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Report from ANPED WG CAP workshops at NGO Forum,
'Environment for Europe' conference in Sofia, 20 - 26 October, 1995

Workshop I
Monday 23 October 1995

Part I: 'Transition in transition. Challenges and obstacles in achieving sustainable consumption and production in Central and Eastern Europe (CEE)

The aim of the workshop was to map out regional differences, specific to CEE, to develop analysis of trends and obstacles in achieving sustainable consumption and production, to come up with an inventory of CEE NGO activities on these issues, what are the ir needs to educate consumers, producers and politicians, and with suggestions for general recommendations. The workshop was meant as a contribution towards filling a gap in policy analysis.

So far the opportunities for achieving sustainable consumption and production in CEE region have not been analyzed either by NGOs or government or academic experts in a comprehensive way. Besides, existing publications on environmental issues, with few no table exceptions (eg. NEAP Report for Sofia which focused on national environmental plans) have been written by experts from the outside of Eastern Europe and not by those who live there and see the problems from within, though a number of interesting pub lication on country level does exist, eg. the reports of Iza Kruszewska on Clean Production in Poland, or the report on greening the industry in Bulgaria by Tsvietana Dimitrova.

Secretariat of ANPED WG CAP has prepared the following publications for the workshop:

1. Transition in Transition. Challenges and Obstacles in Achieving Sustainable Consumption and Production in CEE which was written by Ewa Charkiewicz and Darek Szwed.

2. Collection of examples from Central and Eastern Europe of the NGO work for sustainable consumption and production, Groundwork Series No 5, by Nicole Helwes Tuinman.

Summary of the trends highlighted in the report:

1. The decrease in output has contributed to the decrease in the consumption of the resources. Due to market reforms prices of resources which have been highly subsidized under communism now are adjusted to international level. Price increase has been pas sed on to the consumers, eg. 90 % in Ukraine this year. After the period of economic decline in the first few years of transition, CEE countries now demonstrate economic growth (eg. 5 % predicted for Poland this year, or the decline is stopped, eg. Russia ). Due to high external and domestic debt and impoverished populations it is not likely that the investment in the improvement of environment will increase.

2. In general the consumption of resources (eg. energy) per capita in CEE is lower than in Western Europe and is decreasing. However, the environmental and health impacts are high because of low efficiency in their use, and lack of even end-of pipe techno logies. Steel, concrete, pulp and paper and chemical industries are still the biggest consumers of resources. Some notable examples exist of introducing clean production programmes. One of the scarce resources in the region is drinking water.

3. The environmental profile of CEEs is very contradictory: there are both the last primeval forests in Europe, high levels of biodiversity, Europe's last unregulated rivers but also hot spots or environmental danger zones. Health impact of environmental degradation are high.

4. Railroad transport which is more sustainable and cost effective that road transport still prevails in CEE though it is undergoing fast decay and plans to integrate CEE with the trans-european network are very advanced.

5. The increase in the costs and resulting decrease in the use of fertilizers and pesticides contributes to the production of food which fulfils WHO healthy food standards. Especially in Poland, where most of the food production comes from small family ho ldings there is a conducive situation for transition to sustainable agriculture. While in Poland or Hungary there is an increase in the share of the imported food on the market, in Bulgaria most of the food comes from local markets.

6. With the exception of Poland where the fines, penalties and charges for the use of the environment have been established long time ago and are channelled into environmental investments, all countries have acute problems with financing environmental imp rovements. Even in Poland the financial resources are not sufficient and they go for end-of pipe technologies instead of clean production programmes. Governments do not have environmental investment policy and their proposals for external funding are shop ping lists of projects.

7. Mentality of political elites can be summed up under a very unrealistic statement that CEE countries have to get rich first, and then they will take care of the environment. Recently developed long term Political Strategy for Poland did not even include a section on environment. There are substantial differences in the progress of dev eloping institutional infrastructure for the protection of environment but in all countries in the region there is a contradiction between ministries for finance and economy and ministries for environment which is also true for the western countries. Th ough many governments declare their commitment to environment, there is a very low level of awareness of economists leading economic reforms in the region about economic instruments for sustainable economic growth.

