REC: Strategic Environmental Issues, vol. 1: Annex 5

5. Driving Forces for Environmental Improvement and Degradation

ALBANIA

ECONOMIC CHANGES - To attract Albanian and foreign investors macro-economic stabilization and lowering of inflation is of great importance. New investments, the establishment of new companies and other economic activities will certainly have an impact on the environmental situation. Also the fact that economic changes have a much more important place in the government's policy than environmental problems has its impact.

FOREIGN COMPANIES are having negative impacts on the environment. In the first place foreign investors started (legal and illegal) activities in Albania in the early years after the political changes, often without any regard for the environment or sometimes with the exploitation of Albania's environment as their main focus (i.e. exporting Christmas trees, rare bird species and medicinal plants).

INTERNATIONAL CONTACTS with foreign organizations and participation in international projects has allowed exchanges of experience and know-how transfer.

The NATIONAL GOVERNMENT is the main authority in environmental policy making. As economic problems dominate national policies, the government as a whole is not dedicated to environmental concerns. The Committee for Environmental Protection is the only positive driving force on the governmental level but does not have a very powerful position.

BULGARIA

MARKET REFORMS, and the international competition and truer prices for raw materials that come with them, have caused some industrial producers to go out of business, resulting in the reduction of pollution from this sector. However, these reforms are also having harmful impacts on the environment. Economic decline has led to decreased funds available for environmental investments. Strong profiteering interests have emerged and heavily influence government decision-making. Some of the necessary legal framework (i.e. bankruptcy and investment regulations) for realizing many of the benefits of market reforms has not yet been established. The "rules of the game" have not been entirely set, but the game goes forward nonetheless with the environment sometimes being harmed.

PRIVATIZATION is mentioned often as having potential for both positive and negative impacts on the environment, as well as being significant for its extremely slow progress thus far in Bulgaria.

INTERNATIONAL PRESSURE from foreign assistance and financial institutions, as well as from market competition is having a positive effect on environmental protection because the government is required to agree to environmental improvements in order to receive aid, and competition improves the quality of products and technologies.

SOCIAL PROBLEMS resulting from the economic crisis, such as job and economic insecurity, dominate the priorities of the general public and government officials with negative environmental impacts.

PUBLIC PARTICIPATION in decision-making is having a positive effect but needs to be much stronger.

POLARIZATION OF INTEREST GROUPS is having a negative impact on the environment. There is no mechanism for State and local governments, NGOs and businesses to work together on solving environmental problems. The groups do not understand each others' positions and motivations.

CROATIA

MARKET REFORMS. The development of a market economy, privatization and foreign investments are assessed to cause both positive and negative impacts. Privatization is only just starting and massive foreign investment depends on the future prospects of the economy and the war. The potential for greater funds for environmental protection is a positive expectation from the reforms, however, if the necessary legislation to guide new development is missing or incomplete then the results will likely be negative. Another potential threat results from businesses often being led only by profit-making and not caring about environmental issues.

INTERNATIONAL RELATIONS AND COMPETITION. The following are considered to be positive driving forces: joining the EC and adopting European standards; international competition and export; tourism, because it demands a high quality of environment and there is competition with other tourism-oriented countries, and; involvement in international conventions and treaties.

WESTERN CONSUMPTION PATTERNS. Some look at it as positive, some as negative. At present half of the population would welcome sustainable development. When sustainable development will appear on the agenda, the society will probably be polarized on the issue. Probably all characteristics of Western consumerism will appear sooner or later.

DEMOCRATIC CHANGES creating a basis for environmental improvement.

OTHER NEGATIVE DRIVING FORCES: the war; incomplete legislation; inadequate enforcement infrastructure; industry focusing on short term profits and considering environmental investments only as costs.

CZECH REPUBLIC

RESTRUCTURING the economy is the main driving force for both improvements and degradation. The decline in industrial production has been the major reason for some improvement in pollution levels, but this is not the desired way to achieve environmental benefits and the situation will be different in the future.

