Environmental Management, Sustainable Development and Human Health pptx

Specific emphasis was placed on globalization and sustainable growth,bioethics and poverty, organizational performance and sustainability, environmental managementand individual progress

ENVIRONMENTAL MANAGEMENT, SUSTAINABLE DEVELOPMENT AND HUMAN HEALTH

Environmental Management, Sustainable Development and Human Health

Editors

Eddie N Laboy-Nieves & Fred C Schaffner

University of Turabo, Gurabo, Puerto Rico, USA

cover: Eddie N Laboy-Nieves.

http://ciemades.org

CRC Press/Balkema is an imprint of the Taylor & Francis Group, an informa business

© 2009 Taylor & Francis Group, London, UK

Typeset by Charon Tec Ltd (A Macmillan Company), Chennai, India

Printed and bound in Great Britain by Cromwell Press Ltd, Towbridge, Wiltshire

All rights reserved No part of this publication or the information contained herein may be reproduced,stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, byphotocopying, recording or otherwise, without written prior permission from the publishers

Although all care is taken to ensure integrity and the quality of this publication and the informationherein, no responsibility is assumed by the publishers nor the author for any damage to the property orpersons as a result of operation or use of this publication and/or the information contained herein.Published by: CRC Press/Balkema

P.O Box 447, 2300 AK Leiden, The Netherlands

e-mail: Pub.NL@taylorandfrancis.com

www.crcpress.com – www.taylorandfrancis.co.uk – www.balkema.nl

Library of Congress Cataloging-in-Publication Data

Environmental management, sustainable development, and human health / edited by Eddie N.Laboy-Nieves …[et al.]

p ; cm

Includes bibliographical references and index

ISBN 978–0–415–46963–0 (hbk : alk paper)

1 Environmental health 2 Environmental management–Health aspects

3 Sustainable development–Health aspects 4 Economic development–Health aspects

I Laboy, Eddie Nelson II Title [DNLM: 1 Environmental Health

2 Conservation of Natural Resources 3 Developing Countries

4 Ecology 5 Environmental Medicine 6 International Cooperation

WA 30.5 E607 2009]

RA565.E516 2009

362.196’98–dc22

2008039742ISBN: 978-0-415-46963-0 (hbk)

ISBN: 978-0-203-88125-5 (e-book)

Globalization and Sustainable Growth

The Environment, Sustainable Development and Human Wellbeing: An Overview 3

M.F.A Goosen, E.N Laboy-Nieves, F.C Schaffner & A.H Abdelhadi

K Alamar & N Murali

T Ntsabane & N Moleele

Bioethics, Environmental Pollution and Poverty

A.J Gabaldón & M Aguilera M.

The Impact of Global Warming and Human Activities on Coral Reefs:

A Cróquer

Preventing Environmental Pollution through Monitoring, Clean Technologies,

R.E.R Gil & L.E.G Rico

Poverty, Urban Land and Africa’s Sustainable Development Controversy 95

F.N Hammond & J Somevi

Organizational Performance and Sustainability

The Environment as a Fifth Component of a Balanced Scorecard for

M.M Ajlouni

Creating a Climate for Long-term Ecological and Organizational Sustainability 133

A Arnaud & D.L Rhoades

Evolution of Wholesale and Retail Distribution Channels in South Africa 145

L van Scheers

V

Examining Banking Productivity Across Countries Considering

K Lyroudi & D Angelidis

Assessing Advertising Mediums used by Small Businesses in Soweto to

L van Scheers

Environmentally Sustainable Economies: A Panacea for Sound Development 179

M.W Maila

Environmental Management and Sustainable Development in the Oil and

J.-W Lee & S.W Tai

Analyzing Critical Success Characteristics of South African Entrepreneurs 199

L van Scheers

Environmental Management and Human Progress

S El-Kafafi

Role of the Arts and Environmental Management in the Secular West and in Islam 217

J.T Basker

Modeling of Artificial Emotions and its Application Towards a Healthy Environment 229

K.A Maria, R.A Zitar, I Shehabat & N Ajlouni

New Technologies for Human Development: A Case Study from Eurasia 241

Governance and Practical Approach for Integrating a Sustainable Environment into

F.H Beseiso

Renewable Energy

Renewable Energy in the Caribbean: A Case Study from Puerto Rico 291

J.A Colucci-Ríos, E O’Neill-Carrillo & A Irizarry-Rivera

Contributions of the Energy and Environmental Sectors to Sustainable

F.C Schaffner

Contents VII

Ecosystems and Environmental Health

F.A Abdulla, M.H Abu-Dieyeh & E Qnais

Environmental Profile and Management Issues in an Estuarine Ecosystem:

E.N Laboy-Nieves

Impact of Urban Wastewater on Biodiversity of Aquatic Ecosystems 399

E Emmanuel, K Balthazard-Accou & O Joseph

Materials Recycling and Water Treatment

Utilization of Solid Waste Materials in Highway Construction 425

S Amirkhanian, C Thodesen & K Shatanawi

Activated Carbon in Waste Recycling, Air and Water Treatment, and Energy Storage 441

S Gaspard, A Durimel, C Ncibi & S Altenor

S Amirkhanian, K Shatanawi & C Thodesen

Management, Disposal, Pathogen Reduction and Potential Uses of Sewage Sludge 477

G de la Rosa, E Reynel-Avila, A Bonilla-Petriciolet, G Cruz-Jiménez,

I Cano-Aguilera & F Martínez-González

Membrane Fouling and Cleaning in Treatment of Contaminated Water 503

M.F.A Goosen, S.K.S Al-Obaidani, H Al-Hinai, S Sablani,

Y Taniguchi & H Okamura

Assessment of Sustainability in Water Resources Management: A Case Study

J.R Pérez-Durán

Access to safe drinking water and sanitation is a basic necessity However, such access is highlyvariable around the world and in particular in Africa, Asia and South America Much progress stillremains to be made in infrastructure improvements and poverty reduction A recent World Bankreport, for example, noted that more than 100 million people in the Latin American region alonelack access to potable water and adequate sanitation systems

Compounding the issue of water availability is contamination of water supplies and the lack ofwastewater treatment facilities This affects human health The presence of lead as well as excessagricultural fertilizer in the environment, for example, constitutes an ecological and human healthconcern

Environmental education plays a major role in achieving changes in attitudes that contribute

to environmental awareness in society The average person is usually somewhat informed aboutenvironmental problems However, not many fully understand the basis of these problems or how todeal with them One example of rising public awareness is the increasing use of recycled materials,particularly in road systems, paper making and plastics manufacturing Environmental education

is especially critical for young people who will be future decision makers

All disciplines and all segments of society will need to work together, proactively, in seeking term solutions to environmental problems The recent establishment of an International Center forEnvironmental Studies and Sustainable Development (http://ciemades.suagm.edu/) is one example

long-of this new approach This book project is one long-of the initiatives long-of this Center

Sustainable development is now considered by many organizations and their stakeholders asbeing the model to follow An increasing number of companies currently act and communicatebased on their triple performance (i.e economic, environmental and social) As educators andscientists we can follow this example by keeping in mind the bigger picture when it comes doingour research and educating our young people This will help to improve the overall health of thesociety in which we live

This main aim of this book is to assess some of the major environmental problems facing thedeveloping as well as developed regions of the world Solutions are suggested It includes severalpapers on environmental education projects that will help to raise awareness in young people aboutthe interrelationships between pollution, the environment and society

This edited book provides a broad coverage of recent advances in environmental managementand sustainable development as it relates to human health It starts with an overview chapter on thenature of environmental management and sustainable development This is followed by well over

30 chapters from experts around the world

Considerable research has been reported on environmental management and sustainable opment over the past three decades International conferences on Sustainable Development wereheld in Johannesburg in 2004 and Helsinki in 2005 Numerous books on environmental man-agement and sustainable development are available; Environmental Education and Advocacy byJohnson, E.A., 2005; Land, Water and Development: Sustainable Management of River Basin Sys-tems, Newson, M., 1997; Essentials of Medical Geology: Impacts of Medical Geology on PublicHealth, Selinus, O., 2004; Corporate Environmental Management, Darabis, J., 2007; Handbook

devel-of Sustainable Development, Atkinson, G., 2007 Since many devel-of these publications are highlyspecific, a book is now needed that combines the state-of-the-art knowledge in environmentalmanagement and sustainable development and in how these areas relate to improving the overallhealth of society

The intended audience for this book includes researchers, practicing engineers, decision makers,environmentalists, medical researchers, contractors, postgraduate and undergraduate students andothers working in environmental management and sustainable development The authors hope thatthe information provided in this book would help to promote a better knowledge on environmental

IX

management and sustainable development and contribute toward the utilization of sustainabletechnology and environmental friendly practices by society.

