The developing countries of Asia and the Pacific are economically the fastest growing group of countries in the world, with an average growth rate in GDP of 7 per cent during 1991-94 compared with the world economic growth rate of 1.1 per cent (ESCAP, 1995a). Although growth of this order and magnitude has been instrumental in reducing the incidence of poverty, particularly in East Asia and among the Association of South-East Asian Nations, it has been accompanied by serious environmental problems (ESCAP, 1995a).
The impact of industry on the environment has become increasingly evident: resource depletion; contamination of water, air, and land; health hazards; and degradation of natural ecosystems. Industrial sources contribute a relatively high share to air pollution in this region because the main source of industrial energy is fossil fuels, with a high share of coal, and the major air polluting industries, such as iron, steel, fertilizer, and cement, are growing in the region. Similarly, water-polluting industries are expanding very rapidly. For instance, in 1992, approximately 64 per cent of the total wastewater generated in China was from the industrial sector (ESCAP, 1995a).
Both the quality and the quantity of industrial solid waste is problematic from the environmental point of view. For example, China has had the most waste-intensive production process in this region; in 1990, more than 2 kilograms of industrial waste were generated for every US dollar (in constant 1980 prices) of industrial production (ESCAP, 1995a). However, since 1990, the rate of waste generation has slowed down and even decreased in the case of industrial solid waste (NEPA, personal communication, 1996).
The transportation sector has become a key accelerating factor for economic growth as well as environmental degradation. A relatively heavy concentration of road networks and vehicles in a few cities has resulted in high levels of pollution. For example, road transport accounts for a major share of the air pollution load in Delhi (57 per cent), Beijing (75 per cent), Manila (70 per cent), and Kuala Lumpur (86 per cent) (WRI/UNEP/UNDP, 1994).
With regard to coastal and marine environments, port and harbour projects primarily have impacts on sensitive coastal ecosystems. Construction affects, in varying degrees, the hydrology and surface-water quality in the coastal zones, fisheries, coral reefs, and mangroves, as noted earlier. China , Hong Kong , India , Japan , Malaysia , the Philippines , Singapore , Thailand , and Papua New Guinea are making substantial investments in expanding their maritime transport. Also, these countries are undertaking dredging operations for the maintenance of port transportation facilities (UN, 1994).
Agriculture in the Asia and Pacific region has witnessed accelerated structural changes in the past 40 years. In terms of direct impact on the environment, farming activities are major contributors to soil erosion, land salinization, and loss of nutrients. For example, it has been estimated that about 25 per cent of the soil degradation in the region has occurred directly from agricultural activities. Shifting cultivation has been an important cause for land degradation in many countries of this region: Bangladesh , Brunei Darussalam, Fiji , India , Indonesia , the Lao PDR, Malaysia , Myanmar , Nepal , Papua New Guinea , the Philippines , Solomon Islands , Sri Lanka , Thailand , and Vietnam (Dent et al., 1992). As noted earlier, natural habitats are being destroyed, degraded, and depleted, accompanied by significant loss of wild species.
The largest water user on a regional scale is the agricultural sector, with more than two thirds of the water abstracted from the region's rivers, lakes, and aquifers being used for irrigation. With regard to the impacts of agro-chemicals, there is now considerable evidence that the leaching of fertilizer into water bodies is a significant source of water pollution. In particular, excessive levels of nitrates and other nutrients resulting from fertilizer application are a major cause of eutrophication in surface water throughout the region. The region's use of fertilizers increased from 11 million tons in 1968-70 to 52 million tons in 1988-90 (FADINAP, 1992). In 1990, an average of 125 kilograms of fertilizer were used per hectare, although this figure was exceeded in the Republic of Korea , Korea DPR, China , and Malaysia (ESCAP, 1995a). The intensification of agriculture in recent years has also been accompanied by the extensive use of pesticides (herbicides, insecticides, and fungicides). Data on unintended pesticide poisonings are not currently available.
Over the past two decades, there has been an impressive growth in tourism in this region. This has generally led to the creation of additional employment, increased flows of foreign exchange and infrastructural development, and the restoration of cultural, religious, and heritage sites. Of 500 million international tourist arrivals world-wide in 1993, 14.5 per cent (72.4 million) were registered in this region, compared with 1.3 per cent in 1960 (WTO, 1994a, 1994b, 1994c).
Tourism growth has also had significant environmental impacts, however, particularly in relation to important ecosystems such as mangroves, forests, and coral reefs. Impacts on the physical environment are largely related to tourism infrastructure development (including resorts, hotels, and coastal zone management activities), inducing soil erosion, landslides, sedimentation, and water pollution. For example, unplanned development of infrastructure too close to the shoreline has affected coastal natural processes and led to beach erosion, particularly in Fiji , Indonesia , Maldives , Malaysia , and Sri Lanka . With the introduction of environmental impact assessments (EIAs), such unplanned developmental activities are being checked.
Coral reefs are one of the primary tourist attractions in the region. Damage to coral reefs from sedimentation is widespread, particularly in Thailand , where 51 per cent of coral reefs are under threat (ESCAP, 1995a). Also, mangrove forests in Thailand , Fiji , and the Philippines are currently under threat from tourism-related development and activities, including direct encroachment from hotel and resort construction, exploitation for fuelwood, and clearance for shrimp farming (OEPP, 1996).
Promoting liberal trade while maintaining and strengthening protection of the environment and natural resources is one of the great policy challenges of the decade. There has been a widespread inflow of polluting industries and hazardous waste from industrial nations, and an outflow of raw materials and resource-intensive industrial products to them.
The direct effects of agricultural trade liberalization on Asian environmental resources are less clear. However, increasing product prices are likely to lead to greater demand of agro-chemicals. Demand for water could also rise, an important consideration in countries with seasonal water scarcity, such as Thailand . Studies of the impact of trade on land resources have shown a positive correlation between rate of forest conversion and crop prices (Barbier and Burgess, 1992).
Similarly, the principal direct environmental impact of manufactured goods and their export is industrial pollution. While almost 75 per cent of total world exports of "dirty" industries originates from industrial countries, South-East Asia 's share increased from 3.4 per cent in 1965 to 8.4 per cent in 1988, reflecting the region's rapid expansion of manufactured exports (Low and Yeats, 1992). South Asia 's share of the world total, based on India , Pakistan , and Sri Lanka , rose from 2.1 per cent to 2.8 per cent over the same period (Low and Yeats, 1992).
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