26. The trade-off between per capita income and the quality of the environment can be observed in the history of industrialized Western economies. The transition from low to high income per capita was made at the expense of the environment. Huge environmental investments were made afterwards to reverse the process of environmental deterioration. A drastic reduction in pollution discharge was accomplished due to a strict command and control policy and the implementation of the polluter pays principle. However, some damages to forests, soils, animal and plant species, landscape, etc., remain irreversible.
27. The CEE countries must determine their future development strategy. Although limited, there are certain options which may be considered, tested and evaluated while the development path is being set. The CEE countries may:
Each of the above options has its consequences on the economy, the environment and the citizens of the CEE countries.
29. Cheap and competitive industrial production is an expected outcome of liberal, market-oriented reforms in the CEE countries. Some governments are ready to ignore environmental protection considerations in order to realize economic recovery and greater employment opportunities through market reforms. An outdated strategy centered around imitating the Western industrialized model is likely to lead to a build-up of unsolved environment-related problems and to irreversible environmental damages.
30. Liberal economic policies may duplicate the errors that Western economies made in the fifties and sixties, which had catastrophic environmental consequences. There is also the potential danger that CEE countries may be forced, out of economic necessity, to specialize in "dirty" industries, which show profits only when environmental expenses are not calculated.
32. A delay in environmental investments allows for initial subsidizing of economic development. This implies that, after a certain period of time, larger investments in environmental protection become possible. In the meantime, however, environmental quality is unchanged, or worsened. Environmental improvements will begin when society reaches a sufficiently high level per capita income or when a "green image" of the country's production becomes important for competitive reasons on the international market.
34. The CEE countries need not copy the mistakes which have already been recognized in the West. They can instead learn from these mistakes, as well as western successes, and develop policies and programs which benefit from these experiences, make use of comparative advantages existing in the CEE countries and are appropriate for contemporary social, economic and political conditions. They should introduce and enforce environmental regulations to be observed by producers. The environmental investments required from producers will force them to acquire modern, environmentally friendly technologies, which will also help to avoid possible trade barriers in the future.
35. Implementation of sustainable development models in the CEE countries is also mandated by the crucial need to protect the vast environmental assets existing in the region and supported by the trend observed in Western economies to improve conservation of their own natural resources. Future market prices of natural resources will multiply. Environmental investments today will create the foundation for the economic development of tomorrow. The rich environment of CEE countries is and will increasingly be an important factor for future economic progress.
37. The historical model of Western industrialization would only result in "end-of-pipe" solutions. A rapid build-up of industrial capacity in environmentally intensive enterprises would likely cause widespread environmental devastation. Sooner or later the environment will require a clean-up. This will imply huge costs. The historical model of Western industrialization could be attractive in the short run as there are no initial costs required for environmentally friendly technologies. The damages caused by pollution and the costs of clean-up will be paid in the form of huge environmental investments in the future. This was demonstrated in the history of Western economies.
38. The idea of separating economic and environmental goals during the transition period and suspending environmental improvements until the necessary funds are generated by the expanding economy also has a short-term perspective and displays a lack of regard for the future and its inhabitants. The argument is that a delay of environmental improvements would help to allocate more resources for economic purposes, and that this may generate funding for restoration of the environment in the future. In such an approach there are distinct phases during which economic and environmental goals are to be addressed. The priority is to achieve economic successes, while environmental requirements are to be addressed later. In this case environmental improvements are highly dependent on the performance of the economy, which will start to pay its "environmental debt" after reaching an internal investment surplus. This strategy does not reject environmental goals, but delays support for them. The consequence is a build-up and magnification of environmental damages and costs.
39. For a sustainable development model to be adopted its advantages, and the costs of less desirable alternatives, need to be clearly illustrated, and incentives for desired behavior well designed and effective. Such a development model needs to balance economic and environmental goals and to weigh them against available financial resources, technical solutions, and managerial skills. This approach can in fact be less expensive in the long-term because introducing more "at source" solutions and channelling small initiatives towards environmental improvements in the economy can result in major savings. The integration of environmental requirements and economic policy requires a new type of thinking, which is not directly supported by Western experiences. The cost of the sustainable development option is high when considering outlays in the near-term. However, these investments should pay for themselves in the longer run when economic benefits can be achieved as an outcome of environmental improvements (energy efficiency, recycling, ecotourism, organic farming, etc.). More funds must be made available for education and training, as well as for employing experts, in order to begin practical implementation of, and to achieve benefits from the sustainable development concept.