The views expressed in the chapters of this book are those of the authors and not necessarily those

of their respective institutions The authors hope that this book will contribute to the advancement

in research in sustainable development and help decision makers, business people, and engineers

in mounting practical solutions to environmental problems

Eddie N Laboy-Nieves University of Turabo Fred C Schaffner University of Turabo Ahmad H Abdelhadi New York Institute of Technology Mattheus (Theo) F A Goosen

Alfaisal University

2008

Embry-Riddle Aeronautical University, Florida, U.S.A E-mail: arnauda@erau.edu

Arnoldo José Gabaldón

Universidad Simón Bolívar, Caracas, Venezuela E-mail: arnoldojgabaldon@gmail.com

Evens Emmanuel

Laboratoire de Qualité de l’Eau et de l’Environnement, Université Quisqueya,

BP 796 Port-au-Prince, Hạti E-mail: evemm1@yahoo.fr Tel:+509 3423 4269/Fax:+509 2221 4211

F Nikoi Hammond

School of Engineering and the Built Environment, University of Wolverhampton, UK.E-mail: f.n.hammond2@wlv.ac.uk, Tel:+00 44 1902 322179, Fax: +00 44 1902 322179Fouad H Beseiso

Former Governor of Palestine Monetary Authority, E-mail: beseisof@yahoo.comFrancisco Martínez-González

Universidad de Guanajuato, México E-mail: fmarti@quijote.ugto.mx

Fred C Schaffner

Office of Science and Technology, Puerto Rico Economic Development

Company (PRIDCO) Present address: Universidad del Turabo, School of Scienceand Technology, Gurabo, Puerto Rico E-mail: fschaffner@suagm.edu

Water Re-use Promotion Center, Japan

Hans Werner Gottinger

STRATEC, Munich, Germany E-mail: hg528@bingo-ev.de

Faculty of Information Technology, Philadelphia University, Amman, Jordan

Jacqueline Taylor Basker

New York Institute of Technology, Amman, Jordan E-mail: jtaylorbasker@gmail.com

Joseph Somevi

School of Engineering and the Built Environment, University of Wolverhampton,

UK E-mail: f.n.hammond2@wlv.ac.uk, Tel:+00 44 1902 322179,

Fax:+00 44 1902 322179

José A Colucci-Ríos

University of Puerto Rico, Mayagüez E-mail: jcolucci@uprm.edu

List of Authors XIIIJosé Rẳl Pérez Durán

Advisor on Water Resources, Instituto Nacional de Recursos Hidráulicos (INDRHI) –

National Institute for Water Resources, Dominican Republic; EMR

(Engineering, Management and Risk) Group, E-mail: jraulperezd@yahoo.com

Laboratoire de Qualité de l’Eau et de l’Environnement, Université Quisqueya,

BP 796 Port-au-Prince, Hạti E-mail: evemm1@yahoo.fr Tel:+509 3423 4269/

Fax:+509 2221 4211

Khaldoun Shatanawi

Clemson University, SC, USA E-mail: kcdoc@clemson.edu

Khulood Abu Maria

College of Information Technology, Arab Academy of Business and Financial Sciences,

Amman, Jordan

Louise van Scheers

School of Business Management, University of South Africa, E-mail: vscheml@unisa.ac.za

Luis E Galván Rico

Universidad Simĩn Bolívar, Departamento de Tecnología de Servicios,

Caracas, Venezuela E-mail: lgalvan@usb.ve

Mago William Maila

Department of Teacher Education, University of South Africa, PO Box 392, UNISA 0003,TSHWANE, Republic of South Africa E-mail: mailamw@unisa.ac.za,

Tel: 012 429 4395, Fax: 012 429 4909

Marisol Aguilera M

Universidad Simĩn Bolívar, Caracas, Venezuela E-mail: maguiler@usb.ve

Mattheus F A Goosen

Alfaisal University, Riyadh, Kingdom of Saudi Arabia E-mail: mgoosen@alfaisal.edu

Moh’d Mahmoud Ajlouni

Dept of Banking & Finance, Yarmouk University, Jordan E-mail: ajlouni4@yahoo.co.ukMohammed H Abu-Dieyeh

The Hashemite University, Zarqa, Jordan E-mail: dandelion@hu.edu.jo

N Murali

Dept of Economics, Arul Anandar College, Karumathur, India 625 514

E-mail: nmuralirbs@yahoo.co.in

Naim Ajlouni

Princess Ghazi College of Information Technology, VP, Al-Balqa

Applied Science University, Jordan

Nkobi Moleele

University of Botswana

Osnick Joseph

Laboratoire de Qualité de l’Eau et de l’Environnement, Université Quisqueya,

BP 796 Port-au-Prince, Hạti E-mail: evemm1@yahoo.fr Tel:+509 3423 4269,Fax:+509 2221 4211

Raed Abu Zitar

Faculty of Engineering and Computer Science New York Institute of Technology(NYIT) Amman, Jordan E-mail: rzitar@nyit.edu.jo

Rosa E Reyes Gil

Universidad Simĩn Bolívar, Departamento de Biología de Organismos,

Caracas, Venezuela E-mail: rereyes@usb.ve

Sandro Altenor

Université des Antilles et de la Guyane Guadeloupe, Université Quisqueya,

Hạti E-mail: sandalt@yahoo.com

About the Editors

EDDIE N LABOY-NIEVES has a Ph.D in Ecology and works as Associate

Professor in the School of Science and Technology, Universidad del Turabo

(http://ut.pr), Puerto Rico He has nearly 20 years teaching undergraduateand graduate level courses related to environmental sciences He worked

as Manager of the Jobos Bay National Estuarine Research Reserve (PuertoRico) His research interests are focused on environmental characterization

of mangroves, coral reefs and seagrass beds, and the ecological aspects ofshallow water sea cucumbers Dr Laboy-Nieves has authored, co-authored,edited and peer-reviewed many publications He is the Puerto Rico President

of the International Center for Environmental and Sustainable DevelopmentStudies (http://ciemades.org), the organization that promoted the publish-ing of this volume He serves as Scientific Advisor for many community,national, and international organizations

FRED C SCHAFFNER is Associate Dean for Graduate Studies and

Research and Director of the Doctoral Program in Environmental Sciences

in the School of Science and Technology at Universidad del Turabo

(www.suagm.edu/utdoctoral/doct_env_sc.html) He has a Ph.D in Biologyfrom the University of Miami (Florida) He spent two years as a post doc

at the National Audubon Society Research Department (Florida) In PuertoRico, he has worked as Scientific Consultant for the Puerto Rico Indus-trial Development Company, the Department of Natural and EnvironmentalResources, the US Fish and Wildlife Service, and has held academic andexecutive positions at the University of Puerto Rico He has served as Con-sultant to numerous community and environmental groups, President of theSpecial Commission for the San Juan Ecological Corridor, and member ofthe Board of Directors of the Caguas Botanic and Cultural Garden, in PuertoRico Dr Schaffner has written over fifty scientific articles, white papersand technical reports

AHMAD H ABDELHADI is Assistant Professor in the College of Arts

and Sciences of the New York Institute of Technology, Amman Campus(www.nyit.edu), a non-profit independent private institution of higher edu-cation with campuses in the United States and abroad He obtained hisdoctoral degree in Galactic Dynamics from Clemson University, South Car-olina, in 2003 He worked at James Madison University in Virginia beforemoving to the New York Institute of Technology as an Associate Chair forthe College of Arts and Sciences and later Associate Campus Dean in theAmman Campus His work on pre-solar silicon carbide grains and compu-tational methods received support from the NASA Origin of Solar SystemProgram His scientific interests include computational methods in galacticdynamics, galactic chemical evolution, and chaotic systems Dr Abdelhadihas lectured in many conferences and published number of papers

XV

MATTHEUS (THEO) F A GOOSEN is Associate Vice President for

Research at Alfaisal University (www.alfaisal.edu), a new private non-profitinstitution in Riyadh, KSA Previously he held the position of CampusDean (CAO) at the New York Institute of Technology in Amman, Jordan

Dr Goosen has also held academic dean positions at the Universidad delTurabo in Puerto Rico, USA, and at the Sultan Qaboos University in Muscat,Oman He obtained his doctoral degree in Chemical/Biomedical Engineer-ing from the University of Toronto, Canada, in 1981 After graduation hespent three years as a post doc at Connaught Laboratories in Toronto andthen ten years at Queen’s University in Kingston He has been on the Board

of Directors of two companies Dr Goosen has published extensively withover 150 papers, book chapters, books, and patents

Globalization and Sustainable Growth

The Environment, Sustainable Development and Human

Wellbeing: An Overview

Mattheus F.A Goosen

Alfaisal University, Riyadh, Kingdom of Saudi Arabia

Eddie N Laboy-Nieves & Fred C Schaffner

Universidad del Turabo, Gurabo, Puerto Rico

Ahmad H Abdelhadi

New York Institute of Technology (NYIT), Amman, Jordan

SUMMARY: The aim of this chapter is to provide an overview of the multidisciplinary lationships between human health and the environment Coordinated approaches are necessary forsolving the major environmental and sustainability problems facing the developing as well as devel-oped regions of the world Specific emphasis was placed on globalization and sustainable growth,bioethics and poverty, organizational performance and sustainability, environmental managementand individual progress, human and ecosystem health, and water resources and recycling

The interrelationship between economic progress, environmental management and individual being is a complicated process, affecting both the quality and sustainability of the society in which

well-we live (Abdulla et al., 2009, Maila, 2006) There is a growing realization by the general public

as well as practicing engineers, decision makers, environmentalists, and medical researchers, thatthese three areas are interconnected

In the past, the world’s ecosystems were able to absorb the ecological damage resulting fromextensive industrialization and development However, with the rapid increases in global populationand industrialization, as well as enhanced demands on natural resources such as fresh water supplies,the earth is no longer able to sustain a healthy and balanced ecosystem (Misra 2000, Laboy-Nieves,2009) A coordinated approach is required to solve environmental problems

Sustainable development is now considered by many organizations and their stakeholders asbeing the model to follow For instance, an increasing number of companies currently acts andcommunicates based on their triple performance in economic, environmental and social areas(Misra 2000, Goosen et al., 2004 and 2009) As educators and scientists, there is a need to followthis example by keeping in mind the larger view to help improve the overall health of the society

in which we live

The aim of this chapter is to provide a brief overview of how sustainable development, ronmental management and human health are interconnected, with an emphasis on globalization,bioethics and poverty, organizational performance and sustainability, environmental managementand human progress, ecosystem health, and water resources and recycling

envi-2 GLOBALIZATION AND SUSTAINABLE GROWTH

Alamar and Murali (2009) noted that for sustainable development to be meaningful, consumption has to be brought under control In addition, in a free market economy, the privatesector may not bother to conserve nature For the sake of profit, it may destroy forests, overusemineral resources, or pollute air and water This sector may not take into account social costs or

over-3

benefits (Misra, 2000) Today there is an obsession with economic expansion Growth should bedefined not only in terms of the financial side but also in terms of societal and cultural parameters.The application of technology for the pursuit of profit has resulted in the overexploitation and theexcessive utilization of natural resources.

