Development Reasearch

8/8/2019 Development Reasearch

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Environmental Issues in Developing Countries

In developing countries seeking to expand their economic activities, consideration forenvironmental conservation often receives a low priority. In addition, approaches used inindustrialized countries often cannot be applied directly in developing countries. In this

context, NIES is conducting research on ways to conserve the environment that areappropriate for developing country conditions.

Water quality and air pollution are serious problems in developing countries in the Asian region.Air pollution in major cities marked by many factories and heavy vehicle traffic also have highconcentrations of sulfur dioxide and suspended particulate matter (SPM), at levels Japanexperienced in the past. In addition, problems such as damage from acid rain and transboundary

pollution are growing more serious. Pollution of rivers and lakes from chemical substances(including agricultural chemicals) and eutrophication (including abnormal growth of toxic algae)are also occurring more frequently, while water shortages and tropical forest destruction areworsening.

While many developing countries give economic development the greatest priority, many problems remain with basic needs such as safe drinking water and food, as well as medical and public health services. This situation often hinders progress in addressing environmental problems. In some countries, including Bangladesh, China and India, negative health impacts aregrowing over large areas due to fluorine and arsenic pollution in air and drinking water. InChina, problems caused by sandstorms from the inland deserts have attracted internationalattention about aerosols and their long distance transport mechanisms. In addition, the localecological damage and impacts on water resources as a result of construction of the ThreeGorges Dam on the Changjiang (Yangtze) River have attracted international concern.

Extensive use of coal in the Chinese industrial town of Taigen causes some of the worst air pollution in the country, and has been linked to respiratory diseases and lung cancer.

Besides those concerns, in recent years, in the context of growing internationalization, a pressing

need exists for responses to global environmental risks, such as transboundary acid deposition,dioxins and endocrine disruptors, and global warming. To address such problems, NIES isconducting the following types of research relating to the increasingly complex environmentalissues facing developing countries, in cooperation with international institutions and universities:

• Environmental monitoring

• Field and epidemiological studies to assess impacts on health and ecosystems (includingliving organisms, rural agricultural productivity, hydrological cycles, scenery, etc.) and



development of response measures

• Studies for the purposes of environmental risk assessments of regional pollution andglobal environmental change, as well as consideration of approaches to evaluate risk awareness and raise the interest of the general public

• Water pollution countermeasures such as household wastewater treatment facilities and purification technologies using soils and hydroponics based on "eco-engineering"

• Development of environmental restoration technologies such as "bio-manipulation" thatmake use of the food chain to boost effectiveness

• Consideration of relationships between developed and developing countries (includingissues relating to trade and industrial relocation).

Water quality improvement system using "eco-engineering"

In addition, through the cooperation of the environmental ministers of China, Japan and Korea,the three countries are working on new research cooperation activities for environmentalconservation in East Asia. NIES is involved in the research aspects of this work.

Sustainable Development





At the 1992 UN Conference on Environment and Development (the EarthSummit), the Convention on Biological Diversity (CBD) was born. 192 countries, plus the EU,are now Parties to that convention. In April 2002, the Parties to the Convention committed tosignificantly reduce the loss of biodiversity loss by 2010.Perhaps predictably, that did not happen. Despite numerous successful conservations measures supporting

biodiversity, the 2010 biodiversity target has not been met at the global level. This page provides anoverview on how the attempts to prevent biodiversity loss is progressing.

Read “ Addressing Biodiversity Loss ” to learn more.Poverty and the Environment

Last updated Saturday, February 12, 2005.

The causes of poverty and of environmental degradation are inter-related suggesting thatapproaching sustainable development requires understanding the issues from many angles, not

just say an environmentalist or economics perspective alone.

Read “ Poverty and the Environment ” to learn more.

Non-governmental Organizations on Development Issues

Last updated Wednesday, June 01, 2005.

What does an ever-increasing number of non-governmental organizations (NGOs) mean? NGOsare non-profit organizations filling the gap where governments will not, or cannot function. Inthe past however, some NGOs from the wealthy nations have received a bad reputation in somedeveloping nations because of things like arrogance, imposition of their views, being a foreign

policy arm or tool of the original country and so on. Even in recent years some of thesecriticisms still hold. However, recently some new and old NGOs alike, have started to becomemore participatory and grassroots-oriented to help empower the people they are trying to help, tohelp themselves. This is in general a positive turn. Yet, the fact that there are so many NGOs

popping up everywhere perhaps points to failures of international systems of politics, economics,markets, and basic rights.

Read “ Non-governmental Organizations on Development Issues ” to learn more.

Foreign Aid for Development Assistance

Last updated Sunday, April 25, 2010.

http://www.globalissues.org/article/787/addressing-biodiversity-loss

http://www.globalissues.org/article/425/poverty-and-the-environment


http://www.globalissues.org/article/25/non-governmental-organizations-on-development-issues


http://www.globalissues.org/article/35/foreign-aid-development-assistance

http://www.globalissues.org/article/787/addressing-biodiversity-loss








In 1970, the world’s rich countries agreed to give 0.7% of their gross national income as officialinternational development aid, annually.

Since that time, billions have certainly been given each year, but rarely have the rich nationsactually met their promised target.

For example, the US is often the largest donor in dollar terms, but ranks amongst the lowest interms of meeting the stated 0.7% target.

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Furthermore, aid has often come with a price of its own for the developing nations. Commoncriticisms, for many years, of foreign aid, have included the following:

• Aid is often wasted on conditions that the recipient must use overpriced goods andservices from donor countries

• Most aid does not actually go to the poorest who would need it the most

• Aid amounts are dwarfed by rich country protectionism that denies market access for poor country products while rich nations use aid as a lever to open poor country marketsto their products

• Large projects or massive grand strategies often fail to help the vulnerable; money canoften be embezzled away.

This article explores who has benefited most from this aid, the recipients or the donors.

Read “ Foreign Aid for Development Assistance ” to learn more.G8: Too Much Power?

Posted Sunday, June 10, 2007.

Read “ G8: Too Much Power? ” to learn more.

Water and Development

Last updated Sunday, June 06, 2010.

Issues such as water privatization are important in the developing world especially as it goes

right to the heart of water rights, profits over people, and so on. This article looks into theseissues and the impacts it has on people around the world.

Read “ Water and Development ” to learn more.

Corporate Social Responsibility

Posted Saturday, July 07, 2007.













http://www.globalissues.org/issue/718/g8-too-much-power


http://www.globalissues.org/article/601/water-and-development


http://www.globalissues.org/article/723/corporate-social-responsibility











Corporate Social Responsibility is a bit of a buzz word and some feel that it has been dilutedfrom its original aims, while others are trying to find innovative ways to engage with businessesto be more responsible in their practices.

Read “ Corporate Social Responsibility ” to learn more.

Energy Security

Last updated Sunday, August 08, 2010.

Energy security is a growing concern for rich and emergingnations alike. The past drive for fossil fuel energy has led to wars, overthrow of democraticallyelected leaders, and puppet governments and dictatorships.

Leading nations admit we are addicted to oil, but investment into alternatives has been lacking,or little in comparison to fossil fuel investments.

As the global financial crisis takes hold and awareness of climate change increases, more nationsand companies are trying to invest in alternatives. But will the geopolitics remain the same?

Read “ Energy Security ” to learn more.

Brain Drain of Workers from Poor to Rich Countries

Posted Friday, April 14, 2006.

Brain drain is a problem for many poor countries losing skilled workers to richer countries. Inhealthcare, the effects can often be seen vividly. For example, in many rich countries, up to onethird of doctors may be from abroad, many from Sub-Sahara Africa, while many Africancountries have as little as 500 doctors serving their entire population. Reasons for this brain drainvary, ranging from poor conditions domestically to attractive opportunities and active enticementfrom abroad.

Read “ Brain Drain of Workers from Poor to Rich Countries ” to learn more.

United Nations World Summit 2005

Last updated Sunday, September 18, 2005.

The UN World Summit for September 2005 is supposed to review progress since the MillenniumDeclaration, adopted by all Member States in 2000. However, the US has proposed enormouschanges to an outcome document that is to be signed by all members. There are changes on


http://www.globalissues.org/article/595/energy-security


http://www.globalissues.org/article/599/brain-drain-of-workers-from-poor-to-rich-countries


http://www.globalissues.org/article/559/united-nations-world-summit-2005









almost all accounts, including striking any mention of the Millennium Development Goals, thataim for example, to halve poverty and world hunger by 2015. This has led to concerns that theoutcome document will be weakened. Developing countries are also worried about stronger texton human rights and about giving the UN Security Council more powers.

Read “ United Nations World Summit 2005 ” to learn more.

World Summit on Sustainable Development

Last updated Saturday, September 07, 2002.

This section introduces some of the issues on the international summit (August 26 - September 4,2002) where thousands of delegates met to discuss various issues comprising sustainabledevelopment. Of course, there was a lot of controversy including differences between the global

North and South on all sorts of issues such as corporate-led globalization, privatization of energy, water, health, etc. In addition there was also concern about motives and influences of large corporations on the outcomes of the Summit.

Read “ World Summit on Sustainable Development ” to learn more.

United Nations on Development Issues

Last updated Wednesday, July 25, 2001.

The United Nations is the largest international body involved in development issues around theworld. However, it has many political issues and problems to contend with. But, despite this, it isalso performing some much needed tasks around the world, through its many satelliteorganizations and entities, providing a means to realize the Declaration of Human Rights.Unfortunately though, it is not perfect and is negatively affected by politics of powerful nationsthat wish to further their own interests.

Read “ United Nations on Development Issues ” to learn more.

Trade, Economy, & Related Issues

Last updated Sunday, November 28, 2010.

Read “ Trade, Economy, & Related Issues ” to learn more.

Consumption and Consumerism


Read “ Consumption and Consumerism ” to learn more.

