Make your work easier and more efficient installing the rrojasdatabank  toolbar ( you can customize it ) in your browser. 
Counter visits from more than 160  countries and 1400 universities (details)

The political economy of development
This academic site promotes excellence in teaching and researching economics and development, and the advancing of describing, understanding, explaining and theorizing.
About us- Castellano- Français - Dedication
Home- Themes- Reports- Statistics/Search- Lecture notes/News- People's Century- Puro Chile- Mapuche


World indicators on the environmentWorld Energy Statistics - Time SeriesEconomic inequality
A-21: DECISION MAKING  
                                             Distr.  
                                             GENERAL  
                                             A/CONF.151/26 (Vol. I)  
                                             12 August 1992  
                                             ORIGINAL:  ENGLISH  
  
                 REPORT OF THE UNITED NATIONS CONFERENCE ON   
                         ENVIRONMENT AND DEVELOPMENT  
  
                      (Rio de Janeiro, 3-14 June 1992)  
  
                                Chapter 8  
  
       INTEGRATING ENVIRONMENT AND DEVELOPMENT IN DECISION-MAKING  
  
  
                              INTRODUCTION  
  
8.1.  This chapter contains the following programme areas:  
  
     (a)   Integrating environment and development at the policy, planning 
           and management levels;  
  
     (b)   Providing an effective legal and regulatory framework;  
  
     (c)   Making effective use of economic instruments and market and    
           other incentives;  
  
     (d)   Establishing systems for integrated environmental and economic 
           accounting.  
  
  
                             PROGRAMME AREAS  
  
                A.  Integrating environment and development at the policy, 
                    planning and management levels  
  
Basis for action  
  
8.2.  Prevailing systems for decision-making in many countries tend to  
separate economic, social and environmental factors at the policy, planning
and management levels.  This influences the actions of all groups in
society, including Governments, industry and individuals, and has important 
implications for the efficiency and sustainability of development.  An  
adjustment or even a fundamental reshaping of decision-making, in the light 
of country-specific conditions, may be necessary if environment and  
development is to be put at the centre of economic and political  
decision-making, in effect achieving a full integration of these factors. 
In recent years, some Governments have also begun to make significant
changes in the institutional structures of government in order to enable
more systematic consideration of the environment when decisions are made on
economic, social, fiscal, energy, agricultural, transportation, trade and
other policies, as well as the implications of policies in these areas for
the environment.  New forms of dialogue are also being developed for
achieving better integration among national and local government, industry,
science, environmental groups and the public in the process of developing
effective approaches to environment and development.  The responsibility
for bringing about changes lies with Governments in partnership with the
private sector and local authorities, and in collaboration with national,
regional and international organizations, including in particular UNEP,
UNDP and the World Bank.  Exchange of experience between countries can also
be significant.  National plans, goals and objectives, national rules,
regulations and law, and the specific situation in which different
countries are placed are the overall framework in which such integration
takes place.  In this context, it must be borne in mind that environmental
standards may pose severe economic and social costs if they are uniformly
applied in developing countries.   
  
Objectives  
  
8.3.  The overall objective is to improve or restructure the
decision-making process so that consideration of socio-economic and
environmental issues is fully integrated and a broader range of public
participation assured.  Recognizing that countries will develop their own
priorities in accordance with their prevailing conditions, needs, national
plans, policies and programmes, the following objectives are proposed:  
  
    (a)  To conduct a national review of economic, sectoral and
environmental policies, strategies and plans to ensure the progressive
integration of environmental and developmental issues;   
  
    (b)  To strengthen institutional structures to allow the full
integration of environmental and developmental issues, at all levels of
decision-making;  
  
    (c)  To develop or improve mechanisms to facilitate the involvement of 
concerned individuals, groups and organizations in decision-making at all 
levels;  
  
    (d)  To establish domestically determined procedures to integrate  
environment and development issues in decision-making.  
Activities  
  
