Relationship between poverty growth and the environment

relationship between poverty growth and the environment

between poverty and population and environment, how the various schools of relationship between population, economic growth and the environment. These. PIP: This article discusses the links between poverty, development, the environment, and implementing Agenda The poor in large cities experience greater. Today is World Environment Day, an appropriate time to note that the Income poverty can be reduced through inclusive economic growth.

The two challenges must be tackled togetheryet in reality most policies focus exclusively either on reducing poverty or protecting the environment. Income poverty can be reduced through inclusive economic growth benefiting the poor from the outset or economic growth that benefits the poor retrospectively through redistribution. Either way, economic growth is required, growth that has yet to be achieved without further depleting natural resources.

The inextricable links between poverty and the environment | World Economic Forum

Where the economy grows, the environment suffers. At the same time, environmental protection measures can have extremely positive secondary effects for the poor. For example, improvements in waste disposal driven by development policy can help put an end to drinking water contamination, thereby removing potential sources of disease.

However, environmental protection can have a negative impact on poor people if they are required to help bear the costs of an environmental protection initiative yet are excluded from sharing in its benefits.

relationship between poverty growth and the environment

Consequently, the question of who bears the costs and how the benefits are shared is crucial. Is resource-efficient economic activity the answer?

relationship between poverty growth and the environment

However, they are all essentially pursuing a model of resource-efficient economic activity that can only be achieved through state intervention. That being said, the concepts differ from each other in terms of the relative importance they attach to economic, social and environmental concerns and the prominence they give to present and future human welfare. At the heart of each concept is the question of which actors should finance the implementation of green growth concepts and, in particular, how the costs should be shared within and between countries.

relationship between poverty growth and the environment

While resource-efficient economic activity is a step in the right direction, it does not solve the underlying problem of how to decouple economic growth and environmental degradation in absolute terms.

In the case of absolute decoupling, environmental pollution stagnates or even decreases a fall in greenhouse gas emissions, for example despite economic growth. So far, it has only been possible in most cases to achieve a relative decoupling in environmental impact per unit of economic output, with environmental degradation continuing to increase, albeit at a slower rate than economic growth.

Ultimately, the ideal scenario would be one of resource-neutral economic activity, where as many resources are recycled as are used and the recycled products are of the same quality as the original ones.

relationship between poverty growth and the environment

Yet, when we add social and environmental considerations to this idea of competitiveness, we reach a higher concept of long-term prosperity, in which economic dividends are spread fairly among all contributing citizens and which includes a healthy environment and ecosystem. The underlying rationale for sustainable competitiveness has been absorbed by policy-makers and businesses alike. This indirect water exchange makes more sense that physically transporting water across borders at great expense.

What is the link between poverty and climate change?: Deutsches Institut für Entwicklungspolitik

In another example, United Nations Statistics are promoting new aggregate national accounting standards that include the environmental impact in the system of national accounts. Although some economists consider regulations and standards a drag on competitiveness at company level, the business community is actually starting to realize how important responsible business practices are from an economic point of view.

Resource scarcity is now a real business concern, as science increasingly proves the link between resource availability and prosperity.

relationship between poverty growth and the environment

Water scarcity, for example, reduces the amount of energy that a hydroelectric power plant can produce, thereby increasing operational costs.

Similarly, competition for raw materials and commodities can increase prices and reduce profits, particularly in economic hard times when consumer demand is low.

The inextricable links between poverty and the environment

Also, the public is becoming more aware of environmental standards and putting more pressure on companies, boycotting and protesting against those they consider irresponsible. Consequently, some companies — Oracle and Toshiba among others — have started using environmental accounting and reporting methods to keep track of their environmental impacts.

This practice not only shows that the company cares about the environment, but also ensures that environmental considerations inform business strategy. As unemployment rises, businesses are being asked to reconsider the role they play in society.