Impact of Industries on Environment in Developing countries

In line with the concerns of economic policy makers, it is believed that the concepts of development and sustainability are always contradictory. Most developing countries such as China and India have adapted the global economic policies without considering its impact on the environment. Todd M. Johnson (1997: 5-7) has argued that the immeasurable benefits brought by Chinese economic growth have improved many social indicators such as poverty reduction and better health care. However, this fast economic growth has also caused very serious environmental damage. According the World Health Organization’ s report (WHO): “ In many areas in China, the surface and the ground water have increasingly polluted by emission of industrial waste, municipal sewage and agricultural runoff “ (Todd M. Johnson: The World Bank 1997: Overview). The emergence of the issue over environmental degradation has caused global concern, particularly in the new heavy industries set-up in developing countries.

The environmental issue seems to be a less immediate concern for countries during their economic transition. Some countries depend heavily on Heavy Chemical Industries (HCI) to increase revenue. Syrquin and Shenry (1989) have shown that HCI accounts for one-third of manufacturing output in large countries at $300 per capita GNP (Richard M. Auty 1994: 183-185). Countries like China, Brazil, South Korea and India are competing to attract HCI to invest in their countries in the hope that their economic performance can be improved (Richard M. Auty 1994:142). Again the environmental concern is not the priority in the agenda of economic policy makers.

In the case of China, industry is the engine for economic growth, which accounted for 48 per cent of GDP in 1995. But this engine is highly polluting which has caused serious health risk to Chinese people. The National Environmental Protection Agency estimates that discharge from industries in China account for more than 70 per cent of national pollutant emissions (Todd M. Johnson: The World Bank 1997: 57). Another report conducted by the Foundation for International Training, a Canadian NGO, showed that a survey of 116,300 Small and Medium-Sized Enterprises (SMEs) in Jiangsu province, China found 67% were causing serious pollution while only 4% appeared to be pollution free (UNEP 2003: 4-5).

However the SMEs have played a crucial role in driving the world economy. It is estimated that 90% of world business are SMEs, which cover 50-60% of total employment. As a result, SMEs consequently degrade the global environment. In India, it is estimated that SMEs produced 65% of industrial waste (UNEP 2003: 4-5).

The other main problem, which has led to environmental destruction, is the lack of social responsibility amongst the policy makers. The lack of pressure groups, who are concerned with environmental problems, has pushed the environmental agenda far from the policy makers attention. The government and politicians seem to be reluctant to interfere with this sensitive issue. As R.J Johnston has argued “ the government and politicians generally, are particularly receptive to cases brought to them if they believe that there are political benefits to be gained from acting- or political costs to be incurred from not acting” (R.J Johnston 1989: 171-173)-