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Asian Development Bank (ADB) is a financial institution created in the 1960s to foster
economic growth and development for countries in Asia and the Pacific. Its mission is to
assist developing member countries in reducing poverty and improving the quality of life of
their people [1]. As a multilateral development finance institution, ADB’s functions include:
to promote private and public investment development, provide equity investment and
loans, facilitating policy dialogues, advisory services and support regional projects that
contribute economic growth of the region. ADB acquires its operating capital through its 67
member countries contributions and by issuing bonds on world capital markets.
ADB provides financing and technical assistance in five core areas: infrastructure,
environment, regional cooperation and integration, public finance and education. In the first
few decades, ADB operates more like a project-base lending institution, mostly for major
infrastructure projects such as highways, roads, power plants, sewage treatment plants, etc.
However, by the end of the 1920s, ADB expanded to policy based lending, which calls for
those borrowing governments to put in place systemic reforms in their economic, financial,
social and environment sectors much like the World Bank’s structural adjustment
programmes [2]. From then on, borrowing governments must agree to ADB’s loan
agreements that are regularly accompanied with policy measures and conditionalites in
order to get the loan. These can include: the elimination of subsidies, minimum wages kept
low, passing laws and regulations that favor private sector involvement in key economic
sectors and services, etc. All in all, this ADB policy reforms escalates the borrowing country’s
economy into a vulnerable, unregulated, high risk market system in order to facilitate rapid
economic growth.
Although ADB maintains that its operations in governance are non-political, its core
mandate to promote economic growth and development is deeply political. The roots of
economic development lie within the allocation of a society’s resources and opportunities,
gains and losses in different parties, and how power is distributed. In reality, it is almost
impossible to separate political and economic aspects of governance. It is seemingly
deceptive and illiberal for ADB to portray that they are able to adhere to this framework.
Constitutional rights and democratic voices of citizens are often violated because of ADB’s
projects, but has ADB ever openly acknowledge such issue? More often than not, ADB’s
reform regimes have hindered accountability in governance issues to their citizens. Another
highly controversial matter with ADB is their information disclosure policy and the absence
of public participation in project development, monitoring and evaluation. This
unaccountability, non-transparency and irresponsible practice of ADB must be revamped if
ADB is serious on achieving its primary goals.
References
[1] http://www.adb.org/about/our-work
[3] The Asian Development Bank: In its own Words, An Analysis of Project Audit Reports for Indonesia, Pakistan, and Sri
Lanka. Stephanie Gorson Fried, Ph.D and Shannon Lawrence, Environmental Defense with Regina Gregory, ADB Watch.
July, 2003.
Environmental injustice is the lack of fair treatment and involvement of all humans
with respect to development, implementation, and enforcement of environmental laws,
regulations and policies. It is also a situation where the minority and low-income groups
having to bear a disproportionate share of environmental costs. Often, we see that toxic
waste dumps located in poorer communities, or toxic wastes being shipped to low-income
districts where regulations are weaker or non-existent. Environmental issues started gaining
international spotlights in the early 1970s, and eventually many environmental
organizations, policy instruments, financing mechanisms that regulate processes of global
environmental protection were born. These can be referred to as global environmental
governance (GEG). Even though environmental awareness has improved and much efforts
have been addressed globally, environmental degradation worsens. Some key challenges to
effective global environmental governance will be discussed, along with a few
recommendations for reformation of our current fragmented governance structure.
One of the key challenges of GEG is the proliferation of multilateral environmental
agreements (MEAs) and fragmentation of GEG. A great multitude of environmental
agreements, protocols, laws and geographically dispersed institutions have put global
environmental governance into a mess. Plenty of inconsistencies can be found in rules and
norms, and the fast paced activities can easily overwhelm, or even financially drain some of
the poorest countries. All of these points to suggest that our current GEG system is not
operating optimally as its agreements, institutions and resources are yet to achieve their
maximum, desired potential and is left with untapped synergies. This complex web of
incoherent system of ‘solutions’ will only worsen over time if no appropriate corrective
measures are put into practice. The following are some pointers often identified as parts of
the MEA proliferation problem. Firstly, treaty congestion is a common description for the
state of GEG as there are more than 500 MEAs registered with the United Nations for
example [1]. It is argued that the more the number of MEAs, it becomes messier, more
incoherent and confusion in GEG, which in turn encourages demands for order and central
decision-making authority. Secondly, there is the duplication and conflicting agendas due to
new treaties being negotiated from scratch on top of the presence of new stakeholders [2].
Thirdly, the role of science is found to be diminishing due to the difficulties of coordination
across the fragmented GEG and proliferated MEAs [3]. With this, we can only hope that
proliferation slows down over time, especially as treaties mature and progress from
negotiation phase swiftly into implementation phase.
