Technology, globalization, and sustainable development: transforming the industrial state

Note continued: 7.6.2.Working Conditions and Industrial Relations 7.6.3.Technological Change and Employment 7.6.4.Values for Sustainable Employment 7.6.5.Low-Wage, Cost-Cutting versus Innovation-Driven, Quality Firm Strategy 7.6.6.Reconceptualizing the Need for Innovation in Approaches to Employment Enhancement 7.7.Policy Implications 7.8.Notes 7.9.Additional Readings 7.10.References 8.Government Policies to Foster Innovation, Economic Growth, and Employment 8.1.Introduction 8.2.Types of Technological Change and Sustaining and Disrupting Innovation 8.3.Prerequisites for Technological Change 8.4.The Role of Government in Promoting Innovation in Developed Countries 8.4.1.Review of Government Policy Instruments in the Context of Alternative Theories of Technological Innovation 8.4.2.Strategic Niche Management and Transition Management 8.4.3.The Three-Layered Approach to System Innovation 8.4.4.The Integration of Government Interventions 8.5.The Importance of Diffusion in Achieving Sustainable Development 8.6.Stakeholder Involvement in the Context of Sustainable Development 8.7.Innovation, Industrial, and Technology Policy in the Context of a Globalized Economy 8.8.Modernization, Globalization, and Employment in the North 8.9.Industrial and Employment Policy in the South 8.10.Notes 8.11.Additional Readings 8.12.References pt. IV National, Regional, and International Efforts to Advance Health, Safety, and the Environment 9.Government Intervention to Protect the Environment, Public/Worker Health and Safety, and Consumer Product Safety 9.1.Introduction 9.2.National Approaches: Regulation of Health, Safety, and the Environment in the United States 9.2.1.Introduction to the U.S. Regulatory System 9.2.2.Standard Setting and Obligations of the Employer and the Manufacturer or User of Toxic Substances in the United States 9.2.2.1.The Occupational Safety and Health Act of 1970 9.2.2.2.The Toxic Substances Control Act of 1976 9.2.3.The Control of Gradual Pollution in Air and Water and Pollution from Waste in the United States 9.2.3.1.The Clean Air Act 9.2.3.2.Water Legislation 9.2.3.2.1.The Clean Water Act 9.2.3.2.2.The Safe Drinking Water Act 9.2.3.3.The Regulation of Hazardous Waste 9.2.3.4.The Origins of the Precautionary Approach in U.S. Regulatory Law 9.2.4.The Chemical Safety Provisions of the U.S. Clean Air Act: Obligations Imposed by EPA and OSH A to Prevent the Sudden and Accidental Release of Chemicals 9.2.5.Pollution Prevention and Inherently Safer Production in the United States 9.2.6.The Right to Know and Information-Based Strategies to Encourage Alternative Technology in the United States 9.2.6.1.Trade-off Analysis 9.2.6.2.Trade-off Analysis in the Context of Sustainability 9.2.7.Product Safety 9.2.7.1.General Discussion 9.2.7.2.Prospects for Reform 9.2.8.Alternatives to Regulation 9.2.9.U.S. and European Law Compared 9.3.Static versus Dynamic Efficiency and the Implications for Promoting Technological Innovation Using Trade-off Analysis 9.4.National Government's Role in Achieving Efficiency: The Regulation-Induced-Innovation Hypothesis 9.5.Nation-Based Regulation in the Context of Industrial Globalization 9.6.Nation-Based Approaches in Developing Countries without a Strong Regulatory Tradition 9.7.Notes 9.8.Additional Readings 9.9.References 10.Regional and International Regimes to Protect Health, Safety, and the Environment 10.1.Introduction 10.1.1.The Increasing Importance of Health, Safety, and the Environment 10.1.2.Different Levels of Protection as Subsidies or Barriers to Trade 10.1.3.International Health, Safety, and Environmental Law Instruments and Mechanisms 10.2.The Nature of International Environmental Law 10.2.1.Treaties, Customs, and Principles as Elements of International Environmental Law 10.2.2."Hard" versus "Soft" Law 10.2.3.The International Multilateral Environmental Agreement Process 10.3.Factors Influencing Compliance with Multilateral Environmental Accords 10.3.1.Negotiation of Environmental Accords 10.4.The Polluter-Pays Principle, the Precautionary Principle, and Other Evolving Principles of International Environmental Law 10.4.1.The Polluter-Pays Principle and the Coasean View 10.4.2.The Precautionary Principle 10.4.2.1.The U.S. Approach to the Precautionary Principle 10.4.2.2.European and International Legal Formulation of the Precautionary Principle 10.4.3.Intergenerational Equity 10.4.4.The Public's Right to Access Information and to Participate in Environmental, Health, and Safety Matters 10.4.5.Extended Producer Responsibility 10.5.Harmonization of Health, Safety, and Environmental Standards 10.5.1.International and European Union Efforts to Harmonize Standards