|
|
Doc. 9229
25 September 2001
Contribution to the joint debate on OECD and the world economy1
Committee on the Environment and Agriculture
Rapporteur: Mrs Maggi Mikaelsson, Sweden, Group of the Unified European Left
1. The report by the Committee on Economic Affairs and Development (Doc. 9171 prov.) already covers certain aspects of OECD activities in fields coming within the ambit of the Committee on the Environment and Agriculture. However, in view of the importance of these areas and their growing significance in the OECD's work, our committee deems it appropriate to devote this contribution to a discussion of the related issues. In doing so, it will not confine itself solely to activities undertaken in 2000 but will also refer to more recent developments.
Sustainable development
2. To satisfy sustainability requirements, economic development must be geared to preserving the possibility for future generations to benefit from sufficient resources, a clean environment and favourable economic and social conditions. For the well-being of humankind, which is the very purpose of development, social and environmental considerations are of the same importance as economic growth. However, economic agents frequently tend to regard these as secondary aspects compared with short-term economic concerns. At the same time, when conceiving environmental and social policies, decision-makers sometimes take insufficient account of their economic implications.
3. The OECD's work on sustainable development, which has been stepped up considerably in recent years, is aimed at devising an action strategy integrating economic, environmental and social policies with a view to enhancing well-being.
4. In this context the OECD has conducted a series of multidisciplinary studies with the objective of analysing, from the sustainability standpoint, economic, social and environmental trends in the organisation's member states, and also world-wide, and recommending public policy directions conducive to consistent action in favour of the transition to sustainable development.
5. This work has led to the publication of a policy report "Policies to enhance sustainable development", submitted to the meeting of the OECD Council at ministerial level in May 2001. This report has the merit of addressing not only the major principles underlying the sustainable development concept (which are constantly evolving), but also and above all the means at public authorities' disposal for putting those principles into practice. The focus is on the economy-environment link, which is still insufficiently taken into consideration when reaching economic decisions. This link should be brought to the fore, inter alia through application of a price system reflecting the global cost of use of resources and environmental degradation.
6. Among the fields entailing specific risks for sustainable development, the OECD pays particular attention to climate change and management of natural resources.
Climate change
7. The Assembly held an emergency debate on the problem of climate change and the international community's efforts to reverse this trend in June 2001 (Resolution 1243 (2001)). The OECD urges its members to bring their national policies more into line with objectives concerning climate change and proposes a number of economic measures they can take with that goal in mind.
8. OECD activities in this area would seem to be compromised for the time being - at least in part - by the United States' attitude with regard to the Kyoto Protocol. Yet, had the dangers posed by climate change not been so serious, this problem could simply have been regarded as a textbook example of the need for an economy-environment interface and for the integration of long-term environmental objectives in short- and medium-term economic decisions.
9. Although the Conference of Parties (COP 6.5) held in Bonn in July 2001 succeeded in reaching a compromise that saves the Kyoto process from failure, the United States' refusal to commit itself undermines the effectiveness of the Protocol mechanisms and jeopardises the hoped-for results. What is more, states remaining outside the Protocol would not have to bear the costs of its implementation and would therefore enjoy a comparative economic advantage, while at the same time benefiting from the fruits of the efforts made by participating states.
10. The Assembly should therefore continue to monitor the Kyoto process, in particular lending it a parliamentary dimension, and pursue, in cooperation with other partners, including the OECD, its efforts to ensure the entry into force and broadest possible application of the Kyoto Protocol.
Environmental protection
11. Safeguarding and managing environmental resources is an essential element of the sustainable development concept and is therefore of particular relevance to the OECD's work in this field. In this connection, the adoption of an "Environmental Strategy for the First Decade of the 21st Century" in May 2001 by the OECD environment ministers was an important step forward.
12. Based on a study of trends in environment-related problems and implementation of policies intended to solve those problems, the strategy identifies a number of objectives that should help to make environmental policies more operational and cost-effective. For each objective the OECD suggests action to be taken at national level by OECD countries, criteria for measuring progress achieved and further work that could be done within the organisation.
13. One of the strategy objectives constitutes a response to excess exploitation of the global environment as a result of current production and consumption habits and is aimed at maintaining the integrity of ecosystems through the rational management of natural resources, with particular emphasis on climate change, fresh water and biodiversity.
