34
CONTENTS List of Tables 5 Economic Integration and Environment in Southeast Asia: Facing up to Environmental Challenges While Securing the Benefits from Open Markets 7 Raymond Clémençon, Environment Project Director, IGCC Opening Address 15 IR Sarwono Kusumatmadja, Minister of the Environment, Indonesia Abstracts 17 Economic Integration and Environmental Policymaking 17 Raymond Clémençon Current and Emerging Environmental Issues in the ASEAN Region 17 Mark Radka Trade and Environment: Experience in ASEAN Countries 17 Mari Pangestu and Kurnya Roesad Institutional Structures for Policymaking in the Philippines 18 Raphael Perpetuo M. Lotilla Environmental Policy and Management in the Context of Socioeconomic Development in Vietnam 18 Le Quy An Institutional Responses in Malaysia to UNCED Outcomes 19 Gurmit Singh Environmental Policy and Institutions in Indonesia: In the Cases of International Climate Change Negotiation and International Trade Negotiation. 19 Agus Sari Forestry Issues in Indonesia 19 Anggito Abimanyu Sustainable Forest Management in Malaysia: Issues and Perspectives 20 Jamal Othman and Mohd Shahwahid H. Othman The Politics of Community Forestry in the Philippines 20 Marites Vitug Development and Forestry in Thailand 20 Somsak Sukwong Macro-Environmental Policy: Merging Economic, Social, and Environmental Considerations in National Policy Frameworks with Specific Reference to Policies That Shape Forest Cover 21 Jeff Romm Integration of Economics and the Environment: A Preliminary Survey of EIAs and Public Participation in ASEAN Countries 21 Lim Lei Theng and Simon S. C. Tay Economic Valuation of Natural Resources and Relevance to Environmental Policy Making in Southeast Asia: The Case of Thailand 22 Charit Tingsabadh and Suthawan Sathirathai Trade, Investment, and the Environment in Thailand 22 Sitanon Jesdapipat AFTA and Its Environmental Implications for Vietnam 22 Tran Thi Thanh Phuong Sustainable Energy Policy Alternatives for Indonesian Free Trade Era: Toward a Significant People’s Participation 22

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Page 1: CONTENTS · Marites Vitug Development and Forestry in Thailand 20 Somsak Sukwong Macro-Environmental Policy: Merging Economic, Social, and Environmental Considerations in

CONTENTS�

List of Tables 5

Economic Integration and Environment in Southeast Asia: Facing up to Environmental ChallengesWhile Securing the Benefits from Open Markets 7

Raymond Clémençon, Environment Project Director, IGCCOpening Address 15

IR Sarwono Kusumatmadja, Minister of the Environment, IndonesiaAbstracts 17

Economic Integration and Environmental Policymaking 17Raymond Clémençon

Current and Emerging Environmental Issues in the ASEAN Region 17Mark Radka

Trade and Environment: Experience in ASEAN Countries 17Mari Pangestu and Kurnya Roesad

Institutional Structures for Policymaking in the Philippines 18Raphael Perpetuo M. Lotilla

Environmental Policy and Management in the Context of Socioeconomic Development inVietnam 18

Le Quy AnInstitutional Responses in Malaysia to UNCED Outcomes 19

Gurmit SinghEnvironmental Policy and Institutions in Indonesia: In the Cases of International Climate ChangeNegotiation and International Trade Negotiation. 19

Agus SariForestry Issues in Indonesia 19

Anggito AbimanyuSustainable Forest Management in Malaysia: Issues and Perspectives 20

Jamal Othman and Mohd Shahwahid H. OthmanThe Politics of Community Forestry in the Philippines 20

Marites VitugDevelopment and Forestry in Thailand 20

Somsak SukwongMacro-Environmental Policy: Merging Economic, Social, and Environmental Considerations inNational Policy Frameworks with Specific Reference to Policies That Shape Forest Cover 21

Jeff RommIntegration of Economics and the Environment: A Preliminary Survey of EIAs and PublicParticipation in ASEAN Countries 21

Lim Lei Theng and Simon S. C. TayEconomic Valuation of Natural Resources and Relevance to Environmental Policy Making inSoutheast Asia: The Case of Thailand 22

Charit Tingsabadh and Suthawan SathirathaiTrade, Investment, and the Environment in Thailand 22

Sitanon JesdapipatAFTA and Its Environmental Implications for Vietnam 22

Tran Thi Thanh PhuongSustainable Energy Policy Alternatives for Indonesian Free Trade Era: Toward a SignificantPeople’s Participation 22

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4 • CONTENTS

Wiku Adisasmito and Leonard SimandjuntakEnvironment and Development in Malaysia 23

Mohd Nizam BasironEconomic Integration and the Political Economy of Environment in the Mekong River Basin.23

Philip HirschIndigenous Peoples and Land-Use Policy in Indonesia: A West Kalimantan Showcase 24

Stephanus DjuwengProblems of Environmental Resource Use During the Process of Transition to a MarketEconomy in Vietnam 24

Nguyen Ngoc TuanThe Siting Problem of NIMBY Facilities: Cost-Benefit Analysis and Auction Mechanisms 24

Euston Quah and Khye Chong TanAbout the Presenters and Discussants 27Agenda and Participants 30

The University of California Institute on Global Conflict and Cooperation 33Electronic Publishing at IGCC 34Current Publications 35

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LIST OF TABLES�

Economic Integration and Environment in Southeast Asia: Facing up to Environmental Challengeswhile Securing the Benefits from Open Markets

Raymond ClémençonTable 1: Growth in Real GDP in Selected Countries (annual percentage change)................... 9Table 2: Deforestation in Selected Countries of the Asia and Pacific Region, 1981–1990 ....... 9Table 3: Primary Energy Consumption Scenarios to the Year 2010 in Subregions of Asia

and the Pacific.............................................................................................. 9Table 4: Total Exports of Selected ASEAN Countries (in millions of U.S. dollars)............. 12

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ECONOMIC INTEGRATION ANDENVIRONMENT IN SOUTHEAST ASIA:FACING UP TO ENVIRONMENTAL CHALLENGES WHILESECURING THE BENEFITS FROM OPEN MARKETS1

Raymond Clémençon,Environment Project Director, IGCC

Introductionconomic integration and freer trade can be expected to further boost economic growthin the Association of Southeast Asian Nations (ASEAN) region. This growth couldhelp provide the necessary financial resources for environmental protection and en-courage sustainable development in Southeast Asian societies, where newly adopted

environmental legislation can be effectively implemented and strengthened. This is the gen-eral conclusion of Economic Integration and Environment in Southeast Asia, a workshopheld in Jakarta, Indonesia, on 5–6 September 1996, organized by the Institute on GlobalConflict and Cooperation (IGCC) in cooperation with the Center for Strategic and Interna-tional Studies (CSIS).

On the other hand, workshop participants also expressed concern about the increasinglyserious threats to the environment, natural resource base, and human health posed by rapideconomic growth (see Tables 1, 4). Governments in ASEAN countries need to respond tothese environmental threats with effective policies that strive to integrate economic and envi-ronmental policymaking. This requires broad public involvement in policy decisions and areal commitment by political leaders. However, political will to balance economic and envi-ronmental considerations and to turn environmental programs into concrete action isemerging only slowly.

For the past half-decade, the rubric "trade and environment" has been high on the dis-cussion agenda in a number of international forums, most recently the World Trade Organi-zation (WTO). Debates have centered mainly around the threat that environmental policymeasures could pose to an open international trading system, particularly to developingcountries’ access to northern markets. On the other hand, there are concerns

1 Report on a workshop held in Jakarta, Indonesia, 5–6 September 1996, organized by the Institute on Global Conflict and Coop-

eration in cooperation with the Center for Strategic and International Studies, Jakarta. The authors and IGCC would like to thankthe Hewlett Foundation for generous funding of this project.

E

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8 • CLÉMENÇON

that economic liberalization also exacerbates exist-ing market failures that negatively affect the envi-ronment, particularly in countries where environ-mental standards and regulations are still weak orenforcement is poor. At the Rio Conference in June1992 (United Nations Conference on Environmentand Development) countries agreed that governmentsshould “ensure that environment and trade policiesare mutually supportive.” (Agenda 21, Chp.2.10 (d))Yet little has been done since then to do this. TheWTO Committee on Trade and the Environment isstruggling to make progress on developing guidanceto the contracting parties to the WTO on a numberof contentious issues, such as on specifying exactlyin what cases trade measures might be justifiable insupport of environmental policy objectives.

The issue of how economic integration and freertrade affects the environment is also gaining atten-tion in Southeast Asia, one of the fastest growingregions in the world. At the Jakarta workshop, re-searchers, government officials, and representativesfrom international organizations gathered for a two-day discussion about the effects of economic integra-tion on the environment in the region. The objectivewas to gain insight into how governments inASEAN countries could respond to the dauntingenvironmental policy challenges they will face inthe years ahead, while continuing to enjoy the eco-nomic benefits of improved regional and global eco-nomic integration.

Twenty-one workshop presentations dealt withvarious facets of the broader issue. Some addressedthe actors and institutions involved in the environ-mental policymaking processes in ASEAN coun-tries; others presented case studies about specificenvironmental issues. A half-day roundtable discus-sion concluded the meeting. This report is a rappor-teur's summary: it attempts to capture the essence oftwo-days of lively discussion, and to highlightshared viewpoints that emerged. While it does notexhaustively catalog or refer to individual contribu-tions to the workshop,2 abstracts of individual con-tributions follow.

2 The Journal of Environment and Development has accepted

papers by Sitanon Jestapipat, Tran Thi Thanh Phuong, andMarites Danguilan Vitug. Others are now available via IGCCOnline at http://www-igcc.ucsd.edu or gopher.ucsd.edu.

Trade and the Environment:The Debate

Workshop participants emphasized the enormousenvironmental policy challenges that exist forASEAN countries as a result of the rapid economicgrowth, rising industrial production, and unbridledincrease in private transportation (particularly inurban areas such as Bangkok, Jakarta, and Manila),fueled by the liberalization in trade and investment.Of most immediate concern are environmental prob-lems that directly affect living conditions and health,such as urban air pollution, access to safe drinkingwater, and degradation of the natural resource basethat provides livelihood for local communities andindigenous peoples.

Population growth and changes in land use areincreasing pressures on land resources. SoutheastAsia has the highest absolute rate of deforestation inAsia (see Table 2). Tropical timber harvesting andthe accompanying loss of biodiversity have attractedthe most interest and attention elsewhere, particu-larly from Western environmental groups. The re-gional contribution to the buildup of greenhousegases in the atmosphere is also increasing rapidly, ascountries struggle to keep up with rapidly increasingenergy demands, projected to more than double inthe next 14 years (see Table 3). Economic integra-tion and, more specifically, increased trade liberaliza-tion may exacerbate existing environmental prob-lems when environmental costs are not sufficientlyreflected in the cost of goods and services.

