Wednesday, July 13, 2005

Polutions get decrease and increase when economy grows

Not all polutions decrease when the economy grows. The indicator of economic growth is always based on GDP (Growth Dometic Product or in KDNK, Keluaran Domestik Negara Kasar, in Bahasa) because it measures how rich a country is. A richer country is assumed to have wealthy economy which economists hypothesize that particular country to have a better polution control system compared to poorer country, with lower GDP. The rich country can also sell the technology to control polution to other contries. This is important because polution can be a global problem that can affect more than one country. Environmental awareness should be increased in order to lower the costs of controlling environmental problems. Deforestation increases at the beginning of economic growth, but throughout the developing process, when the economy continues to grow, deforestation will slow down. Encouraging development of global economy is one of good policies that can help to control environmental problem, this is because development is expected to increase the awareness towards environmental problems, in other words through education. Through development, clean water can also be provided to the people because of improvement in the technology of providing clear water. One of international case, a French company dumping salt water that flows from France to Dutch. But, sadly the effort of Dutch farmers took years to call for legal case because the source of the problem is outside Dutch jurisdiction. But at last, they able to call for regional environmental meeting to discuss about the environmental problem with involved European countries.

The environmental problem is believe to be a loss to economy and the consumers. But, to put a limit on international trade, like what the US did to call for trade embargo on Mexican tuna products, is not a wise choice in capitalist economy. This is due to the limitation cause reduction of choices for the consumers to buy for cheaper products from suppliers who are willing to offer at attractive prices. One of the way to solve environmental problem is through assigning property rights. This will put the responsibility of cleaning and controlling the environmental problem to the ones who have the property rights over the natural resouces i.e. land, region, rivers, forest, sea and so on. Other than that is through international agreement.

Free trade and environmental protection are not contradictory goals.. (ala dah habis, tak sempat taip abis... sedih)...

Hey folks out there, global economy is fun! Don't tell me that economists have no sense of environmental awareness... we are more aware than you all out there... we are more concern about our environment because we think of a clean and better environment as a condition for a better way to develop our desire to chase money (ekor+money) hehe...

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This is all my notes from watching economic program on public channel... this time is about global economy...

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