THE WORLDWATCH INSTITUTE

SPECIAL FOCUS: The Consumer Society STATESTATE OFOF THETHE WORLDWORLD 20o4

ErikErik AssadourianAssadourian ChristopherChristopher FlavinFlavin HilaryHilary FrenchFrench GaryGary GardnerGardner BrianBrian HalweilHalweil LisaLisa MastnyMastny DanielleDanielle NierenbergNierenberg SandraSandra PostelPostel MichaelMichael RennerRenner RadhikaRadhika SarinSarin JanetJanet SawinSawin LindaLinda StarkeStarke AmyAmy VickersVickers STATE OF THE WORLD 20o4 Other Norton/Worldwatch Books

State of the World 1984 through 2003 (an annual report on progress toward a sustainable society)

Vital Signs 1992 through 2003 (an annual report on the trends that are shaping our future)

Saving the Planet Power Surge Life Out of Bounds Lester R. Brown Christopher Flavin Chris Bright Christopher Flavin Nicholas Lenssen Sandra Postel Beyond Malthus Who Will Feed ? Lester R. Brown How Much Is Enough? Lester R. Brown Gary Gardner Alan Thein Durning Brian Halweil Tough Choices Last Oasis Lester R. Brown Pillar of Sand Sandra Postel Sandra Postel Fighting for Survival Full House Michael Renner Vanishing Borders Lester R. Brown Hilary French Hal Kane The Natural Wealth of Nations David Malin Roodman STATE OF THE WORLD20o4

A Worldwatch Institute Report on Progress Toward a Sustainable Society

Brian Halweil and Lisa Mastny, Project Directors Erik Assadourian Christopher Flavin Hilary French Gary Gardner Danielle Nierenberg Sandra Postel Michael Renner Radhika Sarin Janet Sawin Amy Vickers Linda Starke, Editor

W . W . NORTON & COMPANY NEW YORK LONDON Copyright © 2004 by Worldwatch Institute 1776 Massachusetts Avenue, N.W. Washington, DC 20036 www.worldwatch.org All rights reserved. Printed in the of America.

The STATEOFTHEWORLD and WORLDWATCH INSTITUTE trademarks are registered in the U.S. Patent and Trademark Office. The views expressed are those of the authors and do not necessarily represent those of the Worldwatch Institute; of its directors, officers, or staff; or of its funders. The text of this book is composed in Galliard, with the display set in Gill Sans. Book design by Elizabeth Doherty; cover design by Lyle Rosbotham; composition by Worldwatch Institute; manufacturing by Phoenix Color Corp.

First Edition ISBN 0-393-05860-3 ISBN 0-393-32539-3 (pbk)

W.W. Norton & Company, Inc., 500 Fifth Avenue, New York, N.Y. 10110 www.wwnorton.com W.W. Norton & Company Ltd., Castle House, 75/76 Wells Street, London W1T 3QT 1 2 3 4 5 6 7 8 9 0 This book is printed on recycled paper. Worldwatch Institute Board of Directors

Øystein Dahle Cathy Crain Akio Morishima Chairman UNITED STATES NORWAY James Dehlsen Izaak van Melle Larry Minear UNITED STATES THE Secretary UNITED STATES Christopher Flavin Wren Wirth UNITED STATES UNITED STATES Thomas Crain Treasurer Lynne Gallagher James Lee Witt UNITED STATES UNITED STATES UNITED STATES

Geeta B. Aiyer Satu Hassi Emeritus: UNITED STATES FINLAND Abderrahman Khene ALGERIA Adam Albright John McBride UNITED STATES UNITED STATES Worldwatch Institute Staff

Erik Assadourian Hilary French Elizabeth A. Nolan Staff Researcher Director, Global Vice President for Business Governance Project Development Ed Ayres Editorial Director Gary Gardner Kevin Parker Editor, World Watch Director of Research Director of Foundation Relations Chris Bright Joseph Gravely Senior Researcher Mail & Publications Tom Prugh Fulfillment Senior Editor Lori A. Brown Research Librarian Brian Halweil Mary Redfern Senior Researcher Development Associate Steve Conklin Webmaster John Holman Michael Renner Director of Development Senior Researcher Cyndi Cramer Development Associate Susanne Martikke Lyle Rosbotham Communications Associate Art Director Katherine Dirks Executive Assistant Lisa Mastny Radhika Sarin to the President Research Associate Staff Researcher Barbara Fallin Anne Platt McGinn Janet Sawin Director of Finance and Senior Researcher Research Associate Administration Leanne Mitchell Patrick Settle Susan Finkelpearl Director of IT Systems Administrator Media Coordinator Communications Molly O’Meara Sheehan Christopher Flavin Danielle Nierenberg Senior Researcher President Staff Researcher Acknowledgments

This twenty-first edition of State of the World mitment to Worldwatch and its efforts to draws on the dedication and hard work of contribute to a sustainable world. We are every member of the talented Worldwatch particularly indebted to the Worldwatch staff. Backed by the generous support of Council of Sponsors—Adam and Rachel Board members, funders, and friends, the Albright, Tom and Cathy Crain, John and Institute’s researchers, editors, marketers, Laurie McBride, and Wren and Tim Wirth— communications specialists, librarians, interns, who have consistently shown their confidence and administrative staff all deserve our sincere and support of our work with generous thanks for their contributions to this year’s annual contributions of $50,000 or more. special report on the consumer society. For this 2004 edition of State of the World, We begin by acknowledging the founda- the Institute drew on the talents of an tion community, whose faithful backing sus- unprecedented number of outside authors, tains and encourages the Institute’s work. putting into action our strategic goal of The Overbrook Foundation and the Merck strengthening ties with leading thinkers and Family Fund awarded grants specifically for practitioners in the field of sustainability. San- our consumption efforts. We also would like dra Postel, a Worldwatch Senior Fellow and to acknowledge several other funders who director of the Global Water Policy Project, generously support Worldwatch: the Aria and Amy Vickers, award-winning author, Foundation, the Richard & Rhoda Gold- engineer, and water conservation specialist, man Fund, The William and Flora Hewlett wrote the chapter on water productivity. We Foundation, The Frances Lear Founda- are also delighted to include contributions tion, the NIB Foundation, the V. Kann Ras- from consumption experts Isabella Marras, mussen Foundation, the A. Frank and Solange Montillaud-Joyel, and Guido Son- Dorothy B. Rothschild Fund, The Shared nemann of the U.N. Environment Pro- Earth Foundation, The Shenandoah Foun- gramme; William McDonough and Michael dation, Turner Foundation, Inc., the U.N. Braungart of McDonough Braungart Design Environment Programme, the Wallace Global Chemistry; Paul McRandle and Mindy Pen- Fund, the Weeden Foundation, and The nybacker of the Green Guide Institute; Juliet Winslow Foundation. Schor of Boston College; and David Tilford In addition, we give thanks to the Insti- of the Center for a New American Dream. tute’s individual donors, including the 3,500+ Chapter authors are grateful too for the Friends of Worldwatch, who with their enthu- enthusiasm and dedication of the 2003 team siasm have demonstrated their strong com- of interns, who doggedly pursued elusive

vii State of the World 2004 ACKNOWLEDGMENTS facts and produced graphs, tables, and text well as for the information many people pro- boxes. Clayton Adams cheerfully extended his vided, we are particularly grateful to: Abe stay with us to locate information for Chap- Agulto, Mark Anielski, Michael Appelby, Matt ters 4, 6, and 7; Zoë Chafe contributed Bentley, William Browning, David Brubaker, invaluable research assistance for both Chap- William Cain, Scot Case, Maurie Cohen, ter 7 and the “Year in Review” timeline; Dwight Collins, John de Graaf, Bas de Leeuw, Claudia Meulenberg graciously juggled end- Ed Diener, Chad Dobson, John Ehrenfeld, less requests for help with Chapter 1; Shawn Andrea Fava, Tom Ferguson, Bette Fishbein, Powers tenaciously gathered information for David Fridley, Bruce Friedrich, Sakiko Chapters 1, 3, and 5; and Anand Rao and Fukuda-Parr, Howard Geller, Gerard Gleason, Tawni Tidwell enriched Chapter 2 with their Edward Groth III, Kirsty Hamilton, Mar- solid knowledge of global energy trends. lene Hendrickson, Rich Howarth, Bobby Highly capable and good-natured, each was Inocencio, Daniel Katz, Jonathan Louie, a stimulating addition to our staff this past Philip Lymbery, Mia Macdonald, Michael summer and autumn. Marx, Jim Mason, William Moomaw, Rosa The immense job of tracking down articles, Moreno, Nick Parrott, Enrique Peñalosa, journals, and books from all around David Pimentel, Robert Prescott-Allen, Lynn fell to Research Librarian Lori Brown. In Price, Howard Rappaport, Richard Reyn- addition to keeping researchers up to date on nells, John Rodwan, Hiroyuki Sato, Hans the latest issues in their fields, she drew on her Schiere, Lee Schipper, Robert Schubert, Paul remarkable knack for gathering information Shapiro, Ted Smith, Freyr Sverrisson, Joel to assemble this year’s “Year in Review” time- Swisher, Ted Trainer, Arthur Weissman, Eric line of significant global events. Williams, Paul Willis, and David Wood. In After the initial research and writing were addition, we thank Norman Myers of Oxford completed, an internal review process by University, coauthor of the forthcoming book Worldwatch staff members helped ensure The New Consumers: Rich Lives or Richer that we would communicate our findings as Lifestyles?, for steering us toward a new under- clearly and accurately as possible. At August’s standing of consumers in the world. day-long meeting, chapter authors were chal- Further refinement of each chapter took lenged, complimented, and critiqued by place under the careful eye of independent interns, magazine staff, and other reviewers. editor Linda Starke, whose 27 years of expe- The authors greatly appreciate the excellent rience with Worldwatch publications ensured advice they received, including the input of that we conveyed our messages in the clear- research colleagues Chris Bright and Molly est way possible and met our deadlines. After O’Meara Sheehan, who were busy working the edits and rewrites were complete, Art on other projects this year, although they Director Lyle Rosbotham skillfully crafted did find time to contribute one “Behind the the design of each chapter, the timeline, and Scenes” feature each. The magazine staff of this year’s new “Behind the Scenes” features. Ed Ayres and Tom Prugh also turned their Ritch Pope finalized the production by editing skills to improving the drafts. preparing the index. Reviews from outside experts, who gen- Writing is only the beginning of getting erously gave us their time, were also indis- State of the World to readers. The task then pensable to this year’s final product. For their passes to our excellent communications thoughtful comments and suggestions, as department, which works on multiple fronts viii State of the World 2004 ACKNOWLEDGMENTS

to ensure that the State of the World message cultivate new relationships that will sustain circulates widely beyond our Washington the Institute’s work for years to come. offices. Director of Communications Leanne We give special thanks to our partners Mitchell, Media Coordinator Susan Finkel- around the globe for their extraordinary pearl, and Communications Associate Susanne efforts to spread the message of sustainable Martikke worked closely with researchers to development. State of the World is regularly craft our messages for the press, public, and published in 31 languages and 39 different decisionmakers around the world. Webmas- editions, thanks largely to the dedication of ter Steve Conklin used his technical expertise a host of publishers, nongovernmental orga- to convey our information via our newly nizations, civil society groups, and individu- redesigned Web site, and Information Tech- als who provide advice as well as translation, nology Manager Patrick Settle ensured that outreach, publishing, and distribution assis- the lines of communication ran smoothly tance for our research. We would particu- both within and outside the office. larly like to acknowledge the help we receive Vice President for Business Development from Øystein Dahle, Magnar Norderhaug, Elizabeth Nolan coordinated cooperation and Helen Eie in Norway; Brigitte Kunze, with our global publishing partners and Christoph Bals, Klaus Milke, Bernd Rhein- brought creativity and zest to our marketing berg, and Gerhard Fischer in ; Soki efforts. Executive Assistant Katherine Dirks, Oda in Japan; Anna Bruno Ventre and Gian- with her willingness to tackle any project, franco Bologna in ; Lluis Garcia Petit was a tremendous asset to business develop- and Marisa Mercado in ; Jung Yu Jin in ment and to Worldwatch President Christo- Korea; George Cheng in Taiwan; Yesim Erkan pher Flavin, and ensured that meetings and in ; Viktor Vovk in ; Tuomas travel ran according to schedule. Director of Seppa in Finland; Zsuzsa Foltanyi in Hun- Finance and Administration Barbara Fallin gary; Ioana Vasilescu in ; Hamid ably handled the Institute’s finances and kept Taravaty in Iran; Eduardo Athayde in Brazil; the rest of the office sane during an office ren- and Jonathan Sinclair Wilson in the United ovation this past summer. Joseph Gravely Kingdom. For a complete listing of our global continued his reign as czar of Worldwatch’s partners, see www.worldwatch.org/partners. mail room. We would also like to express our gratitude Sadly, we had to say goodbye to Adri- to our long-time U.S. publisher, W.W. Nor- anne Greenlees, the Institute’s Vice President ton & Company. Thanks to the dedication of for Development, in July, but were fortunate its staff—especially Amy Cherry, Leo Wieg- to find an excellent replacement in John man, Andrew Marasia, Julia Druskin, Holman. He and Development Associate and Lucinda Bartley—Worldwatch publica- Cyndi Cramer work tirelessly to spread the tions are available everywhere, from univer- Worldwatch word and to welcome new sup- sity campuses to small-town bookstores. porters into the Worldwatch family. The We are particularly grateful for the hard Institute’s foundation fundraising activities work and loyal support of the members of the continue under the able leadership of Kevin Institute’s Board of Directors, who have pro- Parker, our Director of Foundation Rela- vided key input on strategic planning, orga- tions, with assistance from Development nizational development, and fundraising over Associate Mary Redfern. Both have worked the last year. We are pleased that three dis- closely with our foundation supporters to tinguished new members joined the Board:

ix State of the World 2004 ACKNOWLEDGMENTS

Akio Morishima, Board Chairman of the major role in the Institute’s strategic planning, Institute for Global Environmental Strate- helped to build both the membership and gies in Japan; Geeta Aiyer, President of operations of the Board of Directors, and Boston Common Asset Management in the contributed strongly to the Institute’s finan- United States; and Satu Hassi, former Min- cial base. Tom is now the Institute’s Vice ister of Environment in Finland and current Chairman and Treasurer, and Cathy chairs the member of the Finnish Parliament. Nominating Committee. We cannot thank We are dedicating this edition of State of them enough for the strength of their com- the World to Tom and Cathy Crain, members mitment to a sustainable future. of both the Institute’s Board of Directors Finally, we would like to extend a warm and the Council of Sponsors. In the late welcome to the youngest member of the 1990s, the Crains had an “epiphany” while Worldwatch family, Elizabeth Rose McGinn, working in the financial industry that led who was born in November 2002 to Senior them to embrace the cause of sustainability. Researcher Anne Platt McGinn. It is for Today, Tom and Cathy are as well informed Elizabeth and her generation that we strive on the economics of sustainability and glob- ceaselessly to find ways to make our planet alization, and as dedicated to reforming more livable. the global economic system, as anyone on our staff. Brian Halweil and Lisa Mastny Since joining the Worldwatch Board in Project Directors 1998, Tom and Cathy Crain have played a

x Contents

Acknowledgments vii 4 Watching What We Eat 68 Brian Halweil and Danielle Nierenberg List of Boxes, Tables, and Figures xii BEHIND THE SCENES: Bottled Water, Foreword xv Chicken, Chocolate, Shrimp, Soda 86 Børge Brende, Norwegian Minister of the Environment 5 Moving Toward a Less Consumptive Economy 96 Preface xvii Michael Renner

