Environment – Lawrence Summer

Lawrence Summer Encourages the Migration of the Dirty Industries to the Less Developed Countries (LDC)

Developed Countries Benefit from the Shift Less Developed Countries

Cost of Health-Impairing → Cost of Health-Impairing

Depends on the Earnings of the people.
Earnings of the people are high, therefore
the expenses spent on
healthcare are higher.
The Export of Dirty Industries
from Developed Countries to
LDC is encouraging as the cost
of health-impairing is lesser in
LDC.
Earnings of the people are low, therefore
the expenses spent on healthcare are low
as well. It is cheaper for people to fall
sick/die.

Cost of Pollution → Cost of Pollution

Developed countries are often highly The Export of Dirty Industries In poor countries, less population so less
populated which means that the polluted from Developed Countries to pollution.

m
situation is worse than LDC. LDC is advisable as the Cost of Poor countries after often under-polluted.

er as
pollution generated by non-tradable Harm in Pollution in LDC is

co
industries (transport and electrical lesser than developed

eH w
generation) are high as well. countries as LDCs are less

o.
Solid waste created by developed rs e polluted; When the country is
countries stands a large amount too. cleaner with lesser populated
ou urc
and less polluted, it would
bring lesser affection.
o

Demand for Environmental Quality Demand for Environmental Quality

aC s

The demand for a clean environment for The demand for a clean environment for
v i y re

aesthetic and health reason is on high aesthetic and health reason is on low
demand for the people in the developed demand for the people in the less
countries. → developed countries.
ed d

This is due to their high-income elasticity. The Export of Dirty Industries This is because people living in the LDC
People often demand for quality life from Developed Countries to often suffer with the lack of basic human
ar stu

when there is an improvement in life LDC is advisable as this act is needs such as food and shelter.
(more money income). able to fulfil the different Hence, they probably appear to be
People in the developed countries 中 demands of people from both careless upon environmental issues and
sh is

cancer 的几率比较小 because they’re countries at the same time. tend to be aggressive with the ability to
more concerned with their health issues. obtain food and money regardless any
Th

requests.
People in LDC are often suffering with the
issue of <5 岁的人去世的 rate
= 200/1000 which means that people in
LDC faces issue of death 很普遍

This study source was downloaded by 100000776491153 from CourseHero.com on 07-20-2021 21:34:54 GMT -05:00

https://www.coursehero.com/file/64799471/Environment-Notesdocx/
 The Economic Benefits of Exporting Pollution to LDCs

(1) People in developed countries are willing to pay to lessen pollution in their environment while
People in LDC are willing to accept pollution with the condition of being compensated.
As people in LDC might be not well-educated with the harms caused by pollution, they’re willing to
accept the toxic waste for very little compensation as they’re unaware with the contents of wastes.
(2) Summer deems that the trade/swap/exchange is in a fair manner as it bring economic benefits to
both related countries’ people, which the people in LDC are happy to receive compensation for the
import of dirty industries while the people in developed countries are willing to pay.
(3) Environmental Quality (EQ) is used within the trade between LDC and developed countries.
- LDC have a great deal of inexpensive EQ (EQ isn’t expensive because it is plentiful) ;
Demand for EQ is relatively high in developed countries as EQ is scarce and costly.
- The trade/swap between LDC and developed countries is fair as the rich are seeking for EQ and
the poor are seeking for compensation (to own money, and other human basic needs like
education, food and shelter)
- Besides that bringing pollution/dirty industries to LDC 带来的 decrement in cost in health arises
from the drop of EQ is very low.

m
◦ ↑ pollution = ↓ of EQ (有 cost) 总的来说不管怎样

er as
◦ ↓ pollution = ↑ of EQ = 人民死/没食物吃(有 cost) 都还是会有 cost

co
(4) When dirty industries/pollution are brought into poor countries, it is beneficial to the people in the

eH w
LDC as people are compensated with job opportunities and money. These compensations are

o.
deemed to be a great deal for them as there is an increment in their income. With that, they’re able
rs e
to buy their necessities as they’re more often careless towards the issue arises from pollution (他们
ou urc
只是想要吃饱饱 no fuck environmental issues, 对他们来说有钱有食物就 OK 了)
(5) Bringing in pollution to LDC is an act of fulfilling demands of the people from both countries
= fulfilled market mechanism (there is no appearance of exploitation or cheating or forcing;
o

people are free to make and take decisions regarding buying and selling)
aC s

◦ The only possibility to make this trade disappear is when the poor realises the importance
v i y re

of environment and then the supply of EQ by the poor would meet the demand of EQ by
the rich people = meets market equilibrium)
ed d
ar stu
sh is
Th

This study source was downloaded by 100000776491153 from CourseHero.com on 07-20-2021 21:34:54 GMT -05:00

https://www.coursehero.com/file/64799471/Environment-Notesdocx/
 It is Ethically Right to export polluting industries to the LDC

Based on Utilitarianism, we should always act to product the greatest possible balance of good over bad for
everyone affected by our actions. It means that our actions should focus on producing the maximum
benefits and happiness to most of the people (we should focus on the amount of the people at the “more
side”).