Coordination in a multilateral institution is of utmost importance. Despite that, the
rapidly growing number of international environmental actors has made coordination more
important, but at the same time more difficult. The Global Environment Facility (GEF) was
established as a main financing mechanism, but many administrative offices and
commissions were detracted from their authority which led to inter-agency politics [4]. The
challenge of coordination in policies and implementation lies deep within GEG, this often
creates competing or incoherent decision-making structures, which eventually lead to
loopholes in international policies. A few common causes of coordination shortfalls can be
identified. Leadership in global environmental institutions is much needed, yet rarely
discussed in literature. The focus here is on the individuals who are able to lead institutions
or have great influence on the focus institutions. Global leaders should be able to
demonstrate the political will and invest necessary capital to raise the awareness of
environmental issues to the appropriate level. A recent example can be seen as the United
States remained persistent in leaving the Paris climate agreement under President Trump’s
leadership, leaving all other 194 countries in dismay. Within the GEG system, the lack of
leadership impedes progress. There are hardly any leaders who are able or willing to speak
for and work on behalf of the system as a whole. Most of the time, we observe leaders who
try to defend their fiefdom for their agency and programs. Besides, the connections
between science and environmental policy-making is fairly weak. There is no doubt that
solid environmental governance must be based on the best scientific knowledge available
[5]. In fact, there is an abundance of scientific information out there, it is the lack of
synthesis with international policy-making being the missing link. Information from multiple
sources, gathered in different ways are difficult to compare, not to mention indigestible for
policy-makers from non-scientific background, this often contribute to the failure of
providing a complete picture of the environmental issues [6]. Although the environment is
often put at a lower priority by the international community, the need for leaders with
ambitions of aligning the interests of the system as a whole is in great need.
Another major challenge in the current GEG system is the lack of implementation,
compliance, enforcement and effectiveness. Although negotiations on MEAs are rather
active, but few actually turn agreements into actual change on the ground [7]. There should
be clear distinctions between implementation, compliance, enforcement, and effectiveness.
And the sum of these is defined as the performance of international environmental
instruments [8]. The heart of the issue here is that the GEG system has been too obsessed
with negotiating new agreements, while performance focus is almost entirely absent from
the discourse [9]. From one perspective, environmental negotiators have the desire to
merely come to some agreement, despite those that will not bring about any effectiveness.
Reaching agreements can be seen as an achievement and may bring instant rewards, but
true success only comes about if states have the true intention and capacity to make them
work domestically [10]. Another well discussed issue is the lack of global instruments to
ensure compliance and enforcement. Consent for an enforcement body to be made to
comply with international laws is rare, simply because of worries that the costs will
outweigh the benefits. At the very least, the perceptions of sovereignty are slowly changing
as there is strong pressure to act when global commons are threatened [11]. With
innovative legislative and regulatory mechanisms, compliance with MEAs and their
implementations can definitely be improved. For example, moving away from the consensus
principle and towards qualified majorities in the Whaling Commission as well as the
Montreal Protocol [12]. Together with enhanced transparency within the GEG through the
use of formal prior informed consent procedures, government accountability and
responsiveness can be further refined.
To conclude, international actors do play a part in the many environmental injustices
caused, and they should put in prevent further damages in future projects. This can be
helped with institutional reform by changing the building blocks of decision-making
processes within institutions as well as the scope of the issues covered. First, any effort for
institutional reformation should begin with a realization that there is a need for global
environmental governance reform. Second, the reform agenda need not be drastic.
Targeting a limited number of the most critical challenges and deficiencies is preferred over
a grandiose scheme for massive overhaul of the GEG system. Lastly, the reform agenda
should be contextualized within a larger and longer-term vision of the eventual state of the
GEG system. The ultimate goal should be ambitious and clear in sight, while improving the
actual state of the global environment. This can best be achieved with a systemic approach
as opposed to fragmentary method.
References
[1] Anton, Donald. (2012). 'Treaty Congestion' in International Environmental Law.
[2] Susskind, L., 1994. Environmental Diplomacy: Negotiating More Effective Global Agreements. New York: Oxford
University Press.
[3] Najam, A., 2000. “The Case for a Law of the Atmosphere.” Atmospheric Environment, 34(23): 4047–4049.
[4] The WTO in Brief https://www.wto.org/english/thewto_e/whatis_e/inbrief_e/inbr00_e.htm
[5] Bernstein, J., 2005. “The Role of Science in Strengthening Global Environmental Governance.” In UNEO – Towards an
International Environment Organization: Approaches to a sustainable reform of global environmental governance. Edited
by Rechkemmer, A., 281–286. Baden-Baden, Germany: Nomos Verlag.
[6] Haas, P. M. 2004. “Science Policy for Multilateral Environmental Governance.” In Emerging Forces in Environmental
Governance. Edited by Kanie, N. and Haas, P. M., 115–136. Tokyo: United Nations University Press.
