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12<br />

GREEN ECONOMY<br />

Challenges and<br />

opportunities<br />

Executive Summary<br />

establishment of a working group, a reference framework, a set of norms and the<br />

restoration of natural capital. It is concluded that a new paradigm is emerging<br />

and that, with support from adequate government policies, Brazil is fully capable<br />

of being one of the first countries to enter into a green economy.<br />

Maria Cecília J. Lustosa analyzes the importance of environmental<br />

innovations as means of changing the current technological model, intensive<br />

in raw materials and energy from fossil fuels, in a more ecologically correct<br />

direction. Lustosa presents the historical emergence of environmental issues<br />

and their relations to economic production. Then, the author highlights the<br />

importance of the innovative process in technological change and paradigm shift,<br />

and presents the circumstances under which such changes could occur and in<br />

which directions, with a focus on EST (Environmentally Sound Technologies).<br />

Internal and external constraints of the capabilities of businesses to become<br />

innovative are also presented. Lustosa further conducts analysis of innovation<br />

linked to environmental issues in Brazilian businesses, and identifies its main<br />

characteristics. Ultimately, the author concludes that environmental innovations<br />

are necessary to enter into a green economy and that building business capacity<br />

is fundamental, and when appropriate, associated with incentives promoted<br />

by the State. In the case of Brazil, low innovation investment in the productive<br />

sector is certainly a factor that further inhibits the search for environmental<br />

innovation.<br />

Ademar R. Romeiro investigates the topic of agriculture in a green economy.<br />

The work offers a description of what agriculture should be in a green economy.<br />

Romeiro begins with the definition of what is understood as green economy from<br />

the perspective of a given long-term sustainability concept, and moves on to<br />

presenting the conditions for making agriculture compatible with this definition of<br />

a green economy. The author seeks to show that an agriculture that is sufficiently<br />

productive to attend to current agricultural production needs is scientifically<br />

and technologically possible, but is chiefly based on management by farmers<br />

of the very forces of nature in order to obtain ecosystem services. The main<br />

agricultural policy recommendation that results from the analysis is to amplify<br />

agro-ecological research efforts by the large public research institutions.<br />

Nº 8 • June 2011<br />

Arilson Favareto brings the new cycle of rural development topic to the<br />

discussion, by analyzing how it aligns with the green economy. The new cycle<br />

of rural development, happening at different intensities around the world and<br />

whose distinguishing feature is the transition from an agrarian and agricultural<br />

paradigm to a paradigm organized around the environmental rooting of<br />

rural development, is in line with the transition to a green economy. Modern<br />

agriculture, intensive in natural resource use, generates a lot of income but<br />

little employment. Favareto presents the main characteristics of new rurality<br />

and analyzes the situation in Brazil, identifying that here, as in the rest of the<br />

world, agriculture has a declining tendency in relation to other activities and

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