The expansion of industries and domestic markets has drastically altered, for example, theatmospheric concentrations of numerous trace gases (Sharma, 2007) This has distorted nature’sauto-balancing mechanism As a result, the world is now faced with several environmental problemsincluding acid rain, melting of glacial ice, large scale evaporation of water in the tropics, and anincrease in cloudiness at higher altitudes Developing countries, and notably the least developed,are expected to be the most vulnerable to the impacts of global climate change, although theircurrent contribution to the problem is minimal

Weather change can also have a significant impact on health through vector-borne diseasesbecause of changes in the survival and reproduction rates of the carriers, the intensity and temporalpattern of vector activity, and the life cycle of pathogens within the vectors Food production,availability and security, fresh water supply, forest biodiversity, coastal settlements, and fishingwill also be adversely affected

Extreme poverty still affects the lives of one out of every five persons in the developing world(Sharma, 2007) Soil degradation from erosion and poor irrigation practices continue to harmagricultural lands, jeopardizing production Sharma (2007) noted that without a transition to moreresource-efficient and less polluting farming methods, it will be difficult to meet world food needswithout increasing the environmental burden that stems from intensive agriculture

Sustainable development has three components: social, economic and ecological (Misra, 2000).Nevertheless these are not always compatible Sustainability requires a rare balance between thesethree sets of goals Once ecological sustainability has been achieved, then it is possible to attaineconomic sustainability If this condition is maintained then social stability can be attained.For sustainable development to be meaningful, overconsumption has to be brought under control.Industrial expansion in the present day has to be made within the carrying capacity of the planet.Human beings are at the centre of concerns for sustainable development They are entitled to ahealthy and productive life in harmony with nature

Baver (2009) focused on the emerging global concept of democratic environmental governanceusing Mexico as the case study area The goal of the research was to examine how several ofthe country’s new national institutions, procedures, and capacities were affecting environmentalperformance as well as public perceptions of governmental legitimacy It was reported that Mexico’sposition as a leader in environmental governance in the developing world did not emanate fromthe government itself; rather it was derived from a combination of pressures from civil societyactivists and international organizations and institutions (Rodríguez Bribiesca, 2007) Baver (2009)noted that struggle for democratic governance in this policy area may have contributed to a moreaccountable and transparent political system

Three pillars are integral to the concept of democratic environmental governance: citizen access

to environmental information held by public authorities; public participation in environmentaldecision-making; and citizens’ effective access to justice The United States was a global leader inthese three pillars through the mid-1980s, having legislation addressing all three issues However,

by the 1990s, various regional and international governmental and non-governmental organizationshave bundled the three ideas into one reform package and have promoted it around the world (Spethand Haas, 2006)

Perhaps the key lessons learned from the Mexican case, is that the process of economic tion can promote modern environmental governance However, only a highly mobilized movementcan monitor these reforms and force them to function effectively

globaliza-3 BIOETHICS, ENVIRONMENTAL POLLUTION AND POVERTY

Education for sustainable development should be obligatory for all young people, as this representsthe primary vehicle available for catalyzing the cultural changes required for survival (Ferrer and

The Environment, Sustainable Development and Human Wellbeing: An Overview 5Alvarez, 2003) Bioethics ought to serve as a platform for education about sustainability Gabaldónand Aguilera (2009) reported that it is essential to apply a framework of values and principles toguide the conduct of decision-makers, scientists, and technologists Furthermore, the advances ofinternational environmental jurisprudence also lend a valuable arsenal of bioethical principles tothe guidance of world development.

Gabaldón and Aguilera (2009) noted that bioethics is an interdisciplinary development resultingfrom philosophy, the health sciences, law and social sciences Any discipline that deals with thestudy of human beings has had something to contribute to the ethics of life Its scope also includesthe public and sanitary policies, the tasks of all professions, and especially any research on humans

or the flora and fauna that constitute ecosystems This wider view of bioethics goes hand in handwith the concepts of sustainable development

In its development, bioethics, seen as a branch of philosophy concerned with the study ofthe morality of human works (Andorno, 1998), incorporated principles that belonged to medicalpractice, to jurisprudence and to political tradition, as well as to the precepts of human rights, thedevelopment of professional ethics, and from religion (Gracia, 1989; Abellán Salort, 2006)

In a related work, Hammond and Somevi (2009) reported on poverty, urban land, and sustainabledevelopment using Africa as a case study This continent is unique when it comes to poverty andsustainable growth Some 41 per cent of inhabitants of African countries are extremely poor andare surviving on less than one dollar a day (Stern, 2006) At one extreme are the internationalrequirements on governments to rehabilitate their economies in keeping with the United NationsMillennium Development Goals (MDGs) The MDGs set such targets, for example, as halving theproportion of people living on less than US $1 a day by 2015

The sources of poverty are due to inefficient allocation of natural resources, capital, labour andtime, underutilization of resources, and inequitable distribution of incomes (Hammond and Somevi,2009) Liberal and moderate economists argued that as individuals and economic entities seek tomaximise their own self interest and profits, they unwittingly promote the efficient allocation aswell as optimal use of resources

Sustainable development has economic, social, environmental and ethical dimensions From aneconomic perspective, a resource is efficiently allocated and optimally utilized if it is put to theuse that generates the highest possible returns (Hammond and Somevi, 2009) In free enterpriseeconomies, the first two causes of poverty and economic malaise may be overcome by setting inplace a broad legal as well as effective and quality infrastructural framework within which individu-als and actors could pursue their self interest The required legal framework may consist of laws andsecurity rules that promote sound investment, and access to financial, labour and land transactions

To be really effective, the law must remove all manner of discrimination with respect to opportunitiesregarding education, investments, health services, land resources, capital and employment.Socially, equitable distribution of the incomes on the other hand may be achieved throughmechanisms and social benefits like income supports, unemployment benefits and housing, free

or discounted education, health and transportation services From an environmental perspective,economic and social goals have to be pursued in ways that will cause the least damage to the quality

of the environment and limit the exhaustion of irreplaceable resources (Stern, 2006)

The bioethics of sustainable development has raised the spectre of possible exhaustion of vitalresources at the expense of future generations The way to resolve this dilemma is to pursuepoverty alleviation methods that adequately reward hard work, initiatives, efforts and productiveuse of resources within the broad framework of the rule of law but at the same time penalisesdecision makers with the costs of reckless resource utilisation The later is not so much to ensurethat something is left for the future generation, but more because careless and inattentive use ofresources threatens the very survival of the present generation itself

4 ORGANIZATIONAL PERFORMANCE AND SUSTAINABILITY

Ajlouni (2009) considered the environment as a fifth component of a Balanced Scorecard (BSC) forimproving the performance of an organization The BSC was first proposed by Kaplan and Norton

(2001) as a means for deriving the performance of a system It was then developed as a managerialmechanism for translating and implementing corporate strategy (Kaplan and Norton, 2001) TheBSC was originally a framework of organizational performance measures across four perspectives

or aspects: financial, customer, internal business processes, and learning and growth (FCIL) TheBSC system has been implemented by numerous for-profit and non-profit businesses Hence,incorporating and implementing environmental objectives into an organization’s strategy shouldlead to economic sustainability Top management, however, needs to develop a group environmentalstrategy, and then communicate it to their employees

As more businesses around the globe incorporate ecological activities and performance in theirfinancial statements and reports; and as more stakeholders require new and better ways to com-municate green issues; top management will become more aware that environmental concernsneed to be addressed and tackled within their organizations (Kaplan and Norton, 2001) How-ever, environmental reporting should not be the end of the story The BSC can help by identifyingenvironmental problems, by targeting key areas for top management attention and reaction, byproviding support for needed improvements in current systems, and by formulating an applicableand attainable environmental performance

In a related study to that of Ajlouni (2009), Lyroudi and Angelidis (2009) examined bankingproductivity Financial institutions can be considered as the corner stone of any economic system.Banking institutions are of special interest, for example, to the European Union The second bankingco-ordination directive, which was adopted in 1989, created a regime for regulating all functions

of such institutions in the European Union (Siems and Clark, 1997 and Rogers and Sinkey, 1999).This new framework forced banks to adopt new products such as loan commitments, letters ofcredit, securities underwriting, insurance and derivatives These are also known as off-balancesheet (OBS) activities Stable economics systems will help to produce stable societies

In contrast to the work of Lyroudi and Angelidis (2009), Maila (2009) considered tally sustainable economies Some scholars perceive sustainable development as a North-South;South-South and North-North environmental discourse (Ndlovu-Gatsheni, 2006) Often, insti-tutions find themselves in the wrong corner or part of the globe, especially when they defendsustainable development positions that compromise the lives of poor and marginalized communi-ties, and unsustainable economic policies in developing countries regarding the utilization and care

environmen-of natural resources

Maila (2006) noted that development and sustainability must be anchored in action processesthat allow participants to have choices in the how and why of doing things Good quality progresscan only occur when ordinary people benefit from it While big business is dedicated to reap hugeprofits within a short period of time in their ventures, poor people, on the other hand, are concernedwith putting food on the table for their families It is not only financial expansion and ecologicalprotection that are important for environmental sustainability; human development is also critical.Sen (1999) argued that development has gone from the growth of output per capita to the expansion

of human values He saw development as a process that expands the real freedoms that people enjoy.Sound ecological sustainability and growth can never be continual if threats to the environ-ment and human well being persist unabated worldwide Organizational decisions should be madecollectively, through discussions This will allow for the advancement of both economic and humangrowth as pillars of environmentally sustainable economies

