A Critical Review of World Development Report:
“Understanding the Links between Development and Climate Change”
Author: Tomas Freitas
Introduction
According to the World Development Report 2010, climate change has affected economic growth both in developed and developing countries. Developing economies will be more affected however because of their exposure to climate shocks and low adaptive capacity, therefore urgent action is needed in order to mitigate the global warming (World Bank, 2010).
The report describes many facts of the implications of climate change including lower rainfall which affects agriculture production, reduced water on glacier plateaus, temperature rises which also cause an increase in malaria and dengue, and an unprecedented number of hurricanes and floods, all of which affect the financing of disaster prevention. The report also discusses the types of mitigation policies that could reduce global warming, such as green taxes, hydro power projects, and biofuels. Analysis of the report demonstrates that the policy recommendations for climate change mitigation have been designed to suit the neoliberal concept of free market orientation.
This essay will critically evaluate the report from a political economy perspective, while also analysing the content and recommendations as provided by the report. Some of the issues that will be referred to in the report include purchasing power parity of affluent and not so affluent societies; the power of large companies and institutions; women’s participation in innovation; food security; the potential for hydropower projects and debt and structural adjustment policies; expansion of non-subsistence food production crops such as sugarcane; and the introduction of green taxes.
Apart from the facts outlined above, the report also provides data relating to individual contributions to green gas houses emissions based on high, medium and low income counties, as shown in Figure 1.1 in the Report. Moreover, high income countries such as Australia, Canada and the United States are in the top three greenhouse gas emitting states. Looking at the contribution of emissions by high income in comparison to medium and low income countries, the discrepancy is very obvious, because the high income countries have more capacity in terms of their purchasing power parity compared to the others. This means that as a consumer with a high income, it will have more options to choose products according to its interest. In this situation it is possible to apply the neoclassical theory of ‘consumer rationality’, which is ‘utility maximisation’, meaning that with the knowledge and preferences about the products, the consumer spend their disposal income to their satisfaction (Stilwell, 2002).
The table below which describes the percentages of the four main gas emissions into atmosphere, based on the Intergovernmental Panel on Climate Change Report 2007.
“Understanding the Links between Development and Climate Change”
Author: Tomas Freitas
Introduction
According to the World Development Report 2010, climate change has affected economic growth both in developed and developing countries. Developing economies will be more affected however because of their exposure to climate shocks and low adaptive capacity, therefore urgent action is needed in order to mitigate the global warming (World Bank, 2010).
The report describes many facts of the implications of climate change including lower rainfall which affects agriculture production, reduced water on glacier plateaus, temperature rises which also cause an increase in malaria and dengue, and an unprecedented number of hurricanes and floods, all of which affect the financing of disaster prevention. The report also discusses the types of mitigation policies that could reduce global warming, such as green taxes, hydro power projects, and biofuels. Analysis of the report demonstrates that the policy recommendations for climate change mitigation have been designed to suit the neoliberal concept of free market orientation.
This essay will critically evaluate the report from a political economy perspective, while also analysing the content and recommendations as provided by the report. Some of the issues that will be referred to in the report include purchasing power parity of affluent and not so affluent societies; the power of large companies and institutions; women’s participation in innovation; food security; the potential for hydropower projects and debt and structural adjustment policies; expansion of non-subsistence food production crops such as sugarcane; and the introduction of green taxes.
Apart from the facts outlined above, the report also provides data relating to individual contributions to green gas houses emissions based on high, medium and low income counties, as shown in Figure 1.1 in the Report. Moreover, high income countries such as Australia, Canada and the United States are in the top three greenhouse gas emitting states. Looking at the contribution of emissions by high income in comparison to medium and low income countries, the discrepancy is very obvious, because the high income countries have more capacity in terms of their purchasing power parity compared to the others. This means that as a consumer with a high income, it will have more options to choose products according to its interest. In this situation it is possible to apply the neoclassical theory of ‘consumer rationality’, which is ‘utility maximisation’, meaning that with the knowledge and preferences about the products, the consumer spend their disposal income to their satisfaction (Stilwell, 2002).
The table below which describes the percentages of the four main gas emissions into atmosphere, based on the Intergovernmental Panel on Climate Change Report 2007.
Table 1. Sources: IPCC Report (2007) and Earth Reform (2012)
If we have a look the table above, it is very clear that high income countries have contributed the most gas emissions into the ozone, especially the contribution of fluorinated gasses. This is very typical of affluent society consumption, which adopts utility maximisation of consumer rationality theory. This data has been calculated taking into account the pre-industrial era, around 250 years ago (IPCC, 2007).
The data in the table clearly shows that the contribution of burning fossil fuels is very high; however the World Development Report 2010 did not refer to any international corporate or giant oil companies, who are the main actors for extracting fossil fuels. According to one professor of geology James Lawrence Powel, the first organisation that denies global warming is the Global Climate Coalition which is founded by Exxon Mobile, Chevron, Shell, Texaco, American Petroleum Institute, Chrysler, Ford, General Motors, Amoco, American Forest and Paper Association and U.S. Chamber of Commerce. The coalition has campaigned strongly against the Kyoto Protocol (Powel, 2011, Chapter 9). The question is why does the report not mention those giant corporate companies?
As described in Box 1.1, the report specifically highlights women’s participation in all productive sectors, for example women’s participation in natural disaster management in La Masica- Honduras, women’s participation and innovation in water resources management in Zammour- Tunisia, and that women’s participation enhances food security and forest protection in Central America countries (World Bank, 2010).