BEHIND THE SCENES: Cell Phones State of the World: 120 A Year in Review xxi 6 Purchasing for People Lori Brown and the Planet 122 Lisa Mastny 1 The State of Consumption Today 3 Gary Gardner, Erik Assadourian, BEHIND THE SCENES: Paper 142 and Radhika Sarin 7 Linking Globalization, BEHIND THE SCENES: Plastic Bags 22 Consumption, and Governance 144 Hilary French 2 Making Better Energy Choices 24 Janet L. Sawin BEHIND THE SCENES: Cotton T-shirts 162

BEHIND THE SCENES: Computers 44 8 Rethinking the Good Life 164 Gary Gardner and Erik Assadourian 3 Boosting Water Productivity 46 Sandra Postel and Amy Vickers Notes 181

BEHIND THE SCENES: Antibacterial Soap 66 Index 235 List of Boxes,Tables,and Figures

Boxes 1 The State of Consumption Today 1–1 What About Population? 5 2 Making Better Energy Choices 2–1 Surging Energy Demand in China and 27 2–2Efficiency Is Not Enough 31 2–3 The Bane and Boon of Information Technology 33 3 Boosting Water Productivity 3–1 Desalination—Solution or Symptom? 55 3–2 Privatization and Leakage: Accountability Lacking 57 3–3 Urban Water Conservation Programs That Save Water and Money 58 3–4 Drinking Your Neighbor’s Lawn and Medicine Cabinet 61 3–5 Actions Individuals Can Take to Reduce Their Impacts on Fresh Water 63 4 Watching What We Eat 4–1 Scouring the Sea 70 4–2 Luxury Foods 71 4–3 Policy Priorities for Rethinking Our Relationship with Food 85 5 Moving Toward a Less Consumptive Economy 5–1 The Cradle-to-Cradle Alternative 104–05 5–2 U.S. Consumers, Cheap Manufactures, and the Global Sweatshop 117–18 6 Purchasing for People and the Planet 6–1 Greening Purchasing Contracts 125 6–2 Home Depot’s Commitment to Sustainable Wood Products 132 6–3 The Lifecycle Approach 137 7 Linking Globalization, Consumption, and Governance 7–1 Fair Trade and the Consumer 149–50 xii State of the World 2004 LIST OF BOXES,TABLES,AND FIGURES

7–2 Harnessing the Power of Young People to Change the World 153 7–3 Highlights from the Johannesburg Plan of Implementation 155 8 Rethinking the Good Life 8–1 The Gaviotas Experience: Making Well-being a Priority 173 8–2 Measuring Well-being 174 8–3 Encouraging Advertisers to Promote Sustainability 177 Tables 1 The State of Consumption Today 1–1 Consumer Spending and Population, by Region, 2000 6 1–2 Consumer Class, by Region, 2002 7 1–3 Top 10 National Consumer Class Populations, 2002 7 1–4 Share of Household Expenditures Spent on Food 8 1–5 Household Consumption, Selected Countries, Circa 2000 9 1–6 Annual Expenditure on Luxury Items Compared with Funding Needed to Meet Selected Basic Needs 10 1–7 Global and Environmental Trends 17 2 Making Better Energy Choices 2–1 Annual Energy Consumption and Carbon Dioxide Emissions, Selected Countries 27 2–2 Private and Commercial Vehicle Fleets, Selected Countries and Total, 1950–99 29 2–3 Appliance Ownership in Industrial and Developing Countries, Selected Years 34 2–4 Energy Use and Well-being, Selected Countries 42 3 Boosting Water Productivity 3–1 Estimated Annual Water Withdrawals Per Capita, Selected Countries, 2000 50 3–2 Populations Lacking Access to Safe Drinking Water and Sanitation, 2000 51 3–3 Use of Drip and Micro-irrigation, Selected Countries, 1991 and Circa 2000 53 3–4 Water Consumed to Supply Protein and Calories, Selected Foods 54 3–5 Water System Leakage and Losses, Selected Countries 56 3–6 Examples of Industrial Water Savings from Conservation 62 5 Moving Toward a Less Consumptive Economy 5–1 Estimates of Global Environmentally Harmful Subsidies and Externalities 99 5–2 Environmental Tax Revenue, European Union, Selected Years 99 5–3 Extended Producer Responsibility Laws, Selected Industries 107 5–4 Energy Savings Gained by Switching from Primary Production to Secondary Materials 109 5–5 New Approaches to Work Time in Europe 115

xiii State of the World 2004 LIST OF BOXES,TABLES,AND FIGURES

6 Purchasing for People and the Planet 6–1 Examples of Green Purchasing in Selected Companies 127 6–2 Examples of Government Green Purchasing 129 7 Linking Globalization, Consumption, and Governance 7–1 The Spread of “McWorld” 146 7–2 Selected Partnerships on Consumption and Production Connected with the World Summit on Sustainable Development 156–57 7–3 Key Trade Conflicts Relating to Sustainable Consumption and Production 158–59 Figures 1 The State of Consumption Today 1–1 Global and U.S. Advertising Expenditures, 1950–2002 14 1–2 Changes in Economic Activity and Ecosystem Health, 1970–2000 18 3 Boosting Water Productivity 3–1 Water Productivity of National Economies, Selected Countries, 2000 48 3–2 Water Productivity of U.S. Economy, 1950–2000 49 3–3 Household Water Use, Selected Cities and Countries 59 4 Watching What We Eat 4–1 Industrial Meat: Inputs and Outputs 74 4–2 Global Sales of Organic Foods, Circa 2002 78 4–3 Top National Plantings of Certified Organic Land, Circa 2002 79 4–4 Local Versus Imported Ingredients: Britain 83 5 Moving Toward a Less Consumptive Economy 5–1 Material Requirements Per Person in the United States, Germany, and Japan, 1996 102 5–2 U.S. Consumer Credit Outstanding, 1950–2003 113 5–3 Annual Hours Worked Per Person Employed in Major Industrial Countries, Selected Years, 1913–98 114 6 Purchasing for People and the Planet 6–1 Government Spending as Share of GDP in Selected Countries, 1998 124 7 Linking Globalization, Consumption, and Governance 7–1 World Export of Goods and Services, 1950–2002 147 7–2 World Exports in Selected Commodities, 1961–2001 147 7–3 Ecological Footprint Per Person in Selected Nations, 1999 148 8 Rethinking the Good Life 8–1 Average Income and Happiness in the United States, 1957–2002 166 xiv Foreword

A skeptical reader might ask whether the they gain strength from the experience of world needs yet another report that details the others. Governments learn how to apply the extent and urgency of global challenges. But politically difficult polluter pays principle and State of the World 2004 is different. It focuses how to eliminate harmful subsidies. on consumption—one of the most central The twelfth meeting of the CSD, which I and also one of the most neglected elements will chair at the United Nations in April 2004, in the global search for a sustainable future. will set in motion the 10-year program for sus- The Plan of Implementation that emerged tainable production and consumption that from the World Summit on Sustainable was called for in Johannesburg. In addition, Development in Johannesburg, South Africa, this meeting will have an important focus on in 2002 states: “Fundamental changes in water, sanitation, and human settlements, all the way societies produce and consume are essential elements of sustainable consump- indispensable for achieving global sustainable tion and also key to achieving another central development.” Upholding this solemn com- priority of the United Nations—eliminating mitment is now in part my responsibility poverty around the globe. since I was elected as the 2004 chair of the As Worldwatch Institute’s expert Commission on Sustainable Development researchers show in rigorous detail in this (CSD), the United Nations’ follow-up body edition of State of the World, new patterns of for both the Rio and the Johannesburg consumption will be required in order to lift agreements. billions of people out of poverty in a manner Consumption is of course essential to that is consistent with global sustainability. We human well-being, but consuming too much all make important daily decisions that affect or consuming the wrong things undermines not only our own communities but also the both our personal health and the health of the world as a whole—both its current and its natural environment on which we depend. future inhabitants. The CSD offers a unique opportunity for a As recognized in Johannesburg, much of diverse range of communities—from indige- the responsibility for bringing our consumer nous peoples to educators, farmers, and busi- society into balance with the planet falls on ness executives—to share ideas for addressing richer nations, not simply because they are the challenges posed by our consumer soci- responsible for most global consumption ety. At the annual CSD gatherings, people but because they can help developing coun- learn about what has worked and what has not tries “leapfrog” some of the unsustainable worked in various parts of the world, and choices that industrial nations are now

xv State of the World 2004 FOREWORD exporting. In the end, sustainable con- pointing to the accomplishments of these sumption is a common concern that requires alliances and by highlighting innovative solu- our common effort. tions, State of the World 2004 will contribute One example of a new approach to con- to the evolution of a sustainable society. sumption involving both producers and con- I have not been able to read every word of sumers is the work of the nonprofit Rainforest this book and therefore cannot endorse every Alliance. It has signed landmark accords with idea that it contains. But based on what I have a leading coffee company as well as a banana seen so far, I am convinced that State of the producer and other large food companies to World, as it has in the past, will provide a pow- monitor the environmental practices on farms erful array of innovative ideas that are sure to where their raw materials are produced. Envi- be useful to me and to others involved in ronmentally conscious consumers will be able the 2004 deliberations of the CSD. As the to buy the ecolabeled products that will be the report’s authors point out, what is lacking fruits of this project. now is determined action. This is what we We need more examples like this to show must all commit ourselves to achieving. that we have the means—if we choose to use The challenge is formidable, but the alter- them—to apply the cleaner production con- native is unthinkable. More than ever before, cept, to let consumers make informed choices, what becomes clear in State of the World 2004 and to demand and provide environmental is that each of us plays a daily role in chang- information. We also have the means to apply ing the world. And while this realization the polluter pays principle, to eliminate harm- might appear intimidating, it can also be a ful subsidies, and to create new markets. source of collective strength. When we use these tools, we will change our patterns of consumption and production, making them more sustainable. I am committed to fulfilling one of the CSD’s unique capabilities when it comes to consumption and other issues: forging Børge Brende alliances between the corporate sector, citi- Norwegian Minister of the Environment zens’ groups, and others in order to achieve Chairman, Commission on positive change for the world. I hope that by Sustainable Development

xvi Preface

In his book An All-Consuming Century, his- ulation. According to a recent study, 1.7 bil- tory professor Gary Cross argues that “con- lion people—27 percent of humanity—have sumerism” won the ideological wars of the now entered the consumer society. Of that twentieth century. Although most histories of group, roughly 270 million are in the United recent economic and political developments States and Canada, 350 million in Western suggest that it was capitalism or democracy Europe, and 120 million in Japan. But nearly that triumphed over communism, Cross half of global consumers now live in devel- makes a persuasive case that consumerism is oping countries, including 240 million in what defines our age and is the lens through China and 120 million in India—numbers which most people view our times.1 that have surged dramatically in the past two The consumer society’s long reach can be decades as globalization has introduced mil- measured by the vast increases in purchases of lions of people to consumer goods while also automobiles, fast food, electronic devices, providing the technology and capital needed and other emblems of modern lifestyles. But to build and disseminate them.2 the argument that consumerism defines our On Worldwatch Institute’s thirtieth age runs much deeper: the drive to acquire anniversary, this edition of State of the World and consume now dominates many peoples’ examines how we consume, why we con- psyches, filling the place once occupied by reli- sume, and what impact our consumption gion, family, and community. Consumption choices have on our fellow human beings has given hundreds of millions of people a and the planet. With chapters on food, water, new sense of independence and has become energy, governance, economics, the power a common benchmark to measure personal of purchasing, and redefining the good life, accomplishment. Time spent at church is Worldwatch’s award-winning research team now dwarfed by time spent at the “mall”— asks whether a less-consumptive society is and consumption’s connection to broader possible—and then argues that it is essential. economic goals such as employment is a Consumption is of course necessary for touchstone for politicians. In the aftermath of human life and well-being, and if the choice September 11, 2001, President Bush advised is between being part of the consumer soci- his fellow that it was their patriotic ety or being among the 2.8 billion people duty to go to the malls and “buy.” who barely survive on less than $2 per day, the Although Gary Cross’s book is focused on answer is easy. Massive increases in calorie the United States, his analysis can be applied intake, housing quality, household appliances, to a rapidly growing share of the world’s pop- and scores of other amenities of the past half-

xvii State of the World 2004 PREFACE century have helped lift hundreds of millions dioxide building up in the atmosphere as a of people out of poverty. result of rising levels of fossil fuel consump- But consumption among the world’s tion are now taking these burdens to the wealthy elites, and increasingly among the global level in the form of climate change.4 middle class, has in recent decades gone well The real challenge lies ahead. The global beyond satiating needs or even fulfilling consumption bandwagon has acquired an dreams to become an end in its own right. It extraordinary momentum that will place is as if much of the world is now following the rapidly growing demands on human society exhortation of post–World War II American and the natural world in the decades to come. retailing analyst Victor Lebow, who said “our This momentum is, for example, seen in China, enormously productive economy…demands which went from having virtually no private that we make consumption our way of life, cars in 1980 to having 5 million in 2000—and that we convert the buying and use of goods which is likely to have 24 million cars in 2005, into rituals, that we seek our spiritual satis- leaving still more than 1 billion prospective car faction, our ego satisfaction, in consump- buyers in China.5 tion…. We need things consumed, burned Not only will hundreds of millions of peo- up, worn out, replaced, and discarded at an ple in the developing world enter the con- ever increasing rate.” This model, while rarely sumer society in the near future, but the per described so nakedly, helped fuel the unpar- capita consumption levels of those who are alleled growth in the global economy over the already in it continue to surge as automobiles past five decades, creating incomes and jobs and houses get larger and as new gadgets for hundreds of millions of people.3 proliferate. And even as per person con- The unbounded pursuit of consumption sumption expands, the absolute number of has also exacted a heavy cost, however, a cost people also continues to grow—close to 3 bil- that is now growing at least as fast as con- lion human beings are likely to be added by sumption itself. Consumption today absorbs mid-century. The combined effect of con- vast quantities of resources, many of which are sumption and population is particularly alarm- now being used far beyond sustainable levels. ing, but between the two, consumption is the In just the last 50 years, global use of fresh more intractable. Most projections show water has grown threefold, while fossil fuel use world population leveling off in the second has risen fivefold. Renewable resources are half of the century as fertility rates decline. But particularly under threat, from the falling consumption just keeps growing. water tables of northern China to the depleted It is this daunting prospect that drew the fisheries of the North Atlantic. Over time, the Worldwatch research team to focus most of efficiency of human resource use has its work over the past year on consumption, improved, and depleted resources have been following in the path-breaking footsteps of replaced by others, but the pattern of the our former colleague Alan Durning, who past half-century is clear: the pollution and wrote How Much is Enough? in 1992. Durn- resource degradation that flow from ever- ing pointed out a conundrum that has growing consumption continue to worsen, become even more apparent today: the sin- and the toll is being measured not just in gle-minded pursuit of consumption not only damaged ecosystems but in human disease will undermine the quality of life of those in and misery—particularly for the poorest the consumer society, it will diminish the among us. The billions of tons of carbon ability of those outside the consumption class xviii State of the World 2004 PREFACE

