The aims of the World
Summit on Sustainable Development are laudable.
Cleaner air and water, better stewardship
of global resources, the eradication of poverty
and disease no one can argue with such objectives.
The question is how to get there from here.
Let
me offer a prescription for sustainable development
that begins with a simple and powerful idea * an idea
which, unfortunately, will often be at odds with what
delegates, journalists and other observers hear in
Johannesburg. The idea is that economic growth leads
to levels of wealth and income that, in turn, inevitably
produce societies that are cleaner, healthier and more
stable and that use global resources more efficiently.
It is an idea that has been validated in academic
studies and by centuries of history an idea that
is especially important at this time and in this
place. Since developing nations will improve
their environments as they grow richer, the major
thrust of a global conferences like Johannesburg
should be to help them grow richer not to place
restrictions upon them (and on other countries)
that will ultimately thwart their growth.
The
idea of economic growth stands opposed to the
idea of impending
scarcity a notion that
is gaining currency again today, just as it did
more than 200 years ago with the writings of
the Rev. Thomas Malthus and 30 years ago with
the success of The Club of Rome's book, "Limits
to Growth." Malthusianism is a repudiated
concept that will not die. It creeps on.
The
latest manifestation is a pre-conference report
by the World Wildife
Fund which, in the
words of British publication The Observer, "warns
that the human race is plundering the planet
at a pace that outstrips the capacity to support
life." If current consumption levels continue,
says the WWF report, two extra planets the size
of Earth will be "required by the year 2050
as existing resources are exhausted."
This bit of sensational hokum is grounded in
the theory that, as population grows, the natural
resources of Earth will be exhausted and we will
starve or be forced into other deprivations.
In fact, the ways and means to sustain and enhance
life are increasing, rather than decreasing,
and the environment for the vast majority of
people is getting better.
Why? "Human beings are not just more mouths
to feed, but are productive and inventive minds
that help find creative solutions to man's problems,
thus leaving us better off in the long run." That's
a quotation from the late Julian Simon, the University
of Maryland economist who was the most articulate
opponent of Malthusianism. In 1980, Simon made
a famous $1,000 bet with scientist Paul Ehrlich
that five resources (of Ehrlich's choosing) would
be cheaper in 10 years--the best evidence that
their supply had not declined. Simon won; each
of the resources had declined, by an average
of 40 percent.
Still,
in many circles, pessimism reigns. We are told
how
humans are despoiling the planet
and how global assets are severely limited. We
hear how the human "footprint" is growing
* an idea that neglects the effects of innovation,
efficiency and productivity (or doing more with
less, a principle of all productive societies).
Gloomy views, unfortunately, will dominate Johannesburg
and may prevent real progress on relieving poverty
and improving the environment. While Matlhusianism
is seductive, it is also ahistorical. It has
been flat-out wrong.
Why are doom and gloom so seductive? My colleagues,
Steven F. Hayward and Christopher DeMuth of the
American Enterprise Institute, draw a disinction
between two kinds of environmentalism--practical
and romantic. It is the practical sort that has
produced the environmental successes we enjoy
today--specifically, cleaner air and water. But
romantic environmentalism will almost certainly
be the prevailing ethos at Johannesburg.
Hayward
and DeMuth write, "Romantic environmentalism
is a strong and uncompromising environmentalism
that holds that environmental values should always
or almost always trump other values, especially
those associated with economic development and
growth. The movement has strong roots in American
intellectual and political history and many accomplishments
to its credit (without John Muir the Yosemite
Valley might today be known as the San Francisco
Reservoir)--"Romantic environmentalism now
consists largely in denying or confusing the
realities of practical environmentalism. Its
modus operandi is the dramatic claim of impending
catastrophe and the moralistic attack on anyone
who makes a compromise in the pursuit of environmental
progress, [and it] prefers government bans and
commands over markets and private property, and
it demands centralized government and national
or even global regulation rather than state and
local regulation."