El-Khafafi (2009) assessed the sustainable management tool known as Triple Bottom LineReporting (TBL) This instrument has become more important and widespread in recent years.Organisations have been evaluated not only for their performances on the bottom line, but also fortheir behaviour as worldwide corporate citizens Global corporate scandals of high profile organisa-tions like Enron Corp., WorldCom Inc and Arthur Anderson LLP rocked stakeholder confidence,shamed business leaders and led to a higher scrutiny of organisations’ integrity Accordingly, a

The Environment, Sustainable Development and Human Wellbeing: An Overview 7movement towards corporate responsibility reporting arose to drive transparency in the environ-ment and social arena In 2004, 1700 corporations filed responsibility reports, up from virtuallynone in the early 1990s Some of those corporations are using these reports as a way to push theirsustainability commitments further (Assadourian, 2006) However, the success of these techniquesdepends on the commitment, skill and character of the people implementing them.

How do we make sustainability a commitment rather than just a compliance cost? Building tainable firms and organisations requires a commitment to people’s development Staff developmentprograms can only be successful if organisations have a clear sense of their place in (Assadourian,2006) Furthermore, this requires a strong self-identity and an understanding of stakeholder expec-tations The development of such understanding with the organisation and community facilitatesthe building of trust and integrity which are fundamental to sustainability In pursuing this agenda,there is a strong case for organisations to be proactive in developing their people by helping themanalyse problem cases, analyse forces impacting on the organisation and society, become familiarwith core ethical literature, develop solutions to ethical problems and revitalise the organisation.Emotions are an essential part of human life They influence how we think, adapt, learn, behave,and communicate with each other As El-Nasr et al (1998, 2000) noted that the question is notwhether intelligent machines can have any emotions, but whether machines can be intelligentwithout emotions In El-Nasr’s et al work (2000) neurological evidence was provided which provedthat emotions do in fact play an important and active role in the human decision-making process.The interaction between the emotional process and the cognitive process may explain why humansexcel at making decisions based on incomplete information; acting on our gut-feelings

sus-Maria and Zitar (2009) performed a study on modelling of artificial emotions Two models werebuilt for agent-based systems; one was supported with artificial emotions and the other one without.Both were used in solving a benchmark problem: to have a clean and healthy environment for anorphanage house The study showed that systems with a proper model of emotions could performbetter than systems without emotions The authors went on to explain that artificial agents can beused as a testing ground for theories about natural emotions in animals and humans This provides

a synthetic approach that is complementary to the analytic study of natural systems

Mankind is living in ecosystems that can be recognized at many different levels, ranging from, forexample, a small forest to the entire globe (Abdulla et al., 2009; Townsend et al., 2003) Naturalecological systems are dynamically stabilized based on balanced inputs and outputs All ecologicalstructures are controlled by the same processes including natural and anthropogenic (human caused)turbulence Yet, with an increasing population, human activities create more disturbances and addadditional unbalanced situations to ecosystems

Humans are among the most successful living things on earth The present rate of growth ofthe global population is unsustainably high This stresses our future by further energy demands; agreater drain on non-renewable resources and extra strain on renewable resources The response ofdisturbed ecosystems, in consequence, includes local, regional and/or global problems to humanhealth and the environment The work of Abdulla et al (2009) assessed atmospheric pollution,its consequences on humans and the environment, and perspectives toward its control They alsoassessed pesticides, their persistence in the environment, the direct effects on human health, andthe toxicological aspects of water pollution; and food borne diseases Understanding of theseissues may help scientists, decision makers and the public to make positive modifications in theirbehaviour that may add to the development of a sustainable environment

In related studies, Laboy-Nieves (2009) and Cruz-Báez and Boswell (1997) reported that forcenturies, peripheral urban developments have affected the evolution of estuaries (i.e intertidalterrestrial zones) to a point that today some ecosystems exhibit a mosaic of areas that remain almostpristine while others are degraded The aquatic and terrestrial zones and the populations that inhabitthem are tightly linked, showing complex interactions Laboy-Nieves (2008) emphasized man made

factors such as high demographic density, urban sprawling, poor waste management and socialindolence with respect to the environment In his case study area of Jobos Bay, Puerto Rico, Laboy-Nieves (2009) reported that the Bay is a very dynamic ecosystem, where its natural history had beensculpted by physical, biological and anthropological factors Jobos Bay is a natural laboratory forexamining mangroves and upland forests, submerged communities and anthropogenic influences.

A related aquatic environmental health study was presented by Emmanuel et al (2009) Thecontinual discharge of chemical substances in aquatic ecosystems can bring about changes in thestructure and functioning of the biotic community, (i.e on biotic integrity) (Karr, 1991) As afunction of their bioavailability, the pollutants present in effluents cause a large number of harmfuleffects on the biodiversity of aquatic environments (Forbes and Forbes, 1994)

The main substances involved in chemical pollution phenomena are heavy metals, organic pounds, especially organohalogenated substances, detergents-surfacatnts, pesticides, PolycyclicAromatic Hydrocarbons (PAHs) and Polychlorobiphenyls (PCBs), nitrates and phosphates anddrug residues (Emmanuel et al 2009) Among the main effects of pollutants on aquatic organisms,are severe pathologies, behavioural problems, and species migration and disappearance

com-Given that the toxicity of a substance depends on its available concentration, Emmanuel et al.

(2002) not only confirmed the existence of dangerous substances in urban effluents, but alsoexplained the contribution of these pollutant matrices to the loss of genetic, specific and ecosystembiodiversity of aquatic organisms

7 MATERIALS RECYCLING AND WATER TREATMENT

The field of waste disposal is relatively new (Amirkhanian et al., 2009) It was only in 1965 inthe USA, for example, that the first federal legislation was enacted to directly approach the wasteproblem (Ruiz, 1993) As such, the country is only now starting to come to terms with the amount

of waste it produces

In their feasibility study on the use of waste materials in highway production, Amirkhanian andManugian (1994) identified the following waste materials with specific applications for the highwayconstruction industry: bottom ash, compost, construction debris, fly ash, plastics, reclaimed asphaltpavement, shingle scarps, slag, sludge and tires Recycled products have thus emerged as a viablealternative to virgin materials in the highway construction sector

As natural resources start to dwindle and landfill space gets filled up, the importance of properwaste reduction and management systems increases The use of waste by-products as a replacementfor virgin materials could provide relief for some of the burden associated with disposal and mayprovide a cost effective construction product exhibiting all the properties of virgin products Theconcept of utilizing reclaimed materials as a source for construction is particularly relevant indeveloping countries Economical and ecological solutions are particularly important in situationswhere growing populations are coupled with finite economic and natural resources

Sustainable fresh water resources are also a critical area Goosen et al (2004 and 2009) explainedthat fiscal development and population growth has put increasing pressure on the world’s limitedfresh water resources In order to lessen this problem, desalination processes have been developed

to obtain fresh water from the earth’s vast supply of seawater A major concern, however, is thelocation of a significant fraction of the world’s desalination capacity in coastal areas of oil producingcountries, such as in the Arabian Gulf (Al-Sajwani, 1998) Oil spills could have catastrophic effects

on seawater desalination capacity in these regions

The two most successful commercial water desalination techniques involve thermal and brane separation methods (Al Obeidani et al., 2008) Gaining a better understanding, for example,

mem-of membrane desalination mem-of oil contaminated seawater is a major challenge facing both scientists

as well as plant operators in many parts of the world

Improvement of living conditions, development of agriculture, tourism and many other importanteconomic activities, are strongly dependent on the sustainability of water resources (Perez Duran,2009) The importance of water is being increasingly highlighted as we gradually approach the

The Environment, Sustainable Development and Human Wellbeing: An Overview 9limits of availability While the world population has tripled during the twentieth Century, waterconsumption has increased by a factor of seven Although access to water is considered a basic partfor human life and a fundamental right, one billion of the world’s people do not have such accessand 2.6 billion do not have proper sanitation conditions.