This paper does not intend to underestimate the capacity of women in natural disaster management; rather, the intention is to analyse the sources of evidence which have been brought by the World Bank, which typically reflects an epistemology or anti foundationalist position, which means that their interpretation is based on another observation, what David Marsh and Paul Furlong (2002) called ‘double hermeneutics’ or indirect observation.
Information regarding women’s participation in the early warning system of disaster management in La Masica Honduras after Hurricane Mitch in 1998 was not clear. Actually, the information has been cited from one report to other reports with the result that the content of the information has been modified slightly to feed the interest of readers. The report has been cited by the World Bank from the World Health Organisation, which WHO also has quoted from the Inter-American Development Bank, (WHO, 2005), and the IADB also has cited the information from another consultant, (Buvinic, 1999). However, the information did not appear in local community reports (Alonzo, 2000). Moreover, the training project for an early warning system was funded by the German government through the German Technical Cooperation (GTZ), and the report published by GTZ does not specifically refer to women’s participation but rather remains very general, referring to strong participation from local NGOs, local leaders and community (GTZ, 2005).
Women participation in water resources management in Zammour, Tunisia is an example of innovation from seventy-year old women who invented a system for watering water melon plants using plastic bottle for collecting raining water. This kind of innovation is supported by local indigenous organisations (UNESCO, 2003). So where is the support from climate change finance?
Women in Guatemala, Nicaragua, El Salvador, Honduras, Peru and Haiti plant and collect Maya nuts as a staple food. The original story came from the Maya Nut Institution (2012), an organisation that has trained more than 17,000 thousand women from 1200 communities. The Maya Nut institution was founded by agriculturist and florist activist Erika Vohman. The organisation has received several awards and funding from donors including from the World Bank (Buffle & Vohman, 2011). According to the financial information, the total budget for 2008 was $226,974, in 2009 it was $136,106, 2010 it was $96,694, and in 2011 $128,991 (Maya Nut Institute, 2012). The financial allocation does not seem much, but the organisation performed well in managing programs and activities in several countries. The organisation has proved that big funding is not the answer for everything; however, at the same time it also confronted issues in regards to trading of their products. The Maya Nut Institution website, declares that the organisation will form an alternative trade organisation, to protect the rights of Maya Nut producers (Maya Nut Institution 2012). The problem of trading has always been an obstacle for farmers in developing countries, because developed countries always protect their own agriculture by subsidising their farmers and applying high tariffs for import grains from developing counties (Khor, 2005).
If we analyse the participation of women in Maya Nut productivities above, we might wonder why the World Bank also funds these kinds of activities, even though the contribution from the World Bank is unclear. It is possible that the World Bank might think not to provide big funding, because the market for Maya Nut may not be large enough, and the production may not yet be ready for global export orientation, meaning that it is not like coffee beans or tea leafs that can be exported to European and Western countries. For example in the film “The End of Poverty? Think Again”, the Kenyan Agriculture Minister, Kipruto Arap Kirwa, talks about how Sudanese tea farmers export tea leaves to Europe, which are bought by Lipton and then processed and marketed to the world as final products ready for consumption (Diaz, 2008).
Maya Nut also has a positive impact on food security, as the food product can be consumed as a daily meal as well as in the school feeding program. So far this kind of root crops can only be found in Central America and Caribbean countries throughout the bushland, where the crop grows together with other different types of trees. Historically, roots crops are the subsistence food of indigenous Mayan society, preceding corn cultivation during the Mesoamerican period (Bronson, 1966). A testimony from a female farmer declares that the Mayan Nut has saved their lives during the war in El Salvador (Maya Nut institution, 2012).
“During the war my father could not plant the corn or anything. He could not even go outside, none of us could; it was too dangerous. My grandmother went out at night and collected Maya Nut seed from beneath the big trees by the river. We had to eat them raw because a fire was not possible. We survived almost a month on the Maya Nut and other things my grandmother scavenged at night. She saved our lives, Maya Nut saved our lives. Elvia Sanchez, Morazan, El Salvador”. (Source: Maya Nut Institute, 2012, Available at http://mayanutinstitute.org/)
This testimony reminds us of the history of colonialism as seen in the film “The End of Poverty? Think Again”, where the colonial power took productive land and used it for planting commodities such as sugar, cocoa, coffee, copra and other cash crops. When it came time to harvest, this merchandise was exported back to the county of the colonisers (Diaz, 2008). Productive land is normally flat or containing volcanic soils, which is perfect for growing export crops (Rosset, 2005). If we compare the above testimony about the location of the Maya Nut tree near the river, it does make sense that this kind of staple food was not an export commodity during colonial times, because normally this kind of tree is found in the bushland, rainforest, and riverside (Maya Nut Institution, 2012b).
The testimony also clearly indicates that this Maya Nut is an original food, which could possibly become an alternative food for rural communities in Central American and Caribbean countries, which could become a vanguard against famine. If this ancient food was successfully introduced to the entire region of Latin American countries as a daily meal, it would become an obstacle for giant companies such as Monsanto to introduce their genetically modified seeds, and will become a barrier for food companies in the United States, Canada and Europe to export their food products to Latin America. This movement could become a form of resistance to monopolisation of the food market by the north in the entire region. This is why the World Bank does not want to fully support the program of the Maya Nut institution; because it could become food security against transgenic crops from big companies.
Despite unclear support from the World Bank toward this movement, on the other hand the Bank wants to show to the public that it supports the actions of women in mitigating climate change.
According to the report, mitigation policies have also been discussed around the potential of hydropower projects in Sub-Saharan Africa, as presented on Map 1.5. This policy is a typical Keynesian idea of spending on infrastructure (Stilwell, 2002). Yes, hydropower is a kind of alternative energy but to build the infrastructure is not cheap. There are questions around who will finance the project? And where will the Sub-Saharan government get the money from? To build a mini-hydropower with total capacity production of energy of 30 megawatts, from the experience of Timor-Leste and the case study of the Ira Lalaro Hydropower, it will cost at least US $64 million up to US $112 million. This can be seen in Table 2 below.