to meet their basic needs.6 Worldwatch Web site that will contain selected In pursuing the theme of consumption material from State of the World, links to orga- throughout this year’s State of the World, we nizations working actively on consumption have sought to do more than describe the campaigns, and tips for becoming a more dilemmas posed by consumption, going on to informed consumer. This Web portal will explore ways that consumption can be also include a companion guide to State of the restrained and redirected in order to improve World, which will have dozens of vignettes prospects for human well-being and sustain- about commonly used items as well as sug- ability. In the pages that follow, the authors gestions for finding more sustainable alter- have shown how in everything from our use natives. In addition, the portal will provide of energy and water to our consumption of contact information for the many partner food we can make choices that will improve organizations around the world that helped our health, create jobs, and reduce pressures us gather the information for this book and on the world’s natural ecosystems. that are working to change consumption To accomplish this goal, we have inter- habits, including the Green Guide, the Sili- spersed the chapters in State of the World con Valley Toxics Coalition, and the Center 2004 with short articles on a variety of every- for a New American Dream. day products—from computers to chickens It would be foolish to underestimate the and cans of soda—in order to allow readers challenge of checking the consumption jug- to see common goods in a new light. In addi- gernaut. Few forces are as powerful or wide- tion, we have pointed to many cases in which spread. But as the costs of unbridled consumers are banding together to purchase consumption become clear, we believe that goods such as sustainably grown wood prod- the innovative responses described in these ucts, organic cocoa, and “fair-trade” coffee. pages will also catch on at an accelerating pace. Although most of these movements are tiny In the long run, it will become apparent that compared with the larger consumer econ- achieving generally accepted goals—meeting omy, they are growing rapidly and could soon basic human needs, improving human health, become a powerful force in many markets. and supporting a natural world that can sus- Our goal in State of the World 2004 is not tain us—will require that we control con- only to address one of the most important sumption rather than allow consumption to issues of our time in a way that informs and control us. motivates our readers, but to work with our We hope that you will read, analyze, and partners around the world to provide concrete question the information and ideas devel- ideas for those who want to get off the con- oped in these pages. We look forward to sumer treadmill. Consumption is of course in hearing your suggestions for strengthening part a societal challenge that will require future editions of State of the World. effective use of government regulation and fis- cal policy to achieve the common good. But more so than most issues, changes in con- sumption practices will require millions of individual decisions that can only begin at the grassroots. President To help in this process, we will soon be Worldwatch Institute launching a consumption portal on the November 2003

xix

State of the World: A Year in Review

Following the positive responses to last year’s 2002 until State of the World 2004 went to innovation of “State of the World: A Year in press in October 2003. It is once again a mix Review,” we are continuing to document the of progress, setbacks, and missed steps around many developments and challenges along the the world that are affecting society’s envi- road to sustainable development. This year’s ronmental and social goals. edition was compiled by Research Librarian There is no attempt to be comprehensive, Lori Brown, with contributions from all the but instead to highlight events that increase staff. Zöe Chafe, Lisa Mastny, and Radhika awareness of the connections between people Sarin were particularly helpful in putting and the world’s environment. We always wel- together the new timeline. come your feedback, and we hope to continue The timeline this year covers significant building the timeline as we move forward in announcements and reports from October the new millennium.

xxi State of the World 2004 STATE OF THE WORLD:A YEAR IN REVIEW

CHILDREN FOOD Report says 72 parties World Food CLIMATE UN reports that in armed conflict in Programme warns that Asia,Africa, Latin 40 million people in insurance industry CLIMATE could lose up to $150 America, and Europe Africa risk starvation Satellite observations billion a year within use children, mostly due to weather factors, of the Arctic Ocean next decade due to between the ages of health issues, civil strife, show area covered by 14 and 17, as soldiers. and economic policies. damages related to sea ice is smallest in climate change. more than 20 years.

POLLUTION WATER Oil tanker Prestige Study says withdrawal carrying 77,000 tons of world’s water supply of oil splits apart, ENERGY for domestic, industrial, contaminating Spain’s Eight hydrogen and livestock use is Galicia coastline and fuel-cell vehicles are projected to rise at least unleashing public anger delivered to Japanese 50 percent by 2025. worldwide. and US officials.

OCTOBER NOVEMBER DECEMBER 2002 STATE OF THE WORLD: A YEAR IN REVIEW 246810121416182022242628302468101214161820222426283024681012141618202224262830

CHILDREN HEALTH HUMAN RIGHTS Authorities report at EU health ministers human rights least 300,000 children extend ban on tobacco group says at least as young as five work ads from TV to radio, 461 women were in Colombian mines newspapers and reportedly killed and risk contracting magazines, the Internet, during the year by respiratory diseases. and Europe-wide family members in sporting events. so-called honor killings.

TOURISM ENERGY With almost a third 18 new UNESCO Final turbine of the of the world’s tourists biosphere reserves world’s largest offshore vacationing along the in 12 countries are wind project begins Mediterranean coast- created and the first operation at Horns line, experts warn of transboundary Rev and is due to serious environmental biosphere in Africa generate 2 percent consequences. is extended. of Denmark’s energy.

xxii State of the World 2004 STATE OF THE WORLD:A YEAR IN REVIEW

CLIMATE CLIMATE Australian report says UK announces plans SECURITY human-induced climate to reduce domestic US launches change is a key factor carbon emissions 60 widespread bombing in severity of the percent by 2050, far campaign in Iraq, worst drought in the more than Kyoto raising issues of oil country’s history. Protocol commitments. connections, future energy supplies, and world security. GOVERNANCE US environmental ENERGY ECONOMICS group charges that Report predicts solar World Bank estimates Bush administration photovoltaics, wind that combatants in advanced more than turbines, and fuel cells Colombia’s civil war 100 rule changes will expand from a have extorted that weakened $9.5-billion market $1 billion from multi- or rolled back now to $89 billion national corporations environmental laws. by 2012. over 20 years.

JANUARY FEBRUARY MARCH 2003 Compiled by Lori Brown 24681012141618202224262830 24681012141618202224262824681012141618202224262830

BIOTECHNOLOGY HUMAN RIGHTS ECOSYSTEMS Report says the UN reports that 30 Scientists report that global acreage of million women and many plants and genetically modified children throughout animals appear to be crops increased by Asia and Pacific have responding to climate 12 percent worldwide, been trafficked over change by shifting reaching 58.7 million the past 30 years in their ranges or hectares. “largest slave trade starting springtime in history.” activity sooner.

POLLUTION POPULATION WATER UN reports that coal- UN projects that by UN reports that 263 fired power stations 2050 world population river basins are shared and waste incinerators will be 8.9 billion, down by two or more in developing countries from earlier forecast nations, creating are source of most of 9.3 billion. potential conflict new mercury over water for roughly contamination. 40 percent of global population.

xxiii State of the World 2004 STATE OF THE WORLD:A YEAR IN REVIEW

GOVERNANCE FISHERIES International Scientists report Commission members industrial fishing has pass the Berlin Initiative, GENETICS killed off 90 percent of voting to pursue an Scientists announce the world’s biggest and agenda focused on that they have finally most economically conservation, not completely cracked the important fish species. consumption. human genetic code.

ENERGY Gates at Three Gorges FORESTS HEALTH Dam are shut and Report says Amazon Report says the death China’s Yangtze River deforestation increased toll from malaria starts filling the 40 percent compared remains “outrageously reservoir, which will with 2001, and high,” with more than have a generating Brazil registers 3,000 African children capacity of 18.2 second-highest figure dying daily. gigawatts by 2009. in 15 years.

APRIL MAY JUNE 2003 STATE OF THE WORLD: A YEAR IN REVIEW 246810121416182022242628302468101214161820222426283024681012141618202224262830

ECONOMICS WATER FOOD Commitment to For the first time in Fast-food chain Development Index South America, four McDonald’s calls ranks Netherlands as countries cooperate for phaseout of the most development- to manage a growth-promoting friendly of 21 rich transboundary ground- antibiotics in its nations, based on its water supply: the meat supply. help to poorer nations. Guarani, the continent’s largest aquifer.

FISHERIES Canadian government HEALTH CRIME declares an end to WHO’s 192 members UN launches “green cod fishing in nearly unanimously adopt the customs” to combat all the country’s first public health treaty multibillion-dollar illegal Atlantic waters due designed to reduce trade in chemicals, to declining stocks. tobacco-related deaths hazardous wastes, and and disease. endangered species.

xxiv State of the World 2004 STATE OF THE WORLD:A YEAR IN REVIEW

BIOTECHNOLOGY HEALTH Acrimonious trade INDIGENOUS WHO announces the dispute erupts CLIMATE PEOPLES severe acute respiratory between US and EU Scientists report Earth’s Four Pehuenche Indian syndrome—SARS— over genetically northern hemisphere women end a six-year has been contained modified crops, and has been hotter since protest against a after it spread to 30 US requests a formal 1980 than at any hydropower dam countries, killing 812 and WTO dispute panel time during the past that will flood their infecting 8,439 people. on the issue. 2,000 years. ancestral land in .

CLIMATE MINING Europe adopts first 15 of world’s largest OZONE LAYER climate emissions mining and Scientists report the trading law, giving metal-producing ozone hole over carbon dioxide a companies pledge Antarctica reaches market value across not to explore or a record 26 million the EU when trading mine in existing World square kilometers and begins in 2005. Heritage sites. could expand further.

JULY AUGUST SEPTEMBER See page 181 for sources.

2 4 6 8 10 12 14 16 18 20 22 24 26 28 302 4 6 8 10 12 14 16 18 20 22 24 26 28 30 2 4 6 8 10 12 14 16 18 20 22 24 26 28

FOOD ENERGY ECOSYSTEMS Relief agencies report Largest power blackout UN report says AIDS is fueling famine in US and Canadian number of the world’s in southern Africa, history affects 50 protected areas has where 7 million million people in eight passed 100,000, farmers have died states and two covering a land surface from the epidemic. provinces. bigger than India and China combined.

FORESTS HEALTH GOVERNANCE Scientists report 10 Heat wave death toll in WTO meeting percent of world’s tree tops 14,800 collapses in disputes species face extinction after temperatures over trade barriers due to logging, forest repeatedly rise above and farm subsidies, as fragmentation, and 40 degrees Celsius, coalition of developing plantations of invasive which is 104 degrees nations shifts the foreign species. Fahrenheit. power balance in negotiations.

xxv

STATE OF THE WORLD 20o4

CHAPTER 1

The State of Consumption Today

Gary Gardner, Erik Assadourian, and Radhika Sarin

China has a well-deserved reputation as the China’s streets—18 million more than were land of the bicycle. Throughout the twenti- driven on U.S. streets and highways in 1999. eth century, the streets of her cities were The emerging class of Chinese consumers is filled with literally millions of bikes, not only enthusiastically embracing the increased providing personal transportation but also mobility and higher social status that the serving as delivery vehicles—carrying every- automobile now represents—millions wait thing from construction materials to chick- months and take on significant debt in order ens on their way to market. As recently as the to become pioneer members of China’s new early 1980s, few private cars were found on automobile culture.2 China’s streets.1 The advantages of this development path A visitor from the 1980s who returns to are clear to the government officials who are Beijing, Shanghai, or other Chinese cities encouraging it. Each new Chinese-made car today will hardly recognize them. By 2002 provides two new jobs to Chinese workers, and there were 10 million private cars, and growth the income they receive then stimulates other in ownership was accelerating: every day in sectors of the Chinese economy. Moreover, the 2003 some 11,000 more cars merged into the rush to meet demand is attracting massive traffic on Chinese roads—4 million new pri- investments by foreign companies—General vate cars during the year. Auto sales increased Motors has spent $1.5 billion on a new factory by 60 percent in 2002 and by more than 80 in Shanghai, while Volkswagen has committed percent in the first half of 2003. By 2015, if $7 billion over the next five years to increase growth continues apace, industry analysts its production capacity.3 expect 150 million cars to be jamming China is of course following a well-blazed trail, albeit roughly eight decades after wide- Units of measure throughout this book are metric spread use of the automobile first caught on unless common usage dictates otherwise. in the United States. Yet China’s automobile

3 State of the World 2004 THE STATE OF CONSUMPTION TODAY story is tied to neither the Chinese nor the billion-dollar industry has emerged to cater to automobile. From fast food to disposable the needs of large Americans, supplying them cameras and from Mexico to South Africa, a with oversized clothing, sturdier furniture, good deal of the world is now entering the even supersized caskets. If the consumption consumer society at a mind-numbing pace. By aspirations of the wealthiest of nations cannot one calculation, there are now more than be satiated, the prospects for corralling con- 1.7 billion members of “the consumer class” sumption everywhere before it strips and today—nearly half of them in the “develop- degrades our planet beyond recognition would ing” world. A lifestyle and culture that became appear to be bleak.6 common in Europe, North America, Japan, Yet there are many reasons to be hopeful. and a few other pockets of the world in the Consumer advocates, economists, policy- twentieth century is going global in the makers, and environmentalists have devel- twenty-first.4 oped creative options for meeting people’s The consumer society clearly has a strong needs while dampening the environmental allure, and carries with it many economic and social costs associated with mass con- benefits. And it would certainly be unfair to sumption. In addition to helping individuals argue that advantages gained by an earlier find the balance between too much and too generation of consumers should not be little consumption, they stress placing more shared by those who come later. Yet the emphasis on publicly provided goods and headlong growth of consumption in the last services, on services in place of goods, on decade—and the staggering projections that goods with high levels of recycled content, flow logically from that growth—suggest and on genuine choice for consumers. that the world as a whole will soon run smack Together, these measures can help deliver a into a stark dilemma. If the levels of con- high quality of life with a minimum of envi- sumption that several hundred million of ronmental abuse and social inequity. The key the most affluent people enjoy today were is to look critically not only at the “how replicated across even half of the roughly 9 much” of consumption, but also the “how.” billion people projected to be on the planet (See Chapters 5 and 8.) in 2050, the impact on our water supply, air Consumption is not a bad thing. People quality, forests, climate, biological diversity, must consume to survive, and the world’s and human health would be severe.5 poorest will need to consume more if they are Despite the dangers ahead, there is little evi- to lead lives of dignity and opportunity. But dence that the consumption locomotive is consumption threatens the well-being of peo- braking—not even in countries like the United ple and the environment when it becomes an States, where most people are amply supplied end in itself—when it is an individual’s pri- with the goods and services needed to lead a mary goal in life, for example, or the ultimate dignified life. As of 2003 the United States had measure of the success of a government’s more private cars than licensed drivers, and economic policies. The economies of mass gas-guzzling sport-utility vehicles were one of consumption that produced a world of abun- the best-selling vehicles. New houses were dance for many in the twentieth century face 38 percent bigger in 2002 than in 1975, a different challenge in the twenty-first: to despite having fewer people in each household focus not on the indefinite accumulation of on average. Americans themselves are larger as goods but instead on a better quality of life well—so much bigger, in fact, that a multi- for all, with minimal environmental harm.