In developed countries, diseases related to poor water quality and inappropriate wastewaterdisposal account for illness and loss of productivity equivalent to 2% of GDP (UNDP, 2006).Inversely, poor countries which invest in having better access to water and supply and sanitation,have a better economy

Perez Duran (2009) reported that problems and concerns of water resources in the can Republic consisted of microbial contamination of river and coastal water, overexploitation ofaquifers, poor quality of water for aquatic life in rivers passing through cities, and fast paced reser-voir sedimentation He also noted health problems due to the lack of sanitation services, insufficientwastewater infrastructure and irresponsible industrial and municipal discharge of solid and liquidwastes into rivers

Education for sustainable growth should be obligatory for all young people, as this represents theprimary vehicle available for catalyzing the cultural changes necessary for continued subsistence.Bioethics in particular should to serve as the main stage for instruction about sustainability

In business and economics, an increasing number of companies have started to act and tocommunicate based on their triple performance in the areas of economics, and environmental andsocial factors Building sustainable firms and organisations also requires a commitment to people’sdevelopment In addition, decisions should be made collectively, through negotiations

Poverty continues to be a major challenge facing mankind in many parts of the globe This hasbeen attributed to inefficient allocation of natural resources, capital, labour and time; underutiliza-tion of resources and inequitable distribution of incomes While development opens up and advanceseconomies, creates new wealth, and ushers many people to a richer lifestyle, millions are forced tostruggle to make meaning of the darker side of development that is not environmentally sustainable.Adequate and dependable water resources are a major issue facing many people In developedcountries, diseases related to poor water quality and inappropriate wastewater disposal account forillness and loss of productivity On a positive note, poor countries which invest in having betteraccess to water resources and sanitation have better economies

Finally, the relationship between economic development, environmental management and humanhealth is a complicated process, affecting both the quality and sustainability of the society in which

we live There is a rising comprehension by the general public as well as practicing engineers,decision makers, environmentalists, and medical researchers, that these three areas are interre-lated A synchronized approach is necessary to solving the major environmental and sustainabilityproblems facing the developing as well as developed regions of the world

REFERENCES

Abdulla, F A., Abu-Dieyeh, M H and Qnais, E 2009 Human Activities and Ecosystem Health in:

E N Laboy-Nieves, F Schaffner, A Abdelhadi and M F A Goosen eds Environmental Management, Sustainable Development and Human Health, Taylor & Frances Publ, London, Chapter 28.

Abellán Salort, J C 2006 Bioética, Autonomía y Libertad Fundación Universitaria Española, Madrid, España.

Ajlouni, M M 2009 The Environment as a Fifth Component of a Balanced Scorecard for Improving nizational Performance in: E N Laboy-Nieves, F Schaffner, A Abdelhadi and M F A Goosen eds.

Orga-Environmental Management, Sustainable Development and Human Health, Taylor & Frances Publ, London,

Chapter 10.

Alamar, K and Murali, N 2009 Globalization, the Environment and Sustainable Development in:

E N Laboy-Nieves, F Schaffner, A Abdelhadi and M F A Goosen eds Environmental Management, Sustainable Development and Human Health, Taylor & Frances Publ, London, Chapter 2.

Al Obeidani, S., Al Hinai, H., Goosen, M F A., Sablani, S., Taniguchi, Y and Okamura, H 2008 Membrane

Fouling and Cleaning in Treatment of Contaminated Water: A Critical Review Desalination, (revised paper

submitted July 2007)

Al-Sajwani, T M 1998 The Desalination Plants of Oman: Past, Present and Future Desalination, 120, 53–59 Amirkhanian, S N and Manugian, D M 1994 A Feasibility Study of the Use of Waste Materials in Highway Conctruction Columbia, SC: South Carolina Department of Transportation/Federal Highway

Administration

Amirkhanian, S., Thodesen, C and Shatanawi, K 2009 Utilization of Solid Waste Materials in Highway

Construction in: E N Laboy-Nieves, F Schaffner, A Abdelhadi and M F A Goosen eds Environmental Management, Sustainable Development and Human Health, Taylor & Frances Publ, London, Chapter 32 Andorno, R 1998 Bioética y Dignidad de la Persona Editorial Tecnoc (Grupo Abaya, S A.) Madrid España Assadourian, E (March–April 2006) Next Steps for the Business Community World Watch: Vision for a Sustainable World 19:2, pp 16–20.

Baver, S L 2009 Path to Democratic Environmental Governance in Latin America: A Case Study from

Mexico in: E N Laboy-Nieves, F Schaffner, A Abdelhadi and M F A Goosen eds Environmental Management, Sustainable Development and Human Health, Taylor & Frances Publ, London, Chapter 4 Cruz-Báez, A D., and Boswell, T D 1997 Atlas of Puerto Rico The Cuban American National Council.

Miami, Florida.

Diez, J 2006 Political Change and Environmental Policymaking in Mexico New York: Routledge.

El-Kafafi, S 2009 Building a Sustainable Mindset in: E N Laboy-Nieves, F Schaffner, A Abdelhadi and

M F A Goosen eds Environmental Management, Sustainable Development and Human Health, Taylor &

Frances Publ, London, Chapter 18.

El-Nasr, M S., Ioerger, T R and Yen, J 1998 Learning and Emotional Intelligence in Agents Proceedings of AAAI Fall Symposium.

El-Nasr, M S., Yen, J and Ioerger, T R 2000 FLAME – A Fuzzy Logic Adaptive Model of Emotions.

Autonomous Agents and Multi-agent Systems 3, 219–257.

Emmanuel, E., Balthazard-Accou, K and Joseph, O 2009 Impact of Urban Wastewater on Biodiversity of

Aquatic Ecosystems in: E.N Laboy-Nieves, F Schaffner, A Abdelhadi and M.F.A Goosen eds ronmental Management, Sustainable Development and Human Health, Taylor & Frances Publ, London,

Envi-Chapter 30.

Emmanuel, E., Perrodin, Y., Keck G., Blanchard, J.-M and Vermande, P 2002 Effects of Hospital Wastewater

on Aquatic Ecosystem Proceedings of the XXVIII Congreso Interamericano de Ingenieria Sanitaria y Ambiental Cancun, México, 27–31 de octubre CDROM

Ferrer, J J and Álvarez, J C 2003 Para Fundamentar la Bioética Universidad Pontificia Comillas y Editorial

Desclée De Brouwer, S A Bilbao, España.

Forbes V E and Forbes T L 1994 Ecotoxicology in Theory and Practice New York: Chapman and Hall,

220 p.

Gabaldón, A J and Aguilera M 2009 Bioethical Dimensions of Sustainable Development in: E N

Laboy-Nieves, F Schaffner, A Abdelhadi and M F A Goosen eds Environmental Management, Sustainable Development and Human Health, Taylor & Frances Publ, London, Chapter 6.

Goosen, M F A., Al-Obeidani, S K S., Al-Hinai, H., Sablani, S., Taniguchi, Y and Okamura, H 2009 Membrane Fouling and Cleaning in Treatment of Contaminated Water in: E N Laboy-Nieves, F Schaffner,

A Abdelhadi and M F A Goosen eds Environmental Management, Sustainable Development and Human Health, Taylor & Frances Publ, London, Chapter 36.

Goosen M F A., Sablani S S., Al-Hinai H., Al-Obeidani S., Al-Belushi R and Jackson D 2004 Fouling of

Reverse Osmosis and Ultrafiltration Membranes: A Critical Review Separation Science and Technology,

39 (10) 2261–2298.

Gracia, G D 1989 Fundamentos de Bioética Eudema, Madrid, España

Hammond, F N and Somevi, J 2009 Poverty, Urban Land and Africa’s Sustainable Development Controversy.

in: E N Laboy-Nieves, F Schaffner, A Abdelhadi and M F A Goosen eds Environmental Management, Sustainable Development and Human Health, Taylor & Frances Publ, London, Chapter 9.

Kaplan, R S and Norton, D P 2001 The Strategy-Focused Organization Boston: Harvard Business School

The Environment, Sustainable Development and Human Wellbeing: An Overview 11

eds Environmental Management, Sustainable Development and Human Health, Taylor & Frances Publ,

Maila, M W 2006 Grounding Sustainable Development in Praxis-Furthering Accountability and

Collab-oration A Ahmad ed World Sustainable Development Outlook 2006: A Global and Local Resources in Achieving Sustainable Development Switzerland: Inderscience pp 1–11.

Maila, M W 2009 Environmentally Sustainable Economies: A Panacea for Sound Development in:

E N Laboy-Nieves, F Schaffner, A Abdelhadi and M F A Goosen eds Environmental Management, Sustainable Development and Human Health, Taylor & Frances Publ, London, Chapter 13.

Maria, K A and Zitar, R A 2009 Modeling of Artificial Emotions and its Application Towards a Healthy

Environment in: E N Laboy-Nieves, F Schaffner, A Abdelhadi and M F A Goosen eds Environmental Management, Sustainable Development and Human Health, Taylor & Frances Publ, London, Chapter 20 Misra, B 2000 New Economic Policy and Economic Development, IASSI Quarterly, Vol 18, No 4, June, p 20.

Ndlovu-Gatsheni, S 2006 Gods of Development, Demons of Underdevelopment and Western Salvation: A

Critique of Development Discourse as a Sequel of CODESRIA and OSSREA, in OSSREA A Bulletin, June,

Ruiz, J 1993 Recycling Overview and Growth in H Lund, The McGraw-Hill Recycling Handbook.

New York, NY: McGraw-Hill Inc.

Sen, A 1999 Development as Freedom Harvard: Belknap Press.

Sharma, S N 2007 Climate Proofing, The Economic Times, Chennai, December, 30, p.13.

Siems, T F and Clark, T A 1997 Rethinking Bank Efficiency and Regulation: How Off-Balance Sheet

Activities Make a Difference Financial Industry Studies, Federal Reserve Bank of Dallas: pp 1–11 Speth, J G and Haas, P 2006 Global Environmental Governance Washington, DC: Island Press.

Stern, N 2006 The Economics of Climate Change: the Stern Review UK Government Report, October Townsend, C R., Begon, M and Harper, J L 2003 Essentials of Ecology Blackwell Publishing MA, USA.

530 pp.

United Nations Development Program (UNDP) 2006 Report on Human Development, 2006, Beyond Scarcity, Power, Poverty and the World Water Crisis, Summary pp 5–41.