Causes of Poverty


Poverty is the state for the majority of the world’s people and nations. Why is this? Is it enoughto blame poor people for their own predicament? Have they been lazy, made poor decisions, and


http://www.globalissues.org/article/366/world-summit-on-sustainable-development


http://www.globalissues.org/article/24/united-nations-on-development-issues


http://www.globalissues.org/issue/1/trade-economy-related-issues


http://www.globalissues.org/issue/235/consumption-and-consumerism


http://www.globalissues.org/issue/2/causes-of-poverty










http://www.globalissues.org/issue/2/causes-of-poverty





moist forests, for example, are being burned and cut at a rate of 17-20 million hectares per year,or 1 percent a year--if this continues, these forests will disappear within several generations. Theloss of forests can pose severe ecological and economic costs (e.g., lost soil and watershed

protection, local climate change, and destruction of habitat), not to mention a high human toll (in1991, 5,000 Philippine villagers were killed by flooding caused in part by deforested hillsides).

Soils. Although less dramatic than images of advancing deserts, the gradual deterioration of agricultural soils, largely through erosion, is a more widespread and serious problem thandesertffication. Total harvests and yields of important food crops are declining in some countries,

particularly in Sub-Saharan Africa, even though yields are increasing globally, as well as indeveloping countries as a whole. Soil depletion often occurs fragile lands from which the poorestfarmers attempt to wrest a living. Rough estimates suggest that in countries such as Costa Rica,Malawi, Mali, and Mexico, the losses in on-farm productive potential alone may amount to 0.5-1.5 percent of GDP annually.

Although official data show significant progress in the 1980s, nearly 1 billion people in thedeveloping world are still without access to cleanwater for drinking and bathing, and 1.7 billionmust contend with inadequate sanitation facilities. Moreover, the quality of service hasdeteriorated in many areas. and the number of people without access to sanitation continues toincrease in urban areas. The result is a host of water-related diseases. Unsafe water is a major contributor to the 900 million cases of diarrheal diseases annually, leading to 3 million deaths.most of them children. At any time, there are 500 million people strifering from trachoma, 200million from schistosomiasis or bilharzia, and 900 million from hookworm. Cholera, typhoid,and paratyphoid also continue to wreak havoc with human welfare. water, irrigation, andindustrial use. This is a partiular acute problem in arid areas of the Middle East, as well as in

places such as Northern China, East Java, and parts of India. Groundwater is being depleted,sometimes irreversibly. Moreover, existing withdrawals from rivers limit further expansion of irrigation and in-stream uses (e.g., river transport, sediment flushing, and fish reproduction).

Air

Consistent monitoring of ambient air pollution is just over a decade old, but it shows that several pollutants--stemming from energy use, vehicular emissions and industrial production--arefrequently over levels considered safe for health.

* For the 1.2 billion people living in urban areas in developing countries that do not meet WorldHealth Organization standards on dust and smoke, the threat of serious respiratory illnesseslooms large. Reducing such pollution, especially in China and India, could save 300,000 700,000lives every year.

* Indoor air pollution from burning wood, charcoal, and dung inside homes--especially in ruralAfrica and South Asia-endangers the health of 400 700 million people. Women and childrensuffer most. with some of the same health consequences of those who smoke the equivalent of several packs of cigarettes per day.

* High levels of lead. primarily from vehicle emissions, contribute to hypertension and high blood pressure and hinder neurological development. Estimates for Bangkok suggest that theaverage child has lost four or more IQ points by the age of seven because of elevated exposure to



lead.

Atmospheric changes

While much environmental damage and loss is evident today, other sources of potential danger--including those that cross national boundaries--may not show their ill effects for decades hence.

Ozone depletion. This is the most immediate "global commons" problem, as scientists continueto record alarmingly high atmospheric levels of ozone-destroying substances--primarily chlorinemonoxide, which origninates from chlorofluorocarbons. Ozone protects life on earth byabsorbing much of the ultraviolet radiation that causes skin cancer, cataracts, and possiblyimmune-system damage in humans, and reduces the productivity of microscopic marineorganisms that are at the base of the occans' food chain.

Global warming. Increasing emissions of carbon dioxide and other greenhouse gases raiseaverage temperatures on earth, and although the exact size of the effect remains unclear, averageworld temperatures may rise by 1.5--4.5 degrees Celsius by the second half of the next century.Recent research has reduced fears that ice caps might melt, causing sea levels of rise

precipitously, but there are still grounds for concern. Low-lying nations are nonetheless at risk,and agriculture, forests, and ecosystems may not easily adapt to rising temeraptures andconsequent climate changes. The best estimates, still extremely crude, are the global warmingwill impose costs 60 years from now equivalent to about 1 percent of world GDP.

Low-income countries are those with a GNP per capita of $610 or less in 1990. Middle-incomecountries are those with a GNP per capita of more than $610 but less than $7.620 in 1990

High-income countries are those with a GNP per capita of $7,620 or more in 1990.

Source: All of the charts and data are taken from the Worm Development Report 1992.

Progress on Sustainability so far

As highlighted in the introduction page, the record on moving towards sustainability so far appears to have been quite poor and the vast majority of humanity still lack access to basics suchas clean water, adequate sanitation, electricity and so on. And this is in the backdrop of anincreasing amount of wealth in fewer hands.

Given that previous international meetings on sustainable development seem to have had littleeffect on the world's majority, the Johannesburg Summit was considered by some to appear quiteambitious to say the least and many were skeptical as to whether anything of importance wouldeven come of this summit.

A broader agenda than the Rio Summit in 1992, the summit in Johannesburg also included ahuge number of delegates representing nations, business interests and non-profit environmentaland development/citizen/social justice groups. Various key issues were addressed, including:

• Poverty

• Water quality and availability



• Cleaner energy

• Health

• Good governance

• Technology• Production and Consumption

• Oceans and Fisheries

• Tourism

These are just a sample and were all discussed in varying degrees. Other related issues such asglobalization, women's rights were also discussed.

Some understandably criticized the summit as over-ambitious to try and talk about so manyissues. Yet, true or not, it shows that there is at least an apparent growing recognition thatsustainable development (admittedly a somewhat overused word) means a myriad of inter-related issues, not something solely in the realms of environmentalism, but also deep intoeconomics (which governs how resources are used), and a variety of sociopolitical issues.

Back to top

Outcome of the Summit

There were a number of outcomes in the summit's 'Plan of Action ', on key areas (though manymarred with controversy, or praise, depending who you heard it from!). Some of them includethe following:

Water and Sanitation :

• Governments agreed to halve the number of people lacking clean drinking water and basic sanitation by 2015.

• This agreement was perhaps the most positive outcome of the Summit.

Energy :

• Governments agreed in principle to take action to help the poor gain access to affordableenergy

•

Yet, there were no specific targets on things like boosting renewable and "green" sourcessuch as solar or wind power, just wording to "substantially increase" the global share of renewable energy.

• Various Oil-Producing and Exporting Countries (OPEC) nations and the United Statesopposed targets while Europe and various environmental and development organizationswanted them.

• Definition of renewables also caused a stir because some wanted nuclear and hydro-

http://www.globalissues.org/article/366/world-summit-on-sustainable-development#globalissues-org

http://www.johannesburgsummit.org/html/documents/summit_docs/0409_l6rev2_pol_decl.pdf







electric power to be included in this definition while others did not.

• Environmental organizations in particular did not like the outcome.

Global Warming :

• The agreement referred to the need to ratify the Kyoto Protocol, though variousorganizations and nations were hoping for more concrete plans.

• Russia and some other nations announced they would ratify the Kyoto Protocol. This wasseen as positive, because earlier some had implied that they might not.

• Had they not, with the U.S. already rejecting the protocol, Kyoto might have headed for collapse.

Biodiversity and Natural Resources :

• Nations agreed that by 2010, the rate at which extinctions of rare plants and animals are

occurring should be cut.• There was commitment to restore fisheries to their maximum sustainable yields by 2015;

• To establish a representative network of marine protected areas by 2012;

• To improve developing countries' access to environmentally-sound alternatives to ozonedepleting chemicals by 2010.

• While these were on the positive side, World Wildlife Fund, one of the world's leadingconservation organizations felt the Summit didn't do enough .

Trade/Global Economic Related Issues :

• This was a thorny issue for some because it was argued that the WSSD was seen mainlyas a place to iron out World Trade Organization issues, and not really tacklesustainability.

• Some WTO wordage changed specified (or implied) that environment shouldn't besecondary to trade, which is a positive development.

• There was no new commitment or timetable to the E.U. and U.S. farm subsidies or thecrisis in commodity prices.

• Nothing changed in terms of aid, or debt relief.

• Oxfam, for example, described this as a wasted opportunity, only offering crumbs for the poor .

• AllAfrica.com reports that "Several African delegates are known to be angry at the waythat the World Trade Organization's Doha agreements have dominated much of thediscussion - and particularly at attempts to give the WTO resolutions primacy over theWSSD's own agreed positions. Africans also blame rich countries for the failure to make

http://www.panda.org/news/press/news.cfm?id=3140

http://www.maketradefair.com/stylesheet.asp?file=03092002150751


http://sustainable.allafrica.com/stories/200209040458.html


http://www.panda.org/news/press/news.cfm?id=3140






progress on the ending of agricultural subsidies to their own producers, seen as restrictingdeveloping countries' access to markets."

Health :

• Attempts to link women's rights and health services to human rights was opposed bysome nations and religious groups.

• There was agreement that recognition that access to healthcare be consistent with humanrights, and "cultural and religious values".

• Various groups criticized the U.S., the Vatican and some developing countries that triedto oppose this stronger linkage due to issues around women's rights, abortion issues, etc.

• Countries agreed to phase out, by 2020, the use and production of chemicals that harmhuman health and the environment.

Corporate Accountability :

• There was recognition that corporate accountability must be increased.

• Environment News Service commented that the U.S. attempted to "circumvent efforts todevelop new, binding international rules on environmentally irresponsible corporate

behavior" and wanted it to apply only to existing international agreements. However,country delegates in the end rejected this and "conference delegates prevented the UnitedStates from evading a commitment to corporate accountability for environmental crimes."