41. The CEE countries have a common environmental heritage due to the logic of the shared former system. This heritage contains both positive and negative elements, each of which need to be addressed by any new development strategies. In this way, their future development paths will also share much in common and may even be interrelated. It depends on the quality of their future cooperation as to whether they will make parallel efforts or will join forces and benefit from the sharing of experiences. It remains to be seen whether these countries will reinforce, or mutually inhibit, each other's progress.
42. As the environmental problems of the CEE countries are similar, there is also a need for coordination of their environmental policies in order to tackle priority problems in a coherent and comprehensive way. The western solutions offered to the CEE countries are not always adaptable or the most appropriate. In some cases CEE countries can provide more effective support to each other through transferring positive experiences or solutions which have been developed and tested in the region. CEE cooperation is absolutely essential to solve certain environmental problems which effect multiple countries in the region. Major international waterways such as the Danube, Vistula and Elbe Rivers and the Black and Baltic Seas are impacted by many of the region's countries and their improvement and protection will require cooperative efforts. Transboundary air pollution is another issue of major concern to some of the countries and also requires multilateral solutions. Some of the experts also noted that the CEE countries contain areas of the richest biodiversity in Europe and that joint programs among neighboring States are required to ensure their safeguarding.
43. There are several factors, however, hindering environmental cooperation among the CEE countries. A lack of political will for regional cooperation is evident. Some of the motivations behind this stem from rivalry and competition to be the first country in the region to be integrated into the European Union. These countries must realize that the West is not supporting this competition and is reluctant to import these conflicts. The chances for integration would increase if the CEE countries could demonstrate their capability of handling their own problems. So far, cooperation in the CEE region has been limited by, among other things, the countries' disinterest in dealing with other countries who cannot financially assist them. Financial assistance is still a criterion for looking for a partner. Competition for Western environmental financial assistance also reduces the incentive for cooperation within the CEE region. The basis of environmental cooperation needs to be redefined and the benefits of non-financial cooperation should be recognized (e.g., transfer of knowledge, joint activities, trade potential).
44. There is no strong tradition upon which to build regional environmental cooperation. On the contrary, many historical problems still impede cooperation and thus, the simple transfer of experience and the development of economic ties has been very limited. Indeed, better economic cooperation within the region would go a long way towards solving national and regional environmental problems. Environmental protection activities can provide a starting point for this cooperation, aiming towards a common goal. Greater cooperation could also tremendously improve the position of CEE countries during international environmental debates.
46. There is a strong preference among donors to develop bilateral relations with the governments of the CEE countries. This can be an obstacle to undertaking regional environmental programs and to encouraging regional environmental cooperation. A common position for the CEE countries, while requesting assistance or discussing its implementation conditions, is lacking, thus making bilateral agreements even more dominant. Western interest is also shifting from the CEE region towards other regions, for example, the Newly Independent States (NIS). Considered a more important, more strategic future political partner with more potential, the NIS may receive assistance at the expense of the CEE region. The CEE countries should work together to present more convincing options to keep the interest of Western donors.
47. The share of funding devoted to support environmental and economic priorities is also being changed in the overall assistance package. Environmental assistance is decreasing relative to support for economic and social programs. It is of the utmost importance to present a comprehensive approach when requesting foreign assistance, incorporating environmental priorities in an overall economic and social development strategy.
48. Withdrawal of western financial assistance from the CEE countries would reduce incentives and an important portion of financial means which support environmental improvements in the region. The process of modernizing environmental laws, protection mechanisms, and policies would also be adversely effected. For many countries of the region western assistance is the only available channel for acquiring new skills and technology. Maintenance of future foreign assistance for environmental improvements is also important to encourage and assist cooperation within the CEE countries and to aid serious consideration of sustainable development strategies. The challenge is to maximize the benefits of the provided environmental assistance to both donor and recipient countries and the whole CEE region.