(a) Improving decision-making processes  
  
8.4.  The primary need is to integrate environmental and developmental  
decision-making processes.  To do this, Governments should conduct a
national review and, where appropriate, improve the processes of
decision-making so as to achieve the progressive integration of economic,
social and environmental issues in the pursuit of development that is
economically efficient, socially equitable and responsible and
environmentally sound.  Countries will develop their own priorities in
accordance with their national plans, policies and programmes for the
following activities:   
  
    (a)  Ensuring the integration of economic, social and environmental  
considerations in decision-making at all levels and in all ministries;  
  
    (b)  Adopting a domestically formulated policy framework that reflects 
a long-term perspective and cross-sectoral approach as the basis for  
decisions, taking account of the linkages between and within the various  
political, economic, social and environmental issues involved in the  
development process;  
  
    (c)  Establishing domestically determined ways and means to ensure the 
coherence of sectoral, economic, social and environmental policies, plans
and policy instruments, including fiscal measures and the budget; these
mechanisms should apply at various levels and bring together those
interested in the development process;  
  
    (d)  Monitoring and evaluating the development process systematically, 
conducting regular reviews of the state of human resources development,  
economic and social conditions and trends, the state of the environment and
natural resources; this could be complemented by annual environment and  
development reviews, with a view to assessing sustainable development  
achievements by the various sectors and departments of government;   
    (e)  Ensuring transparency of, and accountability for, the
environmental implications of economic and sectoral policies;  
  
    (f)  Ensuring access by the public to relevant information,
facilitating the reception of public views and allowing for effective
participation.  
  
(b) Improving planning and management systems  
  
8.5.  To support a more integrated approach to decision-making, the data  
systems and analytical methods used to support such decision-making
processes may need to be improved.  Governments, in collaboration, where
appropriate, with national and international organizations, should review
the status of the planning and management system and, where necessary,
modify and strengthen procedures so as to facilitate the integrated
consideration of social, economic and environmental issues.  Countries will
develop their own priorities in accordance with their national plans,
policies and programmes for the following activities:  
  
    (a)  Improving the use of data and information at all stages of
planning and management, making systematic and simultaneous use of social,
economic, developmental, ecological and environmental data; analysis should
stress interactions and synergisms; a broad range of analytical methods
should be encouraged so as to provide various points of view;  
  
    (b)  Adopting comprehensive analytical procedures for prior and  
simultaneous assessment of the impacts of decisions, including the impacts 
within and among the economic, social and environmental spheres; these  
procedures should extend beyond the project level to policies and
programmes; analysis should also include assessment of costs, benefits and
risks;  
  
    (c)  Adopting flexible and integrative planning approaches that allow
the consideration of multiple goals and enable adjustment of changing
needs; integrative area approaches at the ecosystem or watershed level can
assist in this approach;  
  
    (d)  Adopting integrated management systems, particularly for the  
management of natural resources; traditional or indigenous methods should
be studied and considered wherever they have proved effective; women's  
traditional roles should not be marginalized as a result of the
introduction of new management systems;  
  
    (e)  Adopting integrated approaches to sustainable development at the 
regional level, including transboundary areas, subject to the requirements
of particular circumstances and needs;  
  
    (f)  Using policy instruments (legal/regulatory and economic) as a tool
for planning and management, seeking incorporation of efficiency criteria
in decisions; instruments should be regularly reviewed and adapted to
ensure that they continue to be effective;  
  
    (g)  Delegating planning and management responsibilities to the lowest 
level of public authority consistent with effective action; in particular
the advantages of effective and equitable opportunities for participation
by women should be discussed;  
  
    (h)  Establishing procedures for involving local communities in  
contingency planning for environmental and industrial accidents, and  
maintaining an open exchange of information on local hazards.  
  
(c) Data and information  
  
8.6.  Countries could develop systems for monitoring and evaluation of  
progress towards achieving sustainable development by adopting indicators
that measure changes across economic, social and environmental dimensions. 