4 State of the World 2004 THE STATE OF CONSUMPTION TODAY

Consumption by the Numbers amount spent on goods and services at the household level—topped $20 trillion in 2000, By virtually any measure—household expen- up from $4.8 trillion in 1960 (in 1995 dol- ditures, number of consumers, extraction of lars). Some of this fourfold increase occurred raw materials—consumption of goods and because of population growth (see Box 1–1), services has risen steadily in industrial nations but much of it was due to advancing pros- for decades, and it is growing rapidly in many perity in many parts of the globe. These over- developing countries. The numbers tell the all numbers mask enormous disparities in story of a world being transformed by a con- spending. The 12 percent of the world living sumption revolution. in North America and Western Europe Private consumption expenditures—the account for 60 percent of global private con-

BOX 1–1. WHAT ABOUT POPULATION?

The United Nations Population Division tion increases by roughly 3 million a year, projects that world population will increase 41 whereas India’s increases by nearly 16 million, percent by 2050, to 8.9 billion people. Just as the additional Americans have greater environ- growing acquisition of appliances and cars can mental impact.They are responsible for 15.7 eliminate energy savings achieved by efficiency million tons of additional carbon to the atmos- improvements, this increase in human numbers phere, compared with only 4.9 million tons in threatens to offset any progress in reducing the India.Wealthy countries with expanding popula- amount of goods that each person consumes. tions need to look at the impact of both their For example, even if the average American eats consumption and their population policies. 20 percent less meat in 2050 than in 2000, total Other less discussed demographic trends meat consumption in the United States will be mix with consumption in surprising ways as roughly 5 million tons greater in 2050 due to well. For instance, as a result of rising incomes, population growth alone. urbanization, and smaller families, the number With 99 percent of global population of people living under one roof fell between growth projected to occur in developing 1970 and 2000 from 5.1 to 4.4 in developing nations, these countries need to consider care- countries and from 3.2 to 2.5 in industrial fully the twin goals of population stabilization countries, while the total number of house- and increased consumption for human develop- holds increased. Each new house requires space ment.The industrial world can help developing and materials, of course. In addition, savings countries stabilize their populations by sup- gained from having more people share energy, porting family planning, education, and the appliances, and home furnishings are lost when improvement of women’s status.And it can fewer people live in the same house.Thus a lower the impact of increased consumption one-person household in the United States by assisting with the adoption of cleaner, more uses 17 percent more energy per person than efficient technologies. a two-person household does. So even in some But it would be a mistake to think of popu- European nations and Japan, where total popu- lation growth as a challenge facing only poor lation is not growing much if at all, changing nations.When population growth and high household dynamics should be examined as levels of consumption mix, as they do in the drivers of increased consumption. United States, the significance of the former balloons. For example, although the U.S. popula- SOURCE: See endnote 7.

5 State of the World 2004 THE STATE OF CONSUMPTION TODAY sumer spending, while the one third living in Ta b l e 1 –1. Consumer Spending and South Asia and sub-Saharan Africa account for Population, by Region, 2000 only 3.2 percent. (See Table 1–1.) 7 Share of World Share of In 1999, some 2.8 billion people—two of Private Consumption World every five humans on the planet—were living Region Expenditures Population on less than $2 a day, which the United (percent) Nations and the World Bank say is the mini- United States mum for meeting basic needs. Roughly 1.2 and Canada 31.5 5.2 billion people were living in “extreme Western Europe 28.7 6.4 poverty,” measured by an average daily income East Asia and Pacific 21.4 32.9 of less than $1. Among the poorest are hun- Latin America dreds of millions of subsistence farmers, who and the Caribbean 6.7 8.5 by definition do not earn wages and who sel- Eastern Europe dom engage in money-based market transac- and Central Asia 3.3 7.9 tions. For them, and for all of the world’s South Asia 2.0 22.4 poor, consumption expenditures are focused and almost entirely on meeting basic needs.8 New Zealand 1.5 0.4 Although most consumer spending occurs Middle East in the wealthier regions of the world, the and North Africa 1.4 4.1 number of consumers is spread a bit more Sub-Saharan Africa 1.2 10.9 evenly between industrial and developing SOURCE: See endnote 7. regions. This is clear from research done by former U.N. Environment Programme (UNEP) consultant Matthew Bentley, who in all of Western Europe (although the aver- describes the existence of a global “consumer age Chinese or Indian member of course con- class.” These people have incomes over sumes substantially less than the average $7,000 of purchasing power parity (an European). Much of the rest of the develop- income measure adjusted for the buying ing world is not represented in this surge of power in local currency), which is roughly the new consumption, however: sub-Saharan level of the official poverty line in Western Africa’s consumer class, the smallest, has just Europe. The global consumer class itself 34 million people. Indeed, the region has ranges widely in levels of wealth, but mem- essentially been a bystander to the prosperity bers are typically users of televisions, tele- experienced in most of the world in recent phones, and the Internet, along with the decades. Measured in terms of private con- culture and ideas that these products transmit. sumption expenditures per person, sub-Saha- This global consumer class totals some 1.7 bil- ran Africa in 2001 was 20 percent worse off lion people—more than a quarter of the than two decades earlier, creating a yawning world. (See Table 1–2.)9 gap between that region and the industrial Almost half of this global consumer class world.10 lives in developing nations, with China and In addition to having large consumer blocs, India alone claiming more than 20 percent of developing countries tend to have the great- the global total. (See Table 1–3.) In fact, est potential to expand the ranks of con- these two countries’ combined consumer class sumers. For example, China and India’s large of 362 million people is larger than this class consumer set constitutes only 16 percent of

6 State of the World 2004 THE STATE OF CONSUMPTION TODAY

Ta b l e 1 –2. Consumer Class, by Region, 2002

Number of People Consumer Class as Consumer Class as Belonging to the Share of Regional Share of Global Region Consumer Class Population Consumer Class1 (million) (percent) (percent) United States and Canada 271.4 85 16 Western Europe 348.9 89 20 East Asia and Pacific 494.0 27 29 Latin America and the Caribbean 167.8 32 10 Eastern Europe and Central Asia 173.2 36 10 South Asia 140.7 10 8 Australia and New Zealand 19.8 84 1 Middle East and North Africa 78.0 25 4 Sub-Saharan Africa 34.2 5 2 Industrial Countries 912 80 53 Developing Countries 816 17 47 World 1,728 28 100

1Total does not add to 100 due to rounding. SOURCE: See endnote 9.

the region’s population, whereas in Europe increases in Asian consumption are mis- the figure is 89 percent. Indeed, in most placed if they obscure the need for reform in developing countries the consumer class wealthy countries, where high levels of con- accounts for less than half of the popula- sumption have been the norm for decades. tion—often much less—suggesting consid- The early industrializing countries in Europe erable room to grow. Based on population projections alone, the global consumer class Ta b l e 1 –3. Top 10 National Consumer is conservatively projected to hold at least 2 Class Populations, 2002 billion people by 2015.11 These numbers suggest that the story of Number of People Share of in Consumer National consumption in the twenty-first century Country Class, 2002 Population could be as much about emerging consumer nations as about traditional ones. In a 2003 (million) (percent) United States 242.5 84 Background Paper, the U.N. Environment China 239.8 19 Programme noted that boosting Asian car India 121.9 12 ownership rates to the world average would Japan 120.7 95 add 200 million cars to the global fleet—one Germany 76.3 92 and a half times the number of cars cur- Russian Federation 61.3 43 rently found in the United States. Concerns Brazil 57.8 33 about the impact of developments like these France 53.1 89 Italy 52.8 91 suggest the urgency of pursuing alternative, 50.4 86 sustainable paths to prosperity in the region. At the same time, worries about potential SOURCE: See endnote 10.

7 State of the World 2004 THE STATE OF CONSUMPTION TODAY and North America, along with Japan and Table 1–4. Share of Household Australia, are responsible for the bulk of Expenditures Spent on Food global environmental degradation associ- Per Capita Share ated with consumption.12 Household Spent Consumption trends cover virtually every Country Expenditures, 1998 on Food conceivable good and service, and these can (dollars)1 (percent) be categorized in many ways. Of particular Tanzania 375 67 interest are fundamentals such as food and Madagascar 608 61 water; trends for these give a sense of whether Tajikistan 660 48 basic needs are being met. Other consumer Lebanon 6,135 31 items indicate the degree to which life options 12,468 10 are expanding for people, and how much Japan 13,568 12 more comfortable life is becoming. Denmark 16,385 16 United States 21,515 13 In terms of basic needs, trends are mixed. Daily intake of calories has increased in both 1Purchasing power parity. the industrial and the developing worlds SOURCE: See endnote 13. since 1961 as food supplies have become bountiful, at least at the global level. Yet the mal products, while in developing countries U.N. Food and Agriculture Organization the figure is 350. Still, meat consumption is (FAO) reports that 825 million people are rising in the more prosperous regions of the still undernourished and that the average developing world as incomes and urbanization person in the industrial world took in 10 rates increase. Half of the world’s pork is percent more calories daily in 1961 (2,947 eaten in China, for example, while Brazil is the calories) than the average person in the devel- second largest consumer of beef, after the oping world consumes today (2,675 calories). United States. And meat is increasingly con- The existence of hunger in the face of record sumed as fast food, which is often more food supplies reflects the fact that food energy-intensive to produce. According to a remains expensive for much of the world’s recent marketing research study, the fast- poor relative to their meager incomes. In food industry in India is growing by 40 per- Tanzania, for instance, where per capita cent a year and is expected to generate over household expenditures were $375 in 1998, a billion dollars in sales by 2005. Meanwhile, 67 percent of household spending went to a quarter of India’s population remains under- food. In Japan, per capita household expen- nourished—a number virtually unchanged ditures stood at $13,568 that year, but only over the past decade.14 12 percent of that was spent on food. (See Clean water and adequate sanitation, which Table 1–4.)13 are instrumental in preventing the spread of Not only do the world’s wealthy take in infectious disease, are also basic consump- more calories than the poor, but those calo- tion needs. As with most goods, access to ries are likelier to come from more resource- water and sanitation is skewed in favor of intensive foods, such as meat and dairy wealthier populations, although this situa- products, which are produced using large tion has improved for poorer people some- quantities of grain, water, and energy. (See what in the past decade. In 2000, 1.1 billion Chapters 3 and 4.) People in industrial coun- people did not have access to safe drinking tries get 856 of their daily calories from ani- water, defined as the availability of at least 20

8 State of the World 2004 THE STATE OF CONSUMPTION TODAY

liters per person per day from a source within annual figure is 4 kilos, and in 20 nations in one kilometer of the user’s dwelling. And Africa, it is less than 1 kilo. UNEP estimates two out of every five people did not have that 30–40 kilos of paper are the minimum adequate sanitation facilities, such as a con- needed to meet basic literacy and communi- nection to a sewer or septic tank, or even a cation needs.16 simple pit latrine. People in rural areas suffer Rising prosperity also opens access to the most. In 2000, only 40 percent of peo- goods that promise new levels of comfort, ple living in rural areas were using adequate convenience, and entertainment to millions. sanitation facilities, compared with 85 percent (See Table 1–5.) In 2002, 1.12 billion of urban inhabitants.15 households, about three quarters of the As incomes rise, people gain access to non- world’s people, owned at least one television food consumer items that indicate greater set. Watching TV has become a leading form prosperity. Paper use, for example, tends to of leisure, with the average person in the increase as people become more literate and industrial world spending three hours—half as communications links increase. Globally, of their daily leisure time—in front of a tele- paper use increased more than sixfold between vision each day. The TV offers viewers access 1950 and 1997 and has doubled since the to local news and entertainment, but also mid-1970s; the average Briton used 16 times exposure to countless consumer products more paper at the end of the twentieth cen- that are shown in advertisements and during tury than at its start. Indeed, most of the programs. And the view emerging from the world’s paper is produced and consumed in screen is increasingly global in scope. Of industrial countries: the United States alone the 1.12 billion households with TVs, 31 produces and uses a third of the world’s percent subscribed to a cable television ser- paper, and Americans use more than 300 vice, often exposing them to a global enter- kilograms each annually. In developing tainment culture.17 nations as a whole, in contrast, people use 18 Many of these conveniences were consid- kilograms of paper each year. In India, the ered luxuries when first introduced but are

Table 1–5. Household Consumption, Selected Countries, Circa 2000

Household Consumption Electric Television Telephone Mobile Personal Country Expenditure Power Sets Mainlines Phones Computers (1995 dollars (kilowatt-hours (per thousand population) per person) per person) Nigeria 194 81 68 6 4 7 India 294 355 83 40 6 6 Ukraine 558 2,293 456 212 44 18 Egypt 1,013 976 217 104 43 16 Brazil 2,779 1,878 349 223 167 75 6,907 5,607 363 489 621 556 Germany 18,580 5,963 586 650 682 435 United States 21,707 12,331 835 659 451 625

SOURCE: See endnote 17.