Trade liberalization entails the reduction of im-port tariffs and the phasing out of subsidy paymentsand tax exemptions given to exporting industries. Itis part of a package of broader policy measures de-signed to harmonize regulations and standards be-tween countries and to facilitate economic and socialinteractions between countries. Trade liberalizationcan result in structural effects (shifts in economicactivities from one sector to another) and scale ef-fects (increase in existing activities).

Both positive and negative environmental im-pacts can result from economic liberalization andfreer trade. Economic growth and higher incomelevels can provide financial resources that can beused to address emerging environmental problems,such as the construction of sewage treatment facili-ties and retrofitting industrial facilities with pollu-tion abatement equipment. Increased

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9 • CLÉMENÇON

Table 1: Growth in Real GDP in Selected Countries (annual percentage change)

1980–1992a

(avg.)

1992b 1993b 1994b 1995b

ASEANIndonesia 5.7 7.2 7.3 7.5 8.1Malaysia 5.9 7.8 8.3 9.2 9.5

Philippines 1.2 0.3 2.1 4.4 4.8Singapore 6.7 6.0 10.1 10.1 8.9Thailand 8.2 8.1 8.3 8.8 8.7Vietnam — 8.6 8.1 8.8 9.5

Industrializednations

United States 1.7 1.6 1.2 2.5 1.0Japan 3.6 0.7 -0.1 0.3 0.7

European Union — 0.7 -0.7 2.5 2.2

Source: (a) World Bank, 1994, World Development Report, New York, Oxford University Press; (b) International Monetary Fund,October 1996, World Economic Outlook, Washington, D.C.

Table 2: Deforestation in Selected Countries of the Asia and Pacific Region,1981–1990

Average Annual Defor-estation 1981–1990

Total ForestLand (1,000 ha)

% TotalForestLand

Area(1,000 ha)

Bangladesh 4.9 38 769Pakistan 4.1 77 1,855Thailand 4.0 515 12,735

Philippines 4.0 316 7,831Malaysia 2.0 396 17,583Vietnam 1.6 137 8,312

Indonesia 1.1 1,212 109,549Cambodia 1.0 131 12,163

Laos 0.9 129 12,173

Source: FAO, 1993: Forest Resources Assessment 1990: Tropical Countries. FAO Forestry Paper 112, Rome.

Table 3: Primary Energy Consumption Scenarios to the Year 2010 in Subregions ofAsia and the Pacific (in thousand tonnes oil equivalent)

1990 Est. 2010(low)

Increase Est. 2010(high)

Increase

NortheastAsia

830,003 2,055,000 147% 2,221,000 168%

SoutheastAsia

126,651 377,000 198% 427,000 237%

TotalAsia–Pacific

1,401,437

3,480,000 148% 3,812,000 172%

Source: ESCAP, 1995. State of Environment in Asia and the Pacific. New York.

competition can render resource and pollution inten-sive industries inefficient and unprofitable.

Economic liberalization can, however, also re-sult in further environmental degradation, if appro-priate environmental protection measures are lackingor are insufficiently enforced. Pollution of air, water,and soil from industrial production and human set-tlements increases in direct proportion to productionand consumption levels. If these exceed critical envi-ronmental thresholds the effects on natural systemsbecome severe.

Liberalization improves economic efficiency butthereby also increases competitiveness pressures.Most developing countries consider attracting for-eign direct investment a top economic priority. Thiscan increase the pressure to develop in remainingpristine natural ecosystems, particularly if they har-bor natural resources. Competitiveness pressuresalso frequently have a negative effect on attempts tointroduce and enforce high environmental standards.The attempt to introduce a carbon dioxide/energy taxin all member countries of the European Union

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10 • CLÉMENÇON

failed in 1995, because industry groups argued thatsuch a tax, even when designed to be revenue-neutralby reducing other taxes, would put European indus-tries at a disadvantage in world markets.

Global WarmingGlobal environmental issues such as global warm-ing and biodiversity conservation are generally notregarded as priority issues for Southeast Asian coun-tries. Because development and poverty reduction issuch a priority, there is little recognition of the ef-fects current policies can have on the quality of lifeand opportunities of future generations. The buildupof greenhouse gases in the atmosphere is seen asstill largely the responsibility of Northern countries.Some workshop participants, however, stressed thatASEAN countries must pay attention to their rap-idly growing carbon dioxide emission levels now,even though they will not likely need to commit tospecific emission targets in response to the 1992United Nations Framework Convention on ClimateChange anytime soon. All ASEAN countries havethousands of miles of low-lying, densely populatedcoastal areas. Consequently, they are vulnerable torises in sea level and changes in precipitation pat-terns that may be induced by global warming.

Economic Integrationand Free Trade

None of the workshop presenters had systemati-cally examined the extent to which economic inte-gration and freer trade might cause an increase inenvironmental problems in the region, nor had theyexamined the extent to which economic integrationmight actually reduce environmental pressures.However, case studies provide evidence for bothpositive and negative links. Forestry policies in theregion may, for example, have been less driven byforeign demand for timber than by national land usetrends resulting from rural development policies andfavoritism guiding the allocation of logging rights.Some presenters made this point in arguing thattrade liberalization in the forestry sector could actu-ally result in reduced logging in some ecologicallyvulnerable areas.

Other presenters, however, pointed to the con-siderable impact that export demand has had on

the decisions of governments to grant logging con-cessions in areas that are inhabited by indigenouspeople and are characterized by rich biodiversity.With respect to the industrial sector, some presenterspointed to beneficial effects of liberalization insofaras it forces governments to reduce subsidies and taxexemptions for environmentally damaging activities,such as for export-oriented resource and pollution-intensive industries and extracting industries. On theother hand, examples also show that liberalizationcan encourage the creation of pollution havens incountries where the capacity does not yet exist toimplement and enforce appropriate environmentalstandards.

SanctionsParticipants generally did not see the introduction oftrade restrictions for environmental reasons as a rea-sonable solution. Economic integration amongASEAN countries and beyond, and freer trade in keyeconomic sectors were seen by many participants asprerequisites for improved environmental policyperformance. Nevertheless, some considered eco-labeling requirements in Northern markets as possi-bly advantageous for producing countries because itwould provide a more secure marketing environmentand could improve competitiveness.

Participatory ShortcomingsAll ASEAN countries have various environ-

mental laws and sustainable development programsin place. In general, such laws and regulations havebeen and are being developed with little involvementof either the general public or political parties. Sev-eral workshop participants suggested that the defini-tion of environmental policy objectives and the for-mulation of environmental policy instruments inASEAN countries remain almost entirely a top-down process and are largely the result of the indi-vidual preferences of political leaders. In the absenceof political leadership, the strengthening of envi-ronmental laws and the implementation and en-forcement of regulations and standards where theyexist are not ensured. There is often a serious lack oftrained personnel in the field where changes wouldneed to take place.

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ECONOMIC INTEGRATION AND ENVIRONMENT IN SOUTHEAST ASIA • 11

Non-governmental OrganizationsEmerging domestic non-governmental environ-

mental organizations play a small but increasingrole in lobbying governments on environmentalissues, raising the awareness in the general public ofenvironmental problems, and pushing for appropri-ate political responses. The extent of this involve-ment, however, is different for various Associationof Southeast Asian Nations (ASEAN) members; itis perhaps more pronounced in the Philippines,Thailand, and Indonesia and less evident in Vietnam,reflecting their different political systems. There arealso many types of NGOs, ranging from local,community-based groups devoted to specific issuesto organizations dealing with national issues thatalso increasingly provide think-tank functions forgovernment agencies.

Workshop participants also emphasized the roleof scientists and universities in environmental pol-icy formulation. Educational programs in ASEANincreasingly cover environmental issues. Universityfaculty members have in many instances beenstrongly involved in advising governments in draft-ing legislation and have been commissioned to drawup national nature conservation plans, such as inVietnam. On the other hand, some discussants de-plored the limited opportunities for involvement ofscientists who advocate viewpoints differing fromthose advanced by the governments in manyASEAN countries.

Environmental ImpactAssessments

Many put their hope into environmental impactassessment (EIA) requirements for deciding the typeof development projects that should be fundedthrough public and private investments. Workshopparticipants strongly concurred that strengthening ofthe EIA instruments would go far in assuring im-proved integration of environmental and economicobjectives. Economic valuation of noncommercialuse of natural resources can help in establishingbaselines for EIA that weigh market returns of in-vestment against losses incurred from environmentaldegradation and public health.

While participants considered EIA perhaps themost promising environmental policy instrumentavailable, many also cautioned against seeing it as apanacea. Empirical evidence from ASEAN and fromOrganization for Economic Cooperation and Devel-opment (OECD) countries points to many shortfallswith EIA that clearly indicate they cannot replace

political decision making. First of all, as long as nocommonly agreed upon standards exist, EIAs mayinvolve very different procedures. Already, a quickassessment by a government bureaucrat may becalled an EIA, although EIAs often involve a full-fledged study by independent experts and allow forpublic participation. Thorough EIAs are often ex-pensive and require well-trained personnel. To betruly effective EIAs need to be conducted at an earlystage of project evaluation, before work on the pro-ject has started. Often, however, little reliable data isavailable to work with. Findings from EIAs aretherefore often inconclusive, and even in cases wherefindings clearly suggest that environmental damagewould outweigh economic benefits, policymakershave in the past ultimately acted against the recom-mendations given by the EIA. Participants agreedthat EIA procedures often turn out to be little morethen window dressing.

Systematic efforts to calculate the economicvalue to local communities of sustainable use of thenatural resource base, which could provide baselinesfor EIAs, are still very few. None of the ASEANcountries has yet introduced natural resource account-ing as part of national accounting (but neither haveOECD countries). ASEAN countries, withthe exception of Singapore, have incorporated someformal EIA requirements and public review processinto their legislation or are in the process of doingso. Experience with the instrument in the region isstill limited, however, and standards are far fromuniform. But EIAs now need to be conducted for allprojects involving international financing organiza-tions and bilateral development aid organizations.This has increased the visibility of EIAs and encour-aged development and formalization of domesticprocedures as well.

Economic IntegrationAn interesting discussion emerged on the question ofwhat should be understood as economic integration.While some looked at integration and freer trade ex-clusively in terms of interaction between nationstates, others pointed to the wide variety of stages ofeconomic development within countries, rangingfrom economically booming metropolitan areas torural and indigenous communities in which thepopulace still lives as their predecessors did hundredsof years ago. Indigenous people and more generallyrural communities are likely to be much more di-rectly affected by national development policies thanby international economic liberalization. However,many examples show how competition to attract

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12 • CLÉMENÇON

international private investment among countrieshas affected national policies, which in turn haveaffected sparsely populated areas characterized by richbiodiversity that provides a livelihood for indigenouspeople.

Environmental Policy Imple-mentation and Enforcement

Implementation of environmental policy plans,where they exist, is in most cases still in its infancyand mired by many problems, such as considerablesocial and political disincentives. Capacities for im-plementing and enforcing existing regulations andlaws are very limited, often but not only due to alack of funds and trained personnel. Temptation togive in to lucrative economic deals is considerableon all levels of society particularly when informa-tion on possible environmental consequences israrely available.