(d) Adopting a national strategy for sustainable development  
  
8.7.  Governments, in cooperation, where appropriate, with international  
organizations, should adopt a national strategy for sustainable development
based on, inter alia, the implementation of decisions taken at the
Conference, particularly in respect of Agenda 21.  This strategy should
build upon and harmonize the various sectoral economic, social and
environmental policies and plans that are operating in the country.  The
experience gained through existing planning exercises such as national
reports for the Conference, national conservation strategies and
environment action plans should be fully used and incorporated into a
country-driven sustainable development strategy.  Its goals should be to
ensure socially responsible economic development while protecting the
resource base and the environment for the benefit of future  
generations.  It should be developed through the widest possible  
participation.  It should be based on a thorough assessment of the current 
situation and initiatives.  
  
Means of implementation  
  
(a) Financing and cost evaluation  
  
8.8.  The Conference secretariat has estimated the average total annual
cost (1993-2000) of implementing the activities of this programme to be
about $50 million from the international community on grant or concessional
terms.  These are indicative and order-of-magnitude estimates only and have
not been reviewed by Governments.  Actual costs and financial terms,
including any that are non-concessional, will depend upon, inter alia, the
specific strategies and programmes Governments decide upon for
implementation.  
  
(b) Researching environment and development interactions  
  
8.9.  Governments, in collaboration with the national and international  
scientific community and in cooperation with international organizations,
as appropriate, should intensify efforts to clarify the interactions
between and within social, economic and environmental considerations. 
Research should be undertaken with the explicit objective of assisting
policy decisions and providing recommendations on improving management
practices.  
  
(c) Enhancing education and training  
  
8.10.  Countries, in cooperation, where appropriate, with national,
regional or international organizations, should ensure that essential human
resources exist, or be developed, to undertake the integration of
environment and development at various stages of the decision-making and
implementation process.  To do this, they should improve education and
technical training, particularly for women and girls, by including
interdisciplinary approaches, as appropriate, in technical, vocational,
university and other curricula. They should also undertake systematic
training of government personnel, planners and managers on a regular basis,
giving priority to the requisite integrative approaches and planning and
management techniques that are suited to country-specific conditions.  
  
(d) Promoting public awareness  
  
8.11.  Countries, in cooperation with national institutions and groups, the
media and the international community, should promote awareness in the
public at large, as well as in specialized circles, of the importance of
considering environment and development in an integrated manner, and should
establish mechanisms for facilitating a direct exchange of information and
views with the public.  Priority should be given to highlighting the
responsibilities and potential contributions of different social groups.  
  
(e) Strengthen national institutional capacity  
  
8.12.  Governments, in cooperation, where appropriate, with international 
organizations, should strengthen national institutional capability and  
capacity to integrate social, economic, developmental and environmental
issues at all levels of development decision-making and implementation. 
Attention should be given to moving away from narrow sectoral approaches,
progressing towards full cross-sectoral coordination and cooperation.  
  
        B.  Providing an effective legal and regulatory framework  

Basis for action  
  
8.13.  Laws and regulations suited to country-specific conditions are among
the most important instruments for transforming environment and development 
policies into action, not only through "command and control" methods, but
also as a normative framework for economic planning and market instruments. 
Yet, although the volume of legal texts in this field is steadily
increasing, much of the law-making in many countries seems to be ad hoc and
piecemeal, or has not been endowed with the necessary institutional
machinery and authority for enforcement and timely adjustment.  
  
8.14.  While there is continuous need for law improvement in all countries,
many developing countries have been affected by shortcomings of laws and  
regulations.  To effectively integrate environment and development in the 
policies and practices of each country, it is essential to develop and  
implement integrated, enforceable and effective laws and regulations that
are based upon sound social, ecological, economic and scientific
principles.  It is equally critical to develop workable programmes to
review and enforce compliance with the laws, regulations and standards that
are adopted.  Technical support may be needed for many countries to
accomplish these goals.  Technical cooperation requirements in this field
include legal information, advisory services and specialized training and
institutional capacity-building.  
  
8.15.  The enactment and enforcement of laws and regulations (at the
regional, national, state/provincial or local/municipal level) are also
essential for the implementation of most international agreements in the
field of environment and development, as illustrated by the frequent treaty
obligation to report on legislative measures.  The survey of existing
agreements undertaken in the context of conference preparations has
indicated problems of compliance in this respect, and the need for improved
national implementation and, where appropriate, related technical
assistance.  In developing their national priorities, countries should take
account of their international obligations.  
  
