Environmental degradation- a term we have all heard, a term we all think we understand, a term that is so commonly used but a term we can never fully comprehend. Why? Because we can get clean drinking water just by turning a tap while others depend on a chemical-laden lake/well as their only water supply. Because the only reason why we can live so comfortably is because somewhere out there, someone is bearing the environmental consequences for our way of living.
Even so, it would be myopic to simply blame our lifestyle for the environmental degradation suffered by developing countries. After all, we are but mere cogs in the greater economy that functions on the basis of mass production and mass consumption. And yes, I would argue that it is the competitive nature of the capitalistic economy that is responsible for much of the environmental degradation in the developing countries.
To begin, we need to identify the main source of polluters in these developing countries and examine why they are allowed to pollute. The culprits, I believe, are factories built by Multi National Corporations (MNCs). These MNCs flock to set up their labour-intensive factories in these developing countries due to low cost. The governments of these countries also do their best to woo these MNCs, citing low costs. At first glance, this looks to be a mutually-beneficial arrangement. Not only can the MNCs keep costs low, the countries’ economies also benefit from the influx of foreign investments. But when probed deeper, one will realize that one party (the MNCs) gains so much more at the expense of the other. This is because the 2 parties start off on unequal footing. The MNCs clearly have greater bargaining power and flexibility than the governments. This is because the MNCs can easily choose an alternative venue should the conditions offered to them by the government be deemed unfavourable. In a sense, it is a buyer’s market. It is up to the developing countries to make themselves attractive for the MNCs to set up factories, not vice versa. For the MNCs, it is simple, they will just flock to the place with lowest cost. For the governments, however, it is more than just costs. They desperately need these MNCs to inject capital into their flagging economies and for them to create employment for its people. Therefore, I would say that the developing countries are far more dependent on the MNCs than the MNCs on these developing countries. And this, is why there is so much potential for abuse (namely pollution and exploitation of workers) by the MNCs.
The first priority for MNCs is always costs because the capitalistic economy equates low costs with competitiveness. Thus, it is important to realize that they do not pollute because they want to but because it is the result of keeping costs low. After all, it is far cheaper to simply dump waste in the river than to have to spend to deal with it the proper way. The fact is, it takes far more effort and resources to go green and the MNCs are reluctant to compromise their profits for something that does not benefit them.
Hence, this is where the government should intervene. Unfortunately, most developing countries do not insist that MNCs not pollute the environment. In fact, most turn a blind eye to the environmental degradation that goes on. The reason, as mentioned, is the lack of bargaining power of the governments and their heavy dependence on the MNCs. Because the MNCs can easily re-locate their factories and leave behind massive unemployment and environmental damage should the government impose regulations to protect the environment that will add to their costs, for such is the power of MNCs. After all, this is not their country, they are not the ones who will have to live here, why should they bother?
Now, take a look at the developed countries. Most of them do not suffer the same extent of environmental degradation than their developing counterparts, or if they do, it is usually on a much smaller scale. Why is this so? It is because of their capital and because they are not as dependent on the polluting factories built by MNCs.
With capital, the developed countries can afford to go green. They can afford to subsidize or give tax incentives to companies who are environmentally-friendly. However, it is not just about the capital, it also about being concerned for the environment, something that seems to exist only in the developed countries. After all, who would worry over the state of the environment when they are struggling to survive? And that is the fundamental difference between the developing and the developed countries. Environment only becomes an issue when the country is well-off enough to start concerning themselves with issues other than their own survival. In order to be well-off, these developing countries have to attract MNCs and to attract them inevitably requires the environment as trade-off. It seems like no matter what, the environment will still be sacrificed. Because to survive, the country needs capital, to accumulate capital, the country has to sacrifice the environment, to save the environment, the country needs capital. At the end, it is still all about the capital.
This then leads to the question: by the time enough capital is accumulated, will it be too late? Will the environment be degraded beyond recovery? This is the risk that developing countries choose to undertake. In the event that recovery is still possible, it would require substantial resources and may result in loss of economic opportunities. Furthermore, it may take years before results can be seen.
Are these countries determined enough to not succumb to the temptations of short term lucrative profits? Are they patient enough to realize that results may not be forthcoming? Are they generous enough to devote massive resources into saving the environment? Are they strong enough to not bow to corporate pressure? These are all challenges that developing countries will have to overcome by themselves, for the mess left behind by the capitalists.