If we have a look the table above, it is very clear that high income countries have contributed the most gas emissions into the ozone, especially the contribution of fluorinated gasses. This is very typical of affluent society consumption, which adopts utility maximisation of consumer rationality theory. This data has been calculated taking into account the pre-industrial era, around 250 years ago (IPCC, 2007).
The data in the table clearly shows that the contribution of burning fossil fuels is very high; however the World Development Report 2010 did not refer to any international corporate or giant oil companies, who are the main actors for extracting fossil fuels. According to one professor of geology James Lawrence Powel, the first organisation that denies global warming is the Global Climate Coalition which is founded by Exxon Mobile, Chevron, Shell, Texaco, American Petroleum Institute, Chrysler, Ford, General Motors, Amoco, American Forest and Paper Association and U.S. Chamber of Commerce. The coalition has campaigned strongly against the Kyoto Protocol (Powel, 2011, Chapter 9). The question is why does the report not mention those giant corporate companies?
As described in Box 1.1, the report specifically highlights women’s participation in all productive sectors, for example women’s participation in natural disaster management in La Masica- Honduras, women’s participation and innovation in water resources management in Zammour- Tunisia, and that women’s participation enhances food security and forest protection in Central America countries (World Bank, 2010).
This paper does not intend to underestimate the capacity of women in natural disaster management; rather, the intention is to analyse the sources of evidence which have been brought by the World Bank, which typically reflects an epistemology or anti foundationalist position, which means that their interpretation is based on another observation, what David Marsh and Paul Furlong (2002) called ‘double hermeneutics’ or indirect observation.
Information regarding women’s participation in the early warning system of disaster management in La Masica Honduras after Hurricane Mitch in 1998 was not clear. Actually, the information has been cited from one report to other reports with the result that the content of the information has been modified slightly to feed the interest of readers. The report has been cited by the World Bank from the World Health Organisation, which WHO also has quoted from the Inter-American Development Bank, (WHO, 2005), and the IADB also has cited the information from another consultant, (Buvinic, 1999). However, the information did not appear in local community reports (Alonzo, 2000). Moreover, the training project for an early warning system was funded by the German government through the German Technical Cooperation (GTZ), and the report published by GTZ does not specifically refer to women’s participation but rather remains very general, referring to strong participation from local NGOs, local leaders and community (GTZ, 2005).
Women participation in water resources management in Zammour, Tunisia is an example of innovation from seventy-year old women who invented a system for watering water melon plants using plastic bottle for collecting raining water. This kind of innovation is supported by local indigenous organisations (UNESCO, 2003). So where is the support from climate change finance?
Women in Guatemala, Nicaragua, El Salvador, Honduras, Peru and Haiti plant and collect Maya nuts as a staple food. The original story came from the Maya Nut Institution (2012), an organisation that has trained more than 17,000 thousand women from 1200 communities. The Maya Nut institution was founded by agriculturist and florist activist Erika Vohman. The organisation has received several awards and funding from donors including from the World Bank (Buffle & Vohman, 2011). According to the financial information, the total budget for 2008 was $226,974, in 2009 it was $136,106, 2010 it was $96,694, and in 2011 $128,991 (Maya Nut Institute, 2012). The financial allocation does not seem much, but the organisation performed well in managing programs and activities in several countries. The organisation has proved that big funding is not the answer for everything; however, at the same time it also confronted issues in regards to trading of their products. The Maya Nut Institution website, declares that the organisation will form an alternative trade organisation, to protect the rights of Maya Nut producers (Maya Nut Institution 2012). The problem of trading has always been an obstacle for farmers in developing countries, because developed countries always protect their own agriculture by subsidising their farmers and applying high tariffs for import grains from developing counties (Khor, 2005).
If we analyse the participation of women in Maya Nut productivities above, we might wonder why the World Bank also funds these kinds of activities, even though the contribution from the World Bank is unclear. It is possible that the World Bank might think not to provide big funding, because the market for Maya Nut may not be large enough, and the production may not yet be ready for global export orientation, meaning that it is not like coffee beans or tea leafs that can be exported to European and Western countries. For example in the film “The End of Poverty? Think Again”, the Kenyan Agriculture Minister, Kipruto Arap Kirwa, talks about how Sudanese tea farmers export tea leaves to Europe, which are bought by Lipton and then processed and marketed to the world as final products ready for consumption (Diaz, 2008).
Maya Nut also has a positive impact on food security, as the food product can be consumed as a daily meal as well as in the school feeding program. So far this kind of root crops can only be found in Central America and Caribbean countries throughout the bushland, where the crop grows together with other different types of trees. Historically, roots crops are the subsistence food of indigenous Mayan society, preceding corn cultivation during the Mesoamerican period (Bronson, 1966). A testimony from a female farmer declares that the Mayan Nut has saved their lives during the war in El Salvador (Maya Nut institution, 2012).
