ADB_book_18 April.qxp - Himalayan Document Centre - icimod

standard setting is the most appropriate approach.Access to information, methods of gathering data,and techniques of integrated analysis need to beimproved.WTO and EnvironmentThe issue of environment has been highlycontroversial in the past few years and is likely toremain so in the future. WTO’s position on theenvironment is reflected by the principles guiding itsCommittee on Trade and Environment. These are: (i)WTO is not an environmental protection agency andits competence is limited to trade and to thoseaspects of environmental policies that are traderelated and may have significant effects on WTOmembers’ trade; (ii) The WTO agreements(including earlier agreement under GATT) alreadyprovide significant scope for countries to pursue nondiscriminatorynational environmental policies; (iii)Increased coordination and internal cooperation arenecessary to address environmental concerns; and(iv) Secure market access opportunities are essentialto help developing countries work towardssustainable development (Boyer 2001; WTO 2005).WTO’s overall position is that trade can be bothgood and bad for the environment, and experienceshows cases of both. “Win-win” outcomes can beassured through well-designed policies in both thetrade and environment fields.Some argue that trade and environmental issuesneed to be reviewed in the context of sustainabledevelopment. Sustainable development emphasizes,among other things, environmentally sound andsustainable production practices and the capacity tofulfill the basic human needs of present and futuregenerations. Trade plays a key role in promotingparticular types of technology.Trade has been strongly linked to inequalities,environmental degradation, and poverty (Khor 1996).A major task before sustainable development is toreform trade. Arguing that free trade is always goodfor the environment ignores the large number ofenvironmental problems in the world today.Although the toxic intensity of emissions andpollution as a proportion of gross national producthas declined in the developed countries, theabsolute levels are still going up (Boyer 2001). Otherconcerns raised in the context of world trade includethe following:(i) Many non-trade issues such as environment,labor, social standards, and human rights,especially those within the areas of domesticpolicy and national decision making, havebeen included.(ii) It is maintained that environmentalmeasures have been imposed on developingcountries through the threat of tradesanctions.(iii) There is a need to recognize the widedifferences in endowments; levels ofpollution, waste, and absorptive capacity;production systems; and levels of development,when determining environmentalstandards.UNEP (2003) under its Global EnvironmentOutlook scenario analysis undertook an exercise tolook into the future, using four scenarios to explorewhat the future could be depending on differentpolicy approaches. These scenarios are “MarketFirst”, “Policy First”, “Security First”, and“Sustainability First”. Market First is basicallyfollowing the practices of the present industrializedworld. Policy First makes a deliberate effort to givepriority to environmental and social concerns.Security First gives priority to overcoming strikingdisparities where inequality and conflict prevail.Sustainability First introduces a new environmentand development paradigm. Some of the resultswere as follows:(i) Carbon dioxide and other greenhouse gasesincrease significantly in the next 30 yearsunder Market First and Security Firstscenarios. Global emissions start reducingaround 2030 under the Policy First scenariobecause of carbon tax and investments innon-fossil-fuel energy sources.(ii) Biodiversity, however, continues to be underthreat unless urban and infrastructureexpansion and climate change can beeffectively controlled.(iii) The Market First scenario sees some declinein percentage of basic human needs met,but the absolute numbers increase. UnderPolicy First and Sustainability First scenarios,a targeting of hunger helps to reducesignificantly the percentages and totalnumbers of people affected. The SecurityFirst scenario leads to a sharp increase.(iv) The report points out that “the overridingneed in policy development is for a balancedapproach towards sustainable development.From the environment perspective thismeans bringing the environment from themargins to the heart of development.”Nepal—Trade, Environment, andSustainable DevelopmentNepal’s present development strategy is outlined inthe Tenth Five-Year Plan (2002–2007) which is alsothe Poverty Reduction Strategy Programme. Theprogram has four major thrusts:Chapter 12: Environment and Trade177