9 State of the World 2004 THE STATE OF CONSUMPTION TODAY now perceived to be necessities. Indeed, that many of the unmet basic needs of the where societal infrastructures have developed world’s poor are too costly to address. Pro- around them, some of these consumer goods viding adequate food, clean water, and basic have become integral to day-to-day life. Tele- education for the world’s poorest could all be phones, for example, have become an essen- achieved for less than people spend annually tial tool of communication—in 2002, there on makeup, ice cream, and pet food. (See were 1.1 billion fixed-lines and another 1.1 Table 1–6.)19 billion mobile lines. A significant percentage The growing frenzy of consumption dur- of the world’s people, including the vast ing the twentieth century led to greater use majority of the world’s global consumers, of raw materials, which complements house- now has at least basic access to telephones. hold expenditures and numbers of consumers Communications have also advanced with as a measure of consumption. Between 1960 the introduction of the Internet. This most and 1995, world use of minerals rose 2.5-fold, recent addition to modern communications metals use increased 2.1-fold, wood prod- now connects about 600 million users.18 ucts 2.3-fold, and synthetics, such as plastics, A large share of consumer spending focuses 5.6-fold. This growth outpaced the increase on goods that are arguably unnecessary for in global population and occurred even as comfort or survival but that make life more the global economy shifted to include more enjoyable. These purchases include every- service industries such as telecommunications thing from seemingly minor daily indulgences, and finance, which are not as materials-inten- such as sweets and soda, to major purchases, sive as manufacturing, transportation, and such as ocean cruises, jewelry, and sports cars. other once-dominant industries. The dou- Expenditures on these products are not nec- bling of metals use, for example, happened essarily an indictment of the global consumer even as metals became less critical to gener- class, since reasonable people can disagree on ating wealth: in 2000, the global economy what constitutes excessive consumption. But used 45 percent fewer metals than three the sums spent on them are an indication of decades earlier to generate a dollar’s worth of the surplus wealth that exists in many coun- economic output.20 tries. Indeed, figures on consumer spend- Fuel and materials consumption reflects ing at the extreme undercut the perception the same pattern of global inequity found in

Table 1–6. Annual Expenditure on Luxury Items Compared with Funding Needed to Meet Selected Basic Needs

Product Annual Additional Annual Investment Expenditure Social or Economic Goal Needed to Achieve Goal Makeup $18 billion Reproductive health care for all women $12 billion Pet food in Europe and United States $17 billion Elimination of hunger and malnutrition $19 billion Perfumes $15 billion Universal literacy $5 billion Ocean cruises $14 billion Clean drinking water for all $10 billion Ice cream in Europe $11 billion Immunizing every child $1.3 billion

SOURCE: See endnote 19.

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final goods consumption. The United States from recycled sources, down from 20 percent alone, with less than 5 percent of the global in 1980. Meanwhile, recycling of municipal population, uses about a quarter of the waste generally remains low, even in nations world’s fossil fuel resources—burning up that can afford recycling infrastructure. The nearly 25 percent of the coal, 26 percent of 24 nations in the Organisation for Economic the oil, and 27 percent of the world’s natural Co-operation and Development (OECD) gas. Add consumption by other wealthy that provide data on this, for example, have nations, and the dominance of just a few an average recycling rate of only 16 percent countries in global materials use is clear. In for municipal waste; half of them recycle less terms of metals use, the United States, than 10 percent of their waste.23 Canada, Australia, Japan, and Western Meanwhile, the share of total paper fiber Europe—with among them 15 percent of supply coming from recycled fiber has grown the world’s population—use 61 percent of only modestly, from 20 percent in 1921 to 38 the aluminum produced each year, 60 per- percent today. This small increase, in the face cent of lead, 59 percent of copper, and 49 of far greater increases in paper consump- percent of steel. Use is high on a per person tion, means that the amount of paper not basis as well, especially relative to use in recycled is higher than ever. In light of FAO poorer nations. The average American uses projections that global paper consumption 22 kilograms of aluminum a year, while the will increase by nearly 30 percent between average Indian uses 2 kilos and the average 2000 and 2010, the share of paper that is African, less than 1 kilo.21 recycled is especially critical, and it will have Meanwhile, the world’s growing appetite a large impact on the health of the world’s for paper makes increasing demands on the forests in coming years.24 world’s forests. Virgin wood stocks destined for paper production, for instance, account for Disparate Drivers, approximately 19 percent of the world’s total Common Result wood harvest and 42 percent of wood har- vested for “industrial” uses (everything but The global appetite for goods and services is fuelwood). By 2050, pulp and paper manu- driven by a set of largely independent influ- facture could account for over half of the ences, from technological advances and cheap world’s industrial wood demand.22 energy to new business structures, powerful Consumption of raw materials such as communications media, population growth, metals and wood could, in principle, be largely and even the social needs of human beings. independent of the consumption of goods These disparate drivers—some are natural and services, since many products could be endowments, others accidents of history, still remanufactured or made from recycled mate- others human innovations—have interacted rials. But materials in most economies in the to send production and demand to record lev- twentieth century did not circulate for even els. In the process, they have created an eco- a second or third use. Even today, recycling nomic system of unprecedented bounty and provides only a small share of the materials unparalleled environmental and social impact. used in economies worldwide. About half of The story starts with the consumer. Main- the lead used today comes from recycled stream economists since Adam Smith have sources, as does a third of the aluminum, claimed that consumers are “sovereign” actors steel, and gold. Only 13 percent of copper is who make rational choices in order to max-

11 State of the World 2004 THE STATE OF CONSUMPTION TODAY imize their gratification. Instead, consumers Beyond the first pair of shoes, for instance, make imperfect decisions using a set of judg- shoe ownership may not be about protecting ments that are shaped by incomplete and a person’s feet but about comfort, style, or sta- biased information. Their decisions are pri- tus. Such desires can be boundless and there- marily driven by advertising, cultural norms, fore have the potential of driving consumption social influences, physiological impulses, and ever upward.27 psychological associations, each of which can Cornucopian stocks of goods, the prod- boost consumption.25 uct of huge increases in production efficiency Physiological drives play a central role in since the Industrial Revolution, further stim- stimulating consumption. The innate desire ulate humans’ social and psychological pro- for pleasurable stimulation and the alleviation clivity to consume. Modern industrial of discomfort are powerful motivators that workers now produce in a week what took have evolved over millennia to facilitate sur- their eighteenth-century counterparts four vival, as when hunger leads a person to search years. Innovations such as Henry Ford’s for food. These impulses are reinforced by assembly line slashed production time per consumers’ experiences. Products that have automobile chassis from 12.5 hours in 1913 satisfied us in the past are remembered as to 1.5 hours in 1914—and have been greatly pleasurable, bolstering the desire to consume improved since then. Today, a Toyota plant them again. In consumer societies where in Japan rolls out 300 completed Lexuses per food and other goods are abundant, these day, using only 66 workers and 310 robots. impulses are leading to unhealthful levels of Efficiency increases like these have reduced consumption, in part because they are further costs dramatically and fueled sales. This is per- stimulated by advertising. Indeed, recent psy- haps most evident in the semiconductor chological studies have revealed that these industry, where production efficiencies helped impulses can even be primed subconsciously, to drive the cost per megabit of computing arousing a desire for increased consumption, power from roughly $20,000 in 1970 to as for a thirst-quenching beverage after a feel- about 2¢ in 2001. Such order-of-magnitude ing of thirst is aroused.26 increases in computing power at greatly Consumption habits also have social roots. reduced prices have spurred the modern Consumption is in part a social act through computer revolution.28 which people express their personal and group Globalization has also lowered prices and identity—choosing the newspaper of a par- stimulated consumption. Since 1950, suc- ticular political party, for instance, or the fash- cessive rounds of trade negotiations have dri- ions favored by a peer group. Social motivators ven tariffs on many products steadily lower, can be insatiable drivers of consumption, in with real consequences for individual con- contrast to the desire for food, water, or other sumers: Australians, for example, pay on aver- goods, which is circumscribed by capacity age A$2,900 less for a car today because of limits. In 1954, the average Briton, for exam- tariff reductions that took effect after 1998. ple, could count on an ample material base— And the World Trade Organization’s 1996 enough food, clothing, shelter, and access to Information Technology Agreement has elim- transportation to live a dignified life. So the inated tariffs entirely for most computers and increased spending that accompanied a dou- other information technologies, often reduc- bling of wealth by 1994 was likely an attempt ing a product’s cost by 20–30 percent. The to satisfy social and psychological needs. eight rounds of global trade negotiations

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since 1950 are credited as a major spur to eco- advances in humanity’s ability to exploit vast nomic expansion worldwide.29 swaths of resources, and at lower cost, help A globalizing world has also allowed large supply markets with inexpensive goods—a corporations to look across national borders prod to greater consumption.31 for cheaper labor—and to pay workers as lit- tle as pennies per hour. (See Chapter 5.) Export processing zones (EPZs), minimally In consumer societies where food regulated manufacturing areas that produce and other goods are abundant, goods for global commerce, have multiplied impulses are leading to unhealthful in the past three decades in response to the levels of consumption. demand for inexpensive labor and a desire to boost exports. From 79 EPZs in 25 countries in 1975, the number expanded to some 3,000 Cheap energy and improved transportation in 116 nations by 2002, with the zones have also fueled production, lowering costs employing some 43 million workers who and facilitating increased distribution. Despite assemble clothing, sneakers, toys, and other a spike in oil prices in the 1970s, the inflation- goods for far less than it would cost in indus- adjusted price of oil was only 7 percent higher trial nations. The zones boost the availability in the 1997–2001 period than in 1970–74, of inexpensive goods for global consumers, for example. And reductions in transportation but are often criticized for fostering abuses of costs have helped make goods affordable to labor and human rights.30 more people. Air freight rates dropped by Meanwhile, technological innovations of all nearly 3 percent annually for most interna- kinds have increased production efficiency, tional routes between 1980 and 1993, which often by raising the capacity of people and helps to explain why perishables such as apples machinery to extract resources. Today’s from New Zealand or grapes from Chile are “supertrawler” fishing vessels, for example, now commonly found in European and can process hundreds of tons of fish per day. North American supermarkets. Expanded They are part of the reason that communities markets also allow companies to increase the of many oceanic fish have suffered declines on division of labor used in producing and deliv- the order of 80 percent within 15 years of the ering goods and services and to achieve start of commercial exploitation. Mining greater economies of scale, each of which equipment is also more muscular: in the further lowers the costs of production.32 United States, mining companies now engage The unparalleled pace of these techno- in “mountaintop removal,” which can leave logical and transportation developments in a mountain dozens of meters shorter than its the twentieth century led to increasingly original height. In addition, the capacity of rapid adoption of new products. In the hauling trucks increased some eightfold, from United States, it took 38 years for the radio 32 tons to 240 tons, between 1960 and the to reach an audience of 50 million people, 13 early 1990s. And output per U.S. miner more years for television to reach the same num- than tripled in the same period. Finally, chip ber, and only 4 years for the Internet to do mills—facilities that grind whole trees into the same. This has kept production lines wood chips for paper and pressed lumber humming in the information technologies products—can convert more than 100 truck- industries, where Moore’s Law—the rule of loads of trees into chips every day. These thumb that microprocessor capacity will dou-

13 State of the World 2004 THE STATE OF CONSUMPTION TODAY ble every 18 months—has prompted Billion Dollars 500 regular introductions of ever-more (2001 dollars) powerful computers and other digital products. The regular supply of new 400 products, in turn, has prompted rapid turnover of these products in the last 300 World two decades—increasing consumption 33 even further. 200 Forces driving consumption are even found in the economic realities facing United States modern corporations. Most companies 100 have substantial fixed costs—for heavy Source: McCann-Erickson machinery, factory buildings, and deliv- 0 1950 1960 1970 1980 1990 2000 2010 ery vehicles needed to produce and sell their products. Today’s state-of-the-art Figure 1–1. Global and U.S. Advertising semiconductor manufacturing plant, for Expenditures, 1950–2002 instance, now costs around $3 billion, a huge investment that must be paid for even about a quarter of network television pro- when sales are poor. Fixed costs therefore gramming. But advertising is surging in the represent financial risk. This danger can be rest of the world as well. Non-U.S. adver- reduced by increasing output and sales so tising expenditures have risen three and a that fixed costs are spread over a greater vol- half times over 20 years, with emerging mar- ume of products and a greater diversity of kets showing particularly rapid growth. In markets. Thus the ongoing pressure to cover China, ad spending increased by 22 per- fixed costs creates an urgency to expand pro- cent in 2002 alone.35 duction—and to find new customers to buy Advertising is increasingly targeted and the steady output of goods.34 sophisticated, as seen in efforts to place prod- The need for new customers gives busi- ucts in movies and television programs. In ness a strong incentive to develop a host of recent studies, more than half of the cases of new tools designed to stimulate consumer new smoking among teenagers could be demand, many of which play on the physi- traced to their exposure to smoking in movies, ological, psychological, and social needs of for example. And despite a 1990 voluntary human beings. Advertising has perhaps been “ban” on product placements by the tobacco the most powerful of these tools. Today industry, in the United States actual place- advertising pervades nearly all aspects of the ments have almost doubled, with 85 percent media, including commercial broadcasting, of the top 250 movies between 1988 and print media, and the Internet. Global spend- 1997 containing smoking. Indeed, smoking ing on advertising reached $446 billion in is three times more prevalent in the movies 2002 (in 2001 dollars), an almost ninefold than in the actual U.S. population. With Hol- increase over 1950. (See Figure 1–1.) More lywood earning perhaps half of its revenues than half of this is spent in the United States, from movie sales outside the United States, where ads account for about two thirds of smoking in movies continues to shape global the space in the average newspaper, almost smoking patterns as well. And non-American half of the mail that Americans receive, and studios increasingly serve as vehicles for

14 State of the World 2004 THE STATE OF CONSUMPTION TODAY

tobacco advertising. Some three fourths of the tion of a wide array of consumer durables, films produced between 1991 and 2002 by including refrigerators, televisions, furniture, Bollywood (India’s equivalent of Hollywood) washing machines, and automobiles. Cars, in included scenes with smoking.36 turn, require vast quantitites of raw materi- Innovative business practices have also als: a third of U.S. iron and steel, a fifth of the helped boost consumer demand. The intro- aluminum, and two thirds of the lead and duction of the credit card in the United States rubber. And the spread of suburbs led to in the 1940s helped to increase total con- greater public spending for new roads, fire- sumer credit almost elevenfold between 1945 houses, police stations, and schools. The and 1960. Today, heavy use of credit cards is Center for Neighborhood Technology in promoted vigorously, since the profits of found in the late 1990s that low- companies issuing the cards depend on hav- intensity development is about 2.5 times ing consumers maintain large monthly bal- more materials-intensive than high-intensity ances. In 2002, 61 percent of American credit development. Thus the decision to subsi- card users carried an outstanding monthly dize suburban homebuilding had a profound balance, which on average was $12,000 at an effect on U.S. consumption patterns in the interest rate of 16 percent. (See Chapter 5.) last half of the twentieth century.39 At this rate, a cardholder would pay about $1,900 a year in finance charges—more than Problems in Paradise the average per capita income (in purchasing power parity) in at least 35 countries.37 In Natural Capitalism, their 1999 analysis of Credit is also spurring spending in Asia, industrial economies, Paul Hawkins, Amory Latin America, and Eastern Europe. In East Lovins, and Hunter Lovins suggested that the Asia, the household share of total bank lend- United States generates a gargantuan amount ing increased from 27 percent in 1997 to 40 of what the authors called “waste”—any percent in 2000. In several countries, major expenditure for which no value is received. automobile manufacturers are expanding their These outlays pay for a host of unintended product lines because of this explosion in byproducts of the American economic system, credit lending. General Motors official Philip including air and water pollution, time spent Murtaugh underlines the importance of credit idle in traffic, obesity, and crime, among in China: “Once we establish the type of many others. By the authors’ calculations, comprehensive GM financing systems we this waste cost the United States at least $2 have in the U.S., we expect to see a huge trillion in the mid-1990s—some 22 percent jump in purchases.”38 of the value of the economy. The estimate can Finally, government policies are some- only be a rough one, but the analysis is use- times responsible for priming the consump- ful in calling attention in a comprehensive way tion pump. Economic subsidies, now totaling to the little-noticed underbelly of modern around $1 trillion globally each year, can industrial economies. The environmental and ripple throughout an economy, stimulating social toll of industrial economies is becom- consumption along the way. The U.S. gov- ing difficult to ignore.40 ernment, for instance, has subsidized subur- Indeed, the very existence of waste in the ban homebuilding since World War II with more traditional sense—from households, tax benefits and other enticements. Roomy mines, construction sites, and factories— suburban homes helped spur the consump- shows that industrial economies are defective