and Guidelines 10.5.2.Voluntary Industry Efforts to Harmonize Practices 10.5.3.The Implications of Having Different Standards and Practices: Increased Capital Movement to Pollution Havens versus the Porter Hypothesis 10.5.4.Reaching Consensus on Risk-Assessment Methodologies and Risk-Management Rationales 10.5.4.1.The OECD Role in Chemical Safety and Risk Assessment 10.6.International Trade of Hazardous Products 10.7.International Trade of Hazardous Equipment and Plant 10.8.Transfer of Technical Know-how 10.9.International Trade of Hazardous Waste 10.10.Transboundary Migration of Pollution 10.11.Polluting the International Commons 10.12.Liability for Environmental Damage 10.12.1.U.S. Environmental Liability 10.12.2.European Union Environmental Liability 10.13.Preserving Biodiversity and Endangered Species 10.14.Food Safety 10.15.Biotechnology 10.16.Pharmaceutical Safety 10.17.Environmental Law and Its Role in Stimulating Technological Change 10.17.1.Clean Production Mechanisms 10.18.Regional Approaches to Protection of Health, Safety, and the Environment: The European Union 10.18.1.Environmental Law in the European Union 10.18.1.1.Background to EU Environmental Law 10.18.1.2.Enforcement 10.18.2.Regulation of Air, Water, and Waste 10.18.2.1.Air 10.18.2.2.Water 10.18.2.3.Waste 10.18.3.Prevention of Chemical Accidents 10.18.4.The Integrated Pollution Prevention and Control Directive 10.18.5.The EU Integrated Product Policy, the Environmental Technologies Action Plan, and Life-Cycle Assessment 10.18.5.1.The EU Integrated Product Policy and the Environmental Technologies Action Plan 10.18.5.2.Life-Cycle Assessment 10.18.6.Access to Information and Participatory Rights 10.18.7.The Eco-Management and Audit Scheme and ISO 14001 10.18.8.Chemicals Policy and REACH 10.18.8.1.The REACH Initiative 10.18.8.2.The U.S. Toxic Substances Control Act and Lessons for REACH 10.18.9.Food Safety in the EU 10.18.10.Biotechnology in the EU 10.18.11.Financial Assistance and LIFE 10.18.12.The European Chemical Substances Information System 10.18.13.Commentary on EU Environmental Law 10.19.Worker Health and Safety 10.20.The Importance of International Institutions 10.20.1.The Organisation for Economic Co-operation and Development 10.20.2.The International Labour Organization 10.20.3.The United Nations 10.20.3.1.The United Nations Environment Programme 10.20.3.2.The United Nations Industrial Development Organization 10.20.3.3.The United Nations Development Programme 10.20.4.The World Health Organization 10.20.5.The World Trade Organization and the General Agreement on Tariffs and Trade 10.20.6.The North American Free Trade Agreement 10.20.7.The Food and Agriculture Organization 10.20.8.Nongovernmental Organizations 10.20.9.The European Foundation for the Improvement of Living and Working Conditions 10.21.Global Governance 10.22.Conclusions 10.23.Notes 10.24.Additional Readings 10.25.References Appendix 10-A Multilateral Environmental Agreements in Reverse Chronological Order Appendix 10-B Multilateral Environmental Agreements by Area of the Environment pt. V International Trade and Finance 11.Trade Regimes and Sustainability 11.1.Trade Agreements in General 11.1.1.Introduction 11.1.2.Trade as a Driver of Growth 11.1.3.Overview of the Agreements Administered by the World Trade Organization 11.1.4.Dispute Resolution under the WTO 11.1.5.The Prohibition against Subsidies 11.2.Trade and the Environment (Trade Regimes as Constraints on National Health, Safety, and Environmental Policies) 11.2.1.The Shrimp-Turtle Dispute and Article XX(g) of the GATT (Conservation of Natural Resources) 11.2.2.Asbestos and Section XX(b) of the GATT (Protection of Human and Animal Life and Health) 11.2.3.Trade and Standards under the WTO Agreements 11.2.4.The Decision of the Appellate Body in the Asbestos Case and Future Uncertainty of the Availability of Articles XX(b) and (g) Exceptions 11.2.5.Food Safety: Hormones in Beef and the SPS Agreement 11.2.6.Biotechnology: Genetically Modified Organisms 11.2.7.The General Agreement on Trade in Services 11.2.8.The Agreement on Trade-Related Aspects of Intellectual Property Rights 11.3.Trade and the Environment (Trade Regimes as Tools to Promote Advances in National and International Environmental Policies) 11.3.1.Trade as a Positive Force to Improve Environmental Conditions 11.3.2.NAFTA and Other U.S. Bilateral Trade Regimes 11.4.Trade, Employment, and Labor Standards 11.5.Notes 11.6.References Appendix 11-A Selected WTO Agreements 12.Financing Development 12.1.Introduction pt. A Financing of Economic Development 12.2.Official Development Assistance and Private Capital 12.3.Analyzing Official Development Assistance 12.3.1.A Historical Overview of Development Aid 12.3.1.1.The World Bank Group