Objectives  
  
8.16.  The overall objective is to promote, in the light of
country-specific conditions, the integration of environment and development
policies through appropriate legal and regulatory policies, instruments and
enforcement mechanisms at the national, state, provincial and local level. 
Recognizing that countries will develop their own priorities in accordance
with their needs and national and, where appropriate, regional plans,
policies and programmes, the following objectives are proposed:  
  
    (a)  To disseminate information on effective legal and regulatory  
innovations in the field of environment and development, including
appropriate instruments and compliance incentives, with a view to
encouraging their wider use and adoption at the national, state, provincial
and local level;  
  
    (b)  To support countries that request it in their national efforts to 
modernize and strengthen the policy and legal framework of governance for 
sustainable development, having due regard for local social values and  
infrastructures;  
  
    (c)  To encourage the development and implementation of national,
state, provincial and local programmes that assess and promote compliance
and respond appropriately to non-compliance.  
  
Activities  
  
(a) Making laws and regulations more effective  
  
8.17.  Governments, with the support, where appropriate, of competent  
international organizations, should regularly assess the laws and
regulations enacted and the related institutional/administrative machinery
established at the national/state and local/municipal level in the field of
environment and sustainable development, with a view to rendering them
effective in practice.  Programmes for this purpose could include the
promotion of public awareness, preparation and distribution of guidance
material, and specialized training, including workshops, seminars,
education programmes and conferences, for public officials who design,
implement, monitor and enforce laws and regulations.  
  
(b) Establishing judicial and administrative procedures  
  
8.18.  Governments and legislators, with the support, where appropriate, of
competent international organizations, should establish judicial and  
administrative procedures for legal redress and remedy of actions affecting
environment and development that may be unlawful or infringe on rights
under the law, and should provide access to individuals, groups and
organizations with a recognized legal interest.  
  
(c) Providing legal reference and support services  
  
8.19.  Competent intergovernmental and non-governmental organizations could
cooperate to provide Governments and legislators, upon request, with an  
integrated programme of environment and development law (sustainable  
development law) services, carefully adapted to the specific requirements
of the recipient legal and administrative systems.  Such systems could
usefully include assistance in the preparation of comprehensive inventories
and reviews of national legal systems.  Past experience has demonstrated
the usefulness of combining specialized legal information services with
legal expert advice.  Within the United Nations system, closer cooperation
among all agencies concerned would avoid duplication of databases and
facilitate division of labour.  These agencies could examine the
possibility and merit of performing reviews of selected national legal
systems.  
  
(d) Establishing a cooperative training network for sustainable development
    law  
  
8.20.  Competent international and academic institutions could, within
agreed frameworks, cooperate to provide, especially for trainees from
developing countries, postgraduate programmes and in-service training
facilities in environment and development law.  Such training should
address both the effective application and the progressive improvement of
applicable laws, the related skills of negotiating, drafting and mediation,
and the training of trainers.  Intergovernmental and non-governmental
organizations already active in this field could cooperate with related
university programmes to harmonize curriculum planning and to offer an
optimal range of options to interested Governments and potential sponsors. 
  
(e) Developing effective national programmes for reviewing and enforcing  
    compliance with national, state, provincial and local laws on  
    environment and development  
  
8.21.  Each country should develop integrated strategies to maximize  
compliance with its laws and regulations relating to sustainable
development, with assistance from international organizations and other
countries as appropriate.  The strategies could include:  
  
    (a)  Enforceable, effective laws, regulations and standards that are  
based on sound economic, social and environmental principles and
appropriate risk assessment, incorporating sanctions designed to punish
violations, obtain redress and deter future violations;  
  
    (b)  Mechanisms for promoting compliance;  
  
    (c)  Institutional capacity for collecting compliance data, regularly 
reviewing compliance, detecting violations, establishing enforcement  
priorities, undertaking effective enforcement, and conducting periodic  
evaluations of the effectiveness of compliance and enforcement programmes; 
  
    (d)  Mechanisms for appropriate involvement of individuals and groups
in the development and enforcement of laws and regulations on environment
and development.  
  