• The World Development Movement (WDM) were disappointed on the overall outcomeof the summit but on corporate accountability commented that, "The only glimmer of hope is that for the first time proper regulation of multinational companies has been

placed on the agenda. The NGOs and developing countries that have achieved this in theface of fierce opposition from rich governments deserve massive credit. But it will be along struggle to get a binding, enforceable agreement."

There were various other issues that had been discussed as well. In a lot of cases, there were onlyagreements to do something, without any specific targets or action plans. It is easy for anynation, or organization or business to say they support something, but as various organizationshave argued, this summit became an arena for nations and businesses to say they will do things,while often avoiding actual obligations. In addition, because the sanitation agreement was theonly really concrete agreement, development and citizen groups saw the summit as a failure.

Various organizations, some leaders and delegates from developing countries were critical onnumerous aspects of the world system, especially on the agendas and interests of the richer nations. The World Development Movement, for example, felt the summit was a failure for theworld's majority, and that "much of the failure can be attributed to the two major world powers -the US for active obstruction and the EU for pursuing the politics of self-interest." (See their article (PDF format) for the full report.)

The following from AllAfrica.com raises the issue that on the whole all the effort spent onreinforcing past commitments meant little substance in implementation issues or efforts towards

http://ens-newswire.com/ens/sep2002/2002-09-04-01.asp

http://www.wdm.org.uk/news/presrel/current/wssd_deprivation.htm


http://www.wdm.org.uk/campaigns/cambriefs/wssd_wrap_up.pdf

http://ens-newswire.com/ens/sep2002/2002-09-04-01.asp


http://www.wdm.org.uk/campaigns/cambriefs/wssd_wrap_up.pdf



new commitments:

A representative from the Youth Caucus -- a group of youth organisations working onsustainable development -- told the closing plenary: "You have failed us."

"We are sick and tired of the empty promises and political posturing that we've witnessed time

and time again over the past ten years. We are fed up with your bracketing and debating the placement of commas in the plan of action".

UN special envoy to the summit, Jan Pronk, told the BBC that the meeting had come "close tocollapse" and implied that delegates had only managed to maintain the status quo, rather thanadvancing the summit's real objectives. "They were working till last night on reinforcingadvances made in the past," he said. That left very little time for talking about implementation."

— Akwe Amosu, WSSD in Johannesburg Ends on Uncertain Note , AllAfrica.com, 4 September 2002

There were various controversies over issues of governance, influence, power and politics, and

lack of truly democratic processes at the international level. For example, numerous developingcountry leaders commented on the interest and agendas of rich nations and multinationals ashaving a detrimental impact on the poor, increasing and causing poverty, and that the legacy of colonialism was still being felt hard. (Indeed, some such as Zimbabwe's Robert Mugabe madescathing attacks on Britain's Tony Blair, for example. While he might have had some fair pointsabout the impacts of colonialism -- to which many in the audience applauded or approved -- hisruthless actions are hardly a positive alternative.)

As another example, many accused the U.S. of attempting to water down any final agreements.On the final day of speeches, many protestors (including many Americans) and even delegatesfrom countries around the world, jeered U.S. Secretary of State, Colin Powell as he delivered hisspeech in the closing part of the Summit (President George Bush was not in attendance). Theactions of the U.S. have been highly controversial during the Summit. Even U.S. protests groupshave been vocal and dismayed at their leaders. AllAfrica.com, detailing some of this criticism onU.S. actions, even reports that "Following the [NGO] press conference [on the final day of theSummit], members of NGOs from the United States pinned a large U.S. flag to the wall outsidethe briefing room, On it they had written: "Thank you, President Bush, for making the U.S. sohated."".

The above-mentioned WDM article also highlighted another emerging trend: the growingsubordination of government responsibilities to their citizens to multinational pressures andinterests. Many businesses were also at the Summit, some with these additional agendas, somewith hopes to participate in the drive towards sustainable development. But, the interests of

powerful nations and certain large influential businesses and industries did have an impact on thesummit, as they have in all international talks and agreements.

For more on the outcomes, including perspectives/opinions, the following offer some views(links at the end of this section to other web sites also provide more information in general):

• The official Plan of Action . (Link is to a PDF formatted report.)

• From the BBC:

http://allafrica.com/sustainable/stories/200209040458.html

http://www.guardian.co.uk/worldsummit2002/story/0,12264,786298,00.html





http://allafrica.com/sustainable/stories/200209040458.html






o Summit conclusions at a glance , September 4, 2002

o Pressure groups condemn summit , September 3, 2002

• Summary of Contentious Text (PDF) from the Centre for Science and Environment, inIndia, summarizes paragraph numbers and text that has been contentious. Thecompilation also lists which nations supported or opposed the contentious text, together with some commentary.

• WSSD press releases and briefings from WDM.

• World Wildlife Fund (WWF) WSSD news section

• Sustainable Development: An Expensive Trip To Nowhere? by Radha D'Souza, 4September 2002, looks at the structural problems and institutional level issues around theU.N. itself.

• World Wire Special Coverage provides a number of articles from around the world.

• Global Development Plan A Flop, say Activists by Thalif Deen, Terra Viva, Inter PressService, 4 September 2002 also provides some summary.

The remainder of this section introduces at some of those issues relating to business interests,governments, non-governmental organizations, etc.

Back to top

Public-Private Partnerships, Corporate Interests and Globalization

A much-talked about issue during the build up to this summit has been the multinational

corporate interests and influence.Transnational businesses are major entities in global affairs. Some have considerable resources attheir disposal. Business partnerships with governments, at national and local level is increasingin many parts of the world, as it is recognized that business processes can bring positive benefits.Compared to the Rio Summit (and others such as the Kyoto meeting on Climate Change in1997), a number of businesses came to the Summit appearing to support sustainabledevelopment.

Ten years ago at the Earth Summit in Rio, world business leaders were mostly in attendance tosay "no" to any proposals for firm action to reduce greenhouse gasses, as well as to demands for more investment in reducing pollution and controlling toxic wastes.

But what a difference a decade can make. ... Businesses, or at least some business leaders, havedecided to embrace the call for sustainable development. Dozens of CEOs and hundreds of other of corporate officials arrived in Johannesburg this week with briefcases full of proposals for "partnership initiatives" to enhance sustainability.

— Jim Cason, Business Embraces Call for Sustainable Development , allAfrica.com, August 29,2002

http://news.bbc.co.uk/1/hi/world/africa/2230670.stm



http://www.cseindia.org/html/eyou/geg/geg_analysis.pdf

http://www.wdm.org.uk/campaigns/wssd.htm#wssdbriefings

http://www.panda.org/wssd/news.cfm

http://www.zmag.org/sustainers/content/2002-09/04d'souza_.cfm

http://www.worldwire.org/fullcoverage.asp?FCTopicID=Earth+Summit

http://www.ipsnews.net/riomas10/0409_2.shtml





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http://www.panda.org/wssd/news.cfm

http://www.zmag.org/sustainers/content/2002-09/04d'souza_.cfm

http://www.worldwire.org/fullcoverage.asp?FCTopicID=Earth+Summit






However, at the same time, especially in the developing world, but also in the industrializednations, business interests at the expense of people has led to a lot of concern about transnationalcorporations' (TNC) influences in international meetings and summits.

The above quoted article, for example continues that, despite various big businesses turningtowards sustainability, "The criticism, however, has continued, and some groups believe theUnited Nations has become too cozy with big business. "What we're worried about is that many

businesses are draping themselves in the blue of the United Nations in order to get themselvessome brownie points to look good to governments, to look like they're doing the right thingaround the world, when in fact their actual practices on the ground may be very different to thosethey profess on paper," said Matt Phillips of Friends of the Earth in an interview with the BBC."In addition, "Most of the business projects, not surprisingly, are proposals that will expand thereach of the business community while also - at least in principle - improving sustainability."

In addition, the shift towards voluntary commitments rather than obligatory ones is highlighted by some as an indication of business interests highlighting the willingness to appear to dosomething but without being confined by those obligations:

The shift towards private-public partnerships in both the Type I (obligatory) and Type II(voluntary) agreements of the WSSD represents part of wider abdication of responsibility on the

part of developed countries to fulfill their commitments to facilitate sustainable development inthe south. Plus, allowing northern-controlled agencies, such as the World Bank, to initiate theimplementation of crucial programmes, including through its role as lead agency of the GlobalEnvironmental Facility (GEF), once again limits the policy choices of developing countries intheir attainment of sustainable development.

Johannesburg will thus serve as a test of the political will of northern countries, both to acceptthe weight of their present and historical contribution to depletion of natural resources, and toassume primary responsibility for the costs of rebalancing the earth's ecosystems for the benefitof the world's peoples. This responsibility will involve not only the contribution of substantialfinancial resources to aid developing countries in bearing the adjustment costs of sustainabledevelopment, but a commitment to reorienting current unsustainable production andconsumption patterns and reforming the global economic system which form the basis of the

present ecological devastation and human misery.

— Celine Tan, Why trade and finance groups should get involved in the WSSD process , Third World Network, Malaysia, July 2002

But the move towards voluntary actions is also criticized as an excuse for governments , as wellas businesses to shun away from commitments as well.

While this summit saw delegates from all over the world attending, including most worldleaders, the most powerful leader in the world, U.S. President George Bush did not attend .

The decision for Bush not to attend also seems to have some business-oriented reasons behind it,amongst other factors.

Some of the more right-wing oriented big business-backed think tanks and others have urged andapplauded George Bush's decision not to attend in person. Certain big businesses have long been

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afraid of making costly commitments to reduce environmental burdens. Some of the free market"fundamentalist" think tanks believe that any form of regulation on them would have a negativeimpact on the economy, while others fear a sort of "global government" agenda. ( Side Note »)

Evolutionary economist and author, Dr. Hazel Henderson, is quite scathing on the Bush position(and it also puts the onus on U.S. delegates there to defend that position):

US Secretary of State Colin Powell will have a tough job in Johannesburg. Powell must provide public relations and "spin" on US President George Bush's continued "go-it-alone" disdain for multilateral cooperation. Bush's stance is rooted in the laissez faire ideology of his corporatesupporters, the fundamentalist, right wing of his party and the "rugged individualism" philosophyof the US "wild west".

