1. L1:GP & SUS DEV / 1 Asian Productivity Organization, Tokyo Economic Activity and Environment ECONOMIC ACTIVITY Production Patterns Consumption Patterns Natural resources drawn from the environment Impact of resource extraction, use and disposal Trade ENVIRONMENT Drives

2. L1:GP & SUS DEV / 2 Asian Productivity Organization, Tokyo l Average annual growth between 1990 to 1996, for East Asia and the Pacific, has been 14.5%. l Industry in East Asia has increased its share of total output from 32% to 45% and in South Asia from 21% to 28% between 1965 to 1996. l In South Asia the value added (as a % of GDP) by agriculture has fallen from 38% in 1980 to 28% in 1996 while industrial output has increased from 25% to 28% in the same period. l Exports of services from developing countries grew at an average annual rate of 12% in the 1990s, twice as fast as those from industrial regions. l Average annual growth between 1990 to 1996, for East Asia and the Pacific, has been 14.5%. l Industry in East Asia has increased its share of total output from 32% to 45% and in South Asia from 21% to 28% between 1965 to 1996. l In South Asia the value added (as a % of GDP) by agriculture has fallen from 38% in 1980 to 28% in 1996 while industrial output has increased from 25% to 28% in the same period. l Exports of services from developing countries grew at an average annual rate of 12% in the 1990s, twice as fast as those from industrial regions. Some facts about Asian economic growth Production IndustryAgricultureServices Production Patterns

3. L1:GP & SUS DEV / 3 Asian Productivity Organization, Tokyo Consumption Pattern Consumers boycotts of products based on environmentally and socially damaging practices include e.g., use of tropical timber, textiles produced under unsafe / exploitative social conditions, metal finishing done with toxic metals. Boycotts against products of oil companies causing damage to eco-sensitive areas and indigenous people have also been intensive. Important trends are emerging among consumers in North America, Europe and Japan. Over 80% of Americans are concerned about the environmental and social consequences of a materialistic society. The Government of Japan launched the ECO ASIA initiative, to draw up a long term perspective for sustainable development for the Asia-Pacific region upto 2025. This found a common Asia-Pacific “eco- consciousness.” Green consumer movement has waned since the late 1980s in Europe. Between 1992-1995 willingness to buy eco-friendly products has fallen from 69-58% in Britain and 75-50% in Germany. Main reason is confusion due to proliferation of labels and false claims. Active demand still exists however in some areas such as organic produce, fair trade coffee, tea and bananas, organic cotton.

4. L1:GP & SUS DEV / 4 Asian Productivity Organization, Tokyo Industry and Environmental Degradation Resource extraction of raw materials through mining, logging, water extraction, energy generation. Resource demand during distribution, use and disposal of goods and services. Resource utilization during manufacture leading to emissions, wastewater and solid waste generation. Costs of environmental damage

5. L1:GP & SUS DEV / 5 Asian Productivity Organization, Tokyo Trade and Environment Trade is becoming increasingly globalized as well as liberalized. International trade liberalization has been crucial for the success of Asian economies. Trade expansion has led to rapid growth in export-oriented industries, urbanization, construction boom. Patterns of international trade have changed markedly. Focus of trade from the Asian region has been primarily on resource-intensive and labor intensive goods to the North. Such growth has had wide ranging benefits, improved living standards, provided technological capabilities and financial resources. However, this outward-looking export based growth has in the aggregate generated new and increased environmental pressures. From an economic perspective, both trade liberalization and environmental protection are inherently important. There is a need is to combine both these aspects to promote sustainable economic development.