Note continued: 12.3.1.2.The International Monetary Fund

12.3.2.Analysis of the Crisis in Official Development Assistance

12.3.2.1.The Volatility of Development Aid

12.3.2.2.Some Promising Signs

12.3.3.A Critical Assessment of Development Aid

12.3.3.1.The Problem with Government Involvement

12.3.3.2.The Problem with Aid Fungibility

12.3.3.3.The Problem with Conditionality

12.3.3.4.Problems with Effective Coordination

12.3.3.5.The Problems with Capacity Building

12.3.4.Bilateral Financial Transfers: Ranking Developed Countries on Their Foreign Policies

12.3.5.Export Credit Agencies

12.3.5.1.The Functioning of ECAs

12.3.5.2.Background on the Evolution of the OECD Common Approaches

12.3.6.Private Multinational Banks and the Equator Principles

12.3.7.Sovereign Wealth Funds

12.4.Private Capital Flows

12.4.1.The Rise in Private Capital Flows

12.4.2.Drawbacks of Financial Globalization

12.4.2.1.Foreign Direct Investment

12.4.2.2.Bank Lending

12.4.2.3.Portfolio Flows

12.4.2.4.Will the Inflows Last?

12.4.2.5.The Cost of Volatility

12.4.2.6.A Bias of Flows against the Poor

12.4.2.7.Potential Hazards for Sustainable Development

12.4.3.Maximizing the Benefits of Financial Integration

12.4.3.1.Strategies for the Developing World

12.4.3.2.What Can the Industrialized World Do?