“During the war my father could not plant the corn or anything. He could not even go outside, none of us could; it was too dangerous. My grandmother went out at night and collected Maya Nut seed from beneath the big trees by the river. We had to eat them raw because a fire was not possible. We survived almost a month on the Maya Nut and other things my grandmother scavenged at night. She saved our lives, Maya Nut saved our lives. Elvia Sanchez, Morazan, El Salvador”. (Source: Maya Nut Institute, 2012, Available at http://mayanutinstitute.org/)
This testimony reminds us of the history of colonialism as seen in the film “The End of Poverty? Think Again”, where the colonial power took productive land and used it for planting commodities such as sugar, cocoa, coffee, copra and other cash crops. When it came time to harvest, this merchandise was exported back to the county of the colonisers (Diaz, 2008). Productive land is normally flat or containing volcanic soils, which is perfect for growing export crops (Rosset, 2005). If we compare the above testimony about the location of the Maya Nut tree near the river, it does make sense that this kind of staple food was not an export commodity during colonial times, because normally this kind of tree is found in the bushland, rainforest, and riverside (Maya Nut Institution, 2012b).
The testimony also clearly indicates that this Maya Nut is an original food, which could possibly become an alternative food for rural communities in Central American and Caribbean countries, which could become a vanguard against famine. If this ancient food was successfully introduced to the entire region of Latin American countries as a daily meal, it would become an obstacle for giant companies such as Monsanto to introduce their genetically modified seeds, and will become a barrier for food companies in the United States, Canada and Europe to export their food products to Latin America. This movement could become a form of resistance to monopolisation of the food market by the north in the entire region. This is why the World Bank does not want to fully support the program of the Maya Nut institution; because it could become food security against transgenic crops from big companies.
Despite unclear support from the World Bank toward this movement, on the other hand the Bank wants to show to the public that it supports the actions of women in mitigating climate change.
According to the report, mitigation policies have also been discussed around the potential of hydropower projects in Sub-Saharan Africa, as presented on Map 1.5. This policy is a typical Keynesian idea of spending on infrastructure (Stilwell, 2002). Yes, hydropower is a kind of alternative energy but to build the infrastructure is not cheap. There are questions around who will finance the project? And where will the Sub-Saharan government get the money from? To build a mini-hydropower with total capacity production of energy of 30 megawatts, from the experience of Timor-Leste and the case study of the Ira Lalaro Hydropower, it will cost at least US $64 million up to US $112 million. This can be seen in Table 2 below.
Table 2. Sources: Asian Development Bank (2004,pp 73,75,80 & 81) and Ministry of Transport, Communication & Public Works 92005,pp33)
If we compare the total estimated costs of 2004 and 2005, the cost has increased by 100%. The above costs were estimated eight or nine years ago; however, the project has been cancelled because of the uncertainty of the cost of development of the project, as well as because the new government has been warned by local civil society about the negative impact on the environmental that could be caused by the project, (Haburas Foundation, 2006) and (Lao Hamutuk, 2004:17).
According to Map 1.5 in the Report, Tanzania is one of the economically feasible countries for hydropower projects. Since 1964 the country has built a few hydropower plants, in particular the Kidatu hydropower funded with World Bank loans of US $30 million, for generation of 50 megawatts of energy electricity (World Bank, 2012a). This can be seen in Table 3 below.
If we compare the total estimated costs of 2004 and 2005, the cost has increased by 100%. The above costs were estimated eight or nine years ago; however, the project has been cancelled because of the uncertainty of the cost of development of the project, as well as because the new government has been warned by local civil society about the negative impact on the environmental that could be caused by the project, (Haburas Foundation, 2006) and (Lao Hamutuk, 2004:17).
According to Map 1.5 in the Report, Tanzania is one of the economically feasible countries for hydropower projects. Since 1964 the country has built a few hydropower plants, in particular the Kidatu hydropower funded with World Bank loans of US $30 million, for generation of 50 megawatts of energy electricity (World Bank, 2012a). This can be seen in Table 3 below.
Table 3. Sources: Tanesco "The Power Sector in Tanzania", ESI Africa2 (2006): 16, cited in Hoag & Ohman (2008:642)
If the World Bank has provided $30 million in loans for the Kidatu Hydropower Project, how much would it cost for all of the projects in the above table? Will climate change finance provide grants to build new hydropower projects? Or will the Tanzanian government need to ask for more loans. See Table 4 below:
If the World Bank has provided $30 million in loans for the Kidatu Hydropower Project, how much would it cost for all of the projects in the above table? Will climate change finance provide grants to build new hydropower projects? Or will the Tanzanian government need to ask for more loans. See Table 4 below:
Table 4. Source: The World Bank (2012b)
This table shows that it is impossible for the Tanzanian government to build more hydropower plants. Where they will get the money from? They still have to pay back the existing loans; how will it be possible to get other loans. The World Development Report 2010 does not make sense in recommending mitigation policies in tackling global warming with feasibility hydropower projects for sub-Saharan African countries such as Tanzania.
The Tanzanian case is actually not about where the Tanzanian government will get the money from; but rather, when a country engages with loans they are usually never able to pay back the loan, and there are conditions and structural adjustment imposed on the loan (Bracking, 1999). The Tanzanian government is already engaged with structural adjustment programs as conditionality for existing loans. This essay will not explore further SAP implementation in Tanzania; but will make the point that the intention of mitigating climate change from institutions such as the World Bank includes strategies to force poor countries to adopt and implement SAP policies.
The utilisation of corn-based ethanol has been condemned by many people especially by activists fighting against hunger, including Fidel Castro (former Cuban President). Fidel Castro (2007) has criticised his counterpart Lula Da Silva, President of Brazil, because Lula has exported 27,300,000 of high protein soy beans to the United States, which Castro believes will use for biofuels. According to Castro, ninety percent of eight states in Brazil including Paraná, Minas Gerais, Sao Paulo, Goiás, Mato Grosso, Rio Grande do Sul, Santa Catarina and Mato Grosso do Sul are producing corn, and only four states, that is sixty percent are producing sugar cane including Sao Paulo, Paraná, Pernambuco and Alagoas. However, according to the Sugar Cane Industry Association (UNICA) (2012), in the last three decades sugar cane plantations and production has expanded enormously. The graphic below shows that except for two states, sugar cane production has increased rapidly, particularly since 2005.
