reen growth benefits for developing countries
Many developing countries face different and more difficult policy choices than developed countries in defining and implementing green growth strategies. Choosing not to bring more land under cultivation because of the high environmental costs will be difficult for a country with high levels of rural poverty. Though, options for increasing the productivity of existing cultivated land should be explored. Evidently,
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systems to pay poor countries for ecosystem services and increase the economic and welfare benefit accruing to them and their citizens from maintaining environmental assets will be critical for the political feasibility of green growth strategies. Emerging evidence has reiterated that green growth activities can offer both short term and longer term benefits and opportunities to developing countries (Box 1.2). Payment for ecosystems services in Costa Rica, sustainable natural resource extraction in Azerbaijan, social enterprise to promote organic waste treatment in Bangladesh have demonstrated the economic opportunities from investing in natural resources and promoting sectoral sustainability.
In the short run, green growth policies are most likely to deliver local benefits in improved environmental management through sustainable waste treatment, better access to water and energy and more desirable health outcomes from controlled pollution. However, these short run benefits should be examined against the immediate costs of identified policies. Phasing out fossil fuel subsidies will trigger higher energy price which will burden both consumers and producers; air pollution controls will affect competitiveness and the prospects of specific sectors, potentially threatening jobs; providing fewer incentives for agricultural fertiliser usage to boost soil productivity and promote sustainable agriculture could decrease the income of many small-scale poor farmers. There are certainly trade-offs in the policy implications although the scale varies according to the nature of the economy and the implementation of the green growth measures. In many cases the poor are potential losers as a result of shifting to green growth. In some cases, powerful actors, including political parties, unions, and the private sector face disadvantages from shifting away from their country’s current development plan (Resnick et al., 2012). Hence, the short-term benefits can become more visible if appropriate and targeted social complementary policies are implemented hand in hand with green growth measures.
In the longer run, the recognised infrastructure deficits to support economic activities are considerable, but there is potential for technology leapfrogging and climate-resilient implementation. Severe shortages of electricity supply and high urbanisation rates demand more efficient energy and public transportation systems in cities. There may be potential job creation, for instance, through sustainable management of natural resources which could on one hand release the tension of urban migration given most of these opportunities are available in rural areas; on the other hand to preserve local livelihoods from environmental impacts, in particular of climate change.