Alternative EnergyNo broad effort has been made to develop renewableenergy alternatives in this region; however, encour-aging projects do exist in some ASEAN countries topromote solar voltaic and thermal power generation.Countries still plan to meet the bulk of their futureenergy needs by developing traditional energysources, such as oil and coal, thereby locking intechnologies that will inevitably lead to higher lev-els of air pollution and greenhouse gas emissions. Insome ASEAN countries, such as Indonesia and Thai-land, the development of nuclear power plants isbeing discussed despite the great economic and socialcontroversies surrounding such projects. (For re-gional energy consumption, see Table 3.)

Policy CooperationAll participants saw a great need for increased re-gional and international cooperation on environ-mental policy issues. Coordination of policy initia-tives and harmonization of standards andprocedures—for example, with regard to biodiversityprospecting and trans-boundary effects of large in-vestment projects—would make it easier forASEAN countries to compete in the world marketeven while increasingly integrating environmentalobjectives in economic decisions. Many participantswere not convinced, however, that ASEAN wouldprovide much leadership on this. Participants em-

phasized the need for other channels of communica-tion among the region's experts and policymakers,such as that provided by the Jakarta workshop.

Some participants see the Asia Pacific Eco-nomic Cooperation Forum (APEC) as playing acatalytic role in encouraging more attention on envi-ronmental issues and sustainable development in theregion. But they maintain that APEC is no substi-tute for stronger integration of Southeast Asia inASEAN.

Many participants argue that ultimately envi-ronmental objectives can be achieved only if a genu-ine political will to do so on the highest level de-velops. Participants, however, see few governmentsin ASEAN countries moving in this direction forfear of dampening the economic bonanza the regionhas enjoyed in recent years. Economic growth rateshave in fact been somewhat declining in the lastyear.

RecommendationsHow should ASEAN countries respond to the envi-ronmental challenges resulting from export-orientedeconomic growth (See Table 4)? At present, in mostASEAN countries environmental policy formulationand implementation is still a top-down process, andin some cases it is highly personalized. Special in-terests retain strong influence, whereas public par-ticipation through political parties, local interestgroups, and indigenous communities remains lim-ited.

Further, environmental policy challenges aredaunting. In view of the current economic boom inSoutheast Asia, considerable political will is neces-sary to prevent or mitigate continued serious degra-dation of the environment and the natural resourcebase in ASEAN countries. In most, however, strongpolitical leadership on environmental issues, is notseen as forthcoming. What to do?• Realize potential for economic and

environmental win-win situations. En-ergy policies in particular need to recognize thelarge win-win potential for market pricing ofenergy sources, for simple energy conservationmeasures, and for investments in renewable en-ergy sources. Such policies would help addressserious local air pollution problems while alsoslowing the growth of carbon dioxide emis-sions. They would put ASEAN countries in abetter position to demand tougher greenhousegas reduction commitments from industrialized

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ECONOMIC INTEGRATION AND ENVIRONMENT IN SOUTHEAST ASIA • 13

Table 4: Total Exports of Selected ASEAN Countries (in millions of U.S. dollars)

1 9 8 8 1 9 9 0 1 9 9 2 1 9 9 4% Growth1 9 9 0 – 1 9 9

4Vietnam 528 2,364 2,567 4,706 99Singapore 39,318 52,753 63,475 96,419 83Malaysia 21,095 29,420 40,709 58,748 99Philippines 7,034 8,194 9,829 13,433 64Indonesia 19,389 25,681 33,977 37,958 48Thailand 15,910 23,072 32,472 41,757 81

Source: International Monetary Fund, Direction of Trade Statistics Yearbook, 1995.

• countries in the ongoing climate change nego-tiations.

• Realize market potentials. Pricing envi-ronmental goods appropriately can encouragemarket solutions to environmental problems. Insome cases a reduction of government subsi-dies—for example, in the energy or water sec-tors—will go a long way. In addition, economicinstruments such as pollution charges or envi-ronmental user fees should be introduced morewidely to complement regulatory measures. Inview of strong private interests generally work-ing against such market-based instruments, abroad public dialogue on environmental policyoptions is needed.

• Do not restrict trade. Trade liberalizationand economic integration produce both positiveand negative effects on the environment. How-ever, the increase in environmental problems isprimarily a result of rapid economic growthcombined with lack of appropriate environ-mental protection laws and of enforcement. In-dividual countries need to find solutions. Re-stricting free trade is not a viable option forencouraging solutions to the growing environ-mental problems in the region.

• Improve transparency in policymak-ing. Improve accountability for pol icyoutcomes. A lack of transparency in decision-making and lack of accountability for policyoutcomes results in damage to the environmentin many ASEAN countries; these processesneed to be opened up to encourage more envi-ronmentally conscious decision making at alllevels of government and the private sector. Al-though all ASEAN countries have formally en-acted various environmental laws and regula-tions, institutional capacities for developing,implementing, and, in particular, enforcing en-vironmental measures are still very limited.This requires, in many cases, reform of the po-

litical system that goes beyond the adoption ofappropriate legislative measures.

• Broaden public participation. Broaderpublic participation in efforts to identify and ad-dress environmental problems should be encour-aged by appropriate government actions, includ-ing disbursement of relevant information andengaging the public in a dialogue on the trade-offs between economic growth on the one hand,and environmental quality and human health ob-jectives on the other. This includes efforts toimprove environmental education at all levels.

• Strengthen NGO involvement. The for-mation of non-governmental environmental or-gan-izations on the local level needs to be en-couraged. NGOs need to be given better accessto government institutions and data. The watch-dog function they provide on environmental andeconomic policymaking in ASEAN countriesshould be recognized as an asset.

• Use environmental impact assess-ments. Environmental impact assessment(EIA) procedures are seen as perhaps the mostpromising environmental policy instrumentavailable today to governments in ASEANcountries. They encourage integration of envi-ronmental concerns in economic policy makingand are particularly valuable for judging thelong term environmental impact of large in-vestment projects. EIA instruments need to bestrengthened and incorporated in appropriateforms into the procedures of sectoral govern-ment agencies. Government agencies and indus-tries should be encouraged or required to publishenvironmental performance reports.

• Establish national natural resourceaccounts. Governments must begin to viewthe natural environment as national capital. Na-tional natural resource accounts should be estab-lished that systematically value non-market

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14 • CLÉMENÇON

goods and services provided by the environment.This would allow a more comprehensive as-sessment of the value of export-oriented growthstrategies to the national economy.

• Make local communities stakeholders.Local communities must become stakeholdersin their natural heritage. This requires the defini-tion of clear property rights for natural re-sources. Services and economic returns fromnon-use of natural resources should be moresystematically assessed and the results shouldinform economic decision-making.

• Create focal points on sustainable de-velopment. Creating focal points on sustain-able development within important governmentagencies can help encourage the integration ofenvironmental concerns into everyday politicaldecisions, as the Philippine example shows.

• Strengthen local implementation ca-pacities. Capacities of governments to collectand evaluate environmental data should begreatly improved, particularly the capacity toimplement and enforce environmental standardsand regulations where it counts, that is, in thelocal setting. National sustainable developmentstrategies and sectoral environmental policyplans are only valuable to the extent that theyare operationalized and are being implemented inthe field.

• Give attention to regional and interna-tional cooperation on environmentalissues equal to that afforded to eco-nomic issues. Regional and international co-operation within the frameworks of ASEAN andAPEC is important for helping countries de-velop common ground regarding economic andenvironmental policy objectives. It should bestrengthened by broadening the circle of actorsinvolved in regional and international interac-tion beyond government circles. �

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ECONOMIC INTEGRATION ANDENVIRONMENT IN SOUTHEAST ASIA:OPENING ADDRESSIR Sarwono Kusumatmadja,Minister of the Environment, Indonesia

It gives me great pleasure to open this important Workshop on Economic Integration andthe Environment in Southeast Asia organized by the Institute on Global Conflict and Coop-eration (IGCC) in cooperation with the Centre for Strategic and International Studies(CSIS). I congratulate the organizers for selecting a topic that is of critical importance in theAsia Pacific.

The process of economic integration and trade liberalization has proceeded in recentyears at both the global and regional level. At the global level, governments have madecommitments to liberalize their economies in accordance with stipulations set by the GeneralAgreements on Trade and Tariffs (GATT), now superseded by the World Trade Organiza-tion (WTO). At the regional level, South East Asia is heading towards increased economicintegration under the ASEAN Free Trade Agreement (AFTA). In addition, the process ofinstitutionalizing the Asian Pacific Economic Cooperation (APEC) as an economic forum isalso gaining momentum.

While more open trade policies will undoubtedly boost South East Asia's economies,environmental impacts resulting from rapid economic growth could undermine the ecologi-cal and natural resource base of the region. One has only to consider the degradation of for-ests, increasingly dangerous levels of water and air pollution caused by urbanization andindustrialization, and the depletion of marine resources including coral reefs; all of whichillustrate the current serious state of the environment in South East Asia.

The mandate of policymakers must be to mitigate environmental damage without com-promising the rate of economic growth. This is the very essence of sustainable development.Several challenges face decision-makers in Southeast Asia in the effort to achieve sustain-able development within the context of regional economic integration. I will outline a few ofthem.

First, from a developing country's perspective, the need to integrate trade and environ-mental policies should not jeopardize the benefits that arise from trade liberalization. Indus-trialized countries increasingly employ protectionist measures using environmental criteria.Thus, on the global level, the priority for Indonesia and other ASEAN countries lies in theconsolidation of the World Trade Organization and further implementation of the

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Uruguay Round before any decision is made toincorporate environmental considerations intotrade stipulations. Trade must not be a factor inaddressing environmental problems. Where envi-ronmentally related measures are necessary, theyshould be proven necessary and then propor-tional, taking into account the polluter pays andprecautionary principles. Such measures shouldbe the least trade-restrictive of all feasible envi-ronmental measures and they should be transpar-ent, non-discriminatory, and consistent with theprinciple of national treatment. Second, poli-cies of trade liberalization should be accompaniedby a set of environmental measures to ensure thateconomies have long-term sustainability. Gov-ernments should direct markets towards efficientand resource-conserving production and consump-tion. The guiding principle is the Polluter PaysPrinciple, which Indonesia adopted in the early1980s. Environmental policies should continueto address root causes of environmental deteriora-tion through cost internalization. Applying theappropriate mix of command-and-control, volun-tary compliance, and market-based instruments isan important step towards achieving this objec-tive. Third, regional cooperation withinAFTA and APEC is critical. In particular, theobjective should be to establish a common envi-

ronmental management framework within whichtrade-related environmental problems can be addressed.Intergovernmental cooperation should aim at upwardconvergence and mutual recognition of environmentalstandards and standard-setting criteria. The guidingprinciple should be that the scope of harmonization isconstrained by the different levels of economic devel-opment and the diversity of ecological conditions.

Ladies and Gentlemen, Linkages between eco-nomic integration and the environment are multifac-eted and complex, and any policy measures employedto address the problems associated with them cannoteasily be dismissed as biased towards either the envi-ronment or free trade. Solutions that show a simulta-neous commitment to both open trade and environ-mental responsibility require careful research andanalysis.

