/ 10 October 2007

Economy versus ecology

The findings of the South Africa Environment Outlook report were predictable. It talks of a dismal future amid the withering of natural resources as a result of rapid growth and consumption.

You can bet that in four or five years’ time if a similar report is done, the grim prognosis will not be any different. In fact, the situation might well be worse, given the projected growth in the economy of about 6%.

The global environmental situation is no better. According to reports such as the Millennium Ecosystem Assessment, the United Nations Environment Programme’s Global Environment Outlook and the World Wide Fund for Nature’s Living Planet Report, the world is going to pot.

Neither the 500 or so international agreements on protecting the environment, nor all the hot air and flights wasted on conferences and talk shops seem to help.

At the World Summit on Sustainable Development hosted by South Africa in 2002, a wide range of recommendations were adopted on a range of issues from climate change to foreign direct investment and trade.

The outcomes of the summit were encapsulated in an agreement titled The Johannesburg Plan of Implementation (JPOI). Many delegates were excited because it seemed to cover every relevant concern.

But it was an illusion. As has since been proven, there are far too many issues to resolve and, without identifying the root cause, making interventions is like shooting in the dark at an elusive target.

The JPOI is in the process of suffering the same fate as Agenda 21, an outcome of the 1992 Rio Earth Summit — a lot of bold pontifications, but with limited will and capacity to show results. This is not to suggest people are not trying, but frankly their efforts are far too little for the ground that needs to be clawed back.

Where environmental problems persist, the reaction of many influential environmentalists is to throw paper documents, data, manifestos and declarations at them. This is symptomatic of a movement already defeated by the challenge.

After 9/11 the power of the environmental movement, like that of many social movements, is on the wane. Increasingly it is becoming a narrow fringe sect, rather than a serious movement that can bring about change. It has no real power to influence key actors in the economy, or even ordinary citizens, who are more concerned with issues of security, jobs, consumption and being entertained.

But the problem has never been about the environment — it has always been the economy. The economy is shaped by actors who are not investing to meet the needs of people and nature, but rather are in a feverish and frivolous pursuit of accumulation for its own sake, to paraphrase one economist.

Such accumulation takes place in a context where much of the wealth ends up in private hands, rather than being a public good in which both society and nature are well-deserving beneficiaries. The global economy as a result has seen a shift from basic needs determining production, to production driving demand and artificial needs.

Environmental interventions are a sideshow that hardly makes a dent in shifting the way people think about the economy. So long as they stay on the margins, the economy will continue to drive social and political agendas.

The negotiations at the 2002 World Summit on Sustainable Development proved how difficult it is to negotiate any outcome that will affect either a country’s trade position, or its economic sovereignty.

As result environmentalists are always left to do the dirty clean-up job of the markets — if they didn’t, the world may well be in a far worse situation than it is today. Environmentalists are the first aid, the fire brigade and the ambulance, treating the after effects of the disastrous results of the kind of economic activities that are responsible for the dire predictions of the South Africa Environment Outlook.

Economic progress is generally not linked to respect for the environment, or an appreciation of its value. It is informed by the concepts of growth for capital and exploitation of nature — like labour, nature is a mere commodity.

Social movements that push for an alternative future have generally been hijacked by the power of capital accumulation. But capital accumulation for its own sake, without restraint, without moral conscience and without the ability to give back, places all of us in peril and no amount of Environment Outlook reports will save us.

Saliem Fakir is a senior lecturer at the School of Public Management and Planning at Stellenbosch University

Proof in the pudding

Songezo Zibi cites a case study to show industry and environmental sustainability can co-exist

South Africa has set itself a target of halving unemployment by 2014 through an annual economic growth rate of at least 6%. Central to achieving this target is an ambitious industrialisation and capital investment programme that will see improvements in the rail and road networks, electricity infrastructure to meet rapidly rising energy demand and improved coordination between government departments in the economic cluster.

The idea is to increase manufacturing capacity, export volumes, foreign direct investment and create more sustainable jobs. There is also a clear need to encourage more participation in mainstream industry by previously disadvantaged groups and those that are currently in what the government calls “the second or informal economy”.

While South Africa’s current economic success is beyond question, over the years the unions in particular have bitterly complained that the growth has been jobless. Clearly the government is determined to address this.

The drive to improve employment and accelerate economic growth presents another challenge which, given the right attitude and coordination, can be addressed. South Africa is well known for its natural beauty and abundance of unique habitats and species.

This is partly what fuels a rapidly growing tourism industry, also a key driver of job creation.

How does the country achieve the balance between rapid economic growth and industrialisation on the one hand, and successful environmental and biodiversity management on the other?

While regulators play a vital role, private-sector initiatives can be at the centre of national efforts to grow a sustainable economy. Globally, companies are increasingly recognising that, in order to maintain a social and environmental licence to operate, they must integrate environmental, social and economic considerations into decision-making and planning to contribute to sustainable development and achieve the balance needed in South Africa as its economy continues to grow.

The mining industry is one of the biggest economic growth drivers, in terms of capital investments, employment as well as foreign exchange earnings. Its continued success is vital to achieving the 6% growth target set by the government. This, however, does not need to detract from what should be the primary responsibility of all players in the economy, ensuring a sustainable future for the country.

International mining company Xstrata has put in place a sustainable development framework of policies and standards. Regardless of national environmental and related legislation in any particular country, operations in each of the 18 countries in which the company operates must comply with this framework.

There are 17 management standards, backed by an independent assurance programme, that apply to health, safety,environmental conservation, biodiversity management and community interaction, among others. The successful implementation of this model saw Xstrata recently named as sector leader on the Dow Jones Sustainability Index, which selects sustainability leaders from each industry.

All industry players need to commit financial and human resources towards ensuring that today’s industrial activity does not deprive future generations of a sustainable future. Industrial development is not necessarily the opposite of eco-based economic development.

The two can co-exist, with clear guidelines on how the sustainability balance can be achieved. This is the least South Africa can do for its future.

Songezo Zibi is the communications manager at Xstrata South Africa