[7] Millenium Ecosystem Assessment, 2005. Ecosystems and Human Wellbeing: Synthesis. Washington DC: Island Press.
Accessed at www.milleniumassessment.org in March 2006.
[8] Faure, M. and Lefevere, J., 1999. “Compliance with International Environmental Agreements.” In Vig, N. and Axelrod, R.
(eds.), The Global Environment: Institutions, Law, and Policy, 138–156. Washington DC: CQ Press.
[9] Najam, A., 2006. “Challenges for MEA Compliance.” Presentation at UNEP High-Level Workshop, Colombo, Sri Lanka,
January 2006.
[10] Zaelke, D., Kaniaru, D. and Kruzikova, E. (eds), 2005. Making Law Work – Environmental Compliance and Sustainable
Development. Cameron May Ltd., International Law Publishers.
[11] Chayes A. and Chayes A. H., 1995. The New Sovereignty: Compliance with International Regulatory Agreements.
Harvard University Press.
[12] Dunoff, J. L., 1995. “From Green to Global: Toward the Transformation of International Environmental Law.” Harvard
Environmental Law Review, Volume 19, Winter, 241–300.
3. To what extent, does this case show the limits of environmentalism in China, where
decision-making remains a top-down process? Discuss. (20 marks, 2000 words)
To put it simply, economic growth cannot continue without sacrificing our ecology as
they are strongly interconnected. The conflict between economic growth and the
environment is greater today than has ever before, especially in developing countries like
India and China with high population growth and mass poverty. State governments are
often urged to control environmental pollution, clean their rivers and fight climate change.
To achieve this, stringent regulations and incentives are required. However, due to
widespread corruption in the administration, the rules and regulations concerning the use
of natural resources and environmental protection have been tainted with impunity. One
can understand when priority on environmental protection loses to the more attractive goal
of economic development. During the 1978 economic reform, China recognized the need for
another approach to state intervention, and has turned to non-state actors to share some of
the environmental protection burden. We hence aim to explore the capacity and limits of
environmental public organizations in the form of non-governmental organizations (NGOs),
to compensate for the declining central government control and influence over
environmental protection.
Generally, authority is shared between SEPA and other agencies where interests
overlap. Even though SEPA has numerous ways of enforcing environmental protection
policies, there is the issue of insufficient independent enforcement authority. When an
enterprise violates environmental laws, very often we will find that EPBs do not apply what
they are authorized to do. On the other hand, polluting companies would go great lengths
just to save on operational costs while avoid being caught red-handed. Hence, they only
operate their water and air pollution control equipment when inspectors’ visits are due. This
loophole can be exploited easily in rural areas due to the lack of enforcement capacity, or
conflicts of interest between economic and environmental division of the administration.
Furthermore, EPB staffs often fail to withdraw operational permits for serious violation of
environmental laws, or simply decide not to charge companies for non-compliances in order
to maintain harmonious relations with them. Worse still, under the common practice of
guanxi [8], EPBs tend to be less strict towards companies that are able to provide tax
revenue to the local government and create job opportunities for the locals. Another
example is the “umbrella” schemes, set up by some local governments that prohibits
environmental authorities’ inspection and fines on firms which are considered important to
the local economy, but are significant polluters. Cases can also be found where county
governments nullify EPB decisions for applying court orders to execute administrative fines
[9]. Such interventions are what impedes environmental enforcement. This also creates a
long-term administrative culture problem where one’s career advances easier by not
carrying out their responsibilities and simply not reporting the current issues to their
superiors, rather than actively trying to rectify them. All of this prove that mere committed
leadership on environmental protection is simply not enough, therefore the system remains
weak and enforcement is highly problematic.
Enforcement authority aside, there are weaknesses in (a) the state environmental
protection system, as well as its (b) compliance promotion structure. In 1998, SEPA’s staff
number dropped from 321 to 200 due to the central government’s effort to decentralize the
government in face of constrained revenue [10]. This strongly hampers SEPA’s ability to
educate and train government officials on the importance of environmental protection. As a
result, many government officials have low awareness, skills, commitment and interest in
environment protection. Given the complex nature of environmental challenges, it is not
easy to grasp the idea behind the uncertain long-term benefits and short-term costs of
investment in environment protection. As discussed earlier, the funding and resources of
EPBs became the local government’s responsibility. This does not always bring positive
changes as this puts EPBs into a difficult situation with contradictory expectations. They are
required to implement environmental protection policies, at the same time expected to
increase economic output and employment as well. Yet, key criterion for career promotions
lies within achievements in these latter spheres. Environmental protection provides long-
term, diffused but controversial benefits. In comparison, the development of infrastructures
and employment creation offer immediate and apparent benefits. Hence, it is no surprise to
see state officials focusing most of their resources on the most rewarding sector, economic
output. On the other hand, compliance promotion is relatively weak in China as the
government rarely makes any effort to inform industries of the latest developments in
environmental regulations and standards. Not only that, technical assistance is seldom
provided for cleaning up, and there are no compliance assistance centre or experts readily
available for companies to seek assistance when they wish to come into compliance [11].
