REFORMING INSTITUTIONS ON THE WAY TO SUSTAINABLE DEVELOPMENT

Nadiya Kostyuchenko

Sumy State University, Ukraine

Economic growth is a fundamental driver of human welfare, and a key component of sustainable development. However, nowadays there is actual the problem to include the ecological component into the economic development. Due to inappropriate incentives, economic activities have often taken a toll on the environment and natural resources. The result of huge resources use is the accelerating environmental degradation. Most recourses involved into the economic process are nonrenewable. That means their exhaustion leads to their disappearance from the surface of Earth and to impossibility to use them in the production process hereinafter. As to the idea of justice between generations (so called “time sustainability”) by current actions present generation shorten the future generations’ possibilities to use the resources for their development. The increased scale of global economic activity has thus prompted calls to increase the efficiency with which these resources are used, so as to decouple economic growth and environmental degradation.

Today it’s quite a satisfactory awareness between these two objectives – economic growth and environmental quality – can provide “win-win” solutions that allow for achievement of multiple objectives [1].

In the past, all Central and Eastern European (CEE) countries had developed stringent, but not enforceable environmental legislation. In many of these countries, the new governments face a problem. Some of the legal environmental requirements, especially the existing ambient standards for water and air pollution, are unrealistically strict. However, to downgrade them would cast a better light on the environment performance [2].

In all CEE countries, environmental institutions need a reform.

What are institutions? Institutions are clusters of rights, rules, and decision-making procedures that give rise to social practices, assign roles to participants in these practices, and govern interactions among occupants of those roles. Unlike organizations, which are material entities that typically figure as actors in social practices, institutions may be thought of as the rules of the game that determine the character of these practices [4].

Conversely, institutions often figure prominently in efforts to solve or manage environmental problems. The top priorities for institutional change should be the next:

  1. shifting responsibilities for environmental management from central to local authorities;
  2. increasing coordination among ministries on environmental issues;
  3. improving the functional capacity of the environmental ministries.

The key priorities:

-A clear government commitment and environmental objectives set in the context of a broad participatory approach is a fundamental prerequisite for longer-term successful environmental policy.

-Donors should make greater use of local expertise. Not only would this help to develop local skills, it can also provide a better understanding of local circumstances and be more cost-effective then using experts from donor countries. Donors should address the problem of tied aid.

-Environmental objectives should be based on realistic assumption about availability of financial and human resources.

-Much more emphasis should be placed on the front-end of the project cycle: 1) establishing objectives; 2) identifying efficient solutions among a range of institutional, policy and technological options; 3) and identifying what is needed for successful implementation.

-Be cautious in developing comprehensive environmental laws; the rapid political and economic changes may make them difficult to implement.

-Integrate environmental concerns in the economic reform laws wherever possible [2].

CEE countries should design and implement educational training programs for high-level decision-makers at national and local levels, in close cooperation with local institutions. Training programs could be supported by voluntary contributions from donors. CEE countries should establish a network of national institutions involved in environmental training. They should extend monitoring networks, comparability and reliability of the data collected. The purpose of the network would be to promote exchange of information between those institutions and their counter-parts in other countries, and with external financial partners.

Voluntary environmental agreements as much as public authorities also may speed up the achievement of established goals in a way other approaches cannot [3]. The role of organizations of public society is especially important in advancement ecologically effective strategies of development. It’s really important to encourage authorities and business to recognize the role of environmental NGOs as full participants in the public debate about sustainable development and the formulation and implementation of practical policies. An ecological management is frequently attended with the «descending streams» of external effects, and such organizations often give knowledge and provide the contacts between people from different areas of the country [5]. Environmental NGOs raise public awareness, stimulate changes in public attitudes and policies, put forward viable alternatives and often implement them to set an example. Such a co-operation can give really a positive effect as public more sharply feel and react on environmental problems and is able to see the future perspective not being burdened by existing legislation doctrines.

In CEE countries the role of NGOs is even more important than in the West, for the following reasons:

-a strong environmental movement ensures that environmental issues remain on the political agenda;

-the transition period in principle provides a unique opportunity to establish the basis for sustainable development, by avoiding the mistakes of the West. Environmental NGOs can play an important role in this regard, drawing in part on the information available to them from colleagues in the West;

-environmental NGOs can contribute substantially to strengthening the fabric of society. They can mobilize the population and motivate people to take on special responsibilities [2].

For these purposes NGOs should be invited to the relevant advisory boards, delegations, negotiations, etc. It’s necessary to consider providing financial support to NGOs. This should not be restricted to pure environmental and nature conversation issues, but extended to all the areas that are related, especially economic questions. Environmental NGOs basically rely on volunteers, but the economic situation in CEE countries has made voluntary work difficult. In any case, environmental organizations need a professional nucleus and financial resources. They are unlikely, at least in the short term, to build a strong financial base from membership and individual donations. Governments could consider financial support to such NGOs in order assist them to play necessary roles described above.

Thus, transition to sustainable development requires forming of the ecological-oriented way of thinking and way of life, and also requires institutional changes, to what the deep analysis of public, economic and ecological intercommunications must precede. And until institutions will not attain success in the division of power and in giving a part of power to public authorities to make them able to participate in the process of taking decisions, an environment and natural resources will carry damage and there will be further facilitation of environmental crisis.

Literature:

  1. Environmental Economic, Policy and International Relations. Papers presented at 7th seminar of PhD students, young scientists and researches.- The University of Economics, Prague, Czech Republic.- October 6-7, 2005.
  1. Environmental Action Programme for Central and Eastern Europe. Setting Priorities. Abridged Version of the Document endorsed by the Ministerial Conference.- Lucerne, Switzerland.- April 28-30, 1993.
  2. Voluntary Agreements in Environmental Policy.-Petr Sauer and others.- Prague, Czech Republic, 2001.
  3. Д. Норт Институты, институциональные изменения и функционирование экономики. /Пер. с англ. А.Н. Нестеренко).- М.: «Начала», 1997.
  4. Доклад о мировом развитии 2003 года. Устойчивое развитие в меняющемся мире. Преобразование институтов, рост и качество жизни. / Пер. с англ.- М.: Издательство «Весь мир», 2003.