Therefore, I would like to reiterate my apprecia-tion of the conference organizers who have chosen toaddress problems of economic integration and its im-pact on the environment. I believe that the work donehere will prove to be of great benefit not only to theparticipants but more importantly to the policymak-ing process, and I hope that the findings of this work-shop will have a positive impact on the policymak-ing process in Southeast Asia.

Thank you.�

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ECONOMIC INTEGRATION ANDENVIRONMENT IN SOUTHEAST ASIA:ABSTRACTS3

3 In order presented.

Economic Integration andEnvironmental Policymaking

Raymond Clémençon

The author assesses the impact of regional andglobal economic integration on environmentalpolicymaking. He examines the institutionalstrategies that were developed within the Organiza-tion for Economic Development and Cooperation(OECD) and the World Trade Organization (WTO)to integrate trade and environmental concerns inpolicymaking. The author compares the multilat-eral efforts with the approach taken in one OECDcountry (Switzerland) in response to the recommen-dations made in 1992 by the United Nations Con-ference on Environment and Development(UNCED).

The analysis shows that increased transparencyof decision-making processes and broad-based in-volvement of all interested segments of society inpolicy discussions must be regarded as a precondi-tion for improving the compatibility of trade andenvironmental policies. However, this alone doesnot necessarily result in environmentally beneficialchanges in decision-making outcomes. Politicalleadership in defining and defending environmentalpolicy objectives against well-organized economicinterests is also required. ASEAN countries need toimprove transparency of the policymaking process,and political leaders need to devote more attentionto a balanced approach to the resolution of conflictsbetween dominant economic interests and environ-mental policy objectives.

Current and EmergingEnvironmental Issues in the

ASEAN RegionMark Radka

The author provides an overview of the state of theenvironment in southeast Asia. Rapid economicexpansion in ASEAN countries, driven to a greatdegree by export-oriented industrialization, hasbrought with it often severe environmental degrada-tion, both from the release of various wastes andfrom improper resource extraction. Rising incomesand an increasingly consumerist lifestyle of therising middle class in Asian countries add to theproblem. Environmental issues of concern in theregion include degradation of land, air and waterquality, and marine and coastal resources; deforesta-tion; and loss of biodiversity. Poor, often un-healthy, air and water quality are a particular featureof the large urban areas common to many ASEANcountries. The author provides a matrix of envi-ronmental issues and indicators by which drivingforces, state of the environment, and responses canbe measured.

Trade and Environment: Experi-ence in ASEAN Countries

Mari Pangestu and Kurnya Roesad

The need to integrate trade policies and environ-mental policies has created tensions between tradingnations because of a widespread fear of “green pro-tectionism,” that is, that trade measures will betaken disguised under the cloak of “environmentalprotection.” ASEAN countries and other developing

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countries are worried that many of their exportcommodities will face entry barriers to importantmarkets and that adjusting to higher environmentalstandards will make their economies less competi-tive. The issue is how to achieve environmentallysound development without giving up the benefitsof open trade policies.

The aim of the authors is to summarize andevaluate the debate on trade and environment inmultilateral fora from an ASEAN perspective. Theauthors looks at how the various facets of the tradeand environment debate have affected and will affectthe ASEAN economies, and Indonesia in particular.The authors present policy recommendations foraddressing the trade and environment issue at themultilateral and regional levels. The main conclu-sion is that an outward-oriented liberal trade systemprovides the resources needed for better environ-mental protection. Where trade has magnified envi-ronmental problems, the solution is the strengthen-ing of domestic environmental protection and notthe use of trade measures. On the domestic level,Indonesia and other ASEAN countries need to con-tinue to promote efficient resource use to conservenatural resources and improve environmental qual-ity. These countries should strengthen environ-mental policies designed to internalize environ-mental costs by applying market-based instrumentsor by reforming distorted pricing structures. Experi-ence also suggests that institutional integrationplay a decisive role in achieving a policy environ-ment that supports the common goals of trade andenvironmental protection policies.

Institutional Structures for Policy-making in the Philippines

Raphael Perpetuo M. Lotilla

The author presents the Philippine experience withefforts to integrate environmental and economicpolicymaking. He focuses on the role institutionsplay and highlights major areas where integrationof environmental considerations in economic devel-opment planning and policymaking takes place. Insection 1 the author focuses on the role of variousentities engaged in economic and environmentalintegration that make up the institutional structurefor policymaking in the country. In particular, thesection highlights the strategic role of the NationalEconomic and Development Authority (NEDA), asthe country’s national planning agency and concur-

rent Chair of the Philippine Council for Sustain-able Development (PCSD), in mainstreaming envi-ronmental considerations in the overall economicpolicymaking process. In section 2 the author dis-cusses the unique structure and process ofGO–NGO counterparting and consensus buildingwith respect to decision making in the PCSD andparticularly in view of the ongoing formulation ofthe Philippine Agenda 21. Specific initiatives foreconomy-environment integration in the countryare presented in section 3.

In concluding, the author points out thateconomies in the ASEAN region may become par-ticularly vulnerable to trade-offs that tend to arisebetween rapid economic growth and environmentaland social sustainability. The problems inherent inthese trade-offs, however, are not completely in-surmountable. Win-win situations can still beachieved if environmental considerations are trulyreflected in all facets of economic developmentplanning. Institutional structures and local capaci-ties that serve as channels for economy-environment integration need to be enhanced tomake them more responsive to the increasing de-mands of planning and policymaking effecting sus-tainable development.

Environmental Policy andManagement in the Context of

Socioeconomic Development inVietnam

Le Quy An

The author gives an overview of Vietnam’s socio-economic development during the transition from acentrally planned to a primarily market-driveneconomy. The country is confronted with a numberof trade-offs, particularly between growth and pov-erty and between growth and the environment. Theauthor looks at the resulting environmental chal-lenges.

Vietnam must examine and adjust its trade andenvironmental policies to ensure that the nationalinterest will be safeguarded and that policy out-comes are consistent with the requirements of in-ternational environmental conventions to which itis a party. While the emphasize must be on thetransfer of environmentally sound technologies, themost important policy measures relate to improv-ing education and training and to strengthening

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research in science and technology—elements thatare critical to building a new mentality toward sus-tainable development. This will facilitate acquisi-tion and adaptation of imported environmentaltechnologies and provide the basis for nationaltechnological innovation. At the same time, scien-tific activities are needed to find solutions for envi-ronmental and development problems. One of thecrucial factors is to broaden international coopera-tion. Technological information and expertise andfinancial resources available through internationalorganizations, foreign governments, NGOs, and theprivate sector are essential for the achievement ofdevelopmental and environmental goals in Viet-nam.

Institutional Responses in Malaysiato UNCED Outcomes

Gurmit Singh

The author examines the concept of sustainabledevelopment and explores how different institutionsin Malaysia have responded to some of the Agenda21 recommendations, which were adopted atUNCED. The author examines the recently released7th Malaysia Plan on Policy Directions and evalu-ates the prospects for moving toward sustainabledevelopment.

In Malaysia, and other developing countriesexperiencing rapid economic growth, there seems tobe a general disinterest in considering any change inpolicies in response to the quest for sustainabledevelopment, especially if it would mean any slow-ing down of conventional GNP growth.

The author suggests a number of actions thatwould encourage Malaysian institutions to adopt amore positive response to recommendations set outin Agenda 21 adopted at the 1992 United NationsConference on Environment and Development(UNCED). For one thing, the government shouldstrongly support sustainable development as a pol-icy objective. One way to accomplish this wouldbe to revive the National Environmental Council orto establish a new National Council for SustainableDevelopment. In either case, equal participation onthe part of government, business, and NGOs isneeded.

Environmental Policy andInstitutions in Indonesia: Cases ofInternational Climate Change andInternational Trade Negotiation

Agus Sari

Global trade liberalization is expected to create newenvironmental externalities beyond already existinggrowth-induced environmental pressures by encour-aging industrial production for export. In this re-port, based on extensive interviews with key peoplein government and in non-governmental institu-tions in Indonesia, the author examines the Indone-sian decision-making process and the role and poli-tics of institutions with regard to globalenvironmental issues (particularly climate change).He examines especially interactions between na-tional and supranational levels, and between gov-ernmental and non-governmental institutions, fo-cusing on the State Ministry for the Environment.Special attention is given to the role of non-governmental organizations.

Main conclusions point to the strong influencePresident Suhartos’ preferences have on the envi-ronmental policy process. His strategy has beenaimed mainly toward encouraging economicgrowth; environmental concerns have been mar-ginalized.

Non-governmental organizations have recentlyemerged as alternative outlets for political expres-sion in Indonesia. Because of their flexibility, theyare more able to respond to emerging policy chal-lenges, such as those concerning trade and the envi-ronment and climate change, than the largely inef-fective parliamentary institutions. As a result,NGOs are pushing strongest for effective environ-mental policies and ASEAN-wide cooperation ontrade and the environment.

Forestry Issues in IndonesiaAnggito Abimanyu

The author provides an overview of forestry policyissues in Indonesia and analyzes why the forestrysector has performed poorly in recent years. Onereason is that domestic prices for plywood havebeen lower than international prices because ofgovernment subsidies, and the plywood sector has

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become increasingly inefficient. Liberalization inthis sector would improve resource conservation byencouraging a more efficient use of forest resources.Decision making in the forestry sector is not trans-parent. Local communities need to become moreinvolved as partners toward sustainable develop-ment.

Sustainable Forest Management inMalaysia

Jamal Othman and Mohd Shah

-

wahid H. Othman

Malaysia’s commitment toward sustainable forestmanagement and the diminishing dependency of itseconomy on agricultural development have contrib-uted to a dwindling supply of log input to the ex-panding domestic downstream timber industry. Thevast conversion of forests in the 1970s and 1980smeant that the region is now no longer be a majorsource of log supply. Policy options to sustain thetimber industry include sustaining Malaysia’s re-sources from plantation forests and correcting forpolicy, market, and institutional failures in theforestry industry. There is also increasing supportto give the federal government full jurisdiction overthe exploitation of forest resources. Experienceswith revenue-sharing arrangements between thestate and the federal government in the case of oiland natural gas resources could lead the way tosimilar arrangements regarding revenues from for-estry. This necessitates both a holistic approachtoward forest management and a strong politicalwill on the part of state governments.

The Politics of CommunityForestry in the Philippines

Marites Vitug

Policy reforms aimed at preserving the Philippines’remaining forests, including the flagship commu-nity forestry program, have created a gap in thesupply requirements of the local wood industry.Trade liberalization, however, is expected to fillthis gap through the importation of lumber untilforest plantations, both corporate and community-based, are capable of yielding the needed volume.The author focuses on forestry reform poli-

cies—specifically, political intervention and how itcan impede the process of communities taking overformer logging concessions. Community forestryrepresents a shift in policy from the system ofTimber License Agreements given to the elites inthe past and most pronounced during the authoritar-ian years of government. The transition to democ-racy made change possible. An effective NGOmovement and a vigilant civil society is guardingover the new policies. But pressures from politi-cians can derail this flagship government program,as a case study of the largest community-based for-est in the Philippines illustrates.