PRIVATIZATION could in the long run be a major driving force for improvement because it will correct the property rights issue, i.e., people take the responsibility to run their businesses efficiently and they can also be held responsible for compliance with laws. There may also be some negative impacts because people are behaving as entrepreneurs, seeking short term profits. This may mean exploitation of loopholes in the environmental laws and enforcement system.

ECONOMIC INSTRUMENTS for environmental protection that are presently employed are a driving force for improvements to some extent, but the system could be more efficient.

The INFORMATION FLOW on environmental issues has been improved. The increased environmental facts and data now available and accessible have resulted in an informal pressure for environmental improvements.

LEGAL PRESSURE in the form of new environmental laws and regulations, as well as partly improved enforcement, forces companies to adopt environmentally sound practices.

FOREIGN PRESSURE is not strong, except from Austria with its opposition to the planned nuclear power plant in Temelin.

WESTERN CONSUMPTION PATERNS, the "throw away" mentality is perceptible. While this is a negative development from the environmental point of view, it is also inevitable and understandable. At present, the public does not seem to be aware of this growing problem. Economic incentives, especially with respect to business practices, can be used to prevent, or diminish, wasteful consumption habits.

HUNGARY

PRIVATIZATION has no immediate positive effect as no green conditions are attached to privatization deals. Land privatisation should have a positive effect on soil conservation and work against the wasteful use of chemicals.

INTERNATIONAL REQUIREMENTS on export goods and ecolabelling for the domestic market is expected to work towards improvement in technologies and also awareness.

INTERNATIONAL RELATIONS and aspirations (e.g. the strive for EU membership) are a strong incentive for environmental protection. Domestic legal pressure is however weak.

DEMOCRATIZATION of public life is opening the field for local environmental incentives, but the public interest is tied down with economic concerns.

FYR MACEDONIA

THE NATIONAL GOVERNMENT, (along with industry) was most often mentioned by the experts as a driving force on the state of the environment. The failure of the Government Administration and Parliament to formulate and adopt urgently needed new laws, policies, management tools and methodologies has had a strongly negative impact on the environment.

INDUSTRY was mentioned equally with the national government as being a destructive driving force on the state of the environment. Industry has a very short-term emphasis on immediate profits and the responsible Ministry simply does not force them to comply with the laws. Industry does not place a priority on environmental protection and usually claims that it has no money to improve the situation.

NGOs, along with environmental experts were the next most cited force effecting the state of the environment. NGOs have raised public awareness of environmental issues and pressured the government to establish the needed laws and policies.

THE MEDIA was the other positive force most often listed by the experts. A large number of journalists are interested in environmental issues and have been very helpful in publicizing them.

THE GENERAL PUBLIC was mentioned by several experts as being a negative driving force on the state of the environment due to their lack of concern for, and abuse of it.

THE ECONOMIC CRISIS, wors-ened by the country's political conflicts with Greece and the effects of the Yugoslav war, was also cited by a few of the experts as having strong harmful impacts on the environment.

POLAND

MARKET REFORMS are having both positive and negative impacts on the environment. The most inefficient and usually the worst polluting industries were eliminated. More efficient use of resources was initiated. However, recession and unemployment has created a mentality of "economic growth at all costs," and thus short term thinking now dominates with environmental investments often being sacrificed.

DEMOCRATIZATION has allowed greater public participation in decision-making and numerous environmental NGOs have formed. On the downside, politicians' personal ambitions and lack of experience effect the development of sound public policy.

WESTERN LIFESTYLES are becoming goals of society. There is a change in the hierarchy of values toward western standards, with an emphasis on material consumption. Aggressive marketing by foreign and domestic firms promotes this. The result is a flood of one-use packaging, and other environmentally harmful products such as automobiles.

EMERGING INTEREST GROUPS are increasingly influencing environmental decision-making. The pro-environment lobby is growing in size and capacity (NGOs, government administrations, green businesses and scientists), but remains weak in comparison with other interest groups (trade unions, industrial lobby) whose efforts are often harmful to the environment.

ECONOMIC INSTRUMENTS for environmental protection are in place and proving to be very effective. They utilize market forces and are becoming an increasingly important factor.