Today, some 300 years after the Enlightenment,
the appeal of Romanticism remains powerful. It
is undeniable and not completely unwelcome, but,
if it dominates world conferences on environmentalism--as
it has since Rio--the romantic impulse will crowd
practical and ideas solutions out and, in the
end, arrest progress.
The most practical of all practical environmental
ideas is the one with which I began: that economic
growth is the foundation stone on which a clean,
healthy environment must be built.
This
idea may sound unremarkable, but it is at the
root of
all attempts to improve the lot
of people on the planet and to make the planet
itself a better place to live. While they mean
well, sweeping programs meant to preserve, conserve,
freeze and even "sustain" (that i,
constrain the use of) global assets often have
the opposite effect. Because they deter economic
growth, such programs can actually make the Earth
less clean and less healthy--and certainly less
free of poverty. Virginia Postrel calls such
an approach "stasis," and, unchecked,
it will likely lead us back to the conditions
described by the political philosopher Thomas
Hobbes in the 17th century: a world where lives
are "solitary, poor, nasty brutish and short." Dynamism--the
result of policies that encourage economic growth--will
literally and figuratively enrich the planet.
The danger at Johannesburg is a conference carried
away by vague, romantic aspiration--without practical
guiding principles to inform decision-making.
Among the principles that need to be enshrined
by such an important convocation are an unswerving
belief in sound science and rationalism, a strict
weighing of costs against benefits for any policy
on the table and, finally, an understanding that
the people of the world grow richer, they also
grow healthier, live longer, can protect themselves
against calamity more effectively and, almost
certainly, find it easier to pursue the spiritual
goals that make life satisfying and productive.
Let's apply this idea of economic growth to
one of the most contentious environmental matters:
the use of energy. I contend that cheap, abundant
energy leads to a better environment.
There is a direct, close and logical correlation
between economic prosperity and an improved environment.
You can see this through simple observation:
few, if any, rich countries have environments
as poor as the poorest countries. The U.S., Canada,
Australia, Europe and Japan have the cleanest
environments; nations like Haiti, China and India
have the worst. Thirteen of the 15 most polluted
cities in the world are in developing Asia. Academic
studies have found, not simply that wealth makes
environmental health, but more specifically that
pollution rises in poorer countries until their
inhabitants acieve an average per-capita income
of about $5,000. Then, pollution begins falling
rapidly. If we plotted pollution vs. income on
a graph, the resulting line would be called a
Kuznets Curve, a bell-shaped curve. It makes
sense for public policy to be directed toward
getting nations over the $5,000 hump and onto
the downslope of the this curve.
An
important new paper in the Journal of Economic
Perspectives
called "Confronting the Environmental
Kuznets Curve," by Susmita Dasgupta of the
World Bank and three other researchers, demonstrates
the link among economic growth, rising living
standards and environmental health. And the distinguished
climate scientist, Jack M. Hollander of the Lawrence
Berkeley Laboratories, will elaborate on the
theme in a book to be published in January, The
Real Environmental Crisis: Why Poverty, Not Affluence,
Is the Environment's Number One Enemy (University
of California Press).
With prosperity comes a desire to improve one's
air and water --and, in addition, a greater moral
awareness of the dangers and evils of pollution.
Think of clean air and water as goods that a
society can purchase * but only after it has
satisfied its basic needs for food, shelter and
rudimentary income. It is unfair for developed
countries to deny developing countries the tools
with which to improve the lives of their citizens.
Those tools sometimes pollute--temporarily. But
pollution per unit of production drops sharply
once citizens receive a comfortable income. Advances
in recent years--thanks to technology, greater
wealth and education-- have produced spectacular
reductions in air and water pollution in richer,
and even in poorer, nations. For example, lead
emissions have dropped 95 percent in the U.S.
in the past two decades. New Delhi and Beijing
today are less polluted than London in the 1930s
and 1940s. SO2 and smoke levels in London today
are below those in the 16th century. None of
this should be surprising because of the link
I noted at the outset: Poverty has been relieved
more in the past 50years than in the preceding
500.
