Al-Ahram Weekly | Economy | Growth challenged

		29 August - 4 Sept. 2002 Issue No. 601 Economy	Current issue Previous issue Site map
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Growth challenged
The World Development Report warns that environmental problems and social unrest threaten international poverty reduction goals and urges a more balanced global approach to development. Mona El-Fiqi reports

A World Bank report has revealed that the next 50 years could see a fourfold increase in the size of the global economy and significant reductions in poverty, provided that governments act now to avert a growing risk of severe damage to the environment and to prevent profound social unrest.
The World Development Report 2003 recently issued by the World Bank reckons that in the next half century, the world could have a gross domestic product of $140 trillion and a total population of nine billion people, up from six billion today.
However, without better polices and institutions, the report said, social and environmental strains may derail development progress, leading to higher poverty levels and a decline in the quality of life for everybody.
In the Middle East and North Africa (MENA) region, the need to address social and environmental pressures in the coming years is urgent. MENA's population is expected to nearly double, from 295 million today to about 560 million in 2050, the report said.
This rapid population rise is further aggravated by a lack of water security, manifested in water scarcity, inequitable distribution of water resources and degradation of water quality. Water available per capita in the MENA region is one of the lowest in the world, standing at approximately 1,200 cubic metres per year. The area's rapid population growth will cut to half the per capita availability of water over the next 30 years.
As a result, managing water usage and allocation in a sustainable manner is critical to MENA's economic and social development, the report said.
Moreover, the pressure on all natural resources generated by demographic growth threatens further development unless economic and social trends can be redirected onto a more environmentally friendly path.
"In the MENA region, the strains on natural resources, especially water and fragile lands, are probably greatest compared with other regions," said Mustafa Nabil, World Bank chief economist for the MENA region.
"The region's greatest development priority is that of creating better employment opportunities for the fastest growing labour force in the world. So output growth will have to be substantially higher than what the region has experienced over the last several decades," he said.
The World Development Report stresses that the burden of guaranteeing sustainable development must be shared locally, nationally and globally.
Developing countries need to promote participation and substantive democracy, inclusiveness and transparency as they build the institutions needed to manage their resources.
However, rich countries need to increase aid, cut poor country debts, open their markets to developing country exporters and help transfer technologies needed to prevent diseases, increase energy efficiency and bolster agricultural productivity.
The report also recommended that civil society organisations should serve as a voice for dispersed interests and provide independent verification of public, private and non-governmental performance. Private firms should commit to sustainability in their daily operations and pursue their interests while advancing environmental and social objectives.

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