This table shows that it is impossible for the Tanzanian government to build more hydropower plants. Where they will get the money from? They still have to pay back the existing loans; how will it be possible to get other loans. The World Development Report 2010 does not make sense in recommending mitigation policies in tackling global warming with feasibility hydropower projects for sub-Saharan African countries such as Tanzania.
The Tanzanian case is actually not about where the Tanzanian government will get the money from; but rather, when a country engages with loans they are usually never able to pay back the loan, and there are conditions and structural adjustment imposed on the loan (Bracking, 1999). The Tanzanian government is already engaged with structural adjustment programs as conditionality for existing loans. This essay will not explore further SAP implementation in Tanzania; but will make the point that the intention of mitigating climate change from institutions such as the World Bank includes strategies to force poor countries to adopt and implement SAP policies.
The utilisation of corn-based ethanol has been condemned by many people especially by activists fighting against hunger, including Fidel Castro (former Cuban President). Fidel Castro (2007) has criticised his counterpart Lula Da Silva, President of Brazil, because Lula has exported 27,300,000 of high protein soy beans to the United States, which Castro believes will use for biofuels. According to Castro, ninety percent of eight states in Brazil including Paraná, Minas Gerais, Sao Paulo, Goiás, Mato Grosso, Rio Grande do Sul, Santa Catarina and Mato Grosso do Sul are producing corn, and only four states, that is sixty percent are producing sugar cane including Sao Paulo, Paraná, Pernambuco and Alagoas. However, according to the Sugar Cane Industry Association (UNICA) (2012), in the last three decades sugar cane plantations and production has expanded enormously. The graphic below shows that except for two states, sugar cane production has increased rapidly, particularly since 2005.
Table 5. Source: Sugar Cane Industry Association (2012)
An analysis of the graphic in Table 5 indicates that the expansion of sugar cane plantations has indirectly affected 90% of corn production, as referred to by Fidel Castro. Further, corn production will continue to remain under stress, because early in 2012, the U.S. Congress has moved to deregulate tariff imports against ethanol-54 cents-per-gallon, which will encourage more productivity in sugar cane plantation as opposed to corn plantations (Mathews, 2012).
As mentioned in the World Development Report 2010, Brazil could become the “next big energy supplier of ethanol”; it is quite possible that this will happen because as can be seen in the graphic in Table 6 below, sugar cane plantations are expanding to almost reach ten million hectares in 2010, and according to the new bill of land permission, 64 million hectares of national land will be secured for sugarcane farming (Secretariat for Social Communication, 2012).
An analysis of the graphic in Table 5 indicates that the expansion of sugar cane plantations has indirectly affected 90% of corn production, as referred to by Fidel Castro. Further, corn production will continue to remain under stress, because early in 2012, the U.S. Congress has moved to deregulate tariff imports against ethanol-54 cents-per-gallon, which will encourage more productivity in sugar cane plantation as opposed to corn plantations (Mathews, 2012).
As mentioned in the World Development Report 2010, Brazil could become the “next big energy supplier of ethanol”; it is quite possible that this will happen because as can be seen in the graphic in Table 6 below, sugar cane plantations are expanding to almost reach ten million hectares in 2010, and according to the new bill of land permission, 64 million hectares of national land will be secured for sugarcane farming (Secretariat for Social Communication, 2012).
Table 6. Source: Sugar Cane Industry Association (2012)
The World Development Report (2010) also refers to a green tax as one of the mitigation policies for climate change. The World Bank’s commentaries on this policy are very general, and it does not particularly favour this policy, because the World Bank believes carbon tax should affect direct and indirectly household economies. In the explanation, it is stated that green tax will contribute directly to rising energy prices like electricity bills and fuel for transportation and will indirectly affects household expenditure because the price of goods will increase (World Bank, 2010, Ch1).
Some countries have applied green tax as part of mitigation policies, such as Australia’s carbon tax, which has been introduced as part of the package of the Energy Trading Scheme (ETS), which collects AU $23 per ton of gas emissions, and handles over five billion dollars as a carbon price mechanism to help companies reduce their gas emissions (Department of Climate Change and Energy Efficiency, 2012). According to an environmental organisation, Friends of the Earth Australia, the scheme will provide benefits to the polluters (mining and oil companies) and keep polluting the atmosphere. The Gillard government has provided five billion dollars every year for polluters, which includes 1.5 billion for emission reductions in power stations, 1 billion for energy renewables and 2.5 billion for compensation of loss in competitiveness (Goodman, 2011). Ideally, if the government is serious in tackling global warming, it should increase the rate of the carbon tax, and provide 100% investment in energy renewables.
However, mitigation policies are not only the responsibility of government, but should also involve giant corporate business, which are purely profit orientated. This is why to convince the mining and oil companies to reduce their emissions, the government has to provide incentives otherwise the carbon tax will be passed on to household economies as explained in the Report. The carbon price is an incentive; according to the business sector, it is considered to be a deposit to guarantee the deal. According to Anderson (2011), the energy trading scheme is based on the spirit of market transaction or “market mechanism”, a neoliberal concept, which is why the carbon price can be considered as a “deal” to avoid conflict of interest between mining companies and government.
Conclusion
This paper has considered a number of issues in relation to the World Development Report “Understanding the Links between Development and Climate Change”. The paper began with the viewpoint that developing economies will be more affected by climate change however because of their low adaptive capacity to be able to make the changes needed to mitigate climate change.