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in their design. In contrast to the goods and population, adds up to a lot of trash.42 services produced by the millions of other Trends in resource use and ecosystem species on our planet, which generate useful health indicate that natural areas are also byproducts but not worthless waste, human under stress from growing consumption pres- economies are designed with little attention sures. (See Table 1–7.) An international team to the residuals of production and con- of ecologists, economists, and conservation sumption. The impact of this design flaw is biologists published a study in Science in 2002 enormous, starting with the extraction indicating that nearly all the world’s ecosys- process. For every usable ton of copper, for tems are shrinking to make way for humans example, 110 tons of waste rock and ore and their homes, farms, malls, and factories. are discarded. As metals become rarer, the Seagrass and algae beds, the study says, are wastes tend to increase: roughly 3 tons of declining by 0.01–0.02 percent each year, tropical forests by 0.8 percent, marine fisheries by 1.5 percent, freshwater ecosystems Nearly all the world’s ecosystems are (swamps, floodplains, lakes, and rivers) by shrinking to make way for humans and 2.4 percent, and mangroves by a staggering their homes, farms, malls, and factories. 2.5 percent. It also cited large but harder to quantify annual losses of coral reefs, range- land, and cropland. Only temperate and toxic mining waste are produced in mining boreal forests showed a resurgence, increas- the amount of gold needed in a single wed- ing by 0.1 percent annually after decades of ding ring.41 decline. Consistent findings of global envi- Consumer waste is equally sobering, espe- ronmental decline are found in the Living cially in wealthy countries. The average resi- Planet Index, a tool developed by WWF dent of an OECD country generates 560 International to measure the health of forests, kilos of municipal waste per year, and all but oceans, freshwater systems, and other nat- three of the 27 reporting countries generated ural systems. The Index shows a 35-percent more per person in 2000 than in 1995. Even decline in the planet’s ecological health since in nations considered leaders in environ- 1970. (See Figure 1–2.)43 mental policy, such as Norway, reducing waste One measure of the impact of human con- flows is a continuing challenge. In 2002, the sumption on global ecosystems is provided by average Norwegian generated 354 kilograms the “ecological footprint” accounting sys- of waste, 7 percent more than the previous tem, which measures the amount of produc- year. The share of waste recycled also grew, tive land an economy requires to produce but it has stalled at less than half of total the resources it needs and to assimilate its waste generated. Meanwhile, Americans wastes. Calculations done by the California- remain the world’s waste champions, pro- based group Redefining Progress show that ducing 51 percent more municipal waste per Earth has 1.9 hectares of biologically pro- person than the average resident of any other ductive land per person to supply resources OECD country. The glimmer of good news and absorb wastes. Yet the environmental from the United States is that per person demands of the world’s economies are so rates appear to have plateaued in the 1990s. large that the average person today uses 2.3 Still, the high waste levels per American, cou- hectares worth of productive land. This over- pled with continuing growth of the U.S. all number masks, of course, a tremendous

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Ta b l e 1 –7. Global Natural Resource and Environmental Trends

Environmental Indicator Trend Fossil fuels and Global use of coal, oil, and natural gas was 4.7 times higher in 2002 than in 1950. Carbon atmosphere dioxide levels in 2002 were 18 percent higher than in 1960, and estimated to be 31 per- cent higher since the onset of the Industrial Revolution in 1750. Scientists have linked the warming trend during the twentieth century to the buildup of carbon dioxide and other heat-trapping gases. Ecosystem More than half of Earth’s wetlands, from coastal swamps to inland floodplains, have been degradation lost, largely due to draining or filling for human settlements or agriculture.About half of the world’s original forest cover is also gone, while another 30 percent of it is degraded or fragmented. In 1999, global use of wood for fuel, lumber, paper, and other wood prod- ucts was more than double that in 1950. Sea level Sea level rose 10–20 centimeters in the twentieth century, an average of 1–2 millimeters per year, as a result of melting continental ice masses and the expansion of oceans due to climate change. Small island nations, though accounting for less than 1 percent of global greenhouse emissions, are at risk of being inundated by rising sea levels. Soil/land Some 10–20 percent of the world’s cropland suffers from some form of degradation, while over 70 percent of the world’s rangelands are degraded. Over the past half-century, land degradation has reduced food production by an estimated 13 percent on cropland and 4 percent from pasture. Fisheries In 1999, total fish catch was 4.8 times the amount in 1950. In just the past 50 years, industrial fleets have fished out at least 90 percent of all large ocean predators—tuna, marlin, swordfish, sharks, cod, halibut, skate, and flounder. Water Overpumping of groundwater is causing water tables to decline in key agricultural regions in Asia, North Africa, the Middle East, and the United States.The quality of groundwater is also deteriorating as a result of runoff of fertilizers and pesticides, petro- chemicals that leak out of storage tanks, chlorinated solvents and heavy metals discarded by industries, and radioactive wastes from nuclear facilities.

SOURCE: See endnote 43. range of ecological footprints—from the 9.7 tion society also correlates with a decline in hectares claimed by the average American to health indicators in many countries. “Dis- the 0.47 hectares used by the average eases of consumption” continue to surge. Mozambican. Footprint analysis shows that Smoking, for example, a consumer habit total consumption levels had already exceeded fueled by tens of billions of dollars in adver- the planet’s ecological capacity by the late tising, contributes to around 5 million deaths 1970s or early 1980s. Such overconsumption worldwide each year. In 1999, tobacco- is possible only by drawing down stocks of related medical expenditures and produc- resource reserves, as when wellwater is tivity losses cost the United States more than pumped to the point that groundwater lev- $150 billion—almost 1.5 times the revenue els decrease.44 of the five largest multinational tobacco Aggressive pursuit of a mass consump- companies that year. Similarly, overweight

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1970=1.0 trial nations, the United States scores 3.0 worse on numerous indices of devel- opment: it ranks last among 17 OECD 2.5 countries measured in the U.N. Devel- 2.0 opment Programme’s Human Poverty Index of Gross Index for industrial countries, for World Product 1.5 instance, which compiles indicators of poverty, functional illiteracy, longevity, 46 1.0 Living Planet Index and social inclusion. An OECD study has also docu- 0.5 mented disengagement from civic Source: Maddison, IMF, WWF Intl., UNEP, RP involvement in some industrial nations, 0.0 especially the United States and Aus- 1970 1975 1980 1985 1990 1995 2000 tralia. In both countries, rates of mem- Figure 1–2. Changes in Economic Activity and bership in formal organizations have Ecosystem Health, 1970–2000 fallen, as has the intensity of partici- pation in terms of meeting attendance and obesity, generally the result of poor diet and willingness to take on leadership roles. and an increasingly sedentary lifestyle, affect Meanwhile, informal social interactions— more than a billion people, lowering day-to- playing cards with neighbors, going on pic- day life quality, costing societies billions in nics, and the like—have also declined health care, and contributing to rapid markedly in both countries, as have levels of increases in diabetes. In the United States, an trust among people and in institutions. The estimated 65 percent of adults are over- data on other prosperous countries are more weight or obese, leading to an annual loss of encouraging, although early signs of social 300,000 lives and to at least $117 billion in disengagement are evident. Organizational health care costs in 1999.45 membership remains high in many Euro- pean nations, but the level of involvement and of personal interaction has shown The failure of additional wealth and declines in some, and membership is often consumption to help people have more transient than in the past. Even in satisfying lives may be the most eloquent Sweden, which appears to have strong social argument for reevaluating our approach and community networks, signs of concern to consumption. are appearing: political engagement is increasingly passive, and levels of trust in institutions are declining.47 Overall “social health” has declined in Harvard Professor of Public Policy Robert the United States in the past 30 years as Putnam has identified time limitations, resi- well, according to Fordham University’s dential sprawl, and high rates of television Index of Social Health. This documents viewing as three features of American society increases in poverty, teenage suicide, lack of that may explain a decline in civic engage- health insurance coverage, and income ment, together accounting for about half of inequity since 1970. And despite higher lev- the situation. All three are linked to high els of consumption than in most other indus- consumption: time pressures are often linked

18 State of the World 2004 THE STATE OF CONSUMPTION TODAY

to the need to work long hours to support to adopt simpler lifestyles. Slowly but steadily, consumption habits, sprawl is a function of car people’s interest in recasting consumption dependence and the desire for larger homes in a supporting rather than the leading role and properties, and heavy television viewing is now evident.50 helps promote consumption through expo- sure to advertising and programming that A New Role for often romanticizes the consumer lifestyle.48 Consumption? Perhaps the most damning evidence that continued consumption is generating dimin- Despite the problems associated with a con- ishing benefits is found in studies that com- sumer society, and notwithstanding the ten- pare the ever-rising level of personal wealth in tative steps taken to shift societies to a less rich countries with the stagnant share of peo- damaging path, most people in industrial ple in these nations who claim to be “very countries are still on an upward consumption happy.” Although self-reported happiness track, and many in developing countries among the poor tends to rise with increased remain mired in poverty. In order to advance income, studies show that the linkage between the tentative interest in a new role for con- happiness and rising income is broken once sumption, any vision will need to include modest levels of income are reached. The responses to four key questions: failure of additional wealth and consump- • Is the global consumer class experiencing tion to help people have satisfying lives may a higher quality of life from its growing lev- be the most eloquent argument for reevalu- els of consumption? ating our current approach to consumption.49 • Can societies pursue consumption in a Disappointment in the ability of con- balanced way, especially in putting con- sumption to deliver lives of fulfillment is sumption in harmony with the natural producing discontent among scholars, pol- environment? icymakers, and the public. A slew of books • Can societies reshape consumer options to published in the 1990s documented dissat- offer genuine choice? isfaction with societies organized around • Can societies make a priority of meeting consumption. The titles tell the story: The the basic needs of all? Overspent American, The Overworked Amer- All things considered, are consumers ben- ican, An All-Consuming Century, Con- efiting from the global consumer culture? fronting Consumption, and The High Price of Individuals, the important arbiters of this Materialism, among others. Although the question, might consider the personal costs analyses differ, all these authors express the associated with heavy levels of consumption: view that consumption-oriented societies the financial debt; the time and stress associ- are not sustainable, for environmental or ated with working to support high con- social reasons. sumption; the time required to clean, Discontent with a commitment to high upgrade, store, or otherwise maintain pos- consumption was evident at the policy and sessions; and the ways in which consump- grassroots levels as well. Several European tion replaces time with family and friends. governments are implementing or consider- Individuals as well as policymakers might ing reforms to working hours and family consider the seeming paradox that quality of leave benefits, for example. And some people life is often improved by operating within in Europe and the United States are starting clear limits on consumption. Forests, for

19 State of the World 2004 THE STATE OF CONSUMPTION TODAY

example, can be available to all indefinitely if they create—are available. they are harvested no faster than the rate of Third, are consumers given genuine regrowth. Similarly, someone who adopts choices that help them to meet their needs? clear parameters of personal well-being— Clearly, mass consumption societies offer exercising daily and eating well, for exam- more products and services than any other ple—is likely to have a higher quality of life economic system in human history. Yet con- than a person who consumes in an open- sumers do not always find what they need. ended and unrestrained way. Indeed, the Consider transportation: safe and convenient underlying premise of mass consumption access to just five transportation alternatives— economics—that unlimited consumption is walking, cycling, mass transit, car-sharing, or acceptable, even desirable—is fundamentally private cars—may offer more real options for at odds with life patterns of the natural world getting people where they want to go than a and with the teaching on moderation that is choice of 100 models at a car dealership common to philosophers and religious lead- would. And where genuine choice is present, ers across many cultures and throughout the most desirable choice may not be afford- much of human history. able, as happens with organic food in some countries. Governments need to reshape eco- nomic incentives and regulations to ensure The underlying premise of mass that businesses offer affordable options that consumption economics—that unlimited meet consumers’ needs. They also have a consumption is acceptable, even role in curbing consumption excess, primar- desirable—is fundamentally at odds with ily by removing incentives to consume—from life patterns of the natural world. subsidized energy to promotion of low-den- sity development. Last, can societies create a consumption Second, is our consumption in balance ethic that gives priority to meeting the basic economically, socially, and environmentally? needs of all? Physical well-being—including In societies of mass consumption, laws and sufficient access to healthy food, clean water economic incentives often encourage people and sanitation, education, health care, and to cross key economic, environmental, and physical security—is the foundation of all social thresholds. Banks and credit agencies individual and societal achievement. Neglect- urge consumers to take on heavy burdens of ing these basics will inevitably limit the capac- debt; businesses and individuals use forests, ity of many to realize their personal groundwater, and other renewable resources potential—and their ability to make mean- beyond their rates of renewal; and employers ingful contributions to society. In a world in often reward workers for spending long hours which there are more people living on less on the job. Each of these excesses exacts a than $2 per day than there are in the global price in personal or societal well-being. consumer class, the continued pursuit of Numerous imaginative ways for bringing con- greater wealth by the rich when there is lit- sumption choices in better harmony with tle evidence that it increases happiness raises social and environmental needs—from legis- serious ethical questions. lation mandating levels of recycled content to Beyond the ethical imperative to care for product “take back” laws that make produc- all is a self-serving motive. Lack of attention ers responsible for the products and waste to the needs of the poorest can result in

20 State of the World 2004 THE STATE OF CONSUMPTION TODAY

greater insecurity for the prosperous and in seems, is both right and smart. increased spending on defensive measures. Addressing these four questions would The need to spend billions of dollars on give consumption a less central place in our wars, border security, and peacekeeping lives and would free up time for community arguably is linked to a disregard for the building and strengthening interpersonal world’s pressing social and environmental relationships—factors that psychologists tell problems. The same is true at the community us are essential for a satisfying life. By reori- level. Expenditures for private education, enting societal priorities toward improving gated communities, and home alarm sys- people’s well-being rather than merely accu- tems are just a few of the ways that failing to mulating goods, consumption can act not as invest in the poorest comes back to haunt the the engine that drives the economy but as a wealthy. Meeting the basic needs of all, it tool that delivers an improved quality of life.