With the above limitations, China’s environmental protection efforts seem to have failed as
degradation continues. It is clear that decentralization has not strengthen environmental
protection as hoped. To fill the gap in the state bureaucracy, the central government turned
to a new partner: environmental civil society.
There are many categories of environmental NGOs, all of which aim to promote
environmental consciousness, sustainable development and public participation. Well-
established governmental environmental NGOs (also known as GONGOs) have good
relations with the government and benefit from easy access to government officials, data
and financial support. One example of Chinese GONGO is the Heilongjiang Provincial
Territory Society, established in 1994. They were able to involve policymakers and scholars
from the Forestry Bureau, the Environmental Bureau and various universities during the
development of the sustainable land use plan for the Ussuri River watershed [13]. Although
there has been numerous successes, NGOs continuously face challenges in the social,
economic, and political areas. Lack of funding is the primary hindrance for NGOs to further
and expand their activities. The dependence of NGOs on the government also limits their
capabilities, as they have to rely on the government for financial and technical help for
necessary projects. As part of the reform program, the central leadership encouraged
government agencies to transfer some of their functions to NGOs, but many were unwilling
to do so as it would reduce their power and resources [14]. Besides, the government itself
have policies that restrict the expansion of NGOs. For instance, regulations in Beijing
prohibits: (i) NGOs from establishing regional branches, (ii) any individual from serving as
the legal representative of more than one NGO [14]. Volunteer retainment and recruitment
is also a big challenge for NGOs, as the public generally are not convinced that non-
governmental affiliations have the will to bring good for the society without any self-
interested motives [15]. The government should definitely support and promote NGOs in
order to gain public trust to ensure the sustainability of the existing programs.
References
[1] https://www.merriam-webster.com/dictionary/decentralization
[2] Peter T.Y. Cheung, “Introduction: Provincial Leadership and Economic Reform in Post-Mao China,” in Peter T. Y. Cheung,
Jae Ho Chung and Zhimin Lin, eds., Provincial Strategies of Economic Reform in Post-Mao China: Leadership, Politics and
Implementation (Armonk: ME Sharpe, 1998), pp. 10-17
[3] Sub-national governments may develop laws, regulations and policies. These must be equally or more stringent than
central government laws, regulations and policies.
[4] “The Impact of State Capacity on Enforcement of Environmental Policies: The Case of China,” Journal of Environment
and Development, vol. 12, no. 1 (March 2003), pp. 50-81
[5] http://www.chinacsrmap.org/Org_Show_EN.asp?ID=690
[6] New responsibilities include auto emissions controls and radioactive waste/nuclear safety and natural resources
conservation.
[7] Speech by President Hu Jintao of China at APEC CEO Summit
http://www.china-un.ch/eng/ljzg/zgwjzc/t85897.htm
[8] The Chinese word guanxi is frequently translated as “social connections”. Guanxi, which has long been an element of
Chinese life, is based on a blend of exchanges and mutual affection that “create feelings of responsibility and obligation on
the one hand and indebtedness on the other”. In general, guanxi is maintained by trading favours over long periods. These
exchanges are often viewed as creating a resource that can be used to “get things done”.
[9] OECD Environmental Performance Reviews OECD Environmental Performance Reviews: China 2007. Notes. Page 220.
[10] China: Air, Land, and Water “environmental priorities for a new millennium”. Table 5.1 Developments in
Environmental Administration, 1974 to 1998. Page 101.
[11] Krzysztof Michalak, Eugene Mazur. OECD Environmental Compliance and Enforcement in China. 2004. “An assessment
of current practices and ways forward”.
[12] Cheung, D. K. K. (2007). Business- GO Relationship for Environmental Conservations in Hong Kong: Capacity Building
for GOs and the Roles of Government and Business-Related
Organisations. The Asia Pacific Journal of Public Administration 3(2), 207-222.
[13] Andrew I.E. Ewoh, Melissa Rollins. (2011). The Role of Environmental NGOs in Chinese Public Policy. Journal of Global
Initiatives: Policy, Pedagogy, Perspective 6(1), 50-52.
[14] Lu, Y. (2005). The Growth of Civil Society in China: Key Challenges for NGOs. Chatham House Briefing Paper. ASP BP
05/01, 2-12.
[15] Fangqiang, Y. (2009). Challenges for NGOs in China. Asia Catalyst. Retrieved January 5, 2010. Available at
http://asiacatalyst.org/blog/2009/06/challenges-for-ngos-in-china.html