In fact, economic growth is a relatively new
phenomenon--only about 200 years old. Before
the early 19th century, economists estimate that
global growth was about two-tenths of one percent
a year. In a typical span of 200 years before
1800, wealth barely doubled. But over the past
200 years, global growth has averaged about 2
percent annually, and wealth has risen about
60-fold. So far, economic growth has been inextricably
tied to environmental progress. There is no reason
to believe that this connection will not continue.
The essential element in economic growth has
been energy. By themselves, individual humans
generate very little energy--roughly the power
to light a 100-watt bulb. But by using non-human
sources of energy, the typical person in a developed
nation has the power of 200 to 250 light bulbs
at his or her disposal. By contrast, a resident
of India can harness the power to light just
15 bulbs. Energy also has extreme leverage. A
little of goes a long way. Energy consumption
represents just 2 percent of Gross Domestic Product
in a country like the United States, yet, without
it, no modern economy could exist. The leverage
works down as well as up. Restrict energy use,
and you cripple economies--especially poor economies.
The source of nearly nine-tenths of the energy
we use today is almost miraculous. It comes from
the waste products of vegetable matter, decaying
in the Earth over millions of years--that is,
fossil fuels: coal, gas and oil. These fuels
are surprisingly abundant and inexpensive. The
inflation-adjusted price of gasoline has fallen
by half over the past 20 years, and it is lower
today than it was in 1973, when the modern era
of OPEC-led price increases began.
But,
then again, the prices of nearly all raw materials
have
fallen over the past century--in
reproach to those who claimed that the Earth
was "running out" of resources. When
anything grows scarce, its price rises, but a
commodity prce index, developed by The Economist
magazine, has fallen 80 percent since it was
launched in 1845.
Will we run out of copper or oil someday? Almost
certainly--but that day is far into the future,
long after we have replaced these resources through
the natural process of innovation. The Stone
Age did not end because we ran out of stones,
and the Oil Age will not end because we run out
of oil. It will end when some other source--wind,
sun, nuclear energy--outperforms oil in its low
price, efficient distribution, safety, or other
factors that consumers desire.
We need to be honest and practical. In 2000,
the world used about 400 quadrillion BTUs of
energy. By 2020, that figure will grow to about
600 quads--an increase of 50 percent. Overall,
in North America, Europe and industrialized Asia,
the growth will be far lower--about 25 percent.
But in developing Asia, Central and South America,
Africa and the Mideast, it will be about 100
percent. It is wrong to deny countries like Bangladesh
and Honduras the means to do what the U.S. and
France have done--that is, to use energy to boost
economic growth.
The bulk of the increase in energy use will
occur in China and India, which will account
for about one-quarter of all such use by 2020.
These countries have no choice today. They can't
erect tens of millions of windmills. They need
to use fossil fuels now. Practical environmentalists
understand these facts of life and see an obvious
area of mitigation--transfers of clean-coal technology
and other technical improvements that will make
energy use more efficient and clean in the short
term and that will also speed China and India
toward the kind of wealth that will dramatically
improve environmental health in the long term.
The
Kyoto Protocol, which the U.S. Senate rejected
even before
it was signed in 1997 and which President
Bush turned down as "fatally flawed" in
March 2001, has become a fierce battleground
for practical and romantic environmentalists.
Kyoto proposed that, since awarming planet poses
health and environmental risks and since there
is evidence that human activity has contributed
to warming, an international regime must reduce
emissions of greenhouse gases, mainly carbon
dioxide. At this stage in history, reducing CO2
means, very simply, reducing energy use. And
reducing energy use means slowing economic growth.
Objective studies, including one by the Clinton
Administration's own Energy Department, show
that the cost, in terms of Gross Domestic Product,
is huge--about $300 billion to $400 billion annually
in the United States alone. And, while Kyoto
exempts developing nations from its strictures
(even though such nations will be the venue for
the greatest increases in emission rates over
the next 20 years), falling growth in the U.S.
and other rich countries will have damaging consequences
for poor countries--since developed nations provide
customers and markets for goods from developing
nations and since developed nations are the main
investors in developed nations.