The analysis has included review of the expenditure of disposal income, showing us that purchasing power parity is still dominated by an affluent society which has become the major contributor to greenhouse gas emissions. It has also referred to the ignorance of the global climate coalition to the Kyoto Protocol, showing that giant corporate companies remain powerful. Further on, the paper has looked at the participation of women and the evidence that local indigenous organisations are more proactive in support innovations in rural areas compared to external organisations and funding.
The paper has also discussed at some length the re-forestation of the ancient Maya Nut trees in Central American and Caribbean countries, which has become an opponent to transgenic imports of food. Further, the potential to build new hydropower projects is a strategy to force poor countries into debt and then to adopt SAP policies. The interpretation of these observations becomes typical knowledge of the mainstream scholar. In addition, the expansion of sugar cane plantation will become dangerous to food production.
Finally, this paper has considered some of the issues around green tax, using Australia’s mining tax as an example. The paper has concluded that mining companies will come on board with green tax initiatives as long as the transactions include a carbon price as part of the deal.
The focus of the paper has been on the intentions and actions of large institutions and the corporate sector, in the context of the neoliberal global economy. The analysis has shown, through a number of examples as outlined above, that the policy recommendations for climate change mitigation have been designed to suit the neoliberal concept of free market orientation.
References
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Earth Reform., 2012. ‘Climate Change Cause and Effect’, Available from http://earthreform.org/videos/
Bracking, S., 1999. ‘Structural Adjustment: Why It Wasn't Necessary & Why It Did Work’, Review of African Political Economy, Vol. 26, No. 80, pp207-226 Available from http://www.jstor.org.ezproxy1.library.usyd.edu.au/stable/4006560
Bronson, B., 1966. ‘Roots and the Subsistence of the Ancient Maya’, Southwestern Journal of Anthropology, Vol. 22, No. 3, pp. 251-279. Available from http://www.jstor.org.ezproxy2.library.usyd.edu.au/stable/pdfplus/3629373.pdf?acceptTC=true
Buffle, P., & Vohman, E., 2011. ‘Using the Maya Nut tree to increase tropical agroecosystem Resilience to climate change in Central America and Mexico’, Ecosystems & Livelihoods Adaption Network. Available from http://owe.unu-mc.org/3925/Maya_nut_case_study.pdf
Buvinic, M., 1999. ‘Hurricane Mitch: Women's Needs and Contributions’, Inter-American Development Bank’, Available from https://docs.google.com/viewer?a=v&q=cache:j2EreR3GQ3YJ:ipcc-wg2.gov/njlite_download.php?id%3D5817+La+masica+by+Buvinic&hl=en&gl=au&pid=bl&srcid=ADGEESh0_olur8xUVUByJQF4IwEOEzW00fjsdwR_X7vBvxBw5tMaSCfoSgOgIjUb-EPjpFhVAV3QseQiE1kvIvZq4J1QLjQJeSkrjQao4q6JbJBi6IbH0LKmcpDIM5azNgFR1aNBCbKb&sig=AHIEtbT-hLcqnnxp4klLoX5AnGMsTni3SQ
Department of Climate Change and Energy Efficiency, 2012. ‘Reducing Australia's emissions’, Available from http://www.climatechange.gov.au/government/reduce.aspx
Diaz, P., 2008. ‘The End of Poverty? Think Again’, Cinema Libre Studio, Available from http://www.youtube.com/watch?v=pktOXJr1vOQ&feature=watch-now-button&wide=1
German Technical Cooperation., 2005. ‘Community-based disaster risk management and intermunicipal cooperation’, Available from
http://www.giz.de/Themen/en/SID-2BC9BC2E-0E3ADB63/dokumente/en-hn-community-based-disaster-risk-mamagement.pdf
Goodman, J., 2011. ‘Australia’s carbon price plan: The greatest corporate windfall of our time’, Friends of Earth., Available from http://climateandcapitalism.com/2011/07/11/australias-carbon-price-plan-the-greatest-corporate-windfall-of-our-time/
Haburas Foundation., 2006. ‘Report Of Findings On The Proposed Ira Lalaro Hydro-Electric Power Scheme Timor-Leste: A report to The Haburas Foundation and The Australian Conservation Foundation’, Available at http://www.laohamutuk.org/Oil/LNG/Refs/115Iralalauro.pdf
Hoag, J, H., & Ohman, B, M., 2008. ‘Turning Water into Power: Debates over the Development of Tanzania Rufiji River Basin, 1945-1985’, Technology and Culture, Vol 49, No 3, pp. 624-651 Available from http://muse.jhu.edu/login?auth=0&type=summary&url=/journals/technology_and_culture/v049/49.3.hoag.html
Intergovernmental Panel on Climate Change., 2007. ‘Climate Change 2007: Working Group I: The Physical Science Basis’, Available from http://www.ipcc.ch/publications_and_data/ar4/wg1/en/ch2s2-3.html
Khor, M., 2005. ‘The Commodities Crisis and The Global Trade in Agriculture: Problems And Proposals’, Third World Network, Available from www.twnside.org.sg/title2/par/td25.doc
Lao Hamutuk., 2004. ‘Observation regarding The RESPECT Program in East Timor’, Bulletin Lao Hamutuk., Vol 5, No 5-6, Pp17. Available from http://www.laohamutuk.org/Bulletin/2004/Dec/lhbl5n56e.pdf
Maya Nut Institution., 2012. ‘Financial Information’, available from http://mayanutinstitute.org/page.cfm?pageid=19062
Maya Nut Institution., 2012. ‘Maya Nut found in Jamaica’, available from http://mayanutinstitute.org/page.cfm?pageid=16191
Marsh, D., & Furlong, P., 2002. A Skin, not a Sweater: Ontology and Epistemology in Political Science’ in David Marsh and Gerry Stoker (2nd Eds) (2002) Theory and Methods in Political Science, Palgrave MacMilan, London.
