Goals of sustainable development planning
It is well accepted now that planning for sustainable development aims at maintaining or improving the welfare of people as well as the ecosystem which supports the economic activities and life on earth. The achievement of these two broad goals requires that economic, social, and environmental dimensions be considered in an integrated fashion in the design and formulation of development strategies.
The exclusion of one of these potentially conflicting dimensions or their consideration in separate strategies may lead to misleading signals about: i) how people evaluate their preferences and priorities; ii) the knowledge needed to address the complex economic, social, and environmental interactions; iii) the technologies required to avoid or counter the undesirable negative environmental effects of economic development. Moreover the trade-offs among the three objectives may be more difficult to assess.
Need to integrate economic, social and environmental dimensions
In most countries, economic, social, and environmental strategies continue to be designed and implemented separately. This is true for all types of development strategies and plans at any level: international, national, sub-national, sectoral or multi-sectoral, but it is especially true for planning at the local level despite the increasing attention placed in the 1990s on a more integrated approach to sustainable development decision-making.
Role of economic analysis
It is beyond the scope of this document to address in detail all of the three dimensions mentioned above. The major purpose here is rather to point out the role of economic analysis in providing some answers to fundamental questions related to decentralized decision-making for sustainable development, such as: (i) why we should care for the environment; (ii) whether and how decentralization can contribute to sustainable development; (iii) what decision-making framework is best suited to account for environmental, economic, and social issues in decision-making at a decentralized level; (iv) who should make decisions and who should implement them, how decisions should be made and how they should be implemented; and (v) how to monitor the effects of the measures implemented.
This is done by providing the reader with a number of economic principles, concepts, analytical frameworks and examples, which aim at: familiarizing her/him with basic notions related to environment and sustainable development as well as with concepts related to economic, policy and institutional implications of decision-making for sustainable development at the local government level. Moreover, a number of economic tools and methods available to translate the above concepts into practical undertakings are described briefly.
Audience aimed at
A test made in a training workshop in Cameroon, which was followed by the preparation of a case study based on the concepts and tools learned, showed that this publication is particularly suited for training purposes and may serve as a reference tool for officials of the government at the local level, non-governmental organizations, educational institutions, and other organizations and associations who are familiar with basic economic concepts and involved in one or more of the following tasks:
(i) information, sensitization, and training on environmental implications of policies/projects/programmes;
(ii) project and policy analysis extended to environmental considerations; and
(iii) implementation of environmentally sound projects, programmes, policies, and strategies at the local government level.
Though the same concepts could be extended to the community level decision-making, the needs in terms of both decision-making tools and communication approach may differ substantially. A separate publication specifically targeted to the community level is therefore advisable.
Ideally, this publication should go along with a companion volume aimed at: (i) illustrating how the principles, concepts and tools presented here can be operational; and (ii) developing case studies of practical decision-making approaches for sustainable development at the decentralized level.
Structure and content of the publication
The publication consists of five chapters. In the first “Why caring for the environment”, the role of environmental resources and environmental goods and services in sustainable economic development is addressed. This Chapter presents the main economic issues related to environment, including how mainstream economics could reflect better the role of environment in ensuring human welfare now and in the future.
The second chapter “Decentralization and environmental issues” provides a detailed examination of why and how environmental problems can be dealt with at lower administrative levels, particularly local government level. A number of reasons are put forward which justify why local level administrations and institutions are often more effective in addressing environmental problems. It is also pointed out, however, that in some circumstances high level administrations and institutions may be indispensable to solve environmental problems. The conclusion is drawn that the identification of the most suited institutions will depend generally on the specific situations, rather than on a pre-defined procedure.
The third chapter “Fostering environment in decentralized decision-making” highlights the role of government administration. A review is provided of the instruments available to the government, both at the central and local level, to ensure proper consideration of the environment in the decision-making process. Three broad instruments are considered: (i) direct investments; (ii) incentives, and (iii) institutions. A decision-making framework is presented, which is more appropriate to and consistent with the concept of sustainable development than the conventional approach. It is stressed that participation, communication, capacity building, awareness creation, and appropriation of decisions are the main prerequisites of this framework.
Chapter four “Entry points of environment in decision-making at local government level”, starting from the decision-making framework process suggested in the previous chapter, focuses on the stages of the process that require particular attention to environmental issues. These stages are recognized in: (i) natural resources assessment; (ii) analysis of problems and objectives/priorities setting; (iii) action planning; and (iv) monitoring and evaluation.