— Hazel Henderson, Bush's Agenda in Johannesburg , Terra Viva, Inter Press Service, August 28 2002

Yet, arguably, if it were even possible for the Summit to have produced some binding outcomethat could be regarded as positive, it would likely be that the perceived costs of making suchchanges would have a negative impact on the wealthy, who currently benefit from the currentglobal system as it is structured. While potentially addressing (or at least highlighting again) theconcerns of the poorer around the world, the hope was that this summit may provide one small(maybe quite tiny) step towards protecting their rights and their environment from externalfactors that they have little control or say over. ( Side Note »)

No doubt that from these business interests and free market ideology, there is some valid criticism as well . Some environmental "extremists" may unwittingly be suggesting policieswhich might hamper long term economic development for poorer nations. Yet, at the same time,

points are made for example that economic growth leads to better environmental qualities. But,this is an ideologically based oversimplification, because it ignores those very same political

factors and influences surrounding economic growth, development and the environment thathave been pushed by and turned out to be beneficial for various business interests at the expenseof these other issues.

For example, economic growth of the wealthy countries has been at the direct cost to poorer nations (for centuries controlling, extracting and using much of their resources), and morerecently, by things like exporting pollution to the poorer regions, which makes the wealthier nations' environment appear even cleaner while regions in the South get even dirtier. Graphs andcharts might show a nice correlation between economic growth and environmental health, butthey doen't necessarily capture these political decisions. (This, while the U.S. for example is stillthe world's largest polluter, as highlighted in various discussions and global meetings regardingclimate change .) Years of devastating structural adjustment in much of the third world by therich nation-heavy IMF and World Bank has meant that the third world nations have been openedup for easier exploitation of labor and environment.

As another example of an ideological comment, the above-linked article about some validcriticism, from the corporate-funded American Enterprise Institute, mentions that at the Summit,"the undemocratic influence of nongovernment organizations (NGOs), the radical fringe's agendaof global environmental governance, and the socialist-redistributionist impulse will all be ondisplay. On the other side of the ledger, however, are signs that the sustainable development





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project may be turning away from its Malthusian roots toward a broader and more productiveview of the relationship between economic development and environment quality."

Rhetoric aside, this passage above ignores interests from other ideological camps, such as"undemocratic" business interests (which wield considerably more power and influence than

NGOs and have contributed to a lot of the world's environmental and social problems, while atthe same time being largely unaccountable). ( Side Note »)

In addition, the claims that NGOs are non-democratic is only in the sense that it is assumed thatsovereign governments are democratic in their real actions (as opposed to rhetoric). Asmentioned on this site, for example on the NGO page , there have been numerous problems thatare also at the hands of certain types of NGOs. While there are no doubt problems with many

NGOs, many, from the third world especially are highlighting issues that their leaders and other leaders and elites around the world are unwilling or unable to address for a number of reasons.

• Many NGOs are beginning to work with people in local and grassroots situations moreeffectively, often when governments don't.

• From a business interest perspective, many NGOs are indeed critical of transnationalcorporate interests. In that context then, NGOs are seen by them as "undemocratic", whenthey are just as legitimate a part of civil society as businesses are.

• Furthermore, the business interests being spoken for are not exactly democratic themselves .

• The power wielded by just a handful of corporations is enormous, more than many nations , compared to NGOs and other segments of society.

• Business lobbies and related groups do not have even the theoretical accountability to the

public at large but to their industries and companies. Their resources and influence areimmense.

Furthermore, the rising number of NGOs could be regarded as relating to failures of state andmarkets to provide all the requirements of society. It is worth bearing in mind the sheer size of global inequality, to give an idea why there are so many NGOs popping up. An aspect of thisinequality and some associated problems is highlighted by the United Nations here:

Today's consumption is undermining the environmental resource base. It is exacerbatinginequalities. And the dynamics of the consumption-poverty-inequality-environment nexus areaccelerating. If the trends continue without change - not redistributing from high-income to low-income consumers, not shifting from polluting to cleaner goods and production technologies, not

promoting goods that empower poor producers, not shifting priority from consumption for conspicuous display to meeting basic needs - today's problems of consumption and humandevelopment will worsen.

... The real issue is not consumption itself but its patterns and effects.

... Inequalities in consumption are stark. Globally, the 20% of the world's people in thehighest-income countries account for 86% of total private consumption expenditures - thepoorest 20% a minuscule 1.3%. More specifically, the richest fifth:


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• Consume 45% of all meat and fish, the poorest fifth 5%.

• Consume 58% of total energy, the poorest fifth less than 4%.

• Have 74% of all telephone lines, the poorest fifth 1.5%.

• Consume 84% of all paper, the poorest fifth 1.1%.• Own 87% of the world's vehicle fleet, the poorest fifth less than 1%.

Runaway growth in consumption in the past 50 years is putting strains on the environment never before seen.

— Human Development Report 1998 Overview , United Nations Development Programme(UNDP) [Emphasis Added]

Yet, ignoring the ideological biases, there is some valid criticism of such agendas, such as theMalthusian perspectives (as also discussed on this site's population section .)

Population issues, for example, and various agendas and perspectives on the issue betweendifferent types of NGOs were apparent in the last summit as the following highlights:

Some northern environmentalists further infuriated those from developing countries [at the 1992Earth Summit in Rio de Janeiro, Brazil] by suggesting that rapid population growth among theworld's poor was the primary driving force behind rainforest destruction, degradation of agricultural lands, and other threats to the future health of the global environment. Vocaladvocates for developing countries resented being portrayed as environmental villains. AnilAgarwal and Sunita Narain of the Centre for Science and the Environment in New Delhi, India,observed, "It is ironic that those who have exploited global resources the most are now preachingto those who have been largely frugal and sparing." The editors of Third World Resurgence

added, "The poor are victims and not culprits in environmental degradation. Much of thedepletion and contamination of resources have been done to meet the consumption demands of the affluent. Changing consumption habits of the affluent is thus the priority in curbing the rateof depletion or pollution of resources." After all, even though the population was growingrapidly in countries like Bangladesh, each additional American consumed many times more thaneach additional Bangladeshi.

— Michael Brower and Warren Leon, The Consumer's Guide to Effective Environmental Choices , (The Union of Concerned Scientists, 1999), p.9 (Link is to online extract)

It should be noted that when big business weren't at Rio or other such meetings as much, theywere criticized by many for not caring. Now, when they were present, they have been criticizedfor being there! However, that argument doesn't in and of itself negate the criticism, based ontheir interests, influence, power and past actions in other international meetings and summits. Nodoubt, there are many in industry and even some business interests that may be regarded asgenuinely attempting to meet some of these challenges. Private corporations can provide manyresources to tackle these issues, and are often driven by the incentive to profit, which can be a

big driver to push for development quickly. Of course this has led to the often justifiablecriticism or observation that this drive for profit can be counter to the drive for sustainability.Yet, if it were possible to manage all this well, this can also be potentially a beneficial

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arrangement, which is where the appeal for public-private partnerships can come from; the so-called win-win situation. However, as nice as that sounds, as various international meetings haveshown, from Kyoto and other global warming meetings, to various World Trade Organizationsummits, etc, there has been genuine concern about big-business interests that are harmful to thethird world (and people of the first world even). These are serious issues that can't just be

ignored.For a while now, U.N. partnerships with certain major multinational corporations have beenquite controversial because some of the major corporations it has partnered up with have beenmajor human rights violators, or major contributors to environmental degradation. In manyinternational agreements in recent years, corporate interests and strong influences have beencriticized by many, especially from the developing world. It is therefore not surprising that thissummit has also received criticism in relation to corporate interests.

A serious concern emerging from the preparatory process of the WSSD is the influence of big business in shaping the outcomes of the WSSD. Through the Business Action for SustainableDevelopment (BASD), transnational corporations are reprising the role they played at Rio

through the Business Council for Sustainable Development (BCSD). Not only are TNCs(through the developed countries) blocking efforts to frame a regulatory mechanism to governtheir activities within the WSSD official agreements, they are presenting themselves as viable

partners in the delivery of sustainable development programmes, especially in the key areas of water, energy, health, agriculture and biodiversity.

Actively engaging in these partnerships are developed countries who have allowed their corporate lobbies to determine their priorities for negotiations during the Prepcoms. The DraftPlan of Implementation is sprinkled very liberally with language exhorting the virtues of 'public-

private partnerships' and calling for public-private partnership implementation of WSSD programmes.

— Celine Tan, Why trade and finance groups should get involved in the WSSD process , Third World Network, Malaysia, July 2002

Christian Aid highlights a similar concern to the above from the Third World Network, thatwhile companies increasingly play an important role in investment and long term development,technology and skills transfer and job creation, "a company's prime motivation is to make a

profit, not to educate a nation or provide clean water for every village." In addition,

"In preparation for the WSSD, corporate lobby groups representing hundreds of transnationalcorporations set up Business Action for Sustainable Development. This has the specific purposeof getting private sector concerns high up the Summit agenda. They have succeeded. Thenegotiating document, or Draft Plan of Implementation, encourages further broad and rapidliberalisation, public-private partnerships, and what are known as 'Type II outcomes'. This iswhere small working groups of companies, governments and non-governmental organisationscome together to: 'translate political commitments into action', entrenching the role of the privatesector in sustainable development. But at the same time these same companies have lobbied toensure that minimum standards do not become mandatory. In other words, they want to policethemselves."

— Daniel Graymore & Isabella D. Bunn, A World Summit for Business Development? ,


http://www.christian-aid.org/indepth/0208wssd/index.htm


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Christian Aid, August 2002

Back to top

Governments and Political Leaders: failing people and the environment?