Mathews, J., 2012. ‘The End of the U.S. Ethanol Tariff’, Sugar Cane Industry Association, Available from http://english.unica.com.br/opiniao/show.asp?msgCode={61FB3F4B-1644-4445-B05F-577F96C38BED}
Ministry of Transport, Communication & Public Works., 2005. ‘Power: Priorities and Proposed Sector Investment Program’, Available from http://www.laohamutuk.org/Oil/Power/PowerSIP2005.pdf
Powel, L, J., 2011. ‘The Inquisition of Climate Science’, Columbia University Press, New York.
Rosset, M, P., 2005. ‘Transgenic Crops to Address Third World Hunger? A Critical Analysis’, Bulletin of Science, Technology & Society, Vol 25, No 4, Pp 306-313. Available from http://bst.sagepub.com.ezproxy1.library.usyd.edu.au/content/25/4/306.full.pdf+html
Ruz, C, F., 2007. ‘On Biofuels and an Energy Revolution’, The Monthly Review, Available from http://mrzine.monthlyreview.org/2007/castro040507.html
Secretariat for Social Communication., 2012. ‘Brazil increases environmental preservation measures with sugarcane zoning proposal’, Press Release, Available from http://www.brasil.gov.br/para/press/press-releases/february/brazil-increases-environmental-preservation-measures-with-sugarcane-zoning-proposal
Stilwell, F., 2002. ‘Political Economy: The Contest of Economic Ideas’, (1st Edition) Oxford University Press, Singapore.
Sugar Cane Industry Association., 2012. ‘Sugar Cane Planted Area’, Available from
http://www.unicadata.com.br/historico-de-area-ibge.php?idMn=33&tipoHistorico=5&acao=visualizar&idTabela=1179&produto=Planted+area&anoIni=1980&anoFim=2010&estado=RS%2CSC%2CPR%2CSP%2CRJ%2CMG%2CES%2CMS%2CMT%2CGO%2CDF%2CBA%2CSE%2CAL%2CPE%2CPB%2CRN%2CCE%2CPI%2CMA%2CTO%2CPA%2CAP%2CRO%2CAM%2CAC%2CRR
United Nations Educational, Scientific and Cultural Organisation., 2003. ‘Best Practices on Indigenous Knowledge: Women’s innovations in rural livelihood systems in arid areas of Tunisia’, Available from http://www.unesco.org/most/bpik6-2.htm
World Bank., 2001. ‘Hurricane Mitch-the gender effects of coping and crises’, Prem Notes, No 57. Available from
http://www1.worldbank.org/prem/PREMNotes/premnote57.pdf
World Bank., 2010. ‘World Development Report 2010’, World Development Report Archives, Available from http://web.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/EXTWDRS/0,,contentMDK:23079906~pagePK:478093~piPK:477627~theSitePK:477624,00.html
World Bank., 2012a. ‘Kidatu Hydroelectric project’, Available from http://www.worldbank.org/projects/P002710/kidatu-hydroelectric-project-02?lang=en
World Bank., 2012b. ‘Tanzania Country Profile’, Available from http://www.worldbank.org/en/country/tanzania
World Health Organisation., 2005. ‘Gender, Climate change and Health’, Draft Discussion Paper, available from
http://www.who.int/globalchange/publications/reports/final_who_gender.pdf
The World Development Report (2010) also refers to a green tax as one of the mitigation policies for climate change. The World Bank’s commentaries on this policy are very general, and it does not particularly favour this policy, because the World Bank believes carbon tax should affect direct and indirectly household economies. In the explanation, it is stated that green tax will contribute directly to rising energy prices like electricity bills and fuel for transportation and will indirectly affects household expenditure because the price of goods will increase (World Bank, 2010, Ch1).
Some countries have applied green tax as part of mitigation policies, such as Australia’s carbon tax, which has been introduced as part of the package of the Energy Trading Scheme (ETS), which collects AU $23 per ton of gas emissions, and handles over five billion dollars as a carbon price mechanism to help companies reduce their gas emissions (Department of Climate Change and Energy Efficiency, 2012). According to an environmental organisation, Friends of the Earth Australia, the scheme will provide benefits to the polluters (mining and oil companies) and keep polluting the atmosphere. The Gillard government has provided five billion dollars every year for polluters, which includes 1.5 billion for emission reductions in power stations, 1 billion for energy renewables and 2.5 billion for compensation of loss in competitiveness (Goodman, 2011). Ideally, if the government is serious in tackling global warming, it should increase the rate of the carbon tax, and provide 100% investment in energy renewables.
However, mitigation policies are not only the responsibility of government, but should also involve giant corporate business, which are purely profit orientated. This is why to convince the mining and oil companies to reduce their emissions, the government has to provide incentives otherwise the carbon tax will be passed on to household economies as explained in the Report. The carbon price is an incentive; according to the business sector, it is considered to be a deposit to guarantee the deal. According to Anderson (2011), the energy trading scheme is based on the spirit of market transaction or “market mechanism”, a neoliberal concept, which is why the carbon price can be considered as a “deal” to avoid conflict of interest between mining companies and government.
Conclusion
This paper has considered a number of issues in relation to the World Development Report “Understanding the Links between Development and Climate Change”. The paper began with the viewpoint that developing economies will be more affected by climate change however because of their low adaptive capacity to be able to make the changes needed to mitigate climate change.