INDEPENDENT LOCAL GOVERNMENTS have new opportunities and responsibilities in environmental protection. They have closer relationships with environmental interest groups than the central government and are motivated to deal with their own problems. Some are very progressive in environmental protection while others have poor environmental records.

ROMANIA

MARKET REFORMS, are a significant force effecting the environment, for better and worse. The loss of markets in the former USSR and non-competitiveness of Romanian industry has led to a substantial decline in production and thus a decrease in some types of pollution. However, as a result of the economic decline many people are suffering financially and poverty is increasing driving intensified exploitation of natural resources.

PUBLIC PARTICIPATION AND NGOs are having positive effects on the state of the environment through improved public policy and environmental awareness raising.

INTERNATIONAL TRADE AND OPEN BORDERS has had both positive and negative effects. Western firms dealing in polluting and hazardous industries have come to Romania looking to take advantage of weak environmental regulations and enforcement. At the same time, open borders have allowed access to more environmentally friendly products and technologies.

INTERNATIONAL FINANCIAL INSTITUTIONS are also influencing environmental protection in Romania, largely for the better. The government is in serious need of money, and institutions like the World Bank provide such assistance but with conditions for environmental improvements. As a result the government has been forced to improve policies and management. Unfortunately, the World Bank usually supports only profitable projects which means that some efforts which might be more beneficial to the environment but which have less quantifiable or more long-term benefits do not get implemented.

GOVERNMENT AUTHORITIES are cited as being another driving force. The environment is simply off the agendas of most decision-makers and a very conservative mentality giving special treatment to heavy industry still persists. The Government has to operate under the given economic realities and unfortunately those realities are very difficult.

INDUSTRY is another force for negative change. It has minimal concern for environmental issues, is largely unregulated and strong enough to effectively influence government decision-making.

MASS MEDIA is an emerging force for positive change, with newspapers, radio, and television giving attention to the environment.

SLOVAK REPUBLIC

POLITICAL AND ECONOMIC LOBBIES can be negative driving forces. Additionally, foreign trade and investment sometimes results in negative environmental impacts. For example, Austrians promoted a deal to accept hazardous waste in return for financing a waste incinerator in Bratislava.

ECONOMIC RESTRUCTURING. Already, or very soon the economic sector will be the most important driving force. Restructuring of the economic system, privatization and change of ownership, western investment and the adoption of western technologies will directly affect the environment in both positive and negative ways. In general, western technology provides benefits to the environment, while short term profit ideology tends to negatively impact the environment. Economic instruments are scarcely a driving force, at least at present.

FOREIGN PRESSURE comes from Austria because of the existing and planned nuclear power plant in Jaslovske Bohunice and Mochovce, respectively and from Hungary because of the water power plant in Gabcikovo-Nagymaros.

OTHER: Positive driving forces towards environmental preservation and improvement in Slovakia include, the activities of environmental movements and volunteers, the work of experts, scientific research, and positive pressure through diplomatic channels.

SLOVENIA

PRIVATIZATION is looked at in the short-term as a negative driving force, lacking proper safeguards for environmental protection. The privatization law has not included environmental aspects and there are no clear regulations about who is responsible for the liability. Also there are no enforceable regulations and standards concerning cleanup (no compliance schedules). Environmental auditing is not obligatory. In the long-term it can be positive if the new owners accept environmental obligations.

MARKET INCENTIVES initially have negative but later positive impacts on environmental protection. But as environmental protection is not inherent in a free market system it should be supported by countering measures.

ECONOMIC RESTRUCTURING could be a positive factor if the general process could be directed in environmentally friendly ways, but there is a high probability that if the present lines will be followed environmental protection will not be a priority.

JOINING THE EUROPEAN UNION will be a strong driving force towards environmental improvement, thinking and acting in the right direction as Slovenia will have to comply with EC standards and Western environmental attitudes if it wants to export to those markets.

WESTERN TECHNOLOGIES can play a negative role if they are not applied with the necessary infrastructure.

OTHERS FORCES include Western consumption patterns (in negative sense) and environmental education and growing public awareness (positive).

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