21 BEHIND THE SCENES Plastic Bags

Plastic shopping bags could few grams and is a few millimeters thick be the most ubiquitous con- might seem thoroughly innocuous were it sumer item on Earth. Their not for the sheer volume of global produc- light weight, low cost, and tion. Factories around the world churned water resistance make out roughly 4–5 trillion plastic them so convenient for bags—from large trash bags to carrying groceries, cloth- thick shopping bags to thin ing, or any other routine grocery bags—in 2002, purchase that it is hard to according to estimates imagine life without them. from the Chemical The first plastic Market Associates, a “baggies” for bread, consulting firm for the sandwiches, fruits, and vegetables were petrochemical industry. introduced in the United States in 1957. North America and West- Plastic trash bags were appearing in homes ern Europe account for nearly and along curbsides around the world by the 80 percent of the use of these late 1960s. But these items really took off in products. Americans throw away 100 billion the mid-1970s, when a new process for plastic grocery bags each year. These are cheaply manufacturing separate plastic bags becoming more and more common in poorer made it possible for major retailers and nations as well. And bags produced in Asia supermarkets to offer their customers an now account for one quarter of those used in alternative to paper sacks. Today, four out of wealthy nations.3 five bags used in grocery stores are the plastic Producing plastic bags uses about 20–40 “T-shirt” variety with two handles that look percent less energy and water than paper sack like shirt-sleeves.1 production does, and generates less air pollu- These bags start as crude oil, natural gas, tion and solid waste, according to lifecycle or other petrochemical derivatives, which are assessments by both industry and nonindus- transformed in plastics factories into chains of try groups. Officials from the plastics industry hydrogen and carbon molecules known as also note that plastic bags take up less space polymers or polymer resin. (High-density in a landfill, and that neither product decom- polyethylene resin is the industry standard for poses under the prevailing conditions in most plastic bags.) The polyethylene is super- landfills. (Given the proper conditions, the heated and the molten resin is extruded as a paper sack would decompose rapidly, while tube, sort of like the process of making pasta. the plastic bag would not.)4 After the desired shape is achieved, the resin But many mischievous bags do not find is cooled, hardens, and can be flattened, their way to landfills. Instead they go air- sealed, gusseted, punched, or printed on.2 borne after they are discarded. In Kenya, The typical plastic bag that weighs just a farmers and conservationists complain about

22 State of the World 2004 BEHIND THE SCENES:A PLASTIC BAGS

the bags getting caught in fences, trees, and and sewage lines, which increased flooding even the throats of birds. In Beijing, the gov- and the incidence of waterborne diseases.7 ernment was spending so much money clean- In January 2002, the government of ing plastic bags out of gutters, sewers, and South Africa took action by requiring indus- ancient temples that it launched a propaganda try to make bags more durable and more campaign to encourage people to tie knots in expensive, to discourage their disposal— the bags so they wouldn’t fly away. The Irish prompting a 90-percent reduction in use. apparently call the ever-present bags their Ireland instituted a 15¢-per-bag tax in “national flag”; South Africans have dubbed March 2002, which led to a 95-percent them the “national flower.” 5 reduction in use. Australia, Canada, India, Some manufacturers have recently intro- New Zealand, the , Taiwan, and duced biodegradable or compostable plastic the United Kingdom also have plans to ban bags, made from starches, polymers or poly- or tax plastic bags.8 lactic acid, and no polyethylene. So far, these Supermarkets around the world are volun- account for less than 1 percent of the market tarily encouraging shoppers to forgo bags— and are prohibitively expensive, according to or to bring their own—by giving a small the Biodegradable Products Institute, an per-bag refund or charging extra for plastic association that promotes the use of bio- bags. Weaver Street Market, a community- degradable polymeric materials. Nonetheless, owned grocery in North Carolina, has gone the organizers of the 2000 Olympic Games a step further by selling canvas bags at a dis- in Sydney, Australia, were able to collect 76 counted price. Sales of these durable alterna- percent of the food waste generated at the tives have grown fivefold, said store manager sports venues and the athletes’ village by James Watts, and usage of plastic bags has using biodegradable food utensils and plastic plummeted. “It’s good for business but also bags that composted as easily as the food and for the environment,” he adds. Yet the idea that eliminated the need to separate the of bringing reusable bags whenever you go garbage. (The following spring, the compost shopping is so simple and obvious that most nourished city gardens.)6 people may not realize the big impact it Elsewhere, governments and individuals could have.9 are suggesting a more permanent solution —Brian Halweil that does not depend on new technology. The Ladakh Women’s Alliance and other citi- zens groups led a successful campaign in the early 1990s to ban plastic bags in the Indian province, where the first of May is now cele- brated as “Plastic Ban Day.” began enforcing its own ban after discovering that discarded bags were clogging drainage

23 CHAPTER 2

Making Better Energy Choices

Janet L. Sawin

Nestled among the rolling green hills of bills, most people give it little thought. southern West Virginia lie old towns like Yet the moment someone flips a light Clear Creek, Duncan Fork, Superior Bot- switch or turns on a computer, a chain reac- tom, and White Oak. The Appalachian tion is set in motion. Current flows into the Mountains of this region are home to some building from transmission lines that stretch of the poorest people in the United States. across open land and city streets to bring For generations, residents have relied on coal electricity from distant power plants. Along mining for jobs and as a way of life. But many the way, much of this energy is lost to resis- believe that “Appalachia is under assault” tance in the transmission lines and dissipates and that the industry that has sustained them as heat. for generations is now impoverishing them. To create electricity, in much of the world Mountaintops are being blasted off to reach enormous piles of coal move by conveyor belt coal that lies within. In the process, mountains to be pulverized into a fine powder and then become wasteland, hardwood forests are lost, fed into a blazing fire in the power plant’s fur- streams fill with toxic sludge, wells dry up, and nace. The fire produces steam from water, entire communities are being driven away.1 which turns a generator to produce an elec- Miles away from these barren mountain trical current. In the process, the plant emits tops, someone arrives home and flips a pollutants that cause acid rain and smog, as switch, wanting only light in the darkness and well as mercury and carbon dioxide (CO2), not thinking about what this involves beyond a global warming gas. At most, 35 percent of the walls of the house. For most people, the coal’s energy converts to electricity, mean- electricity is an invisible force that flows in ing that nearly two thirds of it is lost as waste magically and silently to brighten a room, heat, benefiting no one and often harming cool a refrigerator, heat a stovetop, or bring surrounding ecosystems. And all this coal a television to life. Between monthly utility must be transported to the power plant, by

24 State of the World 2004 MAKING BETTER ENERGY CHOICES

rail or barge, from places like the Appalachian energy use in many industrial countries. Com- Mountains of southern West Virginia.2 pared with just 10 years ago, for example, Everything we consume or use—our Americans are driving larger and less efficient homes, their contents, our cars and the roads cars and buying bigger homes and more we travel, the clothes we wear, and the food appliances. As a result, U.S. oil use has we eat—requires energy to produce and pack- increased over the decade by nearly 2.7 mil- age, to distribute to shops or front doors, to lion barrels a day—more oil than is used daily operate, and then to get rid of. We rarely in total in India and Pakistan, which together consider where this energy comes from or contain more than four times as many people how much of it we use—or how much we as the United States does. Is this ever-grow- truly need. ing demand sustainable? And is a fundamen- Whether in the form of gasoline to fuel a tal shift required in the way we produce and car or uranium to generate electricity, the use energy?3 energy required to support our economies and The type and amount of energy that peo- lifestyles provides tremendous convenience ple use is influenced by a number of factors, and benefits. But it also exacts enormous including income, climate, available costs on human health, ecosystems, and even resources, and corporate and government security. Energy consumption affects every- policies. Through taxes and subsidies, regu- thing from a nation’s foreign debt (due to fuel lations and standards, and investments in imports) to the stability of the Middle East. infrastructure, governments influence how, From the air we breathe to the water we where, how much, and what form of energy drink, our energy use affects the health of we use. But we as consumers are not pow- current and future generations. Inefficient erless bystanders. We are the ones who buy and unsustainable use of biomass in poor vehicles, appliances, clothing, homes, and nations leads to deforestation and desertifi- other goods and services, based on features cation, while unsustainable use of fossil fuels such as price, fashion, and values. Ultimately, is altering the global climate. And as we seek within the limits of availability and afford- out more-remote sources of fuel, we endan- ability, it is consumers who choose what to ger the culture and way of life of indigenous buy and how to use it, and thus it is con- peoples from the Amazon to the Arctic. sumers who can drive change. The energy intensity—that is, the energy input per dollar of output—of the global Global Energy Use Trends economy is declining, and recent decades have seen continuing improvements in energy Between 1850 and 1970, the number of peo- efficiency. Yet these encouraging develop- ple living on Earth more than tripled and ments are being offset by an ever-increasing the energy they consumed rose 12-fold. By level of consumption worldwide. Of course, 2002, our numbers had grown another 68 it is not surprising that energy use is rising in percent and fossil fuel consumption was up developing countries, where most people another 73 percent. Energy use has driven have never driven a car, turned on an air con- economic growth and vice versa, but they ditioner, or cooked with anything other than are not as closely linked as once believed. wood or animal dung. As their lives improve, Before the first global oil crisis, many econ- their use of energy increases, and vice versa. omists thought that using more energy was More surprising is the dramatic surge in a prerequisite for economic growth. But when

25 State of the World 2004 MAKING BETTER ENERGY CHOICES

oil prices suddenly leaped skyward in the down during the oil crises of the 1970s. Only early 1970s, governments and consumers Eastern Europe and the former Soviet states reacted by setting efficiency standards and have experienced declines in energy con- conserving fuel. Between 1970 and 1997, sumption. Industrial countries continue to global energy intensity declined 28 percent as use the largest share of global oil—62 percent. economic output continued to rise.4 U.S. oil use has doubled since 1960. Although The more efficiently we produce and use the nation’s share of global consumption has energy, the less energy we require for the declined considerably since 1960, during the same services. If the United States used as 1990s it began to inch up again. With only 2 much energy per dollar of gross domestic percent of global reserves and 4.5 percent of product in 2000 as it did in 1970, energy con- total population, the United States remains the sumption would have totaled 177 quads world’s largest oil consumer.7 rather than the 98.5 quads actually used. Today the world’s richest people use on According to energy analyst Amory Lovins, average 25 times more energy per person energy efficiency measures enacted since the than the poorest ones do. In fact, almost a mid-1970s saved the United States an esti- third of the people in the world have no mated $365 billion in 2000 alone.5 access to electricity or other modern energy services, while another third have only limited access. About 2.5 billion people, most in With only 2 percent of global reserves Asia, have only wood or other biomass for and 4.5 percent of total population, energy. The average American consumes five the United States remains the world’s times more energy than the average global cit- largest oil consumer. izen, 10 times more than the average Chinese, and nearly 20 times more than the average Indian. (See Table 2–1.)8 The potential for future savings in the Extreme inequalities exist within the devel- United States and elsewhere remains enor- oping world as well, where energy con- mous. We still waste huge amounts of energy. sumption is rising fastest and petroleum use Consider the path from coal mine to light alone has quadrupled since 1970. For exam- switch, and imagine those energy losses ple, India has a rapidly growing consumer throughout the entire economy, and in every class that is accumulating cars and home country. In the United States, for example, for appliances, while 48 percent of Indian fami- every 100 units of energy fed into power lies live without permanent housing. The plants, buildings, vehicles, and factories, no same can be said for countries from Ghana to more than 37 units emerge as useful services Viet Nam.9 such as heat, electricity, and mobility. Glob- More and more people in the South are ally, the average efficiency of converting pri- using as much energy as people in the North mary energy into useful energy is 28 percent. do on average, and studies suggest that their And losses vary greatly from one use or coun- incomes are rising faster than anything expe- try to the next: for example, Lovins estimates rienced by the industrial world. (See Box that only 14 percent of oil at the wellhead 2–1.) China is already the world’s number one reaches the wheels of a typical modern car.6 coal consumer and the third largest oil user, Consumption of energy, particularly oil, while Brazil is the sixth largest oil consumer, has increased steadily, with only a brief slow- India ranks eighth, and Mexico tenth.10

26 State of the World 2004 MAKING BETTER ENERGY CHOICES

Table 2–1. Annual Energy Consumption and Carbon Dioxide Emissions, Selected Countries Carbon Dioxide Country Commercial Energy Oil Electricity Emissions (tons of oil (barrels per day per (kilowatt-hours (tons equivalent per person) thousand population) per person) per person) United States 8.1 70.2 12,331 19.7 Japan 4.1 42.0 7,628 9.1 Germany 4.1 32.5 5,963 9.7 2.4 10.9 2,511 8.1 Brazil 1.1 10.5 1,878 1.8 China1 0.9 4.2 827 2.3 India 0.5 2.0 355 1.1 Ethiopia 0.3 0.3 22 0.1

1Excluding Hong Kong. SOURCE: See endnote 8.

BOX 2–1. SURGING ENERGY DEMAND IN CHINA AND INDIA

Although more than a third of the world’s peo- consumer class that wants access to the conve- ple live in China and India, they now account niences of home appliances, lighting, gas- for only 13 percent of global energy consump- powered cooking, and increased mobility. tion. But their energy use is rising rapidly, and Demand for oil will grow rapidly too, as these two nations both rely heavily on coal— more and more people obtain private cars. China for more than 70 percent of its commer- Domestic oil currently meets about two thirds cial energy and India for over 50 percent.The of China’s needs, but consumers will soon rely International Energy Agency projects that rising far more on imports if demand doubles by energy demand in China and India will account 2025 as expected—causing China to overtake for more than two thirds of the expected Japan as the world’s second largest oil global increase in coal use between now and consumer, behind the United States. Car sales 2030.These population giants will thus have in China grew by 82 percent during the first enormous impacts on the global energy market half of 2003 relative to the same period the and the environment in the decades ahead. previous year.At projected growth rates, Income levels have risen rapidly in both China’s private vehicle fleet could swell from countries thanks to declining population just over 5 million in 2000 to nearly 24 million growth rates and surging economic growth. by the end of 2005, adding substantially to China’s economy has more than quadrupled in already congested streets and polluted air. size since 1980. During the 1980s, electricity Growth in purchases of sport-utility vehicles demand in China increased more than 400 per- (SUVs), which have poor fuel economy, has cent because of appliance purchases. In India, exceeded even manufacturers’ expectations. In the number of “affluent” households—those India, SUV sales now represent 10 percent of earning $220 per month or more—grew vehicle purchases, and they could soon surpass sixfold in just five years, while the number of car sales. low-income families declined significantly. Such —Tawni Tidwell trends promise to accelerate, feeding a growing SOURCE: See endnote 10.

