Key Environmental Needs

XI. Foreign environmental aid

Evaluation of environmental aid

108. Projects to be supported by foreign aid are selected by each country's environmental authority and by donors. Initially, it took some time for the donors and recipients to agree on expectations. Nevertheless, a considerable amount of foreign environmental aid has flowed into the region in recent years. Numerous examples of successful environmental protection activities which were supported by foreign donors were cited: training has been provided to government officials, business managers and NGO activists; environmental policies and institutional structures have been strengthened; environmental assessments, inventories and feasibility studies have been conducted; monitoring systems have been designed and established; major investments in technological capital have been made; and the list could go on. Early assistance was usually in the form of technology transfers and advice for solving the most acute problems. As a side benefit, business opportunities have also been created through the availability of the assistance funds. As a result, many Western and Eastern businesses have contacted each other and joint-ventures have been started based on jointly implemented projects. While environmental aid has been very helpful in many ways, many experts pointed out that it has not been equally distributed within the region and that it still amounts to a very small portion of overall environmental investments in the region.

109. In the course of implementing projects supported by foreign assistance it became clear that the engagement of the CEE countries' own staff to manage projects was critical for achieving positive results, despite their mistakes and delays. Through the process of participating in foreign aid supported activities, project management skills have been acquired by many CEE government and business managers.

110. Environmental assistance also helped to encourage public participation in environmental protection projects. In some cases there was a formal request from donors to use a participatory procedure, while arranging the implementation of a project financed by an assistance fund. Western experts held meetings and made field visits to discuss environmental issues with the local people. Steering committees were also used as a tool for bringing local people into the project. This type of development will have a tremendous impact on establishing democratic procedures in different decision-making bodies and economic sectors.

111. Some negative experiences with foreign assistance were also reported by the experts. A large amount of money has been invested in assessments and feasibility studies, often without practical improvements in the environment resulting. Moreover, these numerous studies and reports have usually been prepared by very costly western consultants making short-term visits to the region and have often failed to meaningfully involve local and national experts who have direct knowledge of the issues. Other experts explained that the priorities of the donor organizations are not always compatible with the priorities of the recipient CEE country. In some cases, assistance advances the interests of the donor to the long-term detriment of the environment in the region. Most of the experts understood that aid is usually intended to provide benefits for the donor as well as receiver, but they suggested that there should be better ways of maximizing the positive practical environmental effects of such assistance. The experts admitted that CEE countries need also to develop proper frameworks to coordinate, absorb, and manage Western environmental assistance.

Priorities for assistance

112. There is a consensus among CEE environmental experts that foreign aid should play the role of catalyst in environmental improvements. Hence, these funds should be used to improve procedures, technology, and the country's own capacity to analyze and address environmental problems. Western assistance is instrumental where specific expertise and knowledge is missing (management, environmental legislation and enforcement, auditing, and assessing environmental impacts, etc.) Foreign financial assistance is limited and should focus on achieving long-term benefits. This should ultimately lead to greater efficiency in a country's own spending for environmental purposes. Initially, financial assistance focused on establishing the infrastructure and expertise necessary for efficient, effective improvements. Now the countries are more prepared to channel foreign assistance into practical environmental improvements. Given the limited assistance available it is important to utilize this potential in the optimal manner.

113. Proper environmental management and decision-making require correct information. Foreign aid has been largely used to develop environmental monitoring and environmental information processing systems in the CEE countries. Quality control and monitoring are important conditions for successfully enforcing environmental standards and introducing compliance schedules. Although costly, environmental monitoring should pay for itself in better and more accurate environmental decisions.

114. Foreign aid for environmental protection has mostly been spent on environmental hot spots. The outputs from these expenditures have often been feasibility studies, which only serve as preparation for an investment phase. This activity is criticized by CEE experts as "paper work," or an information collection exercise. In the role of catalyst, foreign aid should be allocated to pilot environmental investment projects and only then on follow-up investment stages which should be arranged primarily with the investor's own financial means. Demonstration projects provide the best educational opportunity, while serving environmental protection goals.

Harmonizing policy

115. An additional role of foreign aid is to stimulate the process of harmonizing the environmental regulations of the CEE countries with those of the European Union. This process has immediate, as well as long term, importance. Revisions to the legal requirements imposed on investors in the CEE countries are being made in order that they be compatible with the regulations of the European Union. This should help eliminate barriers for developing businesses. A common methodology should be adopted while establishing environmental regulations to avoid major discrepancies. Harmonization of economic instruments should help investors interested in CEE countries through the establishment within the region of conditions similar to those in the European Union.

116. An assessment of the disparities between regulations in the CEE countries and the European Union is currently being conducted. A time schedule for adjustment will result from this study. Considerable time will be required to unify environmental protection regulations of the European Union and the CEE countries.

117. The issue of harmonization is not equally assessed by experts. Some of them stressed the educational aspect of this exercise and the mutual benefit from studying existing environmental regulation systems. Others want to see a more focused harmonization of programs for both legal and economic instruments, supplemented by small-scale demonstration projects. All agree that the full-scale benefit from harmonization will only be available in the distant future.


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