This article on ‘Balancing Economics & Environment in Globalisation Era’ was written by Samriddha Krishna Behera, an intern at Legal Upanishad.
Globalisation pressures have resulted in substantial economic progress and wealth in today’s interconnected globe. However, this advancement has come at a high environmental cost. The delicate equilibrium between financial interests and concerns about the environment is becoming an increasingly important problem that must be carefully considered. As nations aspire for progress and wealth, it is critical to recognise the value of sustainable practises and find ways to balance economic growth with environmental preservation. This article talks about balancing the economic interests of a nation while taking care of the environment in this period of Globalisation.
WHAT IS GLOBALISATION?
Globalisation refers to the growing interconnection and interconnectedness of nations and people all over the world, especially as a result of technological, communication, transportation, and commercial advancements. It entails the global integration of economies, civilizations, cultures, and governments. Globalisation has altered the way countries communicate and do business. It has resulted in the quick movement of goods, services, capital, and data across borders, removing obstacles and establishing a global economy. transportation and communication advancements have made it simpler for individuals to travel, communicate, and collaborate around the globe.
BALANCING ECONOMIC INTERESTS AND ENVIRONMENTAL CONCERNS IN THE ERA OF GLOBALIZATION
Globalisation covers many different characteristics, including:
- Economic globalisation is the process through which national economies are integrated into a global economic system. It entails trade liberalisation, the elimination of investment obstacles, the development of multinational firms, and the enlargement of global supply networks.
- Cultural globalisation is the spread and interchange of cultural ideas, beliefs, and practises beyond national boundaries. The development of media, entertainment, fashion, and the Internet has encouraged cultural globalisation, resulting in the formation of an international culture that transcends national boundaries.
- Technological Globalisation: This component of globalisation emphasises the fast spread and use of technology throughout the world. Information technology advancements have revolutionised communication, opened up new avenues for innovation and business, and promoted worldwide cooperation and knowledge exchange.
- Political globalisation refers to increased collaboration and coordination among states and international organisations in order to handle global concerns. Political globalisation entails the establishment of international treaties, accords, and institutions aimed at fostering peace, human rights, and long-term development.
ECONOMIC DEVELOPMENT: A DOUBLE-EDGED SWORD
Globalisation has transformed commerce and investment, opening up new avenues for socioeconomic growth and development. Increased international commerce, foreign direct investment, and technical breakthroughs have benefited countries all around the world. Economic advancement has lifted millions out of poverty, raised living standards, and encouraged creativity and wealth.
However, economic expansion frequently comes at the cost of the environment. Natural ecosystems have been under immense strain as a result of industrialization, resource exploitation, and growing consumption. Unsustainable economic practices have a number of negative impacts, including deforestation, pollution, habitat destruction, and climate change. Finding solutions to separate economic expansion from environmental deterioration and build a healthy balance between the two is the issue that requires our immediate attention.
A ROADMAP FOR SUSTAINABLE DEVELOPMENT
To achieve an equilibrium between financial interests and concerns for the environment, the notion of sustainable development must be accepted. Sustainable development prioritises addressing current demands without jeopardising future generations’ ability to meet their own. It incorporates economic, social, and environmental concerns into policy and corporate practises.
Governments have a critical role in developing and enforcing rules that encourage sustainable practises. Setting rules, encouraging renewable energy sources, fostering green technology, and encouraging environmentally friendly enterprises are all part of this. Governments may guarantee that economic growth is pursued in a way that minimises environmental effects and protects natural resources by incorporating sustainability into economic strategy.
THE ROLE OF BUSINESSES IN SUSTAINABLE DEVELOPMENT
Businesses have a critical role in establishing a harmonious equilibrium between economic and environmental concerns. Businesses may use sustainable business practises such as resource efficiency, waste minimization, and carbon neutrality. They may embrace CSR by taking into account the environmental effects of their activities and supplier networks.
Sustainable investments and ethical business practises have grown in popularity in recent years. Corporations that demonstrate their dedication to environmental sustainability are increasingly valued by investors and customers. Businesses may contribute to sustainability while also improving their prospective profitability and prestige by integrating economic objectives with environmental issues.
INTERNATIONAL AGREEMENTS AND COOPERATION
Addressing the issues of balancing economic and environmental interests requires international collaboration. Environmental concerns transcend national boundaries, and international cooperation is essential for successful solutions. International accords like the Paris Climate Agreement and the 2030 Agenda for Sustainable Development (SDGs) establish foundations for global collaboration and action.