When dirty industries/pollution are being brought into LDC, it could bring benefits to most of the people as:
1. It could improve the economic development of LDC as there is an increment in Foreign Direct
Investment (FDI). This is because when there is an inject of money into the country = FDI ↑. When FDI ↑, it
provides local economic benefits as FDI could stimulate community economic growth where job
opportunities increase as well. Besides that, FDI could improve the human resources in the LDC as talents or
relevant experiences would be required in the LDC.
2. Eradicate Income Inequality (Stop Income Inequality)
Unemployment and lack of employment are one of the biggest causes of relative poverty. When polluting
industries are brought into LDC, it means that there’s am economic growth in LDC. Economic growth
creates job opportunities which reduce the level of unemployment and then reduce income inequality.
Besides that, minimum wages would increase due to the growth in economic and then increase the

m
er as
average earning of the people in LDC.
3. The ‘Invisible Hands’ could work as the demand and supply of Environment Quality in a free market

co
eH w
would genuinely reach the market equilibrium.

o.
rs e
Based on Libertarianism, it seeks to maximize political freedom and autonomy, emphasizing freedom of
ou urc
choice, voluntary association, and individual judgment. Which means that we should let individuals to do
whatever they want while we shouldn’t stop them for conducting their own wills as people are allowed to
o

do things on their free will. So, if the people of LDC decided to accept the offer, based on their own free will
on the offer of the export polluting industries from developed countries into their country, then it is
aC s
v i y re

absolute fine for exporting pollution to poor countries.

ed d
ar stu

It is Ethically Wrong to export polluting industries to the LDC

sh is

Based on Kantian Ethics, without the reference to God, ma can derive what is right and wrong as only
Th

human beings have the capacity to make rational and moral decisions (which the materials that cause
pollution couldn’t).

Encouraging dirty industries to migrate to LDC’s will lead to more total pollution. There’s no point for us to
conduct an action that couldn’t even solve the issue of creating pollution in the universe. This is against
Kantian’s Ethics. According to Kantian’s First Formulation – Universalizability Principle: Act only according
to that maxim whereby you can at the same time will that it should become a universal law. It focuses on
the general rule that stands behind our action. The transfer of pollution is not widely acceptable by the
general public. Living in a polluted environment are not accepted by the general public, so why should we
exercise it to the LDC. In accordance with Kantian, humans are capable to make decisions based on their
ability, it is faulty for them to plan an ethically wrong action.

This study source was downloaded by 100000776491153 from CourseHero.com on 07-20-2021 21:34:54 GMT -05:00

https://www.coursehero.com/file/64799471/Environment-Notesdocx/
 Then, despite the voluntariness from the people in the LDC to accept the transfer of pollution, the
arrangement is just unfair. It is an unfair exchange as the act exploits the individual rights of the people in
LDC by trying to shift pollutions to LDC for some reasonable compensations. This is against Kantian’s Ethics.
According to Kantian’s Second Formulation – The Formula of Humanity: Act in such wat that you treat
humanity, whether in your own person or in the person of any other, never merely as a means to an end, but
always at the same time as an end. It means that humans exist for themselves and we shouldn’t obtain
benefits from the others and ignore their rights and humanity. Humans are entitled to enjoy
environmental human rights which means that human beings have the rights to live in a healthy, clean
and safe environment. In accordance with Kantian, humans are capable to make decisions based on their
ability, it is faulty for them to plan an ethically wrong action.

Own Stand - The export of dirty industries from developed countries to LDC is discouraged.

In the era of globalisation, it is important for us to contribute ourselves in environmental protection and
human rights protection. It is important to protect the environment because man-made disruptions to
ecosystems can cause extinction, because pollution creates dangers for both animals and people, and

m
because mankind owes the natural world a moral obligation. While in protecting human rights, it is

er as
important for the people to prevent violating human rights and start learning to respect human rights as

co
human rights are fundamental rights that all human beings possess regardless of their race, ethnicity, sex,

eH w
national or ethnic origin, colour, residence, religion or any other status.

o.
Pollution had been one of the greatest problems that the world is facing today. Pollution includes air
rs e
pollution, radioactive pollution and so on. It had created environmental concerns such as climate changes
ou urc
and the decrement of environment quality in our daily lives which would result in species extinction and
biodiversity loss that could affect the lives of the living creatures.
o

We shouldn’t exercise actions that would cause pollution to the environment, let alone 更何况 establishing
aC s

dirty industries in LDC. According to William Blackstone, every individual has the ability to destroy the
v i y re

environment. But think about it, if the environment is been destroyed right now, we can foresee that the
future generations are unable to live in the polluted environment that we had created. Our future
generation have the rights to own and live in a good environment. Thus, we shouldn’t exploit the
ed d

environment by learning to adjust our behaviour in ensuring the cleanliness of the society so that we don’t
ar stu

violate the future generation.

Besides that, we should exercise the Post-Conventional Morality in Kohlberg’s Theory on Universal Ethical
Principles Orientation by doing what is rights because of our inner conscious which has absorbed the
sh is

principles of justice and equality for human rights. Individuals should always act after putting themselves
into another’s shoes. It is significant for people to learn about doing something that is correct by knowing
Th

the way to provide respect for the others. Despite the willingness from the people in the LDC countries,
people from the developed countries should know that the act of shifting is directly violating the people in
the LDC, to prevent themselves from being unethical. It is important to exercise this morality.

While according to the Tragedy of the Commons, if every individuals tend to behave for their own self-
interest (be selfish upon themselves), everyone in the common areas aka the universe would encounter the
collapse of the environment quality after everyone overused (as in keep on building dirty industries and
pollutes the environment) the common areas.

However, the opposition/objection 反对 towards the export of dirty industries to LDC shouldn’t be once in
a while as we should adopt virtue ethics by consistently chooses the right acts for the right moves. It is
significant as we are all obligated/ have responsibilities in respecting human rights as well as protecting the
environment.

This study source was downloaded by 100000776491153 from CourseHero.com on 07-20-2021 21:34:54 GMT -05:00

https://www.coursehero.com/file/64799471/Environment-Notesdocx/
Powered by TCPDF (www.tcpdf.org)