Environment & Economic Growth

Environment & Economic Growth

By Dr Arvind Kumar

Global scramble for higher economic growth in the wake of escalating environmental damage has sharpened the tension between growth and the environment. Developing countries striving to sustain high growth rate, as well as industrial countries that are eager to engender any kind of growth, harbouring the notion that environmental investments would dampen the pace of economic growth. The perception of this tradeoff between the growth and the environment, held widely in developing and industrial countries alike, rests on the wrong notion. It is not possible to sustain growth without maintaining environmental equilibrium. In fact, economic growth and environment protection are closely linked to each other. It would be wrong to assume the global risks of climate change as distant because the latest Japan tsunami and the tsunami that hit South-East Asia in 2004 are signals of extreme weather events that can wreck havoc.

Undoubtedly, sustained growth is vital for reducing poverty and many developing countries still need to grow a great deal. This pace of economic growth should commensurate with environmental equilibrium. While contributing to the climate agenda, countries should abide by international climate-related treaties. The assumption that high growth can proceed independently of environmental action should be changed by the view that the environment is integral to the growth agenda. The dichotomy between what's good for society and what drives private interest should not neglect environment.