Development and Forestry inThailand

Somsak Sukwong

In Thailand the four major components of policy:economic, social and biophysical/environmental,are clearly interrelated. The impact of economicintegration can be seen on the macro and microlevel and has been changing rapidly over time. Thecountry is facing a conflict between natural resourcemanagement and economic growth. However, ap-propriate policy changes in the future will meanthat economic growth can be important to envi-ronmental restoration and sustainable resource man-agement.

The author delineates the main stages of Thai-land’s experience with the management of its forestresources, from the foundation of the Royal ForestDepartment in 1896, to the logging ban in 1989and the Forest Plantation Act in 1992. The authorthen looks at the actors involved in shaping for-estry policy and focuses on the role played recentlyby university researchers, scholars, and NGOs thathas improved the understanding of the relationshipbetween humanity and forests.

Several lessons have been learned in Thailandregarding forest resource management. The coun-try’s economic development has had a profoundimpact on declining forest resources, the livelihoodof small rural farmers, and associated traditionalways of life. However, the education base has de-veloped, resulting in increased conservation aware-ness and strong private and NGO sectors. Theseshave contributed to policy change. Proper policy inthe future can be beneficial for sustainable forestmanagement. Economic growth, if distributed equi-tably to all levels of the society, can have positive

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effects on resource conservation programs, providedsocial injustices are minimized and opportunitiesfor public participation are improved.

Macro-Environmental Policy:Merging Economic, Social, andEnvironmental Considerations inNational Policy Frameworks withSpecific Reference to Policies That

Shape Forest CoverJeff Romm

Does trade liberalization change the content andorganization of effective national environmentalpolicy? What are the implications specifically forpolicies that affect forest cover?

Environmental policy conventionally has beenframed as restraint on access to natural resources,services, and qualities. It has been organized as anadversarial barrier to economic and social influencesthat are presumed, often incorrectly, to degrade en-vironmental contributions to well being. Conven-tion has sustained the separateness of policy facetsat the cost of large losses in performance.

The author addresses the shortcomings of theconventional policy separations. It proposes aframework that focuses on the consequences of in-teractions between policies that:(1) Affect motives for flows of material and humaneffort over space and among activities and groups;(2) Regulate the degree and distribution of access toopportunities, and(3) Distribute organizational capacities to integrateflows and boundaries in and among territorial unitsof different scale and purpose. A case study appliesthis framework to analyze impacts of Vietnameseeconomic liberalization on the people and environ-ment of one rural district.

The empirically inspired explanations of forestdynamics and forest changes suggest a classificationof national policies, not as economic versus envi-ronmental versus social, but into categories each ofwhich combines these facets of human action.Conceptualization of environmental policymakingnot in adversarial terms would provide a unifiedframework for designing policies for sustainabledevelopment that would overcome the rigidities andmicro-specificity of conventional environmentalpolicy.

Integration of Economics and theEnvironment: A Preliminary

Survey of EIAs and Public Partici-pation in ASEAN Countries

Lim Lei Thengand Simon S. C. Tay

As ASEAN countries seek to increase levels offoreign direct investment, the question of how eco-nomic growth objectives and environment can bereconciled gains in importance. To what extent arethey successful in maintaining effective environ-mental standards? To what extent does economicexpediency intrude? Are the present policies andlaws optimal in balancing environmental and eco-nomic needs?

The authors compare the use and impact ofEnvironmental Impact Assessment (EIA) studies indifferent ASEAN countries. All ASEAN countriessurveyed in the paper have EIA laws or policies inplace that seek to reconcile environmental protec-tion with investment for economic progress. De-spite this, the region has witnessed increased pollu-tion and environmental degradation.

The analysis allows for a number of observa-tions. EIAs are not an end in themselves. It shouldbe recognized that EIAs are part of a process thatallows interchange, negotiation, and mediationamong different stakeholders: government agencies(environmental, economic, and others), the foreigninvestor, the local community, experts, and mem-bers of the public. The authors suggest that relyingmore on local communities and NGOs canstrengthen the existing models of EIA legislationand policymaking in ASEAN countries. Allowingcommon participation in the assessment and im-provement of projects can only allow the owner-ship of the problem to be shared among allstakeholders and affected parties, resulting in morecohesion and in collective yet positive action. Onthe other hand, the alienation of significant groupslike NGOs and the community, which will ulti-mately be affected by any project, will result indissent and dissatisfaction.

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Economic Valuation of NaturalResources and Relevance to

Environmental Policy Making inThailand

Charit Tingsabadh and SuthawanSathirathai

The authors discuss the role of economic valuationof natural resources and how it may assist in theformulation of environmental policy. In the firstpart, the authors provide an overview of the tech-niques for estimating economic values of naturalresource functions and services.

In the second part, the authors present a casestudy on Economic Valuation of Mangroves andthe Roles of Local Communities in the Conserva-tion of the Resources. The authors attempts tocompare the market value of using mangrove for-ests for shrimp farming (involves clearing of themangroves) with:(1) The non-market value mangroves can provide tolocal villagers (collection of wood and minor forestproducts and fish catch) and(2) The environment (nursery ground for marine lifethat is essential for offshore fisheries, storm protec-tion, control of soil erosion and flooding, and car-bon sequestration). The benefits they receive frommangroves may provide incentives for local com-munities to protect the ecosystem. Such benefitsshould be recognized through allocation of propertyrights and regulation of land use.

Trade, Investment, and theEnvironment in Thailand

Sitanon Jesdapipat

Trade and investment have been Thailand’s enginesof economic growth and subsequent development.With environmental concerns at a new high, thetraditional concept of the interrelation betweentrade, investment, and the environment in Thailandhas changed tremendously. The environment hasnow become an integral part of investment promo-tion, and domestic and international environmentalpressures have shaped trade. Hazardous waste gen-eration in the industrial sector is symbolic of bothpolicy and market failures. Privatization, as vividlypursued by the Thai government, is a necessary but

not a sufficient condition to assure Thailand’s over-all sustainable development in the industrial sector.Public education, broad-based civil participation,fair compensation to potential injured parties, andpolitical will are but a few key elements for suc-cessful management of the challenge.

AFTA and Its EnvironmentalImplications for VietnamTran Thi Thanh Phuong

The entry of Vietnam into ASEAN and its partici-pation in the ASEAN Free Trade Area (AFTA) arechallenges not only for the country’s economy butalso for the environment. Given that Vietnam iscurrently transforming itself from a centrallyplanned to a market economy, it may experiencesome difficulty in adjusting to the pace of liberali-zation in AFTA and to the environmental policy-making process. Important questions to ask arewhat are the socioeconomic and environmental im-pacts of Vietnam’s participation in AFTA, and howcan the government of Vietnam proceed in responseto the situation.

The author, in the first part of the paper,summarizes the discussion on AFTA and APECeconomic perspectives for Vietnam. In the secondpart the author discusses main environmental prob-lems, which are likely to be associated with socio-economic issues after Vietnam entered AFTA.

The author’s main conclusion is that the entryinto ASEAN will in the long run create new oppor-tunities for Vietnam favorable to development. ButVietnam needs to develop and strengthen its envi-ronmental policies to respond to the socioeconomicand environmental changes that will result fromfree trade. Only then is Vietnam likely to maximizethe benefits from its membership in AFTA.

Sustainable Energy PolicyAlternatives for Indonesian FreeTrade Era: Toward a Significant

People’s ParticipationWiku Adisasmito and Leonard

Simandjuntak

In anticipation of the free trade era, Indonesia mustincrease its competitive edge, which is intrinsically

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related to a healthy and strong industrial structure.Energy policy, as one of the main pillars of indus-try, must be well prepared to address new chal-lenges that emerge as consequences of the free tradeera.

The global trend is toward integrating envi-ronmental considerations into decision making ondevelopment issues. International agreements onenvironment will contribute toward a global effortto find a solution for sustainable development. Oneof the prerequisites for sustainable development is asustainable energy policy.

Other than looking at the limits or the carryingcapacity of the environment, sustainable develop-ment also relies on the participation of people inthe development process. The role of the people’sparticipation in determining energy policy is key tothe formulation of a sustainable energy policy.

The synergy of the implementation of princi-ples of sustainable energy, such as the allocation ofa rational energy mix, based on free-market princi-ples, where a healthy atmosphere for investment iscreated, will be key factors in the formulation of anew energy policy—one that is oriented to the fu-ture. Clearly defined mechanisms are needed to en-sure significant participation on the part of thepeople in the process of determining this policy.

Environment and Development inMalaysia

Mohd Nizam Basiron

The author presents an examination of the relation-ship between environment and development in Ma-laysia and how it affects the process of environ-mental policy development in the country. It isbased on the premise of Principle 4 of the Rio Dec-laration on Environment and Development that “inorder to achieve sustainable environmental protec-tion the process of environmental policy develop-ment should constitute an integral part of the de-velopment process and cannot be considered inisolation.” Environmental policy development inMalaysia has, to a certain extent, lagged behindeconomic development. And while economic policydevelopment in Malaysia has evolved through theprocess of structural adjustment, environmentalpolicy development has only recently attained afooting in the overall scenario of national policydevelopment (albeit an important one). One canargue that environmental policies in Malaysia have

been developed more or less as a reaction to newforms of developmental challenges. IncreasingNGO participation in policy development, the crea-tion of a broad-based national environmental pol-icy; and the interest shown in integrated ocean gov-ernance indicate that there may be a shift toward amore integrated approach to national development.

Economic Integration and thePolitical Economy of Environment

in the Mekong River BasinPhilip Hirsch

The Mekong River Basin is often seen as underde-veloped in terms of its potential. This is despite ahistory of interest in the basin’s resources, a long-standing framework for regional cooperation indevelopment of the Mekong River Basin, and rapideconomic growth in most riparian states. Recentpolitical-economic change in mainland SoutheastAsia has set the scene for rapid integration of thebasin’s constituent economies, in part due to com-plementarities between riparian countries’ respec-tive endowments and requirements. The environ-mental implications of a revived resourcedevelopment agenda are considerable.

The author considers environmental implica-tions of economic integration in the Mekong re-gion with specific reference to development ofaquatic and terrestrial resources of the basin. Animportant background context is the rapid pace ofpolitical-economic change in the region. The Me-kong River Basin (population 60 million) is exam-ined as the heart of the greater Mekong sub-region(population 250 million), and key resource andenvironmental parameters of the basin itself areshown to set an important economic-environmentalagenda for regional/riparian states. The frameworkfor regional cooperation is examined broadly interms of an expanded ASEAN and through AsianDevelopment Bank (ADB) agendas, and more nar-rowly in terms of the revived framework for Me-kong cooperation under the Mekong River Com-mission.

The author’s central argument is that the newframework for regional cooperation in a context ofeconomic integration is leading to new pressures,competition, and likely conflict. The politics ofnew alignments among key actors are reflected in amove from geopolitical agendas as the center stageof debate over resource development in the region.

