Lessons in Sustainable Development from China & Taiwan

S. Hsu

• Publisher: Palgrave Pivot
• Year: 2013
• ISBN:
  9781137358509
• Topic: Economia
• Subtopic: Microeconomia

Both Taiwan and China are extremely populous nations that, due to population pressures and continuing high growth levels, have experienced challenges in sustainable development. Hsu illustrates Taiwan's path toward sustainable development and contrasts it to that of China, suggesting ways in which Taiwan can help China implement its environmental and social policies, and in which China might help Taiwan continue its path toward sustainable environmental and social policies.She explains that although Taiwan is a small compared to China, some aspects of its development model can (and should) be scaled up for larger countries. The importance of regulation enforcement is clear regarding Taiwan's environmental protection program, as is the promotion of small and medium sized enterprises in promoting income and social equality. Similarly, China's experimental methodology - using small areas to explore different ways of living or different technologies - can be useful in Taiwan. In Lessons in Sustainable Development, Hsu examines China and Taiwan in terms of inequality and environmental issues.

1

Theoretical Framework

Abstract: The field of sustainable development is relatively new, but some of the ideas—that environment, individuals, and society should be protected—are not. These have been incorporated into several strains of theoretical approaches on the subject. In this chapter, we discuss these approaches and draw out our own theoretical approach to the subject.

Hsu, Sara. Lessons in Sustainable Development from China & Taiwan. New York: Palgrave Macmillan, 2013. DOI: 10.1057/9781137358509.

The field of sustainable development is relatively new, but some of the ideas—that environment, individuals, and society should be protected—are not. These have been incorporated into several strains of theoretical approaches on the subject. First, researchers have used systems theory to examine sustainable development. Systems theory, an interdisciplinary approach to analysis, examines sustainable development from a systems or structures perspective while analyzing elements within the system as they contribute to the structure as a whole (Bossel 1999). This perspective on sustainable development explores the relationships between variables and indicators and the way in which they affect viability of the larger environmental, social, and economic contexts.

Second, and relatedly, is the notion within complexity theory that is related to systems of requisite variety, which treats the system’s ability to deal with future changes and adapt and respond to those changes (Nooteboom 2007; Ashby 1956). The theory of requisite variety states that policymakers must be able to respond to changes with as many different countering changes as needed to secure the system from the external environment. Systems must therefore be flexible and extremely adaptive.

Third, research has approached sustainable development from a transition management perspective, which states that sustainable development should be thought of as a dynamic process requiring management of transformation that prevents states becoming trapped in sub-optimal solutions (Kemp, Parto and Gibson 2005). The management process should attempt experiments in sustainable development, use transition agendas, evaluate the transition process, and maintain public support. The concept of a sustainability knowledge transition is related to the study of transitions management and finds that a country must move from acting as a “supply chain” to acting as a “knowledge chain” in order to become a more sustainable society.

Fourth, the Integrated Global Perspective finds that an integrated perspective relating social and natural environments to global change is necessary to bring about sustainable development (Choucri 1995). This theory also states that individuals and institutions alike need to take responsibility for what they can affect, in terms of production and consumption. Business and other transactions that are “business as usual” may still create environmental degradation.

Although these theories can be applied to our study of sustainable development in China and Taiwan, we look less at the process of how components of sustainable development fit together and change in and of themselves, and more at how sustainable development can be thought of in terms of economic growth and development. We wish to point out that the notion of sustainable development has been used as a basis for changing the focus of economic development theory. Economic growth, which was used as the main emphasis in development theory before the nineties, was overshadowed by more comprehensive measures of economic development that included aspects of environmental condition, health, education and other social factors, and social and economic equality embodied in the Human Development Index and many other indicators that were created on this basis.

For this book, we wish to highlight the impact of economic growth on human well-being and environment as aspects of sustainable development. In some cases, there tends to be a trade-off between well-being and environment, as in China. Economic growth has led to pollution in cities, in which residents enjoy the highest levels of well-being. In other cases, there may be a correlation between poverty and environmental degradation, as the poor exploit their own resources in order to survive. The impact of growth on well-being and environment is less clear in Taiwan since this country has undertaken large efforts to improve both well-being and environment.