pt. B Financing for Environmental Protection

12.5.The Importance of Enviromental Financing

12.6.The Emergence of Financing Structures for the Environment

12.6.1.A Historical Overview of Environmental Aid: The Road to Rio

12.6.2.Criticism of Financing Structures for Environmental Aid: The Flaws of Rio

12.6.2.1.Conflicting Interests between North and South

12.6.2.2.The Dispute over Additionality

12.6.2.3.Neglecting the Tension between the Economy and the Environment

12.6.2.4.Agenda 21: Lacking a Mandate

12.7.Issues of Implementation in Financing Sustainable Development

12.7.1.Dilemmas and Solutions in Environmental Financing

12.7.2.Freeing Up Financial Resources for Sustainable Development Activities

12.7.2.1.Donor Funding

12.7.2.2.Governments and Other In-Country Sources of Finance

12.7.2.3.International Transfer Mechanisms

12.7.2.3.1.The Clean Development Mechanism

12.7.2.3.2.Debt Swaps

12.7.2.4.National Environmental Funds

12.7.2.5.Trust Funds

12.7.3.Making Better Use of Market Mechanisms to Promote Sustainable Development

12.7.3.1.Introducing New Financial Mechanisms That Internalize Environmental or Social Externalities

12.7.3.2.Adapting Existing Market Mechanisms to Promote Sustainable Development

12.7.3.3.Removing Existing Financial Mechanisms That Hamper Sustainable Development

pt. C Financing Innovations (New Proposals) and Commentary

12.8.The SDR Proposal

12.9.An International Investment Agreement

12.10.The Global Environment Facility

12.10.1.The Establishment of the GEF

12.10.2.The GEF after Rio

12.10.3.Recent Developments and Future Prospects

12.11.Binary Economics

12.11.1.The Theoretical Fundamentals of Binary Economics

12.11.1.1.Implications of Underutilized Productive Capacity

12.11.2.Implementing Binary Economics

12.11.3.Some Implications of Binary Economics

12.11.3.1.A New Explanation of the Persistence of Pervasive Unutilized Productive Capacity and Suboptimal Growth

12.11.3.2.A Means of Providing Greater Earning Capacity to the Economically Disadvantaged (Poor and Working People) without Redistribution

12.11.3.3.A Change in the Dynamics of Globalization and Free Trade and the Arguments That Support the Various Positions on These Subjects

12.11.3.4.A Novel but Perhaps Indeterminate Impact on Environmental Issues and Sustainable Development

12.11.4.Commentary on the Prospects for Binary Economics

12.12.Microfinance

12.12.1.Microcredit

12.12.2.Micrograms

12.12.3.Savings and Insurance

12.13.Conclusion

12.14.Notes

12.15.References

Appendix 12-A Acronyms

Appendix 12-B Defining Aid

Appendix 12-C The Millennium Development Goals and Targets

pt. VI Strategic Policy Design for Sustainable Transformations

13.Pathways to Sustainability: Co-optimizing Economic Development, the Environment, and Employment

13.1.Introduction

13.2.Technological, Organizational, Institutional, and Social Innovation

13.2.1.Technological Innovation

13.2.2.Organizational Innovation

13.2.3.Institutional Innovation

13.2.4.Social Innovation

13.2.5.Commentary on Innovation

13.3.Governance Options to Achieve Sustainability

13.4.Alternative Postures of Government and Their Implications for Sustainable Transformations

13.5.Requirements of Transformations for Greater Sustainability

13.6.Technology-Based Strategies to Improve Productiveness; Health, Safety, and the Environment; and Employment

13.7.Policies and Approaches to Promote Sustainable Development

13.7.1.National Governance

13.7.1.1.Promoting More Sustainable Industrial Production and Consumption

13.7.1.2.Improving Health, Safety, and the Environment

13.7.1.3.Enhancing Meaningful, Rewarding, and Safer Employment and Adequate Earning Capacity

13.7.1.4.The Importance of Integration in the National Context

13.7.2.International Governance

13.7.2.1.Promoting More Sustainable Industrial Trade

13.7.2.2.Creating Incentives to Improve Health, Safety, and the Environment

13.7.2.3.Creating Incentives for Labor and Human Rights

13.8.The New Economics and Concluding Commentary

13.8.1.The New Economics

13.8.2.Monopoly Commerce, Specialization, and Vulnerability

13.8.3.Concluding Commentary

13.9.Notes

13.10.References.