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Principles of Environmental Management - Dr Banda Seneviratne (2007)

Principles of Environmental Management - Dr Banda Seneviratne (2007)

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Published by: Senaviratna on May 27, 2010
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Economic solutions
At present, economic solutions to environmental problems have to be
considered within the space of sustainability and globalisation as these
two economic systems control the utilisation and exploitation of
environmental resources. Investigations into the way in which the
solutions can be provided require a detailed knowledge of the two
economic systems.

Globalisation can be defined in many ways and in the study of

environmental management, globalisation can be defined as “the

process of interdependence, integration and interaction between
economic and social systems, which affect the methodology of the
utilisation of environmental resources”. Globalisation has guided to
evaluate environmental resources from a harvesting perspective of the
modern world. This is because, the old protective approach has failed
and the social systems have not found any other alternative. This is
true specially of the developing world where growth of population and
poverty exist in parallel due to non-adhenrence to scientific systems of
environmental management employed in them.
The western international monetary institutions which dictate terms to
the developing countries stress on free flow of goods and investments,
free international capital flows and diffusion of modern technology
within globalisation. Globalisation enters the environment of a country


through its industrial, financial, political and cultural systems and
therefore it soaks through every part of resource environment: natural
and societal.

Industrial globalisation is operated by the multinationals have both
advantages and disadvantages to the local economy. The employment
generated by garment, outsourcing and security services in Sri Lanka
is largely due to installation of new industries within the globalised
system of financial investments. However, local soap, weaving and
cool drink industry of Sri Lanka was completely destroyed by the
intrusion of multinational companies between 1970 and 1990. The
value of agriculture in the economy was reduced to the lowest level
since the civilisation began in Sri Lanka and now the service industries
dominate the national economy. Associated with this transformation
all natural resources and human resources are subjected to heavy
exploitation with destruction of ethical standards in most of the
businesses. Corruption in income tax and VAT payments has forced
the country to depend heavily on foreign loans and aid, though money
in circulation has doubled between 1990 and 2000.
The natural resources have suffered the biggest damage as the corrupt
economic system has infiltrated into forest, wild life and water
resources through illegal activities. An average of 4 incidents of
environmental destruction is reported daily in the news media.
Financial, political, informational and cultural globalisation has not
affected the resource environment much, but all these areas have been
affected by corruption in taxation and expenditure control. Therefore
the economy of Sri Lanka has become highly unstable in which all
types of environmental resources are threatened and poverty has
increased between 1990 and 2005.

(Sustainability was discussed earlier)


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