Geography is another factor that has influenced sustainable development. The field of new economic geography was pioneered by Krugman (1991). This field finds that geographic factors influence many aspects of economics. In this book, then, we find that there are two layers of causality. While geography influences economic structure, both factors influence effects of industrialization on the environment, and both also influence physical, social, and economic well-being (with inequality as one component of this). While the purpose of this book is not to lay out a theory and test it with empirical data, we can expand on this a bit to provide a framework for understanding the description we lay out in the rest of this text on sustainable development.

One is hard pressed to find papers that illustrate a theory quite like this. Geography, economic structure, well-being (including poverty and inequality), and environment are conceived of in the literature in the following stylized formulations: 1) poverty adversely impacts the environment, and adverse environmental effects exacerbate poverty and other aspects of well being, such as health (WCED 1987, Dasgupta 1995; Mabogunje 1995; Blaikie and Brookfield 1987; Mitchell and Popham 2008); 2) economic structure adversely or positively impacts the environment (McGregor, Swales and Turner 2004; Jänicke et al. 1989; Chen 2007); 3) economic structure adversely or positively impacts well being (including inequality) which varies geographically and may be impacted by geography (Bhalla, Yao and Zhang 2003; Chang 2002; Chen 1996; Jones, Li and Owen 2003; Kanbur and Zhang 2004; Sicular et al. 2005); and 4) geography influences economic structure (Krugman 1991; Fujita and Krugman 2003; Krugman 1999).

The diagram below illustrates how these factors influence one another.

Figure 1.1   The interaction of geography, economic structure, well being, and environment

Source:  The author.

Geography can influence well-being and economic structure. Economic structure may in turn affect environmental sustainability and well-being. Well-being and environmental sustainability affect one another. In what follows, we describe many facets of sustainable development, and we can bear in mind the ways in which these individual components of sustainable development are shaped by geography and economic structure, as well as the way in which they interact with one another.

These components are also shaped by humans—policies impact sustainable development and also are impacted by sustainable development. Hence we can talk about the natural and human forces that shape these components, but also about policy implications that arise from a study of these factors.

2

Sustainable Development in Taiwan and China

Abstract: In this chapter, we discuss sustainable development in Taiwan and China in terms of geography, well-being, economic structure, and environmental sustainability.

Hsu, Sara. Lessons in Sustainable Development from China & Taiwan. New York: Palgrave Macmillan, 2013. DOI: 10.1057/9781137358509.

Introduction to Taiwan

In Taiwan, income distribution is more equitable and the environment is in a better position than in China. However, over 80% of Taiwan’s population lives in urban areas. Short-term returns in building up the cities has had an adverse impact on the environment (Huang, Wang and Budd 2009), which the country is attempting to reverse.

Economic development policy previously triumphed over environmental policy (Chen and Huang 1997). Increasing GDP was the main target, particularly in the 1960s, when Taiwan began a major focus on export-oriented industrialization. Manufacturing was dominated by the shoe industry in Central Taiwan in the sixties, the petrochemical industry in Southern Taiwan in the seventies, and the semiconductor industry in Northern Taiwan in the eighties (Hsu and Cheng 2002). None of these industries was particularly “green.” As Taiwan climbed the technology production ladder, it gradually began to take into account its impact on the environment.

During its period of growth, however, Taiwan experienced growth in manufacturing, coupled with rapid urbanization. As a result, urban sprawl and landscape destruction have led to deforestation and pollution of air, water and soil (Tseng, Fang, Chen and Loh 2009). The relatively small geographical territory of Taiwan has been stripped of its natural resources as urbanization, increased vehicle usage, and factory density have increased. The population pressures on the land are becoming intense. Manufacturing shifted from being labor-intensive to being technology-intensive in the eighties, and most of the production activity remained in the cities. Urban areas remain locations in which air and water pollution are concentrated and must be effectively addressed.