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The rapid changes and realignments are not wellreflected in national and regional institutional struc-tures concerned with resources and environmentalmanagement. The policy implications point towardmore integrated, inclusive, and participatory ap-proaches to resource management, drawing in awider range of players than hitherto included.

Indigenous Peoples and Land-UsePolicy in Indonesia: A West

Kalimantan ShowcaseStephanus Djuweng

All Indonesians are considered native to any part ofIndonesia and are first and foremost “IndonesianNationals,” and therefore any disputes of aninterethnic nature supposedly cannot arise. Theaspirations of indigenous peoples that may be inconflict with government policies are not consid-ered as interethnic matters but as political prob-lems. This is the official approach when indigenouspeoples protest against the acquisition of land bythe state on behalf of the “public interest.” Gov-ernment officials are advised to apply “persuasive”methods. Words such as consultation and dialogueare never used. The people who initiate such pro-tests are considered to be “against development” andof course against the government. Thus, the prob-lems between government policy and indigenouspeoples, particularly in regard to land, are never“officially” recognized nor resolved.

The author explores how denial of indigenouspeoples’ rights to land on which they have lived forcenturies are not only rooted within the frameworkof Indonesia’s basic agrarian law but also withingovernment policy that is dictated by the wish fordominance.

With particular reference to West Kalimantan,the author first highlights the social and culturalposition of indigenous peoples in Indonesia and thedevelopment problems that affect them. The focusis on the Dayak cultural use of land and Adat law.Aspects of agrarian and other related laws are shownto constitute a license to deny the cultural heritageof indigenous peoples.

Problems of EnvironmentalResource Use During the Processof Transition to a Market Economy

in VietnamNguyen Ngoc Tuan

The per capita income of less than US$200 makesVietnam one of the poorest countries in the world.And while the population density in most areas isexceeding its sustainable level, the populationgrowth rate is still relatively high—about 2.2 per-cent per annum. With about 78 percent of the ap-proximately 75 million people living in rural areas,Vietnam is very dependent on its agriculture and itsnatural resources. Agriculture accounts for about 40percent of GDP, 60 percent of merchandise exports,and provides livelihood for over 77 percent of thetotal labor force. Processing of primary productsaccounts for 65 percent of an industrial productionthat makes up 20 percent of GDP.

The current economic transition from a mostlycontrolled to a market-driven economy started in1989. It has given new impulse for the develop-ment of Vietnam. However, with a projected highGDP growth rate of 7 to 8 percent, Vietnam isincreasingly confronted with a number of very realtrade-offs in its development objectives. The trade-off between economic growth and environmentaldegradation in Vietnam will be particularly difficultto resolve because the wish to grow rapidly in orderto reduce poverty and the objective of maintainingthe integrity of the environment for future genera-tions are likely to conflict frequently and directly.

The Siting Problem of NIMBYFacilities: Cost-Benefit Analysis

and Auction MechanismsEuston Quah and Khye Chong Tan

The siting of locally obnoxious but nationallyrelevant facilities, such as sewage treatment plants,incinerators, hydroelectric dams, and landfills, isbecoming an important issue in public planning.Even though they may be acceptable on a nationallevel and offer services for the general public, theirplacement is increasingly influenced by strong localsentiments, the not-in-my-backyard (NIMBY) syn-drome. With economic integration and freer trade

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fueling economic growth, the NIMBY problem isposing an increasing challenge to policymaking.

The author evaluates the available conflict-resolution instruments used for the siting ofNIMBY facilities and, in particular, suggests twoalternative auction mechanisms for localities af-fected by these facilities. In effecting the compensa-tion payment, a strong adherence to the rules of

cost-benefit analysis is made. Finally, some equityconcerns are also discussed.

The two compensation auction schemes areshown to be efficient to the extent that losses inwelfare are restored; they are consistent with thenotion that benefits are achieved at the least possi-ble social cost.

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ECONOMIC INTEGRATION ANDENVIRONMENT IN SOUTHEAST ASIA:ABOUT THE PRESENTERS AND DISCUSSANTS

Anggito ABIMANYU is a lecturer at Gajah Mada University, Yogyakarta, and at the Inter-UniversityCenter for Economic Studies. His research interests include environmental economics, trade and the envi-ronment, and forestry issues.

Richard ACKERMAN is Chief, Technology and Pollution Policy, in the World Bank’s EnvironmentalDepartment. He is leading the development of the bank’s new environmental guidelines, with a growingfocus on private investment and environmental performance. He also worked with the bank’s economicadvisor to develop the institution’s new approach to integrating environmental issues into economic devel-opment and to prepare major forest country studies reflecting this thinking.

Wiku ADISASMITO is the executive director of the Policy Research Institute for Sustainable Devel-opment, Indonesia (PELANGI), which has conducted extensive analyses of community-based resourcesmanagement. He is a faculty member of the Department of Health Policy and Administration, School ofPublic Health, University of Indonesia. He also serves as the graduate program secretary of hospital admin-istartion, university of Indonesia.

Brenda Jay C. ANGELES is with the Department of Environment and Natural Resources in thePhilippines. She is presently serving as a consultant to the Office of the Undersecretary for Legal and Legis-lative Affairs and Attached Agencies, as well as the Department of Environment and Natural Resources.

Mohd Nizam BASIRON is a senior analyst at the Maritime Institute of Malaysia, Center for CoastalDevelopment, Marine Environment, and Resources in Kuala Lumpur, Malaysia. He is responsible for ma-rine pollution matters particularly in relation to land-based marine pollution. He is presently reviewing theimplementation of Chapter 17 of Agenda 21 in Malaysia.

CHIA Lin Sien is associate professor in the Geography Department at the National University of Sin-gapore. His research focus is on marine pollution from ship sources. He undertook a project on the Man-agement of Industrial Pollution in Singapore for the World Bank as part of a larger project involving othercountries.

Raymond CLÉMENÇON, project director, is a senior research fellow at the University of California,San Diego, Institute on Global Conflict and Cooperation and a consultant to the Global Environment Facil-ity (GEF) in Washington, D.C. He was section head at the International Affairs Division of the Swiss En-vironment Agency. His interests include financing mechanisms in international environmental politics,trade and environment, and institutional mechanisms in environmental policymaking.

Stephanus DJUWENG is the director of the Institute of Dayakology Research and Development(IDRD) based in Indonesia. IDRD is an NGO that focuses on human rights and environmental issues facingindigenous peoples. He is also the director of the West Kalimantan Cultural Heritage Conservation Revi-talization research project.

Philip HIRSCH is currently senior lecturer in geography at Sydney University. He has done extensivework in the field of resource management and rural development in Southeast Asia. Dr. Hirsch has alsotaught at Silpakorn University in Thailand and undertaken collaborative research in the region.

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28 • PRESENTERS AND DISCUSSANTS

Jason HUNTER is the environment program officer at the Nautilus Institute for Security and Sustain-able Development where he works on Sustainable Development and Asia Pacific Regional EnvironmentNetwork (APRENet) programs. Prior to joining the Nautilus Institute, Jason worked on programs at theInternational Institute for Sustainable Development (IISD). He has also served as a consultant to the Na-tional (U.S.) Oceanic and Atmospheric Association and other organizations. His current research focuses oneconomic instruments in environmental policy, regional cooperation on marine affairs in the Asia Pacificregion, and APEC’s emerging environmental agenda.

Sitanon JESDAPIPAT is project director at Thailand Environmental Institute (TEI) on Trade, the Envi-ronment, and Climate Change. He is also involved in national policymaking in these areas

LE Quy An is president of the Vietnamese Association for the Protection of Nature and the Environment.He is a member of the Council of the World Conservation Union (IUCN). He has served as director of theHanoi University of Transport, vice chairman of the State Committee for Sciences, and deputy minister ofScience, Technology, and Environment.

LIM Lei-Theng is a lecturer, Faculty of Law, National University, Singapore. She is also a member ofthe executive committee, Asia Pacific Center for Environmental Law, and a member of the editorial board,Asia-Pacific Journal of Environmental Law.

Rusdian LUBIS is director of the AMDAL Environmental Impact Agency (BAPEDAL) in Jakarta.

Raphael Perpetuo M. LOTILLA is deputy director-general of the National Economic and Develop-ment Authority in the Philippines. He is also the J. Collas Professor of Law at the University of thePhilippines. He is currently coordinator of the Philippine Council for Sustainable Development and theLegislative Executive Development Advisory Council.

Dr. Andrew James MACINTYRE is associate dean in the Graduate School of International Relationsand Pacific Studies at the University of California, San Diego, where he serves as associate dean, and headsthe ASEAN-Pacific Project. His principal research interests are in the areas of comparative political econ-omy, with a regional focus in Southeast Asia (particularly Indonesia) and the international relations of theAsia Pacific region.

NGUYEN Ngoc Tuan is director of the Human Geography Research Center at the National Center forSocial Services and Humanities (NCSSA) in Hanoi, Vietnam. His areas of interest include urban environ-ment management, natural resources management, and environmental policymaking.

Jamul OTHMAN is a lecturer in applied resource-environment policy analysis in the Department of Ag-ricultural and Resource Economics at the National University of Malaysia, Bangi. His research interestsinclude examining non-economic agricultural trade distortions, applied welfare analysis, and modeling theinterface between the economy and the environment. In mid-1995, he participated in the USDA/UGA co-operative project analyzing the impact of NAFTA on U.S./Mexican farm labor. Othman is a member of theAsia Society of Agricultural Economics and the local Malaysian Association of Agricultural Economics.

Mari PANGESTU is head of the Department of Economic Affairs and member of the board of directors,Center for Strategic and International Studies (CSIS), Jakarta. In addition she is a lecturer on the faculty ofthe Department of Economics, University of Indonesia, and a lecturer at Prasetiya Mulya Graduate Schoolof Management, Jakarta. She is also coordinator of the PECC Trade Policy Forum.

Euston QUAH is acting vice-dean of the faculty of the Arts and Social Sciences, National University ofSingapore. He has served as consultant to the Ministry of Finance and Ministry of Trade and Industry, Sin-gapore.

Mark RADKA is industry program officer, United Nations Environment Program (UNEP), RegionalOffice for Asia and the Pacific, Bangkok. He is responsible for regional activities conducted as part ofUNEP’s Global Industry and Environment Program. Prior to joining UNEP he worked in Washington,D.C. as a consultant to the U.S. Environmental Protection Agency and the World Bank, where he managedefforts to transfer non-ozone-depleting technologies to enterprises in developing countries, primarily inAsia.

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ECONOMIC INTEGRATION AND ENVIRONMENT IN SOUTHEAST ASIA • 29

Kurnya ROESAD is a researcher at the Department of Economics, Center for Strategic and InternationalStudies. He works on trade and environmental policy. He served as project manager for two country studieson trade and environment for ASEAN and the United Nations Commission on Trade and Development(UNCTAD).

Jeff ROMM is professor of Environmental Science in the Department of Environmental Science, Policy,and Management at the University of California, Berkeley. Formerly he was director of the Energy Re-sources Group at the University of California, Berkeley.

Gurmit SINGH is executive director of the Center for Environment, Technology, and Development(CETDEM) in Malaysia. His work focuses on sustainable development and global, regional, and environ-mental issues, particularly in NGOs.

