Among other things, it shows that economic, political and environmental reforms have been mutually supportive and reinforcing. Economic reforms have helped to generate resources for investment in cleaner, more efficient technologies, reduced the share of pollution-intensive heavy industries in economic activity, and helped to curb pollution and waste generation as part of a shift towards more efficient production methods. Democratic reforms have unlocked demand for environmental improvement, speeding the "decoupling" of pollution levels from economic output.

In particular, in the advanced reform countries of Central and Eastern Europe (1), air emissions of health-threatening pollutants such as sulphur dioxide, nitrogen oxides and particulate matter have fallen even as these countries have returned to economic growth (see figure). Water pollution also declined in these countries. In other countries, however, reform has been slow, ongoing economic crisis has impeded environmental improvement, and pollution levels and resource consumption have declined less than output, and could rise again if these slow reform countries return to economic growth.

Strong environmental institutions and policies have also been vital for improvement. Unfortunately, in the face of competing economic and social priorities, environment’s place on the political agenda has fallen. But environment ministries have nonetheless recorded important achievements. Often in the vanguard of reform, they have successfully attracted external assistance and contributed to the decentralisation of decision-making. From a transition perspective, their most significant contribution has been to support the emergence of civil society by promoting more open, participatory decision-making. One result is the adoption of the Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters at the Aarhus "Environment for Europe" Ministerial Conference in June 1998.

The environmental situation in many CEECs continues to give course for concern. Even in the advanced reform countries, the pollution and natural resource use per unit of GDP is still several times higher than the average for OECD countries. Depending on the pace of restructuring, it may take the countries acceding to the EU 20 years or more to meet all current EU environmental requirements. Even this would still be far from a sustainable pattern of development. The even more severe problems in the NIS represent a serious challenge for both domestic action and international co-operation.

After peaking in 1994, international flows of environmental assistance and finance have fallen slightly. Most assistance and financing has gone to CEEC countries, with the Czech Republic, Hungary, Poland, Romania and Russia receiving about half of all technical assistance and investment finance. Both aid donors and recipients have learned that external support is most helpful when it is well co-ordinated, facilitating a "country-owned" process in which priorities are set by the host country and filling gaps in local knowledge and capacity. In 1997, Kazakhstan established its National Environmental Action Programme for Sustainable Development (NEAP/SD), as part of a strong effort by the Kazakhstan President to create a national development strategy. Assistance was effective: co-ordinated by the NEAP/SD, foreign experts played an important role by introducing new policy methods and analysis; but they remained advisors, not leaders, within the overall process.

The 1997 Kyoto Protocol to the Climate Change Convention represents a major new opportunity for international co-operation. In most CEEC and NIS countries, there is scope to reduce greenhouse gas emissions at lower cost than in market economies. The flexibility mechanisms in the Kyoto Protocol could exploit these differences and become an important source of financing for environmental projects in the region.

For further information, please contact Helen Fisher in the OECD’s Media Relations Division, on (33) 1 45 24 80 97 or Brendan Gillespie in the OECD's Environment Directorate on (33) 1 45 24 93 02 or e-mail env.contact@oecd.org.

Journalists may obtain this report from the OECD Media Relations Division (request by fax: 33 (0)1 45 24 80 03.)

"Environment in the Transition to a Market Economy"
246 pages, OECD, Paris 1999
Electronic version available (pdf format)
FF360; US$62; DM107
ISBN 92-64-17110-X (14 99 08 1) NOTES (1): Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia

Sample data from the publication:

* Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia
GDP: Gross Domestic Product - PM: Particulate Matter - SO2: Sulphur Dioxide - NOx: Nitrogen Oxide
Unweighted averages. - Sources: OECD and national data.