(f) National monitoring of legal follow-up to international instruments  

8.22.  Contracting parties to international agreements, in consultation
with the appropriate secretariats of relevant international conventions as 
appropriate, should improve practices and procedures for collecting  
information on legal and regulatory measures taken.  Contracting parties to 
international agreements could undertake sample surveys of domestic
follow-up action subject to agreement by the sovereign States concerned.  
  
Means of implementation  
  
(a) Financing and cost evaluation  
  
8.23.  The Conference secretariat has estimated the average total annual
cost (1993-2000) of implementing the activities of this programme to be
about $6 million from the international community on grant or concessional
terms.  These are indicative and order-of-magnitude estimates only and have
not been reviewed by Governments.  Actual costs and financial terms,
including any that are non-concessional, will depend upon, inter alia, the
specific strategies and programmes Governments decide upon for
implementation.  
  
(b) Scientific and technological means  
  
8.24.  The programme relies essentially on a continuation of ongoing work
for legal data collection, translation and assessment.  Closer cooperation
between existing databases may be expected to lead to better division of
labour (e.g., in geographical coverage of national legislative gazettes and
other reference sources) and to improved standardization and compatibility
of data, as appropriate.  
  
(c) Human resource development  
  
8.25.  Participation in training is expected to benefit practitioners from 
developing countries and to enhance training opportunities for women. 
Demand for this type of postgraduate and in-service training is known to be
high.  The seminars, workshops and conferences on review and enforcement
that have been held to date have been very successful and well attended. 
The purpose of these efforts is to develop resources (both human and
institutional) to design and implement effective programmes to continuously
review and enforce national and local laws, regulations and standards on
sustainable development.  
  
(d) Strengthening legal and institutional capacity  
  
8.26.  A major part of the programme should be oriented towards improving
the legal-institutional capacities of countries to cope with national
problems of governance and effective law-making and law-applying in the
field of environment and sustainable development.  Regional centres of
excellence could be designated and supported to build up specialized
databases and training facilities for linguistic/cultural groups of legal
systems.  
  
             C.  Making effective use of economic instruments and market  
                 and other incentives  
  
Basis for action  
  
8.27.  Environmental law and regulation are important but cannot alone be 
expected to deal with the problems of environment and development.  Prices,
markets and governmental fiscal and economic policies also play a  
complementary role in shaping attitudes and behaviour towards the
environment.  
  
8.28.  During the past several years, many Governments, primarily in  
industrialized countries but also in Central and Eastern Europe and in  
developing countries, have been making increasing use of economic
approaches, including those that are market-oriented.  Examples include the
polluter-pays principle and the more recent natural-resource-user-pays
concept.  
  
8.29.  Within a supportive international and national economic context and 
given the necessary legal and regulatory framework, economic and market-
oriented approaches can in many cases enhance capacity to deal with the  
issues of environment and development.  This would be achieved by providing
cost-effective solutions, applying integrated pollution prevention control,
promoting technological innovation and influencing environmental behaviour, 
as well as providing financial resources to meet sustainable development  
objectives.  
  
8.30.  What is needed is an appropriate effort to explore and make more  
effective and widespread use of economic and market-oriented approaches
within a broad framework of development policies, law and regulation suited
to country-specific conditions as part of a general transition to economic
and environmental policies that are supportive and mutually reinforcing.  
  
Objectives  
  
8.31.  Recognizing that countries will develop their own priorities in  
accordance with their needs and national plans, policies and programmes,
the challenge is to achieve significant progress in the years ahead in
meeting three fundamental objectives:  
  
    (a)  To incorporate environmental costs in the decisions of producers
and consumers, to reverse the tendency to treat the environment as a "free
good" and to pass these costs on to other parts of society, other
countries, or to future generations;  
  
     (b)  To move more fully towards integration of social and
environmental costs into economic activities, so that prices will
appropriately reflect the relative scarcity and total value of resources
and contribute towards the prevention of environmental degradation;  
  
     (c)  To include, wherever appropriate, the use of market principles in
the framing of economic instruments and policies to pursue sustainable  
development.  
  