As well as business interests, both positive and negative, national interests too were a major (the biggest) factor in how the Summit ended and what was in (and out) of the final Plan of Action.

It has been pointed out by many (and also discussed on many sections on this web site) how business interests and governments of some of the industrialized countries have often gone handin hand, from lobbying, to mega donations, shared ideologies, pressure for government and

political leaders to meet business demands else face the prospect of losing jobs as companies caneasily relocate, etc. In that context, there have been a number of criticisms about various

Northern governments as well leading up to this Summit.

As an example of the concern of differing agendas, a European Union and United Statesnegotiating document advocated using the Earth Summit to promote trade liberalisation andcorporate-led globalisation, while not proposing legally binding mechanisms to protect theenvironment or vulnerable communities, as Friends of the Earth reveals . And this was whileideas about some sort of World Environmental Organization, similar in idea to the World TradeOrganization, (but to balance it out as well) is also given a cold shoulder .

Friends of the Earth also criticized the European Union (EU) regarding its position on trade andglobalization related issues discussed at the Summit, saying that,

"In discussions all day yesterday [August 27, 2002, the second day of the Summit] the EU saidthat they would not support a UN text that would set an international framework on corporateaccountability and corporate social responsibility. This proposal was originally put forward bythe G77, the group of developing countries, in negotiations on globalisation, trade and finance."

— EU loses earth summit leadership role , Friends of the Earth, 28 August, 2002

As another example, "Canada's negotiators to the WSSD admitted [to] the federal government'ssupport of the private sector's control of human rights and environmental outcomes of thisconference." according to the Council of Canadians .

Transparency International criticizes both rich and poor nations, pointing out that "Corrupt political elites and unscrupulous investors kill sustainable growth in its tracks" as it released its2002 Corruption Perception Index . In addition, the chairman of the organization pointed out that,"Political elites and their cronies continue to take kickbacks at every opportunity. Hand in glovewith corrupt business people, they are trapping whole nations in poverty and hamperingsustainable development. Corruption is perceived to be dangerously high in poor parts of theworld, but also in many countries whose firms invest in developing nations."

Thus corporate-oriented but rich government-led globalization has been a major factor inenvironmental issues, social and economic issues, especially for the third world due to theimpacts and influence they have in international bodies such as the WTO, IMF, World Bank, andon agreements and negotiations, as discussed throughout this web site. The right to sovereignty isaffected and people have even less ability to make appropriate decisions for their own


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communities, also highlighted in part by the following:

"While it is wonderful that Rio + 10 will attempt to breathe new life into its basic agreements itschances for long-term success are next to nil if nations remain caught in the present double-bind,which prevents even those willing to act on behalf of nature from doing so. The root causes of the present global environmental malaise do not only reflect a failure of "political will," they arealso caused by a fundamental loss of national powers to operate in the best interests of nature or human beings."

— Globalization and the United Nations , International Forum on Globalization, August 26,2002

Back to top

NGOs Sidelined?

As mentioned above, Non governmental organization, ranging from international to localgrassroots groups were present throughout the summit. Their issues and interests ranged from

environment, development and poverty, social justice and other single and multi-issuecampaigns. While some business interests argued that NGOs are undemocratic, as mentionedabove, a lot of business interests could be considered undemocratic and unaccountable, and evenmore of an issue considering the enormous global impact that various industries have, in terms of

power, influence and wealth. That aside, NGOs were recognized participants of the Summit, bythe United Nations. Various NGOs have long been recognized as legitimate 'third' entity of society (the other two being nation states and corporations.)

But, NGOs are not one group, or even a lose group bound by a common set of goals. Hence,there were diverse range of opinions, ranging from being against the Summit in total, tosupporting and campaigning hard to pressure governments for harder and more concreteagreements.

Anuradha Mittal from Food First, taking part at the Summit, describes how some NGOs on theopening day were not able to attend the meetings:

The international civil society has faced being shut out of trade talks. It has faced increasing brutality of police at the trade summits whether it is Seattle, Genoa, Washington, DC, or Quebec.But over 6000 accredited NGOs to the World Summit on Sustainable Development came toJohannesburg with different expectations.

This morning, however, thousands of delegates were in for a shock when they were turned awayfrom the Standton Center where the official summit is being held. The reason given: over theweekend the organizers realized that the building has capacity for holding only 6,000 individualsand the government delegates are over 5,000 in number (several corporate officials are part of government delegations). So while the WSSD Secretariat was processing endless applications of

NGO accreditation, they failed to inform the civil society delegates that they will not be able to participate in the official meeting. Instead they handed out 1,500 passes, allowing first 1,500 toenter the building, enraging thousands who were treated with contempt and even threatened. Todeal with delegates anger, they have now removed the passes. Instead the first 6,000 delegateswill be allowed in after the gates open at 8:30 am. Government delegates (including corporateexecutives) however, will have access to the building at all times.

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— Anuradha Mittal, Latest from the WSSD, Day One , Institute for Food and Development Policy (also known as Food First) August 26, 2002

Some groups have argued that human rights is also a central component to sustainabledevelopment. That giving people more rights to make more decisions for themselves is key.Mary Robinson, U.N. High Commissioner for Human Rights and former President of Ireland,has added that aspect of accountability that human rights should bring, also adding that, "the

private sector is getting 'too much emphasis without accountability'," in an interview with Inter Press Service ( 31 August, 2002 ).

Some of the more grassroots-oriented organizations are often on the streets with ordinary peoplestaging protests and the like. These have occurred for decades on all sorts of aspects of globalization.

As with other international meetings and summits, this one too saw many protests . Toaccompany it, there was a police crackdown with more accusations of heavy-handedness. The

police claims security alerts that activists are planning violent protests, yet, a peaceful march of

activists that included children and elderly was dispersed using percussion grenades to makeloud sounds and produce smoke, to intimidate people.

(See this site's section on protests around the world for more about protests that have occurredfor years on all sorts of global issues and the violence that has accompanied it, usually mostlyfrom the authorities.)

As corporate globalization in the past few years has seen an increase in poverty, inequality andenvironmental degradation, ordinary citizens composed of activists, scientists, academics,intellectuals and others have formed various groups and non-profit organizations to try andhighlight these inequalities from a human/environmental perspective.

This has also come at a time when a lot of governments around the world, from the most powerful to many of the poorest are seen cosying up or caving in to monied and corporateinterests. Business-backed think tanks may claim such NGOs as undemocratic andunaccountable, and in the West where a large number of us benefit and live in comparativeluxury, it might be hard to look inward to find a contributory cause to the world's problems. Of course due to the wide variety of NGOs many are not united by any common goals (incomparison, some basic business interests are common across industries). Some NGOs areindeed quite hostile on some issues while ignoring others. Yet, many more are popping up, with

broader and multi-issue agendas and goals. These are often the ones being more critical of bothgovernments and businesses.

When NGOs and others from around the world try to highlight this, it can be easy to shake off and dismiss as special agendas, and having other interests. In addition, when governments and

businesses are failing people, NGOs offer additional voices (which are often more participatoryand involving wider society, though not always ) that add to the debates, which participatorydemocracy should be all about.

The goal of governance initiatives should be to develop capacities that are needed to realisedevelopment that gives priority to the poor, advances women, sustains the environment and creates needed opportunities for employment and other livelihoods.

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UNDP 1994 Initiatives for Change

The United Nations Development Programme (UNDP) has been at the forefront of the growinginternational consensus that good governance and sustainable human development areindivisible. And we believe that developing the capacity for good governance can be - andshould be - the primary way to eliminate poverty. Notions of good governance and the link

between governance and sustainable human development vary greatly, however, both inacademic literature and among development practitioners.

So, what is sustainable human development?

We define human development as expanding the choices for all people in society. This meansthat men and women - particularly the poor and vulnerable - are at the centre of the development

process. It also means "protection of the life opportunities of future generations...and...the naturalsystems on which all life depends" (UNDP , Human Development Report 1996 ). This makes thecentral purpose of development the creation of an enabling environment in which all can enjoylong, healthy and creative lives.

Economic growth is a means to sustainable human development - not an end in itself. Human Development Report 1996 showed that economic growth does not automatically lead tosustainable human development and the elimination of poverty. For example, countries that dowell when ranked by per capita income often slip down the ladder when ranked by the humandevelopment index. There are, moreover, marked disparities within countries - rich and poor alike - and these become striking when human development among indigenous peoples andethnic minorities is evaluated separately.

There are five aspects to sustainable human development - all affecting the lives of the poor andvulnerable:

• Empowerment - The expansion of men and women's capabilities and choices increasestheir ability to exercise those choices free of hunger, want and deprivation. It alsoincreases their opportunity to participate in, or endorse, decision-making affecting their lives.

Co-operation - With a sense of belonging important for personal fulfillment, well-being and asense of purpose and meaning, human

• development is concerned with the ways in which people work together and interact.

• Equity - The expansion of capabilities and opportunities means more than income - it alsomeans equity, such as an educational system to which everybody should have access.

• Sustainability - The needs of this generation must be met without compromising the rightof future generations to be free of poverty and deprivation and to exercise their basiccapabilities.

• Security - Particularly the security of livelihood. People need to be freed from threats,such as disease or repression and from sudden harmful disruptions in their lives.

UNDP focuses on four critical elements of sustainable human development: eliminating poverty,



creating jobs and sustaining livelihoods, protecting and regenerating the environment, and promoting the advancement of women. Developing the capacities for good governance underpinsall these objectives.

What, then, is governance? And what is good governance?

The challenge for all societies is to create a system of governance that promotes, supports andsustains human development - especially for the poorest and most marginal. But the search for aclearly articulated concept of governance has just begun.

Governance can be seen as the exercise of economic, political and administrative authority tomanage a country's affairs at all levels. It comprises the mechanisms, processes and institutionsthrough which citizens and groups articulate their interests, exercise their legal rights, meet their obligations and mediate their differences.