Globalization, the Environment and Sustainable Development

K Alamar & N Murali

Department of Economics, Arul Anandar College, Karumathur, India

SUMMARY: The aim of this chapter was to provide a brief review of how globalization, theenvironment and sustainable development are interrelated Globalization enables the free flow ofgoods, capital and technology and thus it becomes a motivating force for nations to develop them-selves For sustainable development to be meaningful over consumption has to be brought undercontrol The principles of equity, conservation orientation and renewability have to be reestablished.Controlling over-consumption and dealing with the question of ownership are crucial The earthfunctions in a systematic way and any unsystematic intervention will cause irreparable damage notonly for the development but also for the existence of mankind Thus, industrial development todayhas to be done within the carrying capacity of the planet The chapter discusses how human beingsare at the centre of concerns for sustainable development

Globalization is but a modern version of theory of comparative cost advantage which was gated by the classical economists to provide a theoretical foundation for the unrestricted flow ofgoods from developed to less developed countries at the time of colonies (Naidu, 2005) Interna-tional trade benefits nations which enter into trade relations The same arguments have been putforth by the advocates of globalization who promote an export-led pattern of growth to replace theimport substitution trade policies as well as capital and technology flow

propa-Globalization enables free flow of goods, capital and technology and thus it becomes a motivatingforce for nations to develop themselves and creates a more gainful environment in the world scenario(Misra, 2000) This logic states that low growth economies get capital and technology from thedeveloped countries to build their wealth and the latter countries get markets for their products.The two Bretton Woods institutions the World Bank and the International Monetary Fund havebeen playing an active role in promoting market capitalism across the globe through the imposition

of the Structural Adjustment Programs (WCED, 2007; Sharma, 2007) The historical evidencesrevealed that all these trade, capital and technology flows helped the developed nations at the cost ofexploitation of natural resources in developing countries The world has been converted practicallyinto one big market which is determining the fate of many countries

Globalization is indeed a new dramatic creed It uses the media to create a sense of lack Here weare driven to earn more in order to acquire more, yet can never reach a point of contentment Theworld in general and developing countries in particular have experienced unprecedented progresssince the initiation of the globalization process Life expectancy in developing countries has risen

by more than 20 years, infant mortality rates have been halved and primary school enrolmentrates have doubled (IUCN/UNEP/WWF, 1980) Food production and consumption have increasedaround 20 per cent faster than population growth Improvements in income levels, health andeducational attainment have sometimes closed the gap with industrialized countries Advanceshave been made in the spread of democratic, participatory governance and there have been forwardleaps in technology and communications New means of communication support opportunities formutual learning about national development processes and for joint action over global challenges.Notwithstanding this remarkable progress, there are also negative trends These include:economic disparity and poverty; the impact of resources in industrialized countries contributing to

13

climate change; and environmental deterioration and pollution including the impacts of intensivefarming, depletion of natural resources and loss of forests, other habitats and biodiversity.The process of globalization has had adverse repercussions on ecology and the environmentand social distortions even in the field of consumption fuelled by aggressive advertising, andslashing of import duties which results in dumping of goods (Naidu, 2005) It has also encouragedthe extraction of raw materials in many countries thus contributing to resource depletion anddegradation Under fiscal pressure, the developing countries sell of more and more of their publicreserves such as forests, mining resources and maritime assets, thus affecting the inter-generationalequity which is essential for sustainable development Nations have agreed, through processes such

as the 1992 Earth Summit, that development should be sustainable Therefore economic growthand environmental preservation are no longer opposing objectives (Naidu, 2005)

The aim of this chapter was to provide a brief review of how globalization, the environment andsustainable development are interrelated

2 THE MARKET AND THE ENVIRONMENT

In a free market economy, the private sector may not bother to conserve nature For the sake of profit,

it may, for example, destroy forests, over use mineral resources; and pollute air, water This sectormay not take into account social cost or benefit The producer may charge a price which coversonly internalized production rates without taking into account the cost of pollution, destruction

of natural resources or adverse impact on health (Misra, 2000) Today’s world is obsessed witheconomic growth There is a relentless race for expansion Every country wants to keep growingfaster than the rest Little thought is spared to its relevance or to the cost Growth should be definednot only in terms of economics but also in terms of other parameters like societal, cultural andspiritual Marketers thrive on making people wish for things they never wanted The application oftechnology for the pursuit of profit has resulted in the over-exploitation and the excessive utilization

of natural resources

Global warming, environment degradation, ozone depletion and deforestation are caused primarily

by the market mode of production (Sharma, 2007) The latter has resulted in rapid increases inthe consumption of hydrocarbons In addition, the expansion of industries and domestic marketshas drastically altered the atmospheric concentrations of numerous trace gases This has distortednature’s auto-balancing mechanism As a result, the world is now faced with several environmentalproblems including acid rain, melting of glacial, ice, large scale evaporation of water in the tropics,and an increase in cloudiness at higher altitudes (Sharma, 2007) Thus there is a conflict betweenthe production of economic goods and environmental inputs used in the production of such goodsand services

Environmental degradation is expected to result in shifts of climatic zones, changes in the ductivity of ecosystems and species composition, and an increase in extreme weather events Thiswill have substantial impacts on human health and the Liability of natural resource management inagriculture, forestry and fisheries, with serious implications for all countries Developing countries,and notably the least developed, are expected to be the most vulnerable to the impacts of globalclimate change, although their current contribution to the problem is minimal (Sharma, 2007).The Human Development Report, 2007–08 prepared by the UNDP, identified two degree Celsius

pro-as the threshold, above which damages to the global climate will be irreversible The world needs

to alter its level of carbon emissions in the next decade, and to start living within the carbon budget

of 14.5 gigatonnes of CO2per annum for the remaining years of the 21st century

Globalization, the Environment and Sustainable Development 15

Environmental deterioration continues to increase with serious depletion of natural resources,including soil erosion and loss of forests and fish stocks (IUCN/UNEP/WWF, 1980) Deforestationhas reduced the extent and condition of world forests Some 65 million hectares of woodland werelost between 1990 and 1995 (Sharma, 2007)

Fragile aquatic environments such as coral reefs and freshwater wetlands are under considerablethreat from land-based pollution, destructive fishing techniques and dam construction, as well asclimate change It is estimated that almost 60 per cent of the world’s reefs and 34 per cent of all fishspecies may be at risk from human activities Current patterns of production and consumption andglobal climate change, raise questions about the continued capacity of the Earth’s natural resourcebase to feed and sustain a growing and increasing urbanized population, and to provided sinks forwastes As a result of environmental degradation the biodiversity of the earth’s ecosystems and theavailability of removable natural resources have declined by 33 per cent over the last 30 years whilethe demands on these resources have doubled

Since 1971, global energy use has increased by nearly 70 per cent and is projected to continue toincrease by over 2 per cent per year over the next 15 years despite the fact that 2 billion peopleare still largely unconnected to the fossil fuel-based economy (IUCN/UNEP/WWF, 1980) It willraise green house gas emissions by 50 per cent over current levels, unless serious efforts are made

to increase energy efficiency and reduce reliance on fossil fuels

Although there has been considerable growth and technical progress in the use of renewableenergy sources such as wind, solar, geothermal, and hydro-electricity, public infrastructure and theconvenience of fossil fuels and their low prices seriously inhibit any large-scale switch to the use

of clean energy sources in the foreseeable future In India, for example, over five million peoplestill don’t have access to power The first priority will be to provide energy to everyone in thecountry Developed countries should help in giving environment-friendly technology so that theycan restrict total carbon emissions

Global warming is caused primarily by the burning of coal, oil and gas (IUCN/UNEP/WWF, 1980;WCED, 1987) Real solution to the problem would include lifestyle changes This is somethingthat goes against the consumer culture If the build-up of carbon dioxide continues till the end ofthe 21st century the earth will be hotter than at any other time in the last two million years Theworld is already facing increasing sea intrusions, floods, storms, droughts, heat wavers, diseasetransmissions and environmental refugees

Climate change can also have a significant impact on health through vector-borne diseasesbecause of changes in the survival and reproduction rates of the carriers, the intensity and temporalpattern of vector activity and the life cycle of pathogens within the vectors (IUCN/UNEP/WWF,1980; Misra, 2000) Food production and food security, fresh water supply, forest biodiversity,coastal settlements, and fishing will be adversely affected Unfortunately, the burden of climatechange will fall disproportionately on poor communities Countries such as India, for example,should adopt strategies for sustainable development irrespective of the climate change debate Itinvolves economic growth, social equity and environmental sustainability Developing countriesare more vulnerable to climate change than industrialized countries and hence have a greater stake

in the success of global climate negotiations and strategies for green house gas stabilization

Deforestation is a threat to the economy, quality of life and future of the environment Main causes

of deforestation are sudden increases of human and livestock population, increased requirement

of timber and fuel wood, expansion of cropland and enhanced grazing (IUCN/UNEP/WWF, 1980;Sharma, 2007) Another cause of forest degradation is construction of roads along the mountains.Ideally one third or 33 per cent of land of a country must be covered by forest Deforestation hasintensified soil accentuation, floods, drought and loss of precious wild life India is losing about1.5 million hectares of forest cover each year Nearly one per cent of the land surface of the country

is turning barren every year due to deforestation In the Himalayan range, rainfall has declinedthree to four per cent due to deforestation

The maximum ozone concentration of 0.5 ppm occurs between at an altitude of 20 to 35 km Thislayer is called the ozone layer The presence of ozone (O3) is an essential necessity for life on earth.Stratospheric ozone layer absorbs dangerous VVB rays of the sun and thus protects the Earth’ssurface from these high-energy radiations Over the past few decades the O3layer has thinnedout because of man-made pollutants which catalyze the dissociation of O3 at a very fast rate(IUCN/UNEP/WWF, 1980) Major pollutants responsible for depletion of ozone are chlorofluroCarbons (CFCs), nitrogen oxides, hydro-carbons and oxides of chlorine and bromine