Activities  
  
(a)  Improving or reorienting governmental policies  
  
8.32.  In the near term, Governments should consider gradually building on 
experience with economic instruments and market mechanisms by undertaking
to reorient their policies, keeping in mind national plans, priorities and 
objectives, in order to:  
  
     (a)  Establish effective combinations of economic, regulatory and   
voluntary (self-regulatory) approaches;  
  
     (b)  Remove or reduce those subsidies that do not conform with  
sustainable development objectives;  
  
     (c)  Reform or recast existing structures of economic and fiscal  
incentives to meet environment and development objectives;   
  
     (d)  Establish a policy framework that encourages the creation of new 
markets in pollution control and environmentally sounder resource
management;  
  
     (e)  Move towards pricing consistent with sustainable development  
objectives.  
  
8.33.  In particular, Governments should explore, in cooperation with
business and industry, as appropriate, how effective use can be made of
economic instruments and market mechanisms in the following areas:  
  
     (a)  Issues related to energy, transportation, agriculture and
forestry, water, wastes, health, tourism and tertiary services;  
  
     (b)  Global and transboundary issues;  
  
     (c)  The development and introduction of environmentally sound
technology and its adaptation, diffusion and transfer to developing
countries in conformity with chapter 34.  
  
(b)  Taking account of the particular circumstances of developing countries
     and countries with economies in transition  
  
8.34.  A special effort should be made to develop applications of the use
of economic instruments and market mechanisms geared to the particular
needs of developing countries and countries with economies in transition,
with the assistance of regional and international economic and
environmental organizations and, as appropriate, non-governmental research
institutes, by:  
  
     (a)  Providing technical support to those countries on issues relating
to the application of economic instruments and market mechanisms;  
  
     (b)  Encouraging regional seminars and, possibly, the development of 
regional centres of expertise.  
  
(c)  Creating an inventory of effective uses of economic instruments and  
     market mechanisms  
  
8.35.  Given the recognition that the use of economic instruments and
market mechanisms is relatively recent, exchange of information about
different countries' experiences with such approaches should be actively
encouraged.  In this regard, Governments should encourage the use of
existing means of  information exchange to look at effective uses of
economic instruments.  
  
(d)  Increasing understanding of the role of economic instruments and
market mechanisms  
  
8.36.  Governments should encourage research and analysis on effective uses
of economic instruments and incentives with the assistance and support of 
regional and international economic and environmental organizations, as
well as non-governmental research institutes, with a focus on such key
issues as:  
  
     (a)  The role of environmental taxation suited to national conditions;
 
     (b)  The implications of economic instruments and incentives for  
competitiveness and international trade, and potential needs for
appropriate future international cooperation and coordination;  
     (c)  The possible social and distributive implications of using
various instruments.  
  
(e)  Establishing a process for focusing on pricing  
  
8.37.  The theoretical advantages of using pricing policies, where  
appropriate, need to be better understood, and accompanied by greater  
understanding of what it means to take significant steps in this direction.
Processes should therefore be initiated, in cooperation with business,  
industry, large enterprises, transnational corporations, as well as other 
social groups, as appropriate, at both the national and international
levels, to examine:  
  
     (a)  The practical implications of moving towards greater reliance on 
pricing that internalize environmental costs appropriate to help achieve  
sustainable development objectives;  
  
     (b)  The implications for resource pricing in the case of  
resource-exporting countries, including the implications of such pricing  
policies for developing countries;  
  
     (c)  The methodologies used in valuing environmental costs.  
  