These agreements encourage collaborative efforts to reduce climate change, preserve natural resources, and promote environmentally friendly development. Nations may collaborate to share information, experience, and resources to address global environmental concerns while pursuing economic growth.
To balance economic objectives and environmental concerns, a multifaceted strategy that incorporates sustainable practises into economic decision-making is required. Here are several strategies for achieving this balance:
- Governments have a crucial role in formulating laws and regulations that encourage sustainable development. Setting reduction objectives for emissions of greenhouse gases, implementing renewable energy subsidies, supporting sustainable agriculture practises, and enforcing environment-safeguarding legislation are all part of this. Governments may guarantee that economic activities are performed in an ecologically responsible way by incorporating sustainability into policy frameworks.
- Green Technology and Innovation: In order to balance economic growth with environmental concerns, it is critical to encourage the development and implementation of green technologies. Governments may fund research and development in areas such as renewable energy, sustainable agriculture, waste management, and transportation. Promoting innovation and offering incentives to firms to adopt environmentally friendly technology can boost economic growth while minimising environmental damage.
- Practises of the Circular Economy: Transitioning from a linear “take-make-dispose” paradigm to a circular economy can help with both sustainability in the economy and the environment. This includes limiting waste output, recycling and reusing materials, and developing goods that are long-lasting and easy to fix. Businesses may decrease their environmental impact, cut expenses, and generate new economic possibilities by closing the resource consumption loop.
- Corporate Social Responsibility (CSR): It is the obligation of businesses to evaluate their environmental effects and adopt sustainable practises. Adopting CSR activities, such as lowering carbon emissions, establishing sustainable supply chain practises, and investing in energy from renewable sources, may assist businesses in balancing economic and environmental objectives. Accountability and openness in environmental performance reporting may help establish a business’s credibility and attract environmentally conscientious customers and investors.
- Sustainable Investment and Financing: Investors and financial organisations play an important role in fostering long-term growth. They may help firms that exhibit great environmental performance and sustainable practises by incorporating environmental, social, and governance (ESG) issues into investment choices. Green finance solutions can be provided by financial institutions to encourage investments in renewable energy projects, sustainable infrastructure, and environmentally friendly enterprises.
- Education and Information sharing: It is critical to raise public knowledge and comprehension of the significance of balancing economic and environmental interests. Educational programmes, campaigns to raise awareness, and public engagement activities can assist individuals in making informed decisions and promoting sustainable practises. Building a culture of concern for the environment from a young age can help future generations develop a more sustainable worldview.
- International Cooperation and Collaboration: Environmental issues transcend national boundaries and necessitate worldwide cooperation and collaboration. Global agreements, such as the Paris Climate Agreement, provide a framework for countries to collaborate on common environmental goals. Sharing information, best practises, and resources among nations can hasten the adoption of sustainable practises and propel global progress towards the goal of balancing economic and environmental priorities.
To achieve a harmonious equilibrium between financial interests and environmental concerns, governments, firms, people, and international organisations must all work together. Societies may pursue economic progress while preserving and safeguarding the environment for current and future generations by incorporating sustainability into laws, practises, and investments.
As the globe becomes more connected, maintaining an equilibrium between economic and environmental interests becomes increasingly important. Globalisation has unquestionably spurred economic progress, but it has also put an enormous burden on the environment. However, economic growth and environmental preservation may be reconciled through environmentally friendly development, proactive government initiatives, ethical company practises, and international collaboration.
A healthy balance of economic and environmental interests is essential not just for the well-being and wellness of our planet, but also for the long-term success of nations and future generations. It is a delicate balance that necessitates a shared commitment to sustainability, creativity, and sound decision-making. By taking on this task, we may pave the way for a more wealthy and environmentally friendly future.
- Kevin P. Gallagher, Economic Globalization and the Environment, 34 Annual Review of Environment and Resources (2009)
- Tim Stobierski, EFFECTS OF GLOBALIZATION ON THE ENVIRONMENT, Harvard Business School, 15 April 2021, available at: https://online.hbs.edu/blog/post/globalization-effects-on-environment (last visited on 30th June 2023)
- Surbhi Paul, Globalization Impact on Environment, Legal Services India, available at: https://legalserviceindia.com/legal/article-8319-globalization-impact-on-environment.html (last visited on 30th June 2023)