27 State of the World 2004 MAKING BETTER ENERGY CHOICES

To date, energy use in the South has been and design of our cities. limited primarily by income and infrastruc- Today transportation accounts for nearly ture—lack of access to roads and electricity 30 percent of world energy use and 95 per- has restrained use of cars and appliances, for cent of global oil consumption. The United example, even among the growing middle States is by far the world’s largest consumer and upper classes. In the future, however, of energy for transport, devouring more than people in the developing world will be more a third of the global total. Starting from a low constrained by depleting resources and envi- base, however, transport energy use is cur- ronmental realities. Earth cannot provide rently increasing most rapidly in Asia, the enough for today’s global population to live Middle East, and North Africa.12 like the average American, or even the aver- In fact, transport is the world’s fastest- age European. (See Chapter 1.) For exam- growing form of energy use, driven in part by ple, if the average Chinese consumer used as a shift of people and freight to more flexible much oil as the average American uses, China but more energy-intensive transport modes. would require 90 million barrels per day— Although more passengers travel by rail than 11 million more than the entire world pro- air, and more freight by ship than other duced each day in 2001. In the future, means, even relatively small shifts in transport population growth, climate change, and choices have significant impacts. Only 0.5 other environmental challenges could stress percent of the total distance people travel natural systems to their limits, while con- each year is done by air, yet planes use up ventional fuels cannot meet projected energy about 5 percent of transportation energy. demand growth. In fact, many analysts pre- And trucks require four to five times more dict that even at current consumption rates energy than railroads or ships do for the same world oil production will peak before 2020. weight and distance shipped.13 This has enormous implications for the way But the most significant driver of rising people live and get around.11 energy consumption for transportation is growing reliance on the private car. Some Energy That Moves Us 40.6 million passenger vehicles rolled off the world’s assembly lines in 2002, five times as During the twentieth century, humans many as in 1950. The global passenger car became a vastly more mobile species. In fleet now exceeds 531 million, growing by industrial countries today, it is not unusual for about 11 million vehicles annually.14 someone to travel 10,000 or even 50,000 About one fourth of those cars are found kilometers in a year. And a good deal of what on U.S. roads, where cars and light trucks we use as consumers, from our personal com- account for 40 percent of the nation’s oil use puters to the food we eat, crosses continents and contribute about as much to climate and oceans to reach us. Just 150 years ago, change as all economic activity in Japan does. movement was limited to the distance a per- The total distance traveled by Americans son or animal could travel on foot. For exceeds that of all other industrial nations roughly a third of humanity, of course, this combined—not only because the country is is still true. For the other two thirds, how- larger, but also because Americans opt to ever, increased mobility of people and prop- drive when others bike or walk. As a U.S. erty has had profound impacts, altering transportation consultant recently noted, everything from work to family to the nature “The automobile has gotten like TV sets:

28 State of the World 2004 MAKING BETTER ENERGY CHOICES

There are more of them in the house than eyes Ironically, Ford Motor Company’s Model T to look at them.” Today there are more cars got better gas mileage nearly a century ago than Americans licensed to drive them, and than the average vehicle Ford puts on the most households own two or more vehicles.15 roads today (albeit with a top speed of 45 On a per capita basis, car ownership in miles per hour). Nearly half the vehicles that Western Europe and Japan is comparable to Americans buy now are gas-guzzling SUVs ownership levels in the United States in the and light trucks. And the yearning for larger early 1970s, while Eastern Europe is more vehicles is contagious. If current trends con- like the United States in the 1930s. But ris- tinue, by 2030 half of the world’s passenger ing incomes, lifestyle changes, women enter- vehicles will be SUVs or other light trucks.17 ing the work force, national policies that People are also driving greater distances. encourage mobility, and declining fuel costs Between 1952 and 1992, while the number have all spurred significant growth. Per- of people in the United Kingdom increased person car ownership in Japan quadrupled 15 percent, the distance they drove tripled. from 1975 to 1990, and Poland saw a 15- And from 1970 to 2000, the kilometers trav- fold increase from the early 1970s to 2001. eled in European Union (EU) countries more Only about 20 percent of the world’s vehi- than doubled. In the United States, the num- cles are in Asia and the Pacific region, but the ber of trips per household rose 46 percent numbers there are growing by 10–15 percent between 1983 and 1995, while average trip a year. (See Table 2–2.)16 length increased more than 5 percent.18 The size and weight of vehicles are expand- Although mobility contributes to eco- ing as well—a trend that has wiped out more nomic and social well-being, there are high than 20 years of efficiency improvements external costs associated with the extent and gained in the United States through federally nature of our travel. Worldwide, nearly a mil- mandated fuel efficiency standards. In fact, the lion people—most of them pedestrians—are fuel economy of U.S. vehicles would be one killed in traffic accidents each year, and the third higher than it is today if weight and per- number of deaths from vehicular air pollution formance had remained constant since 1981. is higher. As vehicle use increases, roads

Ta b l e 2 –2. Private and Commercial Vehicle Fleets, Selected Countries and Total,1950–99

Country 1950 1960 1970 1980 1990 1999 (million vehicles) United States 49.2 73.9 108.4 155.8 188.8 213.5 Japan – 1.3 17.3 37.1 56.5 71.7 Germany – 5.6 15.5 24.6 32.2 45.8 China –––1.7 5.8 12.8 India – 0.5 1.1 1.9 4.2 8.2 Argentina – 0.9 2.3 4.3 5.9 6.6 South Africa 0.6 1.2 2.1 3.4 5.1 6.6 Czech and Slovak Reps. 0.2 0.4 1.0 2.6 3.7 5.1

World 70.4 126.9 246.4 411.0 583.0 681.8

SOURCE: See endnote 16.

29 State of the World 2004 MAKING BETTER ENERGY CHOICES

become congested, wasting productive hours licensed to drive. And in cities such as Den- and reducing vehicle efficiency. The costs of ver, Colorado, where services are improving road transport not covered by drivers—air or expanding, the use of mass transit is again pollution, noise, congestion, accidents, and on the rise.20 road damage—start at 5 percent of gross In contrast, many countries have devoted domestic product in industrial countries and significant resources to public transport while go higher in some developing-country cities. discouraging the use of private vehicles And money we invest in road-based infra- through traffic policies and user fees. In structure means less invested elsewhere, which Japan and Europe, much of the investment worsens existing social inequities for those in transportation infrastructure after World who cannot use the predominant means of War II focused on passenger trains and tran- transport. Even in the United States, about sit systems. Today nearly 92 percent of down- a third of the population is too poor, too town Tokyo travelers commute by rail, and old, or too young to drive a car.19 the Japanese do only 55 percent of their traveling by car. West Europeans now use public transit for 10 percent of all urban West Europeans now use public trips, and Canadians for 7 percent, com- transit for 10 percent of all urban trips, pared with Americans at only 2 percent. This and Canadians for 7 percent, compared is significant because for every kilometer with Americans at only 2 percent. people drive by private vehicle, they con- sume two to three times as much fuel as they would by public transit.21 The choices people make about how to Differences in transport trends are also move around are greatly influenced by gov- explained by prices. The most rapid growth ernment policies, such as vehicle and fuel in private vehicle ownership and use typically taxes, land use rules, and support for air and occurs in countries with the lowest fuel and car transport versus public transit and bicycle car prices. Cars and gas are cheaper in the use. A century ago, the United States led United States than in Europe, for example, the world in public transit. In 1910, almost because they are not taxed as heavily. In fact, 50 times more Americans commuted to work some of the worst gas guzzlers are subsi- by rail than by car, and a decade later almost dized: in 2003 the U.S. Congress passed leg- every major U.S. city had a rail system. But islation that effectively tripled a federal following World War II, the government business tax credit for SUV purchases, to emphasized construction of roads and free- $75,000 each, compared with a $2,000 ways. Today U.S. commuters receive subsidies deduction for hybrid-electric vehicles.22 for parking while those who use public tran- Despite U.S. policies and low fuel prices, sit receive considerably less, and bicyclists get some Americans are opting to pay more in nothing. Thus it is not surprising that pub- order to consume less. While today’s internal lic transit ridership is lower today than it was combustion engine is only about 20 percent 50 years ago, despite a doubling in U.S. pop- efficient, hybrid cars can go much farther on ulation. An exception to this trend is New a liter of fuel. By January 2003, some 150,000 York City, where due to high density and a drivers around the world had bought a hybrid proliferation of taxis and public transit car; many of these new owners are in the options, only 25 percent of residents are United States, where monthly sales of the

30 State of the World 2004 MAKING BETTER ENERGY CHOICES

Toyota Prius were quadruple the figure in Japan. (See Box 2–2.)23 BOX 2–2. EFFICIENCY IS NOT Growing awareness of air pollution, safety, ENOUGH and congestion problems associated with cars have motivated strong measures to Numerous studies have concluded that reduce traffic growth, particularly in devel- over the next 10–15 years, the fuel econ- omy of new U.S. cars and light trucks can oping countries. In 1999, a group of citizens increase by as much as one third with in Santiago, Chile, joined with the environ- existing technologies. In the longer term, mental group Greenpeace on a year-long the use of light but strong space-age com- campaign to upgrade that city’s public tran- posite material, based on carbon fibers, sit system. As a result, Santiago now has spe- advanced design, and hybrid or fuel-cell cial corridors for buses, the largest streets technology, could at least triple fuel econ- are restricted to public transit on high pol- omy. However, improvements in efficiency will only begin to resolve the problems lution days, and public transit usage has risen associated with our transportation considerably.24 choices.And efficiency advances, in isola- The municipal government in Bogotá, tion, can actually encourage people to Colombia, began shifting roadways from cars use more energy, increasing their travel to bicycles in the late 1980s and plans to ban and vehicle purchases because energy private car use during peak hours by 2015. costs represent a smaller share of total Former Mayor Enrique Peñalosa, the driving expenses. force behind this movement, believes that SOURCE: See endnote 23. cars are “the most powerful instrument of social differentiation and alienation that we have in society” as they divert money away from education and other social services. lished years ago in Singapore and in Trond- Today, Bogotá has a good public transit sys- heim, Norway, and more recently in Toronto tem, pollution levels have declined, and com- and Melbourne, with similar results.26 muting times during rush hours have been cut Elsewhere people have chosen to share in half. Numerous other cities, from Zurich fleets of vehicles rather than owning them, in Switzerland to Portland in Oregon, have and in some places people are moving away lowered pollution levels while increasing pub- from cars completely. A joint EUROCITIES- lic transport use by reorganizing urban areas European Commission network is now pro- and improving transport efficiencies.25 moting a “new mobility culture” throughout “Congestion charges” on vehicles entering the EU, aiming to improve quality of life city centers, combined with investments in and shift reliance from cars to public transit, public transit, have also reduced car use and cycling, and walking. Zermatt, Switzerland, pollution. London drivers used to spend half uses its long-time car-free status as a selling their time stuck in traffic, traveling the same point for tourists, and 280 households in speed as Londoners a century ago. But in Freiburg, Germany, were the first of more response to a toll enacted in early 2003, traf- than 40 German communities to commit to fic levels dropped by an average of 16 percent living without cars. It seems that once peo- in the first few months, and most former car ple have alternatives that are safe, comfort- users began commuting by public transit. able, and reliable, more of them choose to Central-city congestion charges were estab- live car-free.27

31 State of the World 2004 MAKING BETTER ENERGY CHOICES

Energy Where We Live lation rises. Each additional home requires construction materials, lighting, heating and and Work cooling, appliances, and often more cars and Worldwide, people use about a third of all roads—all of which require energy to produce energy in buildings—for heating, cooling, and to operate. Between 1973 and 1992, cooking, lighting, and running appliances. shrinking household size in industrial coun- Building-related energy demand is rising tries alone accounted for a 20-percent increase rapidly, particularly within our homes.28 in energy use per person.31 But there are large differences in household Home appliances are the world’s fastest- energy use from one country to the next. growing energy consumers after automo- People in the United States and Canada con- biles, accounting for 30 percent of industrial sume 2.4 times as much energy at home as countries’ electricity consumption and 12 those in Western Europe. The average person percent of their greenhouse gas emissions. in the developing world uses about one ninth Saturation in the ownership of large appli- as much energy in buildings as the average ances in these nations is continually offset by person in the industrial world, even account- the diffusion of new ones, including com- ing for noncommercial fuels. Yet a much puters and other forms of information tech- higher share of total energy in developing nology (IT), while efficiency gains made countries is used at home because available since the 1970s are being squandered in fuels and technologies are so inefficient. In exchange for more and larger amenities. (See China, households use about 40 percent of Box 2–3.) The average size of refrigerators in the nation’s energy, in India the figure is 50 U.S. households, for example, increased by percent, and in most of Africa it is even higher, 10 percent between 1972 and 2001, and compared with 15–25 percent in the indus- the number per home rose as well. Air con- trial world.29 ditioning has taken a similar path: in 1978, Although perhaps one fourth of the 56 percent of American homes had cooling world’s inhabitants have inadequate shelter or systems, most of which were small window no house at all, for many other people home units; 20 years later, three quarters of U.S. sizes are expanding even as the number of homes had air conditioners, and nearly half people per household shrinks. The United were large central systems.32 States represents the extreme case, where Between 2000 and 2020, electricity use for average new homes grew nearly 38 percent appliances in the industrial world could rise between 1975 and 2000, to 210 square 25 percent. Standby power—the electricity meters (2,265 square feet)—twice the size consumed when televisions, computers, fax of typical homes in Europe or Japan and 26 machines, stereos, and many other appliances times the living space of the average person are turned “off” but are not unplugged—will in Africa.30 likely be the fastest-growing consumer. By As homes become bigger, largely due to 2020, it could represent 10 percent of total low energy prices, each individual house has electricity use in these countries, requiring more space to heat, cool, and light, as well as almost 400 additional 500-megawatt power room for bigger appliances and more of them. plants that will emit more than 600 million And as the number of people per household tons of carbon dioxide annually.33 contracts, due to a variety of social trends, the In developing countries, most building- number of houses needed for a given popu- related energy needs are for cooking, water

32 State of the World 2004 MAKING BETTER ENERGY CHOICES

BOX 2–3. THE BANE AND BOON OF INFORMATION TECHNOLOGY

The information technology age held the and through telecommuting, which cuts the promise of a clearer path to sustainable devel- amount of energy used to construct and opment and a paperless economy.Yet it appears occupy new buildings. IT has also been credited to have delivered neither.To date the impacts with driving much of the dramatic economic of IT on global energy consumption present a growth that some countries experienced in the complex picture. late 1990s—a trend not matched by similar Americans use 2 percent of their electricity increases in energy consumption due to expan- just to run computers and Internet equipment, sion of less energy-intensive industries like while lifecycle consumption of the entire banking and financing. Internet infrastructure in Germany takes Other benefits of IT include: 3–4 percent of national energy. Much of the • A new computer chip and equipment design increase in energy use is attributable to new can reduce standby power requirements up industries (such as Internet service providers), to 90 percent. methods of communication (such as cell • Toyota’s newest hybrid-electric vehicