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Chapter 3: Institutions for Sustainable Development --> Picking up signals, balancing interests, and implementing decisions --> Balancing alternatives - and interests
Chapter 3: Institutions for Sustainable Development

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Balancing alternatives-and interests

A protective institution such as an air quality protection agency operates within an authorizing framework that balances interests. It may impose an emission standard or a tax, or strengthen enforcement. This in effect strengthens the rights of beneficiaries to air quality-weakening rights of others, and this is one of the ways changing social priorities can be implemented. The balancing of interests takes place at many levels: in national legislatures, in court processes, in marketplaces, in individual norms and village interactions, in the seen or unseen processes in corporate boardrooms and branches.

Evidence shows how information provision (in an era of unprecedented quantities of information) can catalyze shifts in political balances and real world decisions. Thus, the term "transparency" dominates the current campaign for better governance. There is evidence from rich and poor countries that greater availability of information means better environmental performance.23

Figure 3.4 shows the 1,445 cities in the world-where, according to World Bank estimates-the population suffers from exposure to concentration of dust particles, or total suspended particles (TSP) above traditional guidelines of 90 micrograms µ/m3.24 In less than 2 percent of these cities is air pollution systematically monitored, and in even fewer is information about that pollution made available to the public. A good working hypothesis-based on studies from industrial and developing countries-is that monitoring pollution information and making it public would help (in part through political channels) to improve air quality in these cities regardless of their level of income.25

Figure 3.4: Concentration of total suspended particles

But balance is not maintained by information provision alone. More open and democratic countries presumably give weight to dispersed interests, so there are reasons to expect that they would give more attention to environmental protection. The data are incomplete, but some results support this hypothesis (box 3.4).

Box 3.4

Democracy and environmental policy: picking up signals, shifting the balance

There are strong theoretical reasons to think of democracy as conducive to environmental protection and economic efficiency in general.

Two plausible mechanisms can be observed:
  • Democracy helps give weight to dispersed interests. In general, policies will be biased in favor of concentrated interests, giving less weight to equally important interests spread across a larger number of people. Benefits from environmental assets, such as from river water quality, are often considered public goods and are thus dispersed across many individuals, while the cleanup costs may be more concentrated.
  • Freedom of expression and association helps society pick up signals and adjust to change. As population density increases, knowledge increases, incomes grow, or preferences change, the pressures on the environment change. As the problem of horse manure in London's streets declined, new problems-such as smog or lead contamination in city air or oil spills in the North Sea-emerged to beg for new management institutions and technical solutions. The accountability of politicians to the people and the separation of powers are best envisaged in a democratic setting; these institutional features are also the key ingredients in putting new priorities on the table, rebalancing competing interests, and taking action.
It is not easy to accurately measure environmental commitment. Even so, democracies have a greater tendency to do the following:
  • Put their land area under protection
  • Sign and ratify multilateral environmental agreements
  • Belong to environmental intergovernmental organizations
  • Meet reporting requirements for the Convention on International Trade in Endangered Species of Fauna and Flora
  • Have a National Council on Sustainable Development
  • Have environmentally relevant information publicly available.
The study found that democracies are more likely to make an environmental commitment, regardless of their level of income.

Source: Neumayer, Gleditch, and Gates (2002)

One might expect a one-party system to have difficulty being receptive to signals, since unpleasant news might be easier to suppress in such a setting. But this is not always the case. In China two institutional features play a role in areas such as environmental management, where there has been noticeable progress in the last decade: a systematic approach to complaints, and national policies to make local environmental information available to the public (chapter 7). A complaints-driven system has many qualities, but may be biased toward immediately noticeable phenomena, such as noise. So the combination with objective monitoring data is valuable. Both mechanisms utilize the strengths of a decentralized system and recognize how national institutions (such as assurance of information) can be important for local accountability.26

In Europe information that helped establish a common understanding of who suffers from a problem and who contributes to the problem was essential in shifting the balance in favor of reducing transboundary pollution, even when negotiation-not authority-did the balancing (see box 8.1). For balance and for unbiased signals, it is essential to have supportive institutions in place. Corporations rely on laws and auditors for such traditional goals as protecting workers' pensions and shareholders' assets-and they now rely also on civil society for broader corporate social responsibility (chapter 8).


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