The analysis has included review of the expenditure of disposal income, showing us that purchasing power parity is still dominated by an affluent society which has become the major contributor to greenhouse gas emissions. It has also referred to the ignorance of the global climate coalition to the Kyoto Protocol, showing that giant corporate companies remain powerful. Further on, the paper has looked at the participation of women and the evidence that local indigenous organisations are more proactive in support innovations in rural areas compared to external organisations and funding.
The paper has also discussed at some length the re-forestation of the ancient Maya Nut trees in Central American and Caribbean countries, which has become an opponent to transgenic imports of food. Further, the potential to build new hydropower projects is a strategy to force poor countries into debt and then to adopt SAP policies. The interpretation of these observations becomes typical knowledge of the mainstream scholar. In addition, the expansion of sugar cane plantation will become dangerous to food production.
Finally, this paper has considered some of the issues around green tax, using Australia’s mining tax as an example. The paper has concluded that mining companies will come on board with green tax initiatives as long as the transactions include a carbon price as part of the deal.
The focus of the paper has been on the intentions and actions of large institutions and the corporate sector, in the context of the neoliberal global economy. The analysis has shown, through a number of examples as outlined above, that the policy recommendations for climate change mitigation have been designed to suit the neoliberal concept of free market orientation.
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Hoag, J, H., & Ohman, B, M., 2008. ‘Turning Water into Power: Debates over the Development of Tanzania Rufiji River Basin, 1945-1985’, Technology and Culture, Vol 49, No 3, pp. 624-651 Available from http://muse.jhu.edu/login?auth=0&type=summary&url=/journals/technology_and_culture/v049/49.3.hoag.html
Intergovernmental Panel on Climate Change., 2007. ‘Climate Change 2007: Working Group I: The Physical Science Basis’, Available from http://www.ipcc.ch/publications_and_data/ar4/wg1/en/ch2s2-3.html
Khor, M., 2005. ‘The Commodities Crisis and The Global Trade in Agriculture: Problems And Proposals’, Third World Network, Available from www.twnside.org.sg/title2/par/td25.doc
Lao Hamutuk., 2004. ‘Observation regarding The RESPECT Program in East Timor’, Bulletin Lao Hamutuk., Vol 5, No 5-6, Pp17. Available from http://www.laohamutuk.org/Bulletin/2004/Dec/lhbl5n56e.pdf
Maya Nut Institution., 2012. ‘Financial Information’, available from http://mayanutinstitute.org/page.cfm?pageid=19062
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Mathews, J., 2012. ‘The End of the U.S. Ethanol Tariff’, Sugar Cane Industry Association, Available from http://english.unica.com.br/opiniao/show.asp?msgCode={61FB3F4B-1644-4445-B05F-577F96C38BED}
Ministry of Transport, Communication & Public Works., 2005. ‘Power: Priorities and Proposed Sector Investment Program’, Available from http://www.laohamutuk.org/Oil/Power/PowerSIP2005.pdf
Powel, L, J., 2011. ‘The Inquisition of Climate Science’, Columbia University Press, New York.
Rosset, M, P., 2005. ‘Transgenic Crops to Address Third World Hunger? A Critical Analysis’, Bulletin of Science, Technology & Society, Vol 25, No 4, Pp 306-313. Available from http://bst.sagepub.com.ezproxy1.library.usyd.edu.au/content/25/4/306.full.pdf+html
Ruz, C, F., 2007. ‘On Biofuels and an Energy Revolution’, The Monthly Review, Available from http://mrzine.monthlyreview.org/2007/castro040507.html
Secretariat for Social Communication., 2012. ‘Brazil increases environmental preservation measures with sugarcane zoning proposal’, Press Release, Available from http://www.brasil.gov.br/para/press/press-releases/february/brazil-increases-environmental-preservation-measures-with-sugarcane-zoning-proposal
Stilwell, F., 2002. ‘Political Economy: The Contest of Economic Ideas’, (1st Edition) Oxford University Press, Singapore.
Sugar Cane Industry Association., 2012. ‘Sugar Cane Planted Area’, Available from
http://www.unicadata.com.br/historico-de-area-ibge.php?idMn=33&tipoHistorico=5&acao=visualizar&idTabela=1179&produto=Planted+area&anoIni=1980&anoFim=2010&estado=RS%2CSC%2CPR%2CSP%2CRJ%2CMG%2CES%2CMS%2CMT%2CGO%2CDF%2CBA%2CSE%2CAL%2CPE%2CPB%2CRN%2CCE%2CPI%2CMA%2CTO%2CPA%2CAP%2CRO%2CAM%2CAC%2CRR
United Nations Educational, Scientific and Cultural Organisation., 2003. ‘Best Practices on Indigenous Knowledge: Women’s innovations in rural livelihood systems in arid areas of Tunisia’, Available from http://www.unesco.org/most/bpik6-2.htm
World Bank., 2001. ‘Hurricane Mitch-the gender effects of coping and crises’, Prem Notes, No 57. Available from
http://www1.worldbank.org/prem/PREMNotes/premnote57.pdf
World Bank., 2010. ‘World Development Report 2010’, World Development Report Archives, Available from http://web.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/EXTWDRS/0,,contentMDK:23079906~pagePK:478093~piPK:477627~theSitePK:477624,00.html
World Bank., 2012a. ‘Kidatu Hydroelectric project’, Available from http://www.worldbank.org/projects/P002710/kidatu-hydroelectric-project-02?lang=en
World Bank., 2012b. ‘Tanzania Country Profile’, Available from http://www.worldbank.org/en/country/tanzania
World Health Organisation., 2005. ‘Gender, Climate change and Health’, Draft Discussion Paper, available from
http://www.who.int/globalchange/publications/reports/final_who_gender.pdf
