Globalisation and sustainability: environmental Kuznets curve and the WTO

Economic globalisation is seen by many as a driving force for global econom ic growth. Yet opinion is divided about the benefits of this process, as hi ghlighted by the WTO meeting in Seattle in late 1999. Proponents of economi c globalisation view it as a positive force for environmental improvement a nd as a major factor increasing the likelihood of sustainable development t hrough its likely boost to global investment. These proponents mostly appea l to analysis based on the environmental Kuznets curve (EKC) to support the ir views about environmental improvement. But EKC-analysis has significant deficiencies. Furthermore, it is impossible to be confident that the proces s of economic globalisation will result in sustainable development, if 'wea k conditions' only are satisfied. 'Strong conditions' probably need to be s atisfied to achieve sustainable development, and given current global insti tutional arrangements, these are likely to be violated by the economic glob alisation process. Global political action seems to be needed-to avert a de terioration in the global environment and to prevent unsustainability of de velopment. This exposition demonstrates the limitations of EKC-analysis, id entifies positive and negative effects of economic globalisation on polluti on levels, and highlights connections between globalisation and the debate about whether strong or weak conditions are required for sustainable develo pment. The article concludes with a short discussion of the position of WTO in relation to trade and the environment and the seemingly de facto endors ement of WTO of weak conditions for sustainable development. It suggests th at WTO's relative neglect of environmental concerns is no longer politicall y tenable and needs to be reassessed in the light of recent developments in economic analysis. The skew of economic growth, e.g. in favour of developi ng countries, is shown to be extremely important from a global environmenta l perspective. (C) 2001 Elsevier Science B.V. All rights reserved.