Development in its true sense is an enabler of human freedom and well- being, rather than mereenhancement of inanimate objects of convenience It is inseparable from environmental, ecologicalconcerns such as clean air, water, epidemic free surroundings and preservation of all life forms.While over production of material goods results in environmental degradation by way of emittinggreen house gases (GHGs), environmental problems are also generated due to lack of awareness.Society can tolerate environmental degradation for a while for the sake of economic development,then as income rises people’s basic needs are met and the demand for clean environment shouldemerge

Access to education also plays a vital role in acquiring knowledge about environment As early as

in 1972, then Prime Minister of India, Mrs Indira Gandhi, while addressing the UN Conference onHuman Environment in Stockholm, noted that poverty is the biggest polluter (IUCN/UNEP/WWF,1980; Subramanian, 2008) The environment cannot be improved under the conditions of poverty.Hence environment cannot be divorced from development

5 DIMENSIONS OF POVERTY

Even in these prosperous times, extreme poverty still ravages the lives of one out of every fivepersons in the developing world (IUCN/UNEP/WWF, 1980; Subramanian, 2008) The social illsassociated with poverty are on the rise in many countries Although world food production isstill rising, several trends will make it more challenging to feed a growing world population.Soil degradation from erosion and poor irrigation practices continues to harm agricultural lands,jeopardizing production Without a transition to more resource-efficient and less polluting farmingmethods, it will be difficult to meet world food needs without increasing the environmental burdenthat stems from intensive agriculture HIV-AIDS and malaria are serious diseases that erode bothproductive capacity and the social fabric of nations

6 ENVIRONMENTAL COST OF ECONOMIC GROWTH

Ecologists and environmentalists believe that one of the principal reasons for the existence

of environmental problems stems from the emphasis on growth by the industrialized nations

Globalization, the Environment and Sustainable Development 17(IUCN/UNEP/WWF, 1980; Subramanian, 2008) They point out that economic growth has beenmade possible only at the expense of the environment Ecologists postulate that growth rates were

so high, because of the fantastic increase in population and the demands of society Increased duction and consumption had unscrupulously released wastes and pollutants into the environmentwithout consideration of their effects Fast growth resulted in the destruction of the environment,the impairment in the quality of elemental environmental services, the deterioration of air qualityand the contamination of seas, rivers, and lakes

pro-Production is possible only at the expense of environmental quality Continued growth of outputand population will eventually lead to extinction of many species of flora and fauna The availableresources on this planet are finite The assimilative capacity of the environment is limited

Zero growth does not in any way influence environmental quality (WCED, 1987) This growth leveldoes not change the actual stage of economic activities, thus environmental pollution remains fixed.Zero-growth does not even prevent a further deterioration of environmental quality; pollutants arestill released into the surroundings Ecological quality then can decline in spite of zero economicgrowth The issue is not whether growth intensifies the conflict between the supply of goodsand environmental quality, but rather the way growth has taken place previously The structure

of national output and the relationship between pollution-intensive and environmentally favorableproduction causes this conflict of objectives

High levels of industrial development will allow the economies to devote additional resources totackle pollution problems without sacrificing economic growth (WCED, 1987) With continuedgrowth, additional resources may be used in achieving the desired levels of environmental quality.Expansion can be complementary to environmental protection Anti-pollution devices and technol-ogy are part and parcel of the GNP (Gross National Product) Hence, both pollution and its reductionform part of the function of level of income Environmentalists have taken a very pessimistic viewbased on Malthusian doctrine of over population and depletion of resources Economists, on theother hand, have taken an optimistic view, based on the ability of free-market economies to cushionthe effects of impending shortages, through the responses of produces and consumers to the variousincentives and disincentives in the pricing system and rising prices

The free use of the environment is the basic reason for its degradation If the zero price tag ofenvironmental resources use is abolished there will be an incentive to use factors in abatement ofpollution, so that production will be reduced The emission tax, for example, will cause a sectoralreallocation which disfavors the pollution-intensive sector and thus reduces emissions leading toimprovement in environmental quality Industries will have the incentive to accumulate capital inabatement and to develop new abatement technologies

Environmentalists tend to analyse the economic factors, especially the power of market forces tostimulate ma’s ingenuity and inventiveness in solving problems of shortages A brief look intothe economic history of mankind will reveal how man has ingeniously overcome problems andshortages In 17th century England, the forest resources were unable to meet the requirements

of iron making furnaces and construction of ships, as wood was primarily the fuel for industriesand ship-building (IUCN/UNEP/WWF, 1980; Subramanian, 2008) The shortage of firewood forindustries and the shortage of timber for ships raised hue and cry in the country But soon, in the18th century, coke was used in the furnaces and in the 19th century timber gave way to iron inthe ships

In all fields of production, the resource base has changed considerably during the course of thiscentury, due to shortage of traditional resources (IUCN/UNEP/WWF, 1980; Subramanian, 2008).This has happened phenomenally after the Second World War which gave extraordinary impetusfor the progress of science and technology At the same time, economists, on their part, tended tounder-estimate the difficulties in responding quickly to a change in market forces In this context,

we have to take into account a new factor that has become a phenomenon after the Second WorldWar Right from fifties onwards in this century, the pace of economic growth throughout the worldhas been incredible The turn over of natural resources has been doubling every 15 or 20 years.The environment could be generally kept clean by the expenditure of not more than two per cent

of GWP (Gross World Product) on anti-pollution measures (WCED, 1987) The earth’s naturalresources are very large, compared with man’s consumption The so called shortages suffered atpresent come mainly from our technological and economic limitations Energy is the key to thesolution of most of man’s resources problems Given sufficient-energy, together with the technologyand industry needed to apply it food and materials can always be supplied and needed Mineralscould be extracted from low grade deposits and water desalinated Even the area of good farmlandneed no longer be a limit now Agriculture can if required, reinforce solar energy with fuel energy.Apart from human skills, the primary requirements are energy, technology and money; technology

to develop such uses of energy and money to turn the technology into new industries

8 SUSTAINABLE DEVELOPMENT

According to the 1987 Brundtland Report, sustainable development can meet the requirements

of the present without compromising the ability of the future generation to meet their own needs(WCED, 1987) Sustainable development has three components: social, economic and ecological.There is a strong interrelation between economic and environmental and social goals and yet theseare not always compatible Sustainability requires a rare balance between these three set of goals.Sustainable development can only occur once ecological sustainability has first been secured.Once the latter has been achieved, it is possible to attain economic sustainability If this condition

is maintained in the long-run then social sustainability can be attained

Realizing environment trends led to the 1972 UN Conference on the Human Environment in holm which in turn, led to the creation of UNEP and IIED Since then, worldwide acceptance ofthe importance of environmental issues has grown enormously The world conservation strategy(IUCN/UNEP/WWF, 1980) and subsequently, the report of the World Commission on Environ-ment and Development-the Brundtland Commission (WECD, 1987) were developed in response

Stock-to increasingly informed analyses of the links between environment and development The worldconservation strategy emphasized the need to ‘mainstream’ environment and conservation valuesand concerns into development processes

The Report of the Brundtland Commission emphasized the social and economic dimensions ofsustainability, revealing links between, for example, poverty and environmental degradation Atthe heart of the concept is the belief that social, economic and environmental objectives should becomplementary and interdependent in the development process Sustainable development requirespolicy changes in many sectors and coherence between them It entails balancing the economic,social and environmental objectives of society the three pillars of sustainable development inte-grating them where ever possible, through mutually supportive policies and practices and makingtrade-offs where it is not

There is a direct correlation between economic growth and energy consumption (WCED, 1987).Since global warming has emerged as a serious environmental threat, the case for other sources ofpower generation that do not emit green house gases assumes importance Promotion of hydropowerand non-conventional sources of energy such as wind power, solar energy and bio-fuel need thrust

Globalization, the Environment and Sustainable Development 19

9 OPTIMUM LEVEL OF PRODUCTION

There are fiscal limits to growth since the economy can only exist because of the resources andservices provided by the ecosphere and its ecosystems (Naidu, 2005) Due to the operation ofthe law of diminishing returns there are rising marginal costs with every additional developmentproject A point is reached where the cost of growth exceeds the benefit The depletion of naturecannot go on forever; whatever the level of technological sophistication some minimum level

of natural capital stock is necessary to sustain economic activity and more importantly life onearth Economic growth is only beneficial to the society as long as the marginal benefit of furtherquantitative development is greater than marginal cost Beyond this point further development ofthe ecosphere is counter productive and ecologically unsustainable, in which case the economicactivity should be stopped at this optimum level The above argument is evident from the Japaneseexperience The economies of Japan are not splurging beyond their already high consumptionlevels We should realize that Japan has perhaps reached that desirable state of balance, whichshould be what every country should aspire to (Subramanian, 2008)

It is ordinary people from different countries, collaborating with one another, who can ultimatelybring about the social change needed to prevent the environmental calamity that looms ahead Forsustainable development to be meaningful over consumption has to be brought under control Theprinciples of equity, conservation orientation and renewability have to be reestablished Controllingover-consumption and dealing with the question of ownership are crucial The earth functions in asystematic way and any unsystematic intervention will cause irreparable damage not only for thedevelopment but also for the existence of mankind Thus, industrial development today has to bedone within the carrying capacity of the planet Human beings are at the centre of concerns forsustainable development They are entitled to a healthy and productive life in harmony with nature

REFERENCES

IUCN/UNEP/WWF, 1980 World Conservation Strategy IUCN, Gland, Switzerland.

Misra, B., 2000 New Economic Policy and Economic Development, IASSI Quarterly, Vol 18, No 4, June,

p 20.