Susan SHIRK is director of the Institute on Global Conflict and Cooperation, University of California(UCSD), San Diego, and professor of political science at the International Relations and Pacific StudiesDepartment at UCSD. Dr. Shirk’s books include The Political Logic of Economic Reform in China andCompetitive Comrades: Career Incentives and Student Strategies in China. Professor Shirk has been namedU.S. Assistant Deputy Secretary of State for East Asia, 1997-99.

Dr. Hadi SOESASTRO is executive director and member of the board of directors of the Center forStrategic and International Studies (CSIS). He is a member of the faculty of the Graduate School of Man-agement, Prasetiya Mulya, Jakarta, and associate editor of the Asian Economic Journal (Hong Kong). He isalso a member of the international advisory boards of the Bulletin of Indonesian Economic Studies (Can-berra, Australia), Research Institute of International Trade and Industry, Miti, Japan, and the ASIA Society,New York.

Somsak SUKWONG is director of the Regional Community Forestry Training Center (RECOFTC) atKasetsart University, Thailand. His research interest is in forestry issues in Thailand, Laos, Cambodia, andVietnam.

Khye Chong (K. C.) TAN is senior lecturer, Division of Actuarial Science and Insurance, NanyangBusiness School, Nanyang Technological University, Singapore. In addition, he has served as consultant tostatutory boards and financial institutions. His research interests include cost-benefit analysis, insurance, andrisk management.

Charit TINGSABADH is director of the Center for Ecological Economics, Faculty of Economics, Chu-lalongkorn University, Thailand. Previously he was deputy director at the Environmental Research Instituteat the Chulalongkorn University. In addition, he has served as economist at Regional Planning Division,National Economic and Social Development Board, Thailand.

TRAN Thi Thanh Phuong is deputy director of Planning and International Relations Division of theVietnam Environmental Agency. She is particularly interested in environmental impact assessment, envi-ronmental management, and development.

Marites VITUG is a member of the Board of Editors of the Philippine Center for Investigative Journal-ism, a nonprofit news organization. She is the Philippine correspondent for Newsweek and associate editorfor Southeast Asia of World Paper. Her recent publications include her widely renowned book Power fromthe Forest: The Politics of Logging, which won the 1993 National Book Award in the Philippines.

David WOODRUFF is professor of biology at the University of California, San Diego. He also servesas faculty advisor to students in the Ecology Program and is faculty director of the Education Abroad Pro-gram. He is interested in the problems of communication between academic scientists, developers, govern-ment policymakers, and politicians in Southeast Asia, particularly Thailand. His research focuses on theimpact of forest fragmentation and habitat degradation on biodiversity conservation and on the public healthconsequences of Mekong River Basin hydropower projects.

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ECONOMIC INTEGRATION AND THEENVIRONMENT IN SOUTHEAST ASIA

Centre for Strategic and International Studies (CSIS)Jakarta, Indonesia, 5-6 September 1996

AGENDA AND PARTICIPANTS�

PRESENTERS

Opening Remarks

Honorable Sarwono KUSUMATMADJAMinistry for the Environment, JakartaProf. Susan L. SHIRKDirector, IGCCDr. Hadi SOESASTRODirector, CSIS

Introduction: ASEAN Regional Perspectives; Trade and Environment

Dr. Raymond CLÉMENÇONEnvironment Project Director, IGCCDr. Mari PANGESTUCSISMr. Mark RADKAUnited Nations Environment Programme, BangkokMr. Kurnya ROESADCSIS

Institutional Responses to Sustainable Development

Dr. LE Quy AnPresident, Vietnamese Association for the Protection of Nature, HanoiDr. Raphael Perpetuo M. LOTILLADeputy Director General, National Economic and Development Authority, Pasig City, PhilippinesMr. Agus SARIEnergy and Resources Group, UC BerkeleyMr. Gurmit SINGHDirector, Environmental Protection Society of Malaysia; Center for Environment, Technology and Devel-opment, Petaling Jaya

Forestry Management

Prof. Anggito ABIMANYUUGM Fakultas Ekonomi, Jogjakarta, Indonesia

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ECONOMIC INTEGRATION AND ENVIRONMENT IN SOUTHEAST ASIA • 31

Prof. Jamal OTHMANFaculty of Economics, National University of Malaysia, SelangorProf. Jeff ROMMDept. for Environmental Science, Policy, and Management, UC BerkeleyDr. Somsak SUKWONGDirector, Regional Community Forest Training Center, Kasetsart University, Bangkok, ThailandDr. Marites Danguilan VITUGBoard of Editors, Philippine Center for Investigative Journalism, Rizal

Environmental Impact Assessments as Policy Tools

Ms. LIM Lei ThengFaculty of Law, National University of SingaporeProf. Charit TINGSABADHDirector, Center for Ecological Economics, Chulalongkorn University, Bangkok, Thailand

Environment and Development in ASEAN

Dr. Wiku ADISASMITOPolicy Research for Sustainable Development (PELANGI), JakartaDr. Mohd Nizam BASIRONSenior Analyst, Center for Coastal Development, Maritime Institute of Malaysia, Kuala LumpurProf. Philip HIRSCHDept. of Geography, University of Sydney, AustraliaDr. Sitanon JESDAPIPATProject Director, Thailand Environment Institute, BangkokMr. Anung KARYADIPolicy Research for Sustainable Development (PELANGI), JakartaMr. Leonard SIMANJUNTAKPolicy Research for Sustainable Development (PELANGI), JakartaDr. TRAN Thi Thanh PhuongDirector of International Relations, National Environment Agency, Ministry of Science, Technology andEnvironment, Hanoi

NGO and Community Participation in Policymaking

Dr. Stephanus DJUWENGDirector, Institute of Dayakology and Research Development Pontianak, Kalimantan, IndonesiaDr. NGUYEN Ngoc TuanDirector, Human Geography Research Center for Social Sciences and Humanities, HanoiProf. Euston QUAHDept. of Economics and Statistics, National University of SingaporeDr. TAN Khye ChongNanyang Business School, Nanyang Technological University, Singapore

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32 • AGENDA AND PARTICIPANTS

ROUND TABLES

Impact of Economic Integration on Environmental PolicymakingThe Role of Regional and International Organizations

ADDITIONAL PARTICIPANTS

INDONESIA

Mr. Ananta GONDOMONOCSISMr. Fritz LOBUSUNDP, Jakarta PusatMr. Rusdian LUBISDirector, Environmental Impact Agency (AMDAL), JakartaMr. Agus PURNOMODirector, World Wildlife Fund for Nature Indonesia , Jakarta SelatanDr. Riga Adiwoso SUPRAPTOLembaga Ecolabel Indonesia, Jakarta Pusat

PHILIPPINES

Ms. Brenda Jay C. ANGELESDept. of Environment and Natural Resources, Quezon City

SINGAPORE

Prof. CHIA Lin SienDept. of Geography, National University of Singapore

THAILAND

Prof. Suthawan SATHIRATHAAICenter for Ecological Economics, Chulalongkorn University, Bangkok

U S A

Dr. Richard ACKERMANHead, Technology and Pollution Management Unit, Dept. of EnvironmentMr. Jason HUNTERProgram Officer, Nautilus Institute, Berkeley, CAProf. Andrew MACINTYREGrad. School of International Relations and Pacific Studies (IRPS), UC San DiegoProf. David WOODRUFFDept. of Biology, UC San Diego

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THE UNIVERSITY OF CALIFORNIAINSTITUTE ON GLOBAL CONFLICTAND COOPERATION

he University of California Institute onGlobal Conflict and Cooperation (IGCC)was founded in 1983 as a multi-campusresearch unit serving the entire Universityof California (UC) system. The institute’spurpose is to study the causes of interna-

tional conflict and the opportunities to resolve itthrough international cooperation. During IGCC’sfirst five years, research focused largely on the issueof averting nuclear war through arms control andconfidence-building measures between the super-powers. Since then the research program has diver-sified to encompass several broad areas of inquiry:regional relations, international environmental pol-icy, international relations theory, and most re-cently, the domestic sources of foreign policy.

IGCC serves as a liaison between the academicand policy communities, injecting fresh ideas intothe policy process, establishing the intellectualfoundations for effective policy-making in thepost–Cold War environment, and providing oppor-tunities and incentives for UC faculty and studentsto become involved in international policy debates.Scholars, researchers, government offi ci al s ,and journal i s t s from the United States andabroad participate in all IGCC projects, and IGCC’s

publications—books, policy papers, and a semian-nual newsletter—are widely distributed to individu-als and institutions around the world.

In addition to projects undertaken by the centraloffice at UC San Diego, IGCC supports research,instructional programs, and public educationthroughout the UC system. The institute receivesfinancial support from the Regents of the Univer-sity of California and the state of California, andhas been awarded grants by such foundations asFord, John D. And Catherine T. MacArthur,Rockefeller, Sloan, W. Alton Jones, Ploughshares,William and Flora Hewlett, the Carnegie Corpora-tion, the Rockefeller Brothers Fund, the UnitedStates Institute of Peace, and The Pew CharitableTrusts.

Susan L. Shirk, a professor in UC San Di -ego’s Graduate S chool of Int ernational Rela-tions and Pacific Studies and in the UCSD Depart-ment of Political Science, was appointed director ofIGCC in June 1992 after serving for a year as act-ing director. Former directors of the institute in-clude John Gerard Ruggie (1989–1991), and HerbertF. York (1983–1989), who now serves as directoremeritus.

T

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ELECTRONIC PUBLISHING AT IGCC�

he year 1994–1995 saw several criticalevents in the publishing world:• Paper costs rose 25 percent;• Postal rates rose 10 percent;• Federal Executive emphasis sparkedexplosive growth in public availability

and use of Internet resources (the so-called “infor-mation superhighway”).

With an ever-increasing demand for informa-tion about the Institute and its products, along withtightening of the California state budget, it wasclear that we needed to expand worldwide access t oour publi cati ons—right when we needed to holddown publishing costs in the face of rising ex-penses. “Online” publishing was the answer.

In cooperation with t he Univers it y ofC al i forni a, S an Diego Graduate S chool ofInternational Relations and Pacific Studies, in De-cember 1994 IGCC established a “Gopher” server.Thereafter, all text-based IGCC materials and publi-cations (including informational brochures, news-letters, and policy papers) became available via theInternet.

In early 1995, IGCC joined the World WideWeb, making not only text, but related full-colorphotographs, maps, graphs, charts, and other mul-timedia information available to internet usersaround the globe. Following a general announce-ment of our internet services in our Spring 1995Newsletter (circulation ca. 8,000),

IGCC Online was named an “Editor’s Choice”site by America Online; was cited especially for itsMiddle East Peace Process coverage in an InternetWorld article, and was selected as a world-wide top-ten international relations/ international securitysite by the McKinley group. IGCC’s online publi-cations are now abstracted and/or cross-listed bydozens of related online services.