Good governance is, among other things, participatory, transparent and accountable. It is alsoeffective and equitable. And it promotes the rule of law. Good governance ensures that political,social and economic priorities are based on broad consensus in society and that the voices of the

poorest and the most vulnerable are heard in decision-making over the allocation of developmentresources.

Governance has three legs: economic, political and administrative. Economic governanceincludes decision-making processes that affect a country's economic activities and itsrelationships with other economies. It clearly has major implications for equity, poverty andquality of life. Political governance is the process of decision-making to formulate policy.Administrative governance is the system of policy implementation. Encompassing all three, goodgovernance defines the processes and structures that guide political and socio-economicrelationships.

Governance encompasses the state, but it transcends the state by including the private sector andcivil society organisations. What constitutes the state is widely debated. Here, the state is definedto include political and public sector institutions. UNDP's primary interest lies in how effectivelythe state serves the needs of its people. The private sector covers private enterprises(manufacturing, trade, banking, cooperatives and so on) and the informal sector in themarketplace. Some say that the private sector is part of civil society. But the private sector isseparate to the extent that private sector players influence social, economic and political policiesin ways that create a more conducive environment for the marketplace and enterprises.

Civil society, lying between the individual and the state, comprises individuals and groups(organised or unorganised) interacting socially, politically and economically - regulated byformal and informal rules and laws.

Civil society organisations are the host of associations around which society voluntarilyorganises. They include trade unions; non-governmental organisations; gender, language,cultural and religious groups; charities; business associations; social and sports clubs;cooperatives and community development organisations; environmental groups; professionalassociations; academic and policy institutions; and media outlets. Political parties are alsoincluded, although they straddle civil society and the state if they are represented in parliament.



The institutions of governance in the three domains (state, civil society and the private sector)must be designed to contribute to sustainable human development by establishing the political,legal, economic and social circumstances for poverty reduction, job creation, environmental

protection and the advancement of women.

Much has been written about the characteristics of efficient government, successful businessesand effective civil society organisations, but the characteristics of good governance defined insocietal terms remain elusive. The characteristics?

• Participation - All men and women should have a voice in decision-making, either directly or through legitimate intermediate institutions that represent their interests. Such

broad participation is built on freedom of association and speech, as well as capacities to participate constructively.

• Rule of law - Legal frameworks should be fair and enforced impartially, particularly thelaws on human rights.

• Transparency - Transparency is built on the free flow of information. Processes,institutions and information are directly accessible to those concerned with them, andenough information is provided to understand and monitor them.

• Responsiveness - Institutions and processes try to serve all stakeholders.

• Consensus orientation - Good governance mediates differing interests to reach a broadconsensus on what is in the best interests of the group and, where possible, on policiesand procedures.

• Equity - All men and women have opportunities to improve or maintain their well-being.

• Effectiveness and efficiency - Processes and institutions produce results that meet needswhile making the best use of resources.

• Accountability - Decision-makers in government, the private sector and civil societyorganisations are accountable to the public, as well as to institutional stakeholders. Thisaccountability differs depending on the organisation and whether the decision is internalor external to an organisation.

• Strategic vision - Leaders and the public have a broad and long-term perspective on goodgovernance and human development, along with a sense of what is needed for suchdevelopment. There is also an understanding of the historical, cultural and socialcomplexities in which that perspective is grounded.

Interrelated, these core characteristics are mutually reinforcing and cannot stand alone. For example, accessible information means more transparency, broader participation and moreeffective decision-making. Broad participation contributes both to the exchange of informationneeded for effective decision-making and for the legitimacy of those decisions. Legitimacy, inturn, means effective implementation and encourages further participation. And responsiveinstitutions must be transparent and function according to the rule of law if they are to beequitable.



These core characteristics represent the ideal - and no society has them all. Even so, UNDP believes that societies should aim, through broad-based consensus-building, to define which of the core features are most important to them, what the best balance is between the state and themarket, how each socio-cultural and economic setting can move from here to there.

UNDP is faced increasingly with post-crisis situations and disintegrating societies. For them, theissue is not developing good governance - it is building the basic institutions of governance. Thefirst step is towards reconciliation - building society's ability to carry on a dialogue on themeaning of governance and the needs of all citizens.

Relationships between governance and human development

Each domain of governance - the state, the private sector and civil society - has a unique role in promoting sustainable human development ( see box overleaf ).

The state

In countries where electoral processes exist, the state is composed of an elected government andan executive branch. The state's functions are manifold - among them, being the focus of thesocial contract that defines citizenship, being the authority that is mandated to control and exertforce, having responsibility for public services and creating an enabling environment for sustainable human development. The latter means establishing and maintaining stable, effectiveand fair legal-regulatory frameworks for public and private activity. It means ensuring stabilityand equity in the marketplace. It means mediating interests for the public good. And it means

providing effective and accountable public services. In all four roles, the state faces a challenge -ensuring that good governance addresses the concerns and needs of the poorest by increasing theopportunities for people to seek, achieve and sustain the kind of life they aspire to.

The state, of course, can do much in such areas as upholding the rights of the vulnerable,

protecting the environment, maintaining stable macroeconomic conditions, maintainingstandards of public health and safety for all at an affordable cost, mobilising resources to provideessential public services and infrastructure and maintaining order, security and social harmony.

State institutions can also empower the people they are meant to serve - providing equalopportunities and ensuring social, economic and political inclusion and access to resources. But

people can be empowered only if their legislatures, electoral processes and legal and judicialsystems work properly. Parliaments of freely and fairly elected members representing different

parties are crucial to popular participation and government accountability. Effective legal and judicial systems protect the rule of law and the rights of all. Open elections mean publicconfidence and trust - and so political legitimacy. States should also decentralise political andeconomic systems to be more responsive to citizens' demands and to changing economicconditions.

In developed and developing countries alike, the state is being compelled to redefine its role insocial and economic activity - to reduce it, reorient it, reconfigure it. The pressures for changestem from three sources:

• The private sector wants a more conducive market environment and a better balance between state and market.

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• Citizens want increased accountability and responsiveness from government, as well asgreater decentralisation.

• Global pressures from supranationals and worldwide social and economic trends arechallenging the identity and nature of the state.

The private sector

The state is a big force for development - but it is not the only one. Sustainable humandevelopment depends in part on creating jobs that provide enough income to improve livingstandards. Most states now recognise that the private sector is the primary source of opportunities for productive employment. Economic globalisation is fundamentally changing theways in which industries and enterprises operate. In many developing countries, privateenterprise must be encouraged and supported to be more transparent and competitive in theinternational marketplace.

Equitable growth, gender balance, environmental preservation, expansion of the private sector and responsible and effective participation in international commerce cannot be achieved by themarket alone, however. States can foster private sector development that is sustainable by:

• Creating a stable macroeconomic environment.

• Maintaining competitive markets.

• Ensuring that the poor (especially women) have easy access to credit.

• Nurturing enterprises that generate the most jobs and opportunities.

• Attracting investment and helping to transfer knowledge and technologies, particularly tothe poor.

• Enforcing the rule of law.

• Providing incentives for human resource development.

• Protecting the environment and natural resources.

Civil society

Civil society also has to protect the rights of all citizens. As the state and the private sector are being reshaped and their relationships redefined, civil society is changing in important ways.Unresponsive government and unrelenting economic and social pressure have undermined some

traditional civil society organisations and strengthened others - and in many cases forced peopleto organise in new ways. Civil society is thus more than just society. It is the part of society thatconnects individuals with the public realm and the state - it is the political face of society.

Civil society organisations channel people's participation in economic and social activities andorganise them into more powerful groups to influence public policies and gain access to publicresources, especially for the poor. They can provide checks and balances on government power and monitor social abuses. They also offer opportunities for people to develop their capacitiesand improve their standards of living - by monitoring the environment, assisting the



disadvantaged, developing human resources, helping communication among business people.

More fundamentally, civic networks ease the dilemmas of collective action by institutionalisingsocial interaction, reducing opportunism, fostering trust and making political and economictransactions easier. Well-developed civic networks also amplify flows of information - the basisfor reliable political, economic and social collaboration and public participation of civil societymembers. These relationships and social norms make up a nation's social capital.

Civil society organisations do not always pursue the qualities of good governance. Nor are theyalways the most effective development agents. That is why states, while recognising and

protecting the democratic rights of civil society organisations, must also ensure that the rules of law and values that reflect societal norms are adhered to. Democratic institutions, particularlylocal ones, can be important in ensuring that all in society have a voice, as well as ensuring thatthere are transparent and fair ways to reach consensus.

Like private enterprises, civil society organisations need adequate capacities to fulfill their potential. They also need an enabling environment, including a legislative and regulatory

framework that guarantees the right of association, incentives to facilitate support and ways for civil society organisations to be involved in public policy-making and implementation.

Strengthening the enabling environment for sustainable human development thus depends notonly on a state that governs well and a private sector that provides jobs that generate income. Italso depends on civil society organisations that make political and social interaction easier andthat mobilise society to participate in economic, social and political activities.

The global context

The transformation from command to market-oriented economies, the emergence of democratic political regimes in the former Soviet Union, the rapid development and global proliferation of

new technologies, the pervasive spread of telecommunications systems, the growing importanceof knowledge-based industries and skills and the continuing integration of the world economythrough trade and investment - all these have created the foundation for a new age of sustainablehuman development. But all carry risks as well. Is it to be a breakthrough or a breakdown?

Changes in the world's economic, political and social systems have indeed broughtunprecedented improvements in human living conditions in both developed and developingcountries. Consider the profound breakthroughs in communications, transport, agriculture,medicine, genetic engineering, computerisation, environmentally friendly energy systems,

political structures, peace settlements. The list goes on.

But these changes also bring new uncertainties and challenges as the world steps into the 21stcentury. Signs of breakdown are everywhere: disintegration of families; destruction of indigenous societies; degradation and annihilation of plant and animal life; pollution of rivers,oceans and the atmosphere; crime, alienation and substance abuse; higher unemployment; and awidening gap in incomes and capabilities. Not a pretty picture.