Naidu, K., 2005 Impact of Economic Reforms on Environment Protection, in: “Environmental protection and Development” – Emerging Issues, Reforms and Strategies, S.B Verma and S.K Singh, Eds, Deep & Deep Publications Pvt Ltd New Delhi, p 8.

Sharma, S.A.N., 2007 Climate Proofing, The Economic Times, Chennai, December, 30, p 13.

Subramanian, B.B., 2008, Is Growth always good? The Hindu, Jan 13, Vol 131, No 2, p 15.

WCED (World Commission on Environment and development) 1987, Our Common Future, New York, Oxford University press, p 43.

Sustainable Urban Growth for European Cities

Hans Werner Gottinger

STRATEC, Munich, Germany

SUMMARY: This chapter seeks to explain urban growth by looking at the effects of traditional,geographical externality and socio-political variables on productivity, capital and labour growth,respectively, using data sets constructed at the city-industry level for a cross section of Europeancities The conjecture that geographic externality and socio-political factors all vary significantlywith aggregate growth (though in very specific ways) is empirically explored For example, the size

of a city (a measure of the degree of urbanisation) is uncorrelated with output growth, positivelycorrelated with labour growth, and negatively correlated with capital growth No one extant theory

of growth accounts simultaneously for all the observed phenomena More importantly, significantinteractions are found between the variables that have not been addressed within the theoretical liter-ature that drive the impact of these sources on growth The paper concludes that a better understand-ing of the empirical relationships between various growth sources is needed and that, to be complete,theories of urban growth need to respect and understand the importance of such interactions

Theories of economic growth highlight the forces considered important for characterising relativeaggregate growth In addition to the more traditional adjustment factors such as changes in relativeprices, the capital-labour ratio and productivity, more recent economic theories have emphasised theimportance of externalities in driving economic growth In particular, externalities may arise fromthe geographic proximity of production centers (Krugman, 2007) Empirical analysis attempting tounderstand the role of any of these factors in growth must control for the effect of other externality-based sources in addition to the more traditional adjustment factors

In this chapter issues were addressed in analysing relative aggregate (city based) growth for across section of European cities A methodology was employed by which the patterns of correlationcan be described between individual growth sources and measures of aggregate growth An analysiswas made of how potential interactions between individual sources alter the observed correlations.Since externalities can be considered explicity, both negative and positive, i.e those that are likely

to constrain the city’s growth as environmental pressures, demographic changes and congestion, ascompared to those that promote them though positive network effects of scale and scope Makingthis tradeoff would enable to strive for ‘sustainable’growth, as growth internalised by externalities(Gottinger, 1998)

The methodology employed was to categorise the sources that are predicted to vary with growthand to establish empirical proxies for these variables Then, in order to consider properly theeffects of externality-based variables, an explicit distinction was made in the empirical analysisbetween productivity, labour and capital growth In so doing, it was possible to identify whetherparticular externality-based variables influence aggregate growth through specific pathways ratherthan foccussing on output per capita only

In departing from much of the conventional growth literature the city was chosen as the relevantunit of observation Furthermore, data was used from the postwar period in Europe from 1960 to

2000, which was marked by significant change and intercity variation among cities, to estimate amultiple equation growth system

21

This chapter focused on sustainable growth of contemporary large European cities from fourmajor EU members: Italy, Germany, France and UK A study was made of factors of growth in amultiequation econometric (regression) model, subject to sensitivity analysis The cities coveredwere: Naples, Turin, and Milan in Italy, as indicated by South; Cologne, Hannover and Munich

as Central in Germany, Bordeaux, Lyon and Marseille in France (West), and Manchester, Bristoland Leeds in the UK as North This initial first choice was made foremost on consideration ofthe need for a geographical balance and of comparable size where those cities created regionalcenters Also accessibility of sufficient data on a time frame of 40 years was a consideration In afirst examination census data were taken for every ten years so that with a selection of 12 cities 48observations were made Additional census years were incorporated to improve forecasting ability

No single theory appeared to explain, in a consistent way, the observed growth in the period

2 GROWTH IN CITIES: METHODOLOGY AND APPROACH

A first important feature of our approach was to focus on cities per se rather than as derivativefeatures of the economies of each member state Metropolitan regions are a natural geographicunit for economic analysis as regional economic life is primarily organised around city centers Inchoosing this focus we followed a group of researchers who have argued that economic growthcan be better understood by examining cities Earlier, Jacobs (1969, 1984) and Porter (1990) bothpresented strong historical cases for the appropriateness of studying cities as opposed to nations

in exploring the sources of growth This emphasis has also emerged in more formal empiricalstudies For example, Glaeser et al (1992) focused on the role of dynamic externalities, includingmeasures of competition, urbanisation and diversity, in explaining the growth of city-industrylabour demand Other studies have examined aggregate regional or city growth (Blanchard andKatz, 1992, Henderson, 1994, Barro and Sala-i-Martin, 2003, Henderson and Thisse, 2004),further in a cross-atlantic comparative framework by Savitch and Kantor (2004)

The starting point of our investigation was two fundamental pathways by which aggregate growthcan occur: factor accumulation (increases in the levels of capital and labour operating within aregion) and productivity growth (increases in the production capabilities of given levels of capitaland labour) These pathways can be written down in the following form:

gQ,t= φc(gA,t, gK,t, gL,t) (1)or

ln[Qc,t+1/Qc,t]= φc{ln[Ac,t+1/Ac,t], ln[Kc,t+1/Kc,t], ln[Lc,t+1/Lc,t]} (2)where Qc,t, Ac,t, Kc,tand Lc,tdenote the levels of output, productivity, capital and labour in region c,

at time t, and φcis a nondecreasing function of the growth rates in capital, labour and productivity.Differences in growth rates will therefore be a function of the magnitudes of factor accumulationand productivity growth rates in each region That is,

gQ,1− gQ,2= φ1(gA,1, gK,1, gL,1)− φ2(gA,2, gK,2, gL,2) (3)The growth rates of capital, labour and productivity growth may themselves be functions of eco-nomic variables Identifying those variables which affect factor accumulation and productivitygrowth is the primary step Relative labour and capital growth are functions of the incentives formovement that face workers and investors and, also, of the incentives to supply more of thosefactors A first item to recognise is that labour and capital growth is interdependent

Labour and capital may be technological complements in production and the incentives facingdecision-makers may be highly correlated (e.g., a region which experiences a positive shock maybecome more attractive to both workers and investors even if they are technological substitutes

in production) Also, prices will induce movements of capital and labour to the highest rents andwages, respectively The relative factor mix (the capital-labour ratio) might reflect the relative

Sustainable Urban Growth for European Cities 23marginal productivities of capital and labour, and thus the incentives for factor movements Finally,

a variety of production externalities may operate at the industry, regional, or economy-wide levelthat affect incentives influencing the location of factors (agglomeration economies) as well as theirqualities (social externalities) The growth of labour or capital, then, is potentially dependent oninput prices, the factor mix, and the presence of particular externalities

After controlling for input growth, the remaining share of output growth can be attributed

to productivity growth Productivity growth arises from technical and organisational change aswell as the exploitation of economies of scale or scope A principal means by which regionalproductivity growth may occur is through the adoption of more productive techniques from otherregions With ongoing interaction among regions the implication is that there is a tendency forproductivity growth rates across regions to converge Correspondingly, there may be a tendencytoward ‘adaptive efficiency’ in economic institutions (North, 2004) Adoption may also occurwithin regions and within regional industries Furthermore, local knowledge spillovers can result

in a positive relationship between the growth rate of productivity and these local externalities

3 EMPIRICAL RELATIONS IN URBAN GROWTH

In modeling the sources of urban growth one would like to include as many theoretical correlativepredictions as possible under an empirical framework To this end it is useful, by reviewing theliterature, to group the phenomena we want to address into three categories: traditional economicfactors, geographic production externalities, and other external factors

3.1 Traditional economic factors

From its early origins the neoclassical growth model has provided sharp predictions on the effectsthat relative factor prices, factor utilisation and productivity levels have on relative growth rates(Solow, 1957; King and Rebelo, 1993) Factor prices and factor accumulation should be positivelycorrelated, as higher wages and rents attract more labour and capital Relative factor utilisationshould engender opposing effects on relative labour and capital growth Capital-intensive cities willinduce more labour inflows than less capital-intensive cities The primary reason for this is that themarginal productivity of labour is higher in a capital-intensive area Conversely, cities which arehighly labour-intensive will attract more new capital Finally, there is a tendency for productivitygrowth rates across regions to converge (Barro and Sala-i-Martin, 2003, Rhode and Toniolo, 2006).The principal empirical implication of the traditional convergence hypothesis is that the relativelevel of productivity is negatively correlated with the growth rate in productivity

These traditional economic variables are easily represented by city level aggregate measures Theaverage prices of labour and capital and the aggregate capital-labour ratio can proxy for the factorprices and the factor utilisation level which affect individual incentives for movement and accu-mulation of capital and labour Also, measures of productivity, such as output per worker, provideempirical representations for productivity differentials These aggregate measures are employed inempirical work

Additional determinants of the rate of input and productivity growth emerge when one considers thepotential role of externalities that resemble ‘networks’ (Gottinger, 2003) Relative urban growthcan be tied to production externalities that arise from geographical proximity and a variety ofapproaches have been used to characterise them These varied approaches have been compressedinto three general categories: urbanisation (URB), localisation (LOC), and specialisation (SPEC)

3.2.1 Economies of urbanisation

Size and breadth of urban regions have been thought to generate potentially important externalitiesthat affect the growth of both inputs and productivity Economic theories based on such ideas predict