Since “the Web” is expanding at a furiouspace, with new sites added daily, the net result ofour electronic effort has been (conservatively esti-mated) to quintuple circulation of IGCC materialswith no increase in cost—and without abandoningprinted mailings to those with no Internet access.

Electronic publishing has not merely expandedreadership of existing print publications: it is fun-damentally re-defining the scope, nature, and audi-ence for research products. In 1995–96, IGCC be-gan cutting-edge investigation of how our onlinepublishing efforts might be merged with other in-ternet systems to foster, support, and report onregional “track-two” diplomatic efforts.

Internet users can view information about orpublished by IGCC at:

• http://www-igcc.ucsd.eduor:

• gopher-igcc.ucsd.edu

T

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CURRENT PUBLICATIONS�

IGCC-Sponsored BooksEthnic Fears and GlobalEngagementDavid A. Lake and Donald Rothchild,eds. Princeton U. Press, forthcoming1998.

Regional Orders: BuildingSecurity in a New WorldDavid A. Lake and Patrick Morgan,eds. Penn State University Press, 424pages, 1997, $53.00 cloth ISBN 0-271-01703-1/$19.95 paper ISBN 0-271-01704-X. Call (800) 326-9180.

The China Circle: Eco-nomics and Technology i nthe PRC, Taiwan, andHong Kong.Barry Naughton, ed. Brookings Institu-tion Press, 316 pages, 1997, $49.95 clothISBN 0-8157-5990-3/ $19.95 paperISBN 0-8157-5999-1, Call (800) 275-1447 or (202) 797-6258.

Power and Prosperity: TheLinks between Economicsand Security i nAsia–Pacific.Susan L. Shirk and Christopher P.Twomey, ed. Transaction Publishers,286 pages, 1996, $39.95, ISBN 1-56000-252-2. Call (908) 932-2280.

Practical Peacemaking i nthe Middle EastVolume I: Arms Controland Regional Security.278 pages, 1995, $34.95,ISBN 0-8153-1999-1Volume II: The Envi-ronment, Water, Refu-gees, and Economic Co-operation andDevelopment.411 pages, 1995, $62.00,ISBN 0-8153-2000-0

Steven L. Spiegel and David Pervin,eds. Garland Publishers.Call (800) 627-6273.

Strategic Views from theSecond Tier: The NuclearWeapons Policies o fFrance, Britain, andChina.John C. Hopkins and Weixing Hu, ed.Transaction Publishers, 284 pages,1995, $21.95,. ISBN 1-56000-790-7.Call (908) 932-2280.

Space Monitoring o fGlobal Change. Gordon J.MacDonald and Sally K. Ride.IGCC/California Space Institute, 61pages, 1992,ISBN 0-934637-15-6

The Arab–Israeli Searchfor Peace. Steven L. Spiegel, ed.Lynne Rienner Publishers, 199 pages,1992, $10.95, ISBN 1-55587-313-8.Call (303) 444-6684.

Beyond the Cold War i n thePacific. Miles Kahler, ed.IGCC-SCC No. 2, 155 pages, 1991,ISBN 0-934637-14-8. Available online.

Europe i n Transition:Arms Control and Conven-tional Forces i n the 1 9 9 0 s .Alan Sweedler and Randy Willoughby,eds. 119 pages, 1991, ISBN 0-934637-12-1

Nuclear Deterrence andGlobal Security in Transi-t ion .David Goldfischer and Thomas W. Gra-ham, eds. Westview Press, 199 pages,1991, $29.95, ISBN 0-8133-8417-6. Call(303) 444-3541.

The Future of U.S. Nu-clear Weapons Policy.David P. Auerswald and John GerardRuggie, eds. IGCC-SCC No. 1, 87pages, 1990. ISBN 0-934637-13-X

Conventional Forces i nEurope.Alan Sweedler and Brett Henry, eds.102 pages, 1989, ISBN 0-934637-11-3

IGCC Policy PapersISSN 1088-2081Economic Integration andEnvironment in SoutheastAsiaRaymond Clémençon, ed.IGCC-PP No. 30, 50 pages, July 1997,ISBN 0-934637-46-6

The Political Economy o fInternational Environ-mental CooperationAlan Richards, ed. IGCC-PP No. 29,106 pages, June, 1997,ISBN 0-934637-45-8

Preventive Diplomacy andEthnic Conflict: Poss ib le ,Dif-f icult , Necessary.Bruce W. JentlesonIGCC-PP No. 27, 28, 30 pages, May 1996,ISBN 0-934637-42-3

The Middle East Multilat-eral Arms Control and Re-gional Security Talks.Bruce W. JentlesonIGCC-PP No. 26, 32 pages, September1996, ISBN 0-934637-41-5

Economic Globalizationand the “New” EthnicStrife.Ronnie Lipschutz and Beverly Craw-ford. IGCC-PP No. 25, 24 pages, May1996, ISBN 0-934637-40-7

The Northeast Asian Coo-per-ation Dialogue IV: En-ergy & Security i n North-east AsiaSusan Shirk and Michael Stankiewicz,eds. IGCC-PP No. 24, 68 pages, August1996, ISBN 0-934637-39-3

Workshop o n Arms Con-trol and Security i n theMiddle East III.Fred Wehling, ed. IGCC-PP No. 23, 24pages, May 1996, ISBN 0-934637-38-5

The Moral Foundation o fInternational Intervention.Leonard Binder.IGCC-PP No. 22, 38 pages, January 1996,ISBN 0-934637-37-7

The Importance of Spacein Violent Ethno-Religious Strife.David Rapoport.IGCC-PP No. 21, 28 pages, January 1996,ISBN 0-934637-36-9

Ethnic Fears and GlobalEngagement: The Interna-tion-al Spread and Man-agement o f Ethnic Con-f l i c t .David Lake and Donald Rothchild.IGCC-PP No. 20, 62 pages, January 1996,ISBN 0-934637-35-0

Maritime Jurisdiction i nthe Three China Seas: Op-

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36 • IGCC PUBLICATIONS

tions for Equitable Set -tlement. Ji GuoxingIGCC-PP No. 19, 38 pages, October 1995,ISBN 0-934637-34-2

The Domestic Sources o fDisintegration.Stephen M. SaidemanIGCC-PP No. 18, 38 pages, November1995, ISBN 0-934637-33-4

The Northeast Asian Coop-eration Dialogue III: Re-gional Economic Coopera-t ion: The Role o f Agricul-tural Produc-tion andTrade.Susan Shirk and Michael Stankiewicz,eds. IGCC-PP No. 17, 32 pages, Novem-ber 1995, ISBN 0-934637-32-6

Ethnic Conflict and Rus-sianIntervention i n the Cauca-s u s .Fred Wehling, ed.IGCC-PP No. 16, 34 pages, August 1995,ISBN 0-934637-31-8

Peace, Stabi l i ty , and Nu-clear Weapons. Kenneth N.WaltzIGCC-PP No. 15, 20 pages, August 1995,ISBN 0-934637-30-X

Promoting Regional Co-opera-tion i n the MiddleEast.Fred Wehling, ed. IGCC-PP No. 14, 32pages, June 1995, ISBN 0-934637-29-6

African Conflict Manage-ment and the New WorldOrder.Edmond J. Keller. IGCC-PP No. 13, 16pages, May 1995, ISBN 0-934637-28-8

U . S . Intervention i n Eth-nic Conflict. Fred Wehling, ed.IGCC-PP No. 12, 42 pages, May 1995,ISBN 0-934637-27-X

China’s NonconformistReforms.John McMillan.IGCC-PP No. 11, 20 pages, December1994, ISBN 0-934637-26-1

The United States and Ja-pan i n Asia. Christopher Twomeyand Michael Stankiewicz, ed.IGCC-PP No. 10, 50 pages, November1994, ISBN 0-934637-25-3

The Northeast Asian Co-operation Dialogue II.Susan Shirk and Chris Twomey, ed.IGCC-PP No. 9, 88 pages, August 1994,ISBN 0-934637-24-5

The Domestic Sources o fNuclear Postures.Etel Solingen IGCC-PP No. 8, 30 pages,October 1994. ISBN 0-934637-23-7

Workshop o n Arms Con-trol and Security i n theMiddle East II.Paul L. Chrzanowski.IGCC-PP No. 7, 26 pages, April 1994,ISBN 0-934637-22-9

Northeast Asian EconomicCooperation i n the Post -Cold War Era.Lu Zhongwei. IGCC-PP No. 6, 21 pages,October 1993, ISBN 0-934637-21-0

Regional Cooperation andEnvironmental Issues i nNortheast As ia .Peter Hayes and Lyuba ZarskyIGCC-PP No. 5, 35 pages, December1993, ISBN 0-934637-20-2

Workshop o n Arms Con-trol and Security i n theMiddle East.David J. PervinIGCC-PP No. 4, 17 pages, June 1993,ISBN 0-934637-19-9

Japan i n Search o f a “Nor-mal” R o l e .Chalmers Johnson IGCC-PP No. 3, 45pages, July 1992, ISBN 0-934637-18-0

Climate Change: A Chal-lenge to the Means o fTechnology Transfer.Gordon J. MacDonald.IGCC-PP No. 2, 51 pages, January 1992,ISBN 0-934637-17-2

Building Toward MiddleEast Peace: Working

Group Reports from ‘Co-operative Security i n theMiddle East,’ Moscow,October, 1 9 9 1 .IGCC-PP No. 1, 43 pages, January1992, ISBN 0-934637-16-4

IGCC Policy BriefsISSN 1089-8352Integrating AsiaHaggard, Naughton, and BorrusIGCC-PB No. 9, July 1997

Democratizing ForeignPol icy:Presidential LeadershipAfter the Cold War.IGCC-PB No. 8-4,The Perils of Principles.IGCC-PB No. 8-3, September 1996The B i g St ick Makes FewFriends.IGCC-PB No. 8-2A Little Help From OurFriends.IGCC-PB No. 8-1

David A. Lake, September 1996

Banning Land Mines .Isebill GruhnIGCC-PB No. 6, March 1995

Derecognition: Exit ingBosnia.George KenneyIGCC-PB No. 5, June 1995

Middle East EnvironmentalCooperation. Philip WarburgIGCC-PB No. 4, May 1995

Ethnic Conflict and In-terna-tional Intervention.David LakeIGCC-PB No. 3, April 1995

Ethnic Conflict Isn’t.Ronnie Lipschutz and Beverly Crawford.IGCC-PB No. 2, March 1995

Environmental Security.Gordon J. MacDonaldIGCC-PB No. 1, February 1995

I GC C P U B LI C A TI ON SSingle copies of IGCC publications are available at no charge, unless otherwise indicated. To receive a copy of the IGCC newsletter; to be placed on

the IGCC publications mailing list; or to order any of the institute’s current publications, please feel free to contact:Jennifer R. Pournelle, Managing Editor

University of California Institute on Global Conflict and Cooperation9500 Gilman Drive

La Jolla, CA 92093-0518phone (619) 534-1979 or (619) 534-3352

Fax (619) 534-7655email: [email protected] or [email protected]

http://www-igcc.ucsd.edu/igcc/igccmenu.htmlgopher: igcc.ucsd.edu