My
own view from reading the literature is that
the science
of global warming remains unsettled.
The role of anthropogenic forcing is unclear,
and it may be dwarfed by the effects of clouds,
solar cycles and other elements still unknown.
Also, the drastic and swift reductions in energy
use necessary to meet Kyoto targets will, if
climate models are correct (a big "if"),
reduce temperatures only marginally a century
from now.
But even if one accepts the premise of Kyoto--human-induced
climate change--the best antidote is resilience,
and resilience can come only through economic
growth. Whether the Earth gets warmer or cooler
(as scientists warned it would in the 1970s)
and whether changes are non-human or human, richer
countries will be better able to withstand the
difficulties, and perhaps even turn them to advantage.
Again, the aim should be to adopt policies to
spread prosperity to developing countries--not
to cripple their economies through no-growth
or anti-growth constraints.
Does economic resilience work in the face of
natural disasters? Here is clear evidence that
it does: So far this year, according to the Center
for Research of the Epidemiology of Disaster
(CRED), more than 17,000 people have been killed
by natural disasters.
Another
44,000 have been injured and 100,000 have been
made
homeless. My colleague Nick Schulz
of TechCentralStation.com recently wrote: "These
numbers are tragic, but what's truly distressing
is to look at where the people are who have been
severely affected. Of the 30 biggest natural
disasters this year in terms of fatalities, almost
half occurred in Africa. Another nine occurred
in South Asia (India, Afghanistan, Iran, etc.),
but not one of the 30 most fatal took place in
North America or Europe."
Why the disparity?. It's not that developed
countries don't have destructive weather, floods,
fires, hurricanes, or other natural calamities.
CRED lists 17 natural disasters in the U.S. alone
this year (including a sizeable earthquake)--more
than double the number of disasters in any other
country.
But,
as Schulz points out, "the worst of
the natural disasters in the United States killed
two dozen people" while disasters in India
and Burkina Faso killed thousands. Again, why
the difference? Africa and other developing areas
of the world lack the adaptive capacity, the
resilence, that comes with wealth. The U.S. has
terrible hurricanes, but it also has the wealth
and technology to build stronger buildings and
better dikes, the communications capability to
spread word of impending high winds and floods,
and the facilities to evacuate those in the storm's
path. Where does adaptive capacity come from?
Simply, from wealth, which in turn comes from
economic growth.
In
the last 10 years, reports the Red Cross, poor
countries "have
accounted for just one-fifth the total number
of disasters, but
over half of all disaster fatalities. On average,
13 times more people die per reported disaster
in [poor] countries than in [wealthy] countries."
Romantic environmental regimes like Kyoto will
keep poor countries poor longer, exposing them
to natural catastrophe and, ironically, damaging,
not improving their environments.
This is where Johannesburg should focus: on
improving the economies of developing nations.
This means not simply building roads and encouraging
technology transfers and business investment.
It also means making water safe to drink and
eradicating a disease like malaria, which, studies
say, has reduced Africa's GDP by one-third. And
it means promoting democracy and the free exchange
of goods and services throughout the world.
I
will admit that the word "sustainable" bothers
me. While imprecise, it carries connotations
of constraint, of limits to growth. The best
way to improve the well-being of the people of
the world and to improve the environment of the
world is to eliminate constraints--especially
on the human achievement and imagination. A goal
of sustainable development sells the world short.
We can do much better. My hope is that Johannesburg
is remembered as the environmental conference
where, at long last, dynamism and confidence
triumph over stasis and fear.
(Editor's Note: James K. Glassman is a resident
fellow at the American Enterprise Institute in
Washington, D.C., and host of www.TechCentralStation.com,
a website on technology and public policy. He
is also a weekly columnist for the Washington
Post and the International Herald Tribune.
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