The trend towards globalisation deserves special attention. It is manifest in the growth of regional blocs that cooperate in such areas as trade and legal frameworks, in the power of intergovernmental bodies such as the World Trade Organization and in the spread of



transnational corporations. Globalisation has profound implications for governance the finalimpact of which we cannot yet determine. First is the increasing marginalisation of certain

population groups. Those who do not have access to the technological/information revolution arein danger of becoming part of a structural underclass. Second is the erosion of state sovereigntyas transnational bodies increasingly mediate national concerns and press for universal laws.

Third is the increased globalisation of social and economic problems, such as crime, narcotics,infectious diseases and the migration of labour. Finally, international capital and trade aredecreasingly accountable to sovereign states.

Governance can no longer be considered a closed system. The state's task is to find a balance between taking advantage of globalisation and providing a secure and stable social and economicdomestic environment, particularly for the most vulnerable. Globalisation is also placinggovernments under greater scrutiny, leading to improved state conduct and more responsibleeconomic policies.

Because each domain of governance - state, private sector, civil society - has strengths andweaknesses, the pursuit of good governance requires greater interaction among the three todefine the right balance among them for sustainable people-centred development. Given thatchange is continuous, the ability for the three domains to continuously interact and adjust must

be built-in, thus allowing for long-term stability. UNDP's Initiatives for Change recognises thatthe relationships among government, civil society and the private sector:

are key determinants in whether a nation is able to create and sustain equitableopportunities for all of its people. If a government does not function efficiently and effectively, scarce resources will be wasted. If it does not have legitimacy in the eyes of the people, it will not be able to achieve its goals or theirs. If it is unable to build national consensus around these objectives, no external assistance can help bring themabout. If it is unable to foster a strong social fabric, the society risks disintegration and

chaos. Equally important, if people are not empowered to take responsibility for their own development within an enabling framework provided by government, development will not be sustainable.

Developing countries must ensure that everyone can participate in economic and socialdevelopment and take advantage of globalisation. They must build a political system thatencourages government, political, business and civic leaders to articulate and pursue objectivesthat are centred around people and a system that promotes public consensus on these objectives.

What role can UNDP play in this?

We are already doing much. As of 1995 a third of our resources were allocated for governance.

Ongoing development cooperation in management development and governance, including cost-sharing, amounts to about $1.3 billion. Management development and governance allocationsvary significantly across regions. In Africa, the Arab States and Eastern Europe and the CIS, thelargest total contribution (UNDP and cost-sharing) is allocated to aid management andcoordination. Within the Asia and the Pacific region, however, the largest allocation is for economic and financial management, while the Latin America and the Caribbean region tends toemphasize planning and support for policy formulation. Within global and interregional

programmes, the largest allocations are those dealing with planning and support for policy



formulation, decentralisation and strengthening civil society.

UNDP policy for governance programming is driven by three major forces:

1. Our mandate We support the implementation of declarations and agreements reached atglobal UN conferences, many of which have specific references to governance. The mostrecent mandate for governance is Executive Board decision 96/29 in which the Boardendorses the mission statement.

1. Our mission To promote sustainable human development.

1. Our comparative advantage We have institutional strengths that, together, set us apartfrom other external partners concerned with governance issues:

• Impartiality - We can work as an agent for change with all actors.

• Customer orientation - We pursue our mandate within national priorities.

•

Long time frame - We view development from a long-term perspective and seek tomaintain a presence in programme countries.

• Experience - We have 50 years of experience in capacity development.

• Trust - UNDP has won the trust of governments and other partners in programmecountries.

• Universality - Field presence in 137 countries ensures ongoing dialogue, learning andcooperation.

Reference; http://mirror.undp.org/magnet/policy/chapter1.htmParticipatory development and good governance Any debate over "participatory development" and "good governance" is inseparable from the endof the Cold War, the "lost decade" of the 1980s, and evolving discussions over developmentstrategies from the economic growth orientation of the 1950s to the structural adjustment andsustainable development of the 1980s. Since the Cold War's end, donor countries have come todemand that development aid be more effectively and efficiently implemented and started toseek new aid strategies capable of garnering the support of their people and of replacing thestrategy based on East-West ideological conflict. There is growing awareness that in order for aid to have visible effects, to protect human rights, and to promote democratization, donors must

become actively involved in reforms of developing nations' political systems, policies, andimplementing structures. The period since the 1980s has seen a global trend toward politicaldemocratization and pluralism, economic liberalization, and transitions to a market-orientedeconomy, although varied from country to country and region to region. In this light, increasingattention has come to be paid to the importance of broader people's participation.

In December 1989, the Organization for Economic Cooperation and Development (OECD)'s



Development Assistance Committee (DAC) released a "Policy Statement on DevelopmentCooperation in the 1990s." It cited sustainable development, concern for the environment, and

participatory development as the most important issues on the development aid agenda for the1990s. Addressing the importance of participatory development, it states that stimulating

productive energies of people, encouraging broader participation of all people in productive

processes, and a more equitable sharing of their benefits, must become more central elements indevelopment strategies and development cooperation.

This strategy is premised on four essential approaches:

1. investment in human resources in the broad sense, including education and training,meeting the needs for food and health care, and efforts to eradicate AIDS and narcotics

problems;

2. strengthening of political systems, government mechanisms, and legal systems in whichdemocracy and respect of human rights are secured;

3. effective use not only of central governments, but also of local organizations and self-government, nongovernmental organizations (NGOs), and the private sector; and

4. the establishment of open and competitive market economy structures to mobilizeindividual initiative and dynamic private enterprise.

This document is the report of our study on many related questions in the context of thisinternational debate:

1. Why is it necessary to incorporate the concepts of participatory development and goodgovernance into the implementation of Japan's aid to developing countries?

2. How should they be incorporated?

3. What should be taken into account in the actual process of aid planning andimplementation?

4. What specific types of aid will promote participatory development and good governancein developing countries?

5. What are the relevant challenges and points to be borne in mind when implementing aid?

What is participatory development?

The objective of economic and social development in developing countries is to set in motion a process of self-reliant and sustainable growth through which social justice can be achieved.Development within a developing society aims, we believe, at building into society themechanisms that will ultimately permit self-reliant growth without foreign assistance, atsustaining stable growth patterns for economic development in harmony with the environment,and at providing equal and appropriate opportunities to take part in development to overcome



income gaps, regional disparities, and inequalities between men and women.

For this to be possible, the central focus of development is not necessarily to boost production of material goods; instead, it should be to foster and enhance people's capability to have a role intheir society's development. To this end, people should be willingly involved in a wide range of

development activities, as agents and beneficiaries of development. It is this participation that isimportant. We believe it is needed both as a goal and as a tool of development.

Our study committee regards participatory development as an approach to development that isdesigned to enhance sustainability and self-reliance and to achieve social justice throughimprovements in the quality of people's participation. For us, the focal point of participatorydevelopment should be the qualitative enhancement of participation in local societies which can

be defined as groups of rural communities and as administrative and developmental units.

The government-led development approach adopted by many developing countries beginning inthe 1950s and 1960s was, on the one hand, effective and efficient as a method of planned and

concentrated investment of scarce resources into industry. Given insufficient participatorycapabilities of local people and local societies, however, it tended on the other hand to put theintended beneficiaries of development these very local people and societies in a passive position.This government-led approach to development left intact, or even widened, deep-rooted

problems including economic and social disparities between social classes, between genders, between regions, and between urban and rural areas, in effect reinforcing the position of theclasses and regions that benefited from development. Regrettably, this has undermined andcounteracted the effectiveness and sustainability of development projects and of developmentitself.

Participatory development is not an attempt to replace the top-down development approach witha local-community-led approach. Rather, it is a viewpoint that simultaneously stresses the needfor the government-led approach in terms of national-level economic planning and coordinationof development planning and the demerits of widening disparities and worsening povertyinherent in that approach when used alone. Participatory development attempts to introduce a

bottom-up style of development in order to remedy the government-led approach's shortcomings,specifically by focusing on qualitative improvements in local society's participation.

This participation must not be transient; it must entail the sustainable upgrading of participationquality. For this to happen, the underlying conditions must be met to facilitate the long-term

process of participation and its self-reliant sustainability. The long-term process of participationcited here is: raising the awareness of local people, forming community groups, upgrading their requisite resource management abilities, and creating norms or internalizing their mechanisms,and improving capabilities for external negotiations. The shaping and planning of this

participatory process requires both a long-term vision and a willingness to selectively improveand bolster traditional community systems as tools of development. Support from NGOs isneeded to help accumulate the organizational learnings and experiences of local groups and totrain leaders.

To create the conditions for promoting sustainable participation, governments must create and



adapt basic legislation and institutions that guarantee political and economic freedoms as well asstrive to meet a broader range of basic human needs (BHN: food, housing, health and medicalcare, education, etc.). Governments also need to relax regulations in order to remove obstacles toeconomic participation, improve financial management, build infrastructure, and train business

people and entrepreneurs. These are important components of good governance (discussed

below), which is the basis of participatory development.

What is good governance?

As the basic premise for discussing good governance, this study committee has decided to definegovernance from its functional aspect: whether governments achieve their stated objectiveseffectively and efficiently? We regard "good governance" as such that should help countries toachieve sustainable and self-reliant development and social justice. Good governance cantherefore be understood as comprising two concepts: the ideal orientation of a state that works

best to achieve self-reliant and sustainable development and social justice; and the ideal

functioning of government that operates most effectively and efficiently.The key point of the former, i.e., the ideal orientation of a state, hinges on whether the state's

basic attitudes are democratically oriented. Elements contributing to this include, for example,the legitimacy and accountability of the government, the securing of human rights, localautonomy and devolution of power, and civilian control of the military.

The latter, the functioning of the government, depends on whether a government has the requisite political and administrative structures and mechanisms and the capability to function effectivelyand efficiently. Elements contributing to the latter concept of good governance include the basiclaws and institutions of a nation, the administrative competence and transparency,decentralization of its administration, and the creation of an appropriate market environment; allof these are needed to support people's participation in every aspect of politics, the economy, andsociety. These are therefore necessary components of good governance as "the governmentfunctioning as the basis for participatory development."