8. Public opinion polls demonstrate a relatively high level of environmental awareness. But due to the problems with access to information and participation in decision making, and general lack of institutional capacity of environmental organizations, th ere few things a citizen can do apart from mending the leaking water tap. The loss of sustainable conserving lifestyles and practices is a serious problem. Western wasteful model of consumption has caught like fire in Eastern Europe, especially among youn g generation. Only someone who queued up for three nights to buy a table and a couple of chairs can understand the hidden hunger for comfortable and colourful life. Unless commercial advertising is regulated in the region (eg. through watchdog agencies, l iability law, promotion of alternative messages to make visible life cycle health and environmental impacts of products), this tendency away from sustainable lifestyles will continue.

DISCUSSION

About the impact of market reforms in the region:

Jean Paul, Bardou, CIBU raised the point that it is impossible to carry out the analysis of trends in production and consumption patterns in countries in transition without the thorough macro analysis of what is wrong with the market system. In response, several participants mentioned that reforms also contribute to the improvement of the environment, eg. making prices of the resources more realistic. Public participation and democracy also make very big difference. Monique Wijn, AKB spoke of the fordist system of production, introduced in capitalism and socialism alike which separated people from means of livelihoods and created situation where people became depend on their salaries and not on what seasons and nature can provide.

The way market reforms are introduced, said Boris Merhaut, and his opinion wasechoed by other participants increases the pressure on environment and hardships for people. Eg in Czech Republic 150 railway lines have been closed down. The prime minister of this country, Mr. Klaus refuses to recognize the concept of sustainability. Mercedes (Sustainable Agriculture, Estonia) said that the argument about the need to fulfil environmental standards for products so that they can compete with Western goods on int ernational markets is more convincing for decision makers than health or environmental arguments.

Ivan Gyulai, Ecological Institute for Sustainable Development, Hungary presented a summary of 'Sustainable Development Program', an NGO Alternative for Sustainable Development of Hungary. The program aims to formulate a common NGO view. It isnot an analys is, but formulates what should be done and aims to influence the officials, decision makers, legislative bodies to make light on the urgent need of a sustainable development program.

* It is set up with a wider view, on European and global level. A sustainable Hungary can't be set up without taking in account the goal of a sustainable world. If a society wants to know its place in the world , and wants to control its development, it m ust be aware of changes around it. Regional development is determined by international financial interests. The World Bank, IMF influences policies of governments.

* WHAT ARE THE MAIN OBSTACLES IN DEFINING THE PROGRAM:

1. sectorial approach
2. market economy/ economic growth
3. short-term thinking, daily problems
4. capital allocation, material base

ad.1.
A better organized Ministry of Environment is necessary Reconciliation of the sectors, and create an intersectorial approach in all policies

ad.2.
We know we are in transition but to where are we going with our economy? Why is there a transition? The aim of Central East Europe's transition is poorly defined. To break with the past one creates a historic moment of choice. We had the opportunity to de cide "which way?", but it seems that we have missed this moment. We are locked with the market economy and the consumer society.

ad.3.
Instead of short-term thinking a long term approach should be taken in mind so that a win-win situation will be followed: a double investment: growth of the economy and improvement of the environment.

ad.4.
The market economy moves opposite from a sustainable society. The value of the environment and its natural resources play no significant role in the market economy and shifts the burden of environmental degradation to future generations. The instrument of colonizing resources is the allocation of capital which are fervently sought after by the Central East European countries. Capital allocation is the best means of colonization.

Two possibilities: a. amend the current problems
b. create new ways

MAIN ACHIEVEMENTS:

Integration of social and economic issues. We want an holistic approach: no crisis, or damage can be isolated from the world as a whole to a specific territory. Consideration of all our plans and actions and the essence of the holistic approach is the glo bal consideration of local actions.