(f)  Enhancing understanding of sustainable development economics  
  
8.38.  Increased interest in economic instruments, including market  
mechanisms, also requires a concerted effort to improve understanding of  
sustainable development economics by:  
  
     (a)  Encouraging institutions of higher learning to review their  
curricula and strengthen studies in sustainable development economics;  
  
     (b)  Encouraging regional and international economic organizations and
non-governmental research institutes with expertise in this area to provide
training sessions and seminars for government officials;  
  
     (c)  Encouraging business and industry, including large industrial  
enterprises and transnational corporations with expertise in environmental 
matters, to organize training programmes for the private sector and other 
groups.  
  
Means of implementation  
  
8.39.  This programme involves adjustments or reorientation of policies on
the part of Governments.  It also involves international and regional
economic and environmental organizations and agencies with expertise in
this area, including transnational corporations.  
  
(a)  Financing and cost evaluation  
  
8.40.  The Conference secretariat has estimated the average total annual
cost (1993-2000) of implementing the activities of this programme to be
about $5 million from the international community on grant or concessional
terms. These are indicative and order-of-magnitude estimates only and have
not been reviewed by Governments.  Actual costs and financial terms,
including any that are non-concessional, will depend upon, inter alia, the
specific strategies and programmes Governments decide upon for
implementation.  
  
               D.  Establishing systems for integrated environmental and  
                   economic accounting  
  
Basis for action  
  
8.41.  A first step towards the integration of sustainability into economic 
management is the establishment of better measurement of the crucial role
of the environment as a source of natural capital and as a sink for
by-products generated during the production of man-made capital and other
human activities.  As sustainable development encompasses social, economic
and environmental dimensions, it is also important that national accounting 
procedures are not restricted to measuring the production of goods and  
services that are conventionally remunerated.  A common framework needs to
be developed whereby the contributions made by all sectors and activities
of society, that are not included in the conventional national accounts,
are included, to the extent consistent with sound theory and
practicability, in satellite accounts.  A programme to develop national
systems of integrated environmental and economic accounting in all
countries is proposed.  
  
Objectives  
  
8.42.  The main objective is to expand existing systems of national
economic accounts in order to integrate environment and social dimensions
in the accounting framework, including at least satellite systems of
accounts for natural resources in all member States.  The resulting systems
of integrated environmental and economic accounting (IEEA) to be
established in all member States at the earliest date should be seen as a
complement to, rather than a substitute for, traditional national
accounting practices for the foreseeable future.  IEEAs would be designed
to play an integral part in the national development decision-making
process.  National accounting agencies should work in close collaboration
with national environmental statistics as well as the geographic and
natural resource departments.  The definition of economically active could
be expanded to include people performing productive but unpaid tasks in all
countries.  This would enable their contribution to be adequately measured
and taken into account in decision-making.  
  
Activities  
  
(a)  Strengthening international cooperation  
  
8.43.  The Statistical Office of the United Nations Secretariat should:  

     (a)  Make available to all member States the methodologies contained 
in the SNA Handbook on Integrated Environmental and Economic Accounting;  
  
     (b)  In collaboration with other relevant United Nations
organizations, further develop, test, refine and then standardize the
provisional concepts and methods such as those proposed by the SNA
Handbook, keeping member States informed of the status of the work
throughout this process;  
  
     (c)  Coordinate, in close cooperation with other international  
organizations, the training of national accountants, environmental  
statisticians and national technical staff in small groups for the  
establishment, adaptation and development of national IEEAs.  
  
8.44.  The Department of Economic and Social Development of the United
Nations Secretariat, in close collaboration with other relevant United
Nations organizations, should:  
  
     (a)  Support, in all member States, the utilization of sustainable  
development indicators in national economic and social planning and  
decision-making practices, with a view to ensuring that IEEAs are usefully 
integrated in economic development planning at the national level;  
  
     (b)  Promote improved environmental and economic and social data  
collection.  
  
(b)  Strengthening national accounting systems  
  
8.45.  At the national level, the programme could be adopted mainly by the 
agencies dealing with national accounts, in close cooperation with  
environmental statistics and natural resource departments, with a view to 
assisting national economic analysts and decision makers in charge of
national economic planning.  National institutions should play a crucial
role not only as the depositary of the system but also in its adaptation,
establishment and continuous use.  Unpaid productive work such as domestic
work and child care should be included, where appropriate, in satellite
national accounts and economic statistics.  Time-use surveys could be a
first step in the process of developing these satellite accounts.  
  
