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Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area. Economic development can also be referred to as the quantitative and qualitative changes in the economy. Like development of human capital, critical infrastructure, regional competitiveness, environmental sustainability, social inclusion, health, safety, literacy, and other initiatives.

Economic development indicators

Environmental degradation is the deterioration of the environment through depletion of resources such as air, water and soil; the destruction of ecosystems and the extinction of wildlife.




Destruction of ecosystems and the extinction of wildlife.

Environmental degradation is one of the Ten Threats officially cautioned by the High Level Threat Panel of the United Nations.

Causes and Effects of environmental degradation

In the 1990s several studies found evidence suggesting, in the early stages of economic growth (with average income rising from a low level) environmental degradation increases, At some stage in economic growth (at some income level) pollution ceases to increase and subsequently decreases. Graphically, this relationship shows an inverted Ushaped curve when degradation per capita (y axis) is plotted against GDP per capita (x axis).

Pollution Haven Hypothesis

Based on the view that developing countries may be acting as pollution havens, places where firms can move and operate without the strict environmental controls of the developed country (Field & Field, 2009. pg 406)


Pollution Haven Hypothesis: Two Parts

I. Stringent Environment Standards in industrialized countries are causing some firms especially pollution intensive ones to flee to countries with less stringent standards. Developing countries have tried with some success to attract pollution intensive firms with the promise of lower pollution control standards in the hope of bolstering their rate of economic growth (Field & Field, 2009)


Pollution Haven Hypothesis

Multinational firms are often blamed Difficult to get conclusive data Most developing countries do have regulations regarding levels of pollution, but these are not enforced For more resources on the PHH see




Preventive measures
Appropriate policies related to protection of environment degradation must be framed. Renewable sources of energy must be used instead of non renewable sources. The species must be protected from their extinction. Water resources must be protected from the materials and chemicals which is released from industries, factories. Energy saving plan must be framed so that, people can use them in appropriate order.

The degradation of the natural resource base and environment is started with various human and economic development activities. The government has now realized the need for concern regarding environmental issues, and started incorporating environment into policies dealing with various sectors. It is important to develop a climate change adaptation strategy for the country, particularly to mitigate impacts of extreme climatic events such as droughts, floods, cyclones, and storm surges. now people are also conscious about environmental degradation and are ready against it.