Environmental Policies Needed for Sustainable Economic Growth

Also available in Bangla

Dhaka, 11 March 2007: Bangladesh must address key environmental concerns such as air and water pollution and the decline in fisheries, if it is to protect the health and livelihoods of its citizens and achieve sustainable economic growth, speakers said at the launch of a World Bank report on the environment in Bangladesh.

Bangladesh’s economy has been growing at more than 5 per cent a year over the last decade, but in doing so many new environmental challenges have been created, especially in urban and industrialized areas. While steady economic growth has aided poverty reduction, poor households remain heavily dependent on natural resources that are now under threat. The poor are also vulnerable to environmental health risks caused by air and water pollution.

The World Bank report titled, Bangladesh Country Environmental Analysis, suggests that by improving access to environmental information and increasing transparency and consultation it will be easier to form and enforce coherent and effective environmental policies. There is also a need for economic policies that promote improved environmental performance.

“Economic growth is vital in order to reduce poverty, but it has to be achieved in a sustainable way. Environmental degradation threatens the health and livelihood of millions of Bangladeshis. Such damage has a human and economic cost that seriously hampers this country’s development,” said Zhu Xian, World Bank Country Director at the report launch.

The report was launched jointly with the Government of Bangladesh. Dr. C.S. Karim, Advisor of the Ministry of Environment and Forest (MOEF) spoke as chief guest and MOEF Secretary S.M.Jahrul Islam presided over the launch. Adriana J. Damianova, Lead Environmental Specialist, South Asia Environment and Social Development Sector Unit of the World Bank Group and Dr. Paul Jonathan Martin, co-author of the report, presented highlights from the study.

Dr. C.S. Karim said the Government has made important strides towards meeting the environment-related Millennium Development Goals and will soon undertake steps to ensure greater environmental sustainability. The Government will do this by strengthening environmental governance in order to reverse the loss of natural resources and the degradation of the urban environment.

The Bangladesh Country Environmental Analysis found that the environmental damage considered in the report accounted for economic losses equivalent to more than 4 per cent of Bangladesh’s GDP. The report identified three sources of environmental degradation that need priority attention: indoor and urban air pollution, the degradation of water quality in Dhaka, and the decline of capture fisheries. The economic losses associated with these three issues alone amounts to more than 2.7 percent of GDP.

Environmental factors account for as much as 22 percent of the national burden of disease, principally in the form of respiratory infections and diarrhoeal disease with air and water pollution largely to blame. Residents of Dhaka are at particular risk with the capital city facing the triple threat of air pollution, inadequate solid waste management, and the contamination of surface water. The total economic cost of the poor management of water resources in Dhaka is estimated at US$670 million annually.

The threat to Bangladesh’s fisheries is equally serious. Fisheries are estimated to provide two thirds of the country’s animal protein needs, but inland and coastal capture fisheries are in decline. This is partially due to the loss of floodplain habitats, over fishing and pollution. Almost 30 per cent of inland fish species are in danger of extinction.

The study suggests introducing greater transparency in environmental management by improving access to environmental information and implementing accountable decision-making. There is also a need for credible enforcement so that those who break environmental rules are caught and punished.
The report also makes several specific recommendations about how to tackle some of the environmental challenges. For example it suggests that attempts to deal with indoor air pollution should be integrated into existing energy and public health campaigns and that cleaner fuels and cooking technologies should be promoted. In the case of fisheries the report suggests a flood management plan that would ensure minimum dry season water flows.