(c)  Establishing an assessment process  
  
8.46.  At the international level, the Statistical Commission should
assemble and review experience and advise member States on technical and
methodological issues related to the further development and implementation
of IEEAs in member States.  
  
8.47.  Governments should seek to identify and consider measures to correct
price distortions arising from environmental programmes affecting land,
water, energy and other natural resources.  
  
8.48.  Governments should encourage corporations:  
  
     (a)  To provide relevant environmental information through transparent
reporting to shareholders, creditors, employees, governmental authorities, 
consumers and the public;  
  
     (b)  To develop and implement methods and rules for accounting for  
sustaining development.  
  
(d)  Strengthening data and information collection  
  
8.49.  National Governments could consider implementing the necessary   
enhancement in data collection to set in place national IEEAs with a view
to contributing pragmatically to sound economic management.  Major efforts
should be made to augment the capacity to collect and analyse environmental
data and information and to integrate it with economic data, including
gender disaggregated data.  Efforts should also be made to develop physical 
environmental accounts.  International donor agencies should consider  
financing the development of intersectoral data banks to help ensure that 
national planning for sustainable development is based on precise, reliable 
and effective information and is suited to national conditions.  
  
(e)  Strengthening technical cooperation  
  
8.50.  The Statistical Office of the United Nations Secretariat, in close 
collaboration with relevant United Nations organizations, should strengthen 
existing mechanisms for technical cooperation among countries.  This should 
also include exchange of experience in the establishment of IEEAs,  
particularly in connection with the valuation of non-marketed natural  
resources and standardization in data collection.  The cooperation of
business and industry, including large industrial enterprises and
transnational corporations with experience in valuation of such resources,
should also be sought.  
  
Means of implementation  
  
(a)  Financing and cost evaluation  
  
8.51.  The Conference secretariat has estimated the average total annual
cost (1993-2000) of implementing the activities of this programme to be
about $2 million from the international community on grant or concessional
terms.  These are indicative and order-of-magnitude estimates only and have
not been reviewed by Governments.  Actual costs and financial terms,
including any that are non-concessional, will depend upon, inter alia, the
specific strategies and programmes Governments decide upon for
implementation.  
  
(b)  Strengthening institutions  
  
8.52.  To ensure the application of IEEAs:  
  
     (a)  National institutions in developing countries could be
strengthened to ensure the effective integration of environment and
development at the planning and decision-making levels;  
  
     (b)  The Statistical Office should provide the necessary technical  
support to member States, in close collaboration with the assessment
process to be established by the Statistical Commission; the Statistical
Office should provide appropriate support for establishing IEEAs, in
collaboration with relevant United Nations agencies.  
  
(c)  Enhancing the use of information technology  
  
8.53.  Guidelines and mechanisms could be developed and agreed upon for the 
adaptation and diffusion of information technologies to developing
countries.  State-of-the-art data management technologies should be adopted
for the most efficient and widespread use of IEEAs.  
  
(d)  Strengthening national capacity  
  
8.54.  Governments, with the support of the international community, should
strengthen national institutional capacity to collect, store, organize,
assess and use data in decision-making.  Training in all areas related to
the establishment of IEEAs, and at all levels, will be required, especially
in developing countries.  This should include technical training of those 
involved in economic and environmental analysis, data collection and
national accounting, as well as training decision makers to use such
information in a pragmatic and appropriate way.  
  
END OF CHAPTER 8  
.  
======================================RRojas Research Unit/1996=======
Back to Top
  
To Agenda 21 section     1  2  3  4  5  6  7  8  9 
  Table of contents     10 11 12 13 14 15 16 17 18
                        19 20 21 22 23 24 25 26 27 
                        28 29 30 31 32 33 34 35 36 
                        37 38 39 40

   Rio Declaration on Environment and Development (1992)

   Universal Declaration of Human Rights (1948)

   UNDP: Growth as a means for development (1996)