The relationship between participatory development and good governance

Participatory development and good governance are related in the following way: participatorydevelopment, with its central focus on raising the quality of participation by local societies andthus better achieving self-reliant and sustainable development and social justice, is one importantform of people-oriented development. Good governance is the foundation of participatorydevelopment inasmuch as it provides the government functions needed to promote participationand create the environment in which participatory processes take place.

Yet good governance as a function of government does not refer solely to support for participatory development: as participatory processes evolve, good governance develops intosuch functioning that supports wider and more mature people's participation. In this sense,

participatory development promotes good governance in its turn. The projection of the concept



of good governance onto the national system--an orientation of a state--then progressively boosts people's trust in their government, inasmuch as, through good governance, government servicesimprove in effectiveness and efficiency. Thus in the long run, good governance evolves intostronger aspirations for further democratization. The strength of a state's desire for democracyalso influences the process of formation of political and administrative structures and

government's capability to translate this national stance into action. In turn, this, too, influencesthe evolution of participatory development. Participatory development and good governance areconsequently interrelated, as are the two component elements of good governance, the idealorientation of the state and the ideal functioning of government.

How should participatory development and good governance be made a part of JapaneseODA?

Participatory development and good governance should not be added as a new field of JapaneseODA but should underlie all aid as part of its conceptual basis.



A tide of political democratization and economic liberalization based on competitive principleshas been sweeping the world and stimulating, in its wake, the drive toward a new role for government. A shift is also occurring in development strategies, away from a single focus oneconomic growth and toward greater emphasis on sustainable development. Many countries,

moreover, are becoming aware (albeit to varying degrees) of the need to provide opportunitiesfor broader participation as a complement to government-led development approaches. Yet inconsideration of the present widening disparities in developing countries such as those betweenthe rich and the poor groups of society, it is necessary to review past methods of promotingeconomic and social development in developing nations.

The points to examine are namely: (i) whether local societies, the assumed beneficiaries of development, have adequately reaped the rewards, and whether the capability of local people andcommunities to participate has been fostered in such a way as to compensate for the deficienciesof the government-led approach, (ii) whether arrangements within the framework of top-downdecision making and the government functions that support it could have worked to narrow gaps

and promote participation by local societies, and (iii) whether development aid has stimulateddeveloping countries themselves to remedy the distortions at their roots.

Japan's aid projects have been implemented in a wide range of fields and are producing tangibleresults. These projects have involved the cultivation of human resources, for development

practitioners and leaders engaged in development tasks in developing countries, improvement of social services, and infrastructure building. More recently, they have expanded to include areasrecognized as being especially important in development: environmental conservation, therectification of regional disparities, and the fulfillment of basic human needs (BHNs). In order for Japan to ensure that its development aid takes root more firmly and contributes moresignificantly to the realization of social justice and sustainable and self-reliant development bydeveloping countries in the future, it is important for Japan to include the concept of

participatory development in the scope of its aid and to implement aid in such a way thatdeveloping nations' governments promote participatory development voluntarily and are capableof carrying out good governance.

In other words, it is extremely important to clarify how the results of development projects havecontributed to human development in aid planning, implementation, and evaluation. To clarifythis, it is necessary both to strive to more accurately understand the economic and socialconditions and needs of the intended ultimate beneficiaries and reflect them in aid planning andimplementation and to give support for the building of community organizations and institutionsto enable more people to take advantage of aid achievements and participate in developmentthemselves at the local and regional level. It is also important to assist recipient governments tocreate organizations and institutions that will enable them to promote policies that improve

people's social capabilities. Aid to strengthen the public sector must create the structures andfoster the competence needed by governments to assume roles as effectively and efficiently to

promote their people's broad-based capabilities and to respond to the people's expression andwill.



Basic perceptions of participatory development and good governance in Japanese ODA

Japan's basic aid philosophy, which is based on previous efforts made at Japanese project sitesand concepts basic to Japanese aid in the ODA Charter approved by the Japanese cabinet in June1992, are summarized in the following four points:

1. Japan's ODA must seek to improve economic and social capabilities for people as agentsof development through broad-based participation in aid implementation in developingnations (the participatory development approach). Aid aiming at social justice and atensuring the sustainability and self-reliance of development is aid that will build thefoundations for democracy in developing countries.

2. As stated clearly in the ODA Charter, aid must respect developing countries' ownershipof development by assisting their self-help efforts. That is why it is extremely importantfor development to be conducted through aid recipients' own initiatives and capabilities.For this to be possible, it is necessary to provide aid to the point where governments can

better equip themselves to promote their own participatory development. At the sametime, aid project goals must be set with an awareness of the degree to which inhabitants,local communities, and other independent organizations are taking part in developmentand how much progress has been made toward such participation.

3. In light of the historical, social, and cultural diversity of developing countries, the idealform of democracy will not be the same for each developing nation. To promotedemocratization, it is therefore necessary to be aware of the differences in initialconditions, pace, and methods of development. It must also be realized that a country'sdemocratization should be realized by its people, at the pace and in the manner decided

by its people. For this reason, Japan's aid must focus on building the foundations of

democratization in developing countries through aid to promote participatorydevelopment and encourage good governance.

4. In order to incorporate participatory development and good governance into aid, Japanmust fully understand the individual diversity of cultures, traditions, and social structuresof communities in developing countries and respect beneficiaries' initiatives. It must beunderstood that the effects of enhancing people's sustainable participatory capabilitiesand of government services do not become visible in the short run. In order not to impededevelopment's sustainability and self-reliance in pursuit of short-term aid efficiency, aidschemes and systems must incorporate a long-term perspective and flexible values.

Promoting democratization, securing human rights, and reducing excessive militaryexpenditures

The ODA Charter advocates as a basic principle of aid the paying of careful attention to recipientnations' democratization, securing of basic human rights and freedoms, and trends in militaryexpenditures. How should Japan's aid respond to these points from the perspective of

participatory development and good governance?



It is vital for developing countries to build a basis on which to promote more genuinedemocratization, respect for human rights, and reduction of excessive military expenditures. Inaccordance with its ODA Charter, Japan must continually bear in mind democratization trends ina developing nation as a whole and operate positive and negative linkage, as it has in the past. At

the same time, it must carry out "promotional aid for democratization" to support the building of a basis for democratization and more effective responses to encourage developing countries to promote democratization themse

Promotional aid for democratization aid refers to Japanese constant support for the constructionof an appropriate basis for contributions to promotion of democratization, securing of humanrights, reduction of excessive military expenditure, etc., that are tailored to that country in linewith Japan's approach to participatory development and good governance. As we will explainlater, this is done both through aid to promote participatory development in recipient countriesand through aid to promote good governance for the basis of participatory development.

How Japan should implement aid for participatory development and good governance

In order to discuss specific Japanese ODA programs to support participatory development andgood governance in developing countries, it is necessary to distinguish the parts that should

become objectives of aid in the framework of Japan's ODA from the aid specifically designed to promote participatory development and good governance.

Japan's development aid objectives have two aspects, one focusing on economic and socialdevelopment, the other on democratization. We believe that Japanese aid, the product of theseobjectives, should contribute to recipients' self-reliant and sustainable development and greater social justice; it should also contribute to the formation of a state whose legitimacy derives fromthe people's will, while securing for human rights, accountability for state actions, and the

potential for achieving devolution of power.

In other words, Japan should conduct aid for ensuring participatory development and goodgovernance with the goal of realizing sustainable, self-reliant development and social justice andas a step toward fostering equal opportunity for participation and the people's well-being, i.e.,laying the basis for democratization





• clarifying and ensuring the transparency of administrative responsibility,

• promoting decentralization, and

• building a market environment.

The components of the third category, aid for good governance to promote democratization, varydepending on the directions, speed, and process of democratization chosen by the country; itshould not be the imposition of "democracy" under external pressure. Here, we are thinkingabout aid to back up democratization efforts when a specific developing country has identifiedinstitutional and political transitions aimed at the achievement of democratization through, for example, the resolution of a civil war or the introduction of multiparty system, and has directlyrequested aid for that purpose. Three aid goal subcategories are conceivable: assistance inestablishing electoral systems, stronger protection for human rights, and the establishment andstrengthening of freedom of speech and the press.

We have compiled here some examples that can be referred to in the formulation of specific aid programs in accordance with the three above-mentioned aid categories.

Given the diversity of developing countries, it would be impossible for every conceivable type of aid to be fully covered by these sample programs; in some cases, different programs of aid needto be integrated simultaneously, instead of responding to a need through a single program one byone. Some countries may indeed no longer require the types of aid mentioned in these examples.Individual consideration therefore is necessary to determine which actual aid programs should beselected or combined and in what sequence they should be implemented in the relevantdeveloping country in accordance with its initial economic, social, and political conditions andthe stage of people's participation in its development.

Issues and considerations in aid implementation

The following issues and considerations should be examined in connection with theincorporation of the above-described basic perceptions into Japan's ODA and the provision of specific types of aid:

• Emphasis on dialogue between developing countries and other donor nations andorganizations,

• Establishment of a basis for strengthening ties with local NGOs,

• Consolidation and application of Japan's experience in good governance,

• Development of standards and methods for evaluating participatory development andgood governance aid,

• Monitoring and information gathering about democratization trends in recipient nationsto implement aid in accordance with the basic principles of the ODA Charter,

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• Training of participatory development and good governance staff,

• Promotion of more open Japanese ODA implementation structures,

• Improvement and application of Japanese ODA implementation methods designed tosupport local residents' self efforts toward participatory development,

• Introduction of social analysis to promote participatory development in the aid projectcycle.

Source: Japan International Cooperation Agency (JICA), Participatory Development and GoodGovernance Report of the Aid Study Committee

Louise Niven

• 2 December 2010, 21:12

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