplies
11 Rural Poverty/ Development and Environment Rural poverty and environmental degradation interact leading toDeforestation and loss of livelihoodLoss of ground waterSoil erosion and DesertificationFuel shortages, lower agricultural productivity, occurrence of natural disasters
12 Urban Poverty/ Development and Environment Urban poverty causes environmental degradation in two ways:Industrialization and urban air pollutionEnvironmental Kuznets curveRole of taxation in controlling pollution externalitiesCongestion and availability of clean water and sanitationProductivity lossesFinancial feasibility of providing clean drinking water and sanitation for all
13 Poverty and Environment: Linkages Poor people are the main victims of a bad environmentPoor people are more vulnerable to the loss of biological resourcesExtreme environmental stress can force the poor to migrateInequality reinforces environmental pressureGovernment policies can create or reinforce vicious cycle of poverty-environment interactionPoor people are agents of environmental degradation (poverty and exploitation)Poor people have shorter time horizons, which exacerbates environmental degradationPoverty increases risk-aversion and discount rates, aggravating environmental pressure
14 Poverty and Environment : Linkages Incomplete property rights reinforce the vicious poverty-environment circlePopulation pressure exacerbates both poverty and environmental degradation
15 Links between the Environment and Millennium Development Goals Links to environmentEradicate extreme poverty and hungerLivelihood strategies & food security depend on healthy environmentAchieve universal primary educationTime spent colleting fuel and water by childrenReduce child mortalityWater-related diseases kill 3 M people in developing countriesImprove maternal healthIndoor air pollution and carrying heavy loadsCombat major diseases1/5th of the total burden of disease in developing countries may be associated with environmental risk factorsEnsure environ sustainabilityEnviron degradation must be reversed
16 Policy opportunities to reduce poverty and improve environment Improve governanceIntegrate poverty-environment issues into national development frameworksStrengthen decentralizationEmpower poor and marginalized groupsAddress gender dimensionsStrengthen anti-corruption measuresReduce environment-related conflictImprove poverty-environment monitoring and assessment
17 Policy opportunities to reduce poverty and improve environment Enhance the assets of the poorStrengthen resource rights of the poorEnhance poor’s capacity to manage environmentExpand access to environmentally-sound and locally appropriate technologyReduce environmental vulnerability of the poor
18 Policy opportunities to reduce poverty and improve environment Improve the quality of growthIntegrate poverty-environment issues into economic policy reformsIncrease the use of environmental valuationEncourage private sector involvement in environmental managementImplement pro-poor environmental fiscal reform
19 Policy opportunities to reduce poverty and improve environment Reform domestic international and industrial policiesIndustrial emissions abatement policiesReform trade policiesMake FDI more pro-poorEnhance the contribution of multilateral environmental agreements to poverty reductionEncourage sustainable consumption and productionEnhance the effectiveness of development cooperation and debt relief
20 Case studies used:Environment and Development: Causes of Deforestation in the Brazilian Amazon Rain Forest and the Policy ResponseHow Has a Debt-for-Nature Swap Worked in Practice? The Case of BoliviaBoth are available at
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