14. Another strategy objective derives from the fact that, despite some environmental improvements resulting from the application of appropriate policies and cleaner technologies, the volume effect of increases in production and consumption has a negative net impact in terms of environmental degradation. To find a way out of this deadlock it is necessary to decouple environmental pressures from economic growth, so as to ensure that, while continuing to satisfy human needs, ongoing economic growth goes hand in hand with enhanced environmental conditions. The crucial economic sectors here are agriculture, transport and energy.
15. Among the primary objectives for greater integration of environmental concerns in all policy areas, mention must be made of efforts to enhance consideration of the social and environmental interface and the consequences of environmental improvement or degradation for social conditions and the quality of life, including in terms of costs.
16. The strategy also addresses the issue of international environmental governance and management of the environmental effects of globalisation. In particular, environmental aspects should be taken into account in international management of trade and investment matters.
OECD Forum "Sustainable development and the new economy"
17. The transition to sustainable development necessitates not only that the relevant principles be made part and parcel of sectoral policies, but also that a major change take place in traditional production and consumption patterns and individual and collective behaviour. The commitment and support of various components of society (policy-makers, economic agents, professional organisations, trade unions, individuals) are absolutely essential to the achievement of sustainability objectives.
18. In this connection, the holding, in May 2001, of an OECD Forum on sustainable development and the new economy must be hailed. The forum has become a major event in the organisation's activities and brings together business, trade union and civil society representatives to hold discussions with ministers and heads of international organisations.
19. The issues raised at this forum were consonant with the concerns addressed at the conference "What Lifestyles for the Third Millennium?" organised by the Committee on the Environment and Agriculture on Santorini in June 2001. This type of debate, involving participants from a variety of backgrounds, helps to raise awareness of sustainable development challenges among decision-makers and the public and should take place on a more regular basis at all levels of society.
Agriculture
20. In recent years, the main aspects of agriculture dealt with by the OECD have been the liberalisation of agricultural trade (reduction of production support, trade negotiations within the WTO framework) and the multifunctional nature of agriculture (rural development, protection of the environment). Other matters of priority for the establishment of sustainable agriculture are under examination, such as the management of agricultural resources (especially water), biotechnology and food safety. Another subject under consideration is the development of the agricultural sector in emerging and transition economies, particularly in the countries of central and eastern Europe.
21. The traditional agriculture and agricultural policies familiar to us need to be updated, and, in this context, the Ministers of Agriculture of OECD member states have undertaken to reform agricultural policy.
22. Agricultural policy goals are diverse and may appear to be difficult to reconcile. But Ministers have stressed the intrinsic complementarities between goals. In 1999 the OECD Council Meeting at Ministerial level recognised: “the multifunctional characteristics of the sector; the need to ensure that agro-food policies are targeted, transparent, cost effective and avoid distortion of production and trade; and the long term objective of substantial progressive reductions in support and protection resulting in fundamental reform”.
23. Where fisheries are concerned, another area covered by OECD activities, the OECD is also working on the implications of a transition to sustainable and responsible fishing. The Ministers have highlighted both the importance of efficient and sustainable management of fish stocks and the relationship between such management and trade. The transition needs to be made, with a view to the sustainability of resources and the liberalisation of the fish markets.
24. The setting up of sustainable systems of agricultural production and fishery management is therefore the main aim of the OECD’s activities. The results of its work appear in several recent reports, on agri-environmental indicators, on improving the environmental performance of agriculture, on the transition to responsible fisheries: economic and policy implications.
25. Among the OECD’s periodic reports on the agricultural sector, the one on “Agricultural policies in OECD countries: monitoring and evaluation 2001” notes that the upward trend of recent years in agricultural support has fallen off slightly, although such support remains high and is not compatible with the long-term objectives of agricultural policy reform and the liberalisation of agricultural trade. As for food safety, many governments have made it their top priority, which can easily be understood after the two big crisis of BSE and the food and mouth disease.
26. Reference may also be made to the 2000 report on “Agricultural Policies in Emerging and Transition Economies”, which looks at the effects on emerging and transition economies of the reforms carried out in the fields of market access, export competition and domestic support. The 2001 report looks particularly at non-tariff measures as obstacles to international trade. What is more, the OECD has already published individual studies of the agricultural policies of ten countries of central and eastern Europe: the Czech Republic, Hungary, Poland, Estonia, Latvia, Lithuania, Russia, Bulgaria, Romania and Slovenia.
27. All these efforts can themselves be viewed in the wider medium-term context of the “OECD Agricultural Outlook 2001-2006” report, which describes market trends and the prospects for agricultural products in the years ahead.