There has been a constant conflict of interest between growth and protection in Taiwan, although the government has in the past 30 years begun to make legislation controlling waste and pollution. This is in large part due to increased public awareness and activism (Lyons 2005). Taiwan has adhered to the most basic international policies for protection of the environment, including UN- compliant transportation of radioactive waste, restrictions on trade in hazardous materials, and prohibition or regulation of persistent organic pollutants (Roam 2005).

After the Earth Summit in Rio de Janiero in 1992, Taiwan issued its own Agenda 21, National Report on Biodiversity, National Environmental Protection Plan, and a plan for developing Taiwan into a “Green Silicon Island” (Council for Economic Planning and Development, Executive Yuan 2004). Of these, Agenda 21 is the most comprehensive voluntary international framework for sustainable development, focusing on social and economic dimensions, resource management and conservation, strengthening voices of major groups like women, children, and ethnic minorities, and how sustainable development can be effectively implemented. Taiwan’s adaptation of these basic principles can be viewed below.

Taiwan’s Agenda 21 basic principles

1 Principles of Environmental Carrying Capacity and Balanced Consideration

Social and economic development should not exceed the carrying capacity of the environment. Environmental protection and economic development should be accorded balanced consideration.

2 Principles of Cost Internalization and Prioritization of Prevention

Based on the principles that the polluter has the responsibility to solve pollution problems and the polluter/beneficiary pays, business sectors and society should internalize the external cost and reflect production cost rationally through market mechanisms and economic tools. Before the commencement of any activity that could possibly cause significant and unavoidable damage toward the environment, an environmental impact assessment should be implemented and efficient prevention measures adopted in advance, in order to minimize the damage.

3 Principles of Social Fairness and Intergenerational Justice

Distribution of environmental, social and economic resources should accord with the principles of fairness and justice. This generation has the responsibility to maintain and secure sufficient resources to provide for the needs of future generations.

4 Principle of Equally Stressing Technological Innovation and System Reform

Sustainable development strategies should be mapped out and the risks of policies evaluated, based on the spirit and method of science. Technological innovation should be considered as the driving force for strengthening both environmental protection and economic development. Decision-making mechanisms should be adjusted and related systems for implementing sustainable development should be established.

5 Principles of International Participation and Public Participation

To meet our responsibilities as a member of the international community, we should learn from the experience of the advanced industrial nations. Regarding the establishment of environmental regulations, we should follow international norms, give assistance to other developing nations, and set sustainable development as a priority objective. Decision making for sustainable development actions should be predicated on the views and expectations of people from all sections of society, with a transparent process of open and widespread consultation conducted as the means of forging consensus thereon. And the implementation of sustainable development policies should be carried out jointly by the government and private sectors, with each bearing its full share of responsibility and exerting its utmost effort to achieve the targeted results. (Source: Council for Economic Planning and Development, Executive Yuan (2004))

In order to better implement Agenda 21, Taiwan drew up its own program for sustainable development in 2002, which focuses on reversing some of the environmental destruction that has resulted from rapid growth. The program includes restoration of high quality forests and degraded habitat, restoration of wetlands, construction of water purification sites, establishment of a biodiversity database, and promoting voluntary greenhouse gas reductions (National Council for Sustainable Development 2010).

In addition, Taiwan’s Environmental Protection Agency is an environmental institution in Taiwan that spends much of its budget on data collection. Laws regulate environmental protection in a variety of areas, including solid waste, water, and soil (EPA 2011). Taiwan also recently implemented a law taxing fuels and pollutants.

Taiwan and sustainable development

The EPA of Taiwan (2012a) uses the following framework for assessing its sustainable development progress, In terms of themes and sub-themes:

1 Environment (Air Quality, Water Quality, Waste, Environmental Management);

2 Energy Conservation and Carbon Reduction (Greenhouse ...

Table of contents

• Cover
• Title
• Introduction
• 1  Theoretical Framework
• 2  Sustainable Development in Taiwan and China
• 3  Sustainable Development Programs and Experiments
• 4  Directions for Future Study
• Conclusion
• References
• Index