Introducing Greening Strategies in Emerging Economies: Environmental compliance of Bangladesh leather industry and its influence on broader policy environment

Abstract

Due to its low-lying geography, high population density and persistent poverty, Bangladesh is considered one of the most vulnerable countries in the world to the potential impacts of climate change. In the worst-case scenario, climate change may result in rising sea levels that will displace millions of people from the coastal regions of the country and adversely affect their livelihoods and long-term health. Although Bangladesh has witnessed rapid economic development and substantial improvements on several important human development indicators, its potential vulnerability to climate change poses a severe challenge to the country's ability to sustain the progress made so far. Whereas a number of interrelated factors, including global carbon dioxide emissions, can explain Bangladesh’s vulnerability to climate change, the country’s development trajectory especially its reliance on fossil fuels has created its own environmental consequences. The Asian Development Bank (ADB) estimates that if the world continues on its current fossil fuel-intensive path, damage from climate change can cost Bangladesh up to 2 percent of its GDP by 2050.1 Without reconciling its economic and the environmental pillars, economic growth will not be sustainable and from Bangladesh's perspective, it will be a major challenge to maintain the average 6 percent or higher growth rate that is vital to achieving middle-income economy status while ensuring a smooth transition to a sustainable and inclusive growth path. While recent studies have pointed out that environmental degradation itself is costly and has negative effects on economic growth (Croitoru & Sarraf, 2010; Hallegatte et al, 2012 Padilla in this volume), the challenge for emerging economies is to remain in the development trajectory acknowledging the interdependence between economic growth and environmental adaptation. A possible solution of this is to adopt and apply green economy policies, which by definition concentrate on making the economic growth process resource-efficient, cleaner and more resilient, without necessarily slowing economic growth. Over the last decade, developing countries across the Asia and Pacific region have increasingly begun to reshape their economic development strategies around this concept. Most governments now recognize that they can no longer afford to pursue economic growth at the cost of the welfare of their people or the destruction of their natural resource base. Consequently, they are starting to integrate the core values of social equity and environmental sustainability into their national development strategies.