28. The Assembly holds the work of the OECD in the sectors of agriculture, food and fisheries in high esteem, at least their analytical and technical parts. But these activities are mainly conducted for member states’ governments, so they do not necessarily reflect the views of the citizens, consumers and professionals concerned. Similarly, certain members of the Assembly voice different opinions about the priorities and objectives set by the OECD.
29. Broadly speaking, however, OECD priorities and those of the Assembly coincide. Both have recently stressed the sustainability of resources and food safety. It is true that the Assembly’s membership and function make it closer, and surely more sensitive, to European citizens’ concerns and demands, and that it cannot always react from a medium-term viewpoint.
30. The other side of the coin is that medium-term programming, while it reduces the cyclical risks, might well lose sight of certain immediate views which, while they may conflict with some necessary measures or policies, are very closely related to our citizens’ day-to-day problems. The Assembly cannot fail to act on this by rapidly addressing recommendations to governments about such topical subjects.
31. As far as certain worries in the agricultural sphere that are shared by the OECD and the Council of Europe are concerned, such as protection of the environment, management of natural resources, rural development and multifunctionality, the Assembly has to some extent responded by merging into a single Committee on the Environment and Agriculture activities and responsibilities that were the field of action of two separate committees until the end of the year 2000.
32. Another example of the Assembly’s ability to respond might be that of the speedy accession of most of the countries of central and eastern Europe, enabling action to be taken on these countries’ needs, and on those of their populations in particular. Of course, membership of the Assembly is restricted to European countries, including most of the countries of central and eastern Europe (whereas, among these, only the Czech Republic, Hungary, Poland and Slovakia are members of the OECD).
33. The OECD, on the other hand, has a number of non-European member states (Australia, Canada, Korea, New Zealand, Japan, Mexico and the United States), for which agriculture and fisheries are important sectors, and which have specific interests to defend, many diverging from those of the European countries.
34. Thus it is not surprising that the Assembly’s political position on these issues does not necessarily coincide with that of the OECD, which has to allow for interests of a more contradictory nature. In the same way that the analysis of problems and setting of priorities may frequently be similar (sustainability, multifunctionality of agriculture, food safety), the proposed solutions can be far removed from each other, for the OECD applies more economic criteria (reduction of support for the sector, liberalisation of markets), while the Assembly takes more account of non-commercial concerns (the environment, social policy, ethical issues).
35. The enlarged Assembly debate on OECD activities gives both organisations’ parliamentary delegations an opportunity to compare their respective positions and to exchange arguments so as to reach a compromise acceptable to all in the proposals in the resolution adopted by the enlarged Assembly.
36. However, the Assembly wishes to emphasise certain matters to which it gives priority, and to which it would like the OECD to give even greater attention.
37. The Assembly advocates sustainable development both in the environmental sphere and in agriculture and fisheries. Reform of these sectors, under way in numerous European countries, must do more than meet criteria of economic and financial efficiency in the framework of a global market. The Assembly has the political will to reply to the needs of the populations of Europe.
38. In this respect, it attaches importance to the policies needed to preserve natural resources and biodiversity, to promote multifunctional agriculture or responsible fishing taking account of the social needs of the sectors concerned, to pursue rural development that takes into consideration the needs of the people who live in the countryside and to ensure food safety through a policy designed primarily to protect consumers’ health.
39. On the subject of the continuation of the reform of the agri-food sector in the countries of central and eastern Europe, the Assembly supports the adjustments still needed to make these sectors efficient and competitive, especially within the framework of membership of the European Union for certain of these countries. Clearly, large investments and rationalisation measures are still necessary, but these entail social risks which must be avoided at any price. Nor should productivity improvements be sought through production arrangements which fail to take account of the need to safeguard the environment.
40. The Assembly urges the OECD to continue its activities in the areas mentioned, carrying on with its analytical studies of countries or products, but taking still further its study of the new trends emerging in the agro-food sector (multifunctionality, sustainability, food safety, biotechnologies, and so on) and maintaining the present priority for transition economies. It is the duty of the OECD and the Assembly, as these developments continue, to offer advice to member states’ governments, but also, and especially, to listen attentively to the wishes and concerns voiced by the citizens of our countries.
*
* *
Committee for report: Committee on Economic Affairs and Development (Doc. 9171)
Committee for contribution: Committee on the Environment and Agriculture
Reference to committee: Standing mandate
Secretariat of the committee: Mrs Cagnolati, Mr Sixto, Mr Chevtchenko.