One of the economic tools for sustainable development is the ecotax. In the new tax proposal the state has to preserve two basic - human and natural - resources. In terms of natural resources the state should exchange the non-renewable for renewable ones. The definition of renewable has been reexamined and a new view of resources has been formulated: It requires that one not only to looks at the resources which can be directly involved in production, but also the resources which will indirectly connect wi th it. E.g. a manpower is not a resource only in its physical reality, but also in its moral attitude, knowledge, together make it valuable. The source for the preservation and development of human resources must be covered by the employers and therefor a human resource tax has to be paid by the employer, related to their interest in sustaining human resources, knowledge, health.

The source for the preservation and development of natural resources is the payment of the value of the products: a value resource tax has to be paid by the consumers. It is the consumer who decides what he wants to consume and how much.

Nature resource tax:

  • on non-renewable resources: a tax to promote efficiency use. The reason for this taxation is that they must be replaced in the long term.
  • internalization of externalities. The level of taxation is related to the need for the reconstruction of the resources.
  • It is an incentive system which has to be introduced on a step-by-step basis.

Sergei Fachtchevsky, Social Ecological Union, Odessa, Ukriane: Is it possible in the Ukraine?

The economic recession in the Ukraine is on a high level. The economy is now on a point where the economy will go from socialistic to a market economy. There is heavy industry in the Ukraine and there is hardly any production of final products.

Proposals relating to sustainable communities haven't been made yet. The NGOs think in terms of nature conservation and not waste minimization. If I speak about production and the possibilities for a cleaner way of production with technicians they don't u nderstand it. On the other hand the attitude of technicians is that they support proposals but there is a lack of money to realize them. Organizational structures in companies have to be improved: technicians now have a management function but only to mon itor the emissions. They are not welcome at the top level of the company and have no rights or power to make a change in the ways of production. The projects for improvement of the environment which have been worked out in reports are unfortunately not be en brought out to the public. Financial aid from the Western Community is provided by the Worldbank and the OECD. Experiences from the concluded projects are not been spread out to other actors, such as NGOs. The NGOs need more information and more public ations.

Steve Nicholas from the Institute for Sustainable Communities mentiones that in Macedonia the situation is the same: we do not have the tools and their is no legislation relating to environmental issues. A factory can pollute and they are not penalized fo r their conduct. We don't have standards for production of environmentally friendly products. The products that have an ecomark are fictitious. Factories and NGO's aren't taking waste minimization into consideration.

It is better to have measures of prevention than cleaning up pollution and perhaps education for these NGO's and industries could make them aware.

Obstacles and useful trends in Czech Republic, Lubos Prchlik, Ekowatt There is a high level of export of natural resources: cement, coal. The existing railway-system isn't sufficient and highways are build.

A programme is set up for saving energy and alternative energy resources and aims to rehabilitate local villages. Traditional values and reconstruction of old cultural heritage are goals of the programme. People migrate to the bigger cities such as Prague , reasons are for example the high wages in these cities. The local population isn't informed and they need education. Campaigns directed to young people contain concrete activities and positive examples. Words don't come across, direct action has a posit ive effect in changing patterns.

Scope for changes in Slovenia, Vida Ogorelec, Umanotera, The Slovenian Foundation for Sustainable Development Vida Ogorelec presented the 'Agenda 21 for Slovenia-A contribution of Nongovernmental Organisations'. It is the result of a common creative effort of 24 members from 19 Slovenian, non-governmental organizations and it is a conc ept of a human society as a self-regulating system.

Along the analysis of the causes of problems and the search for solutions, there are three aspects of social activity: cultural, institutional and economic. They represent a comprehensive social system. We must approach reform on all three levels simultan eously in order to harmonize the necessary social changes with principles of sustainable development. In preparing development strategies and searching for solutions a holistic approach is needed. Focus on solutions rather than problems and the essence of the holistic approach to problem solving is the awareness that all parts of a problem are interrelated in many ways.

The foundation of sustainable development is an ethical one, based on mutual respect and care for other living beings and for the Earth. The future of life depends on changing our ethical values and adjusting our way of life to natural conditions. People are afraid to change, we have to show positive examples and it is important to emphasise that every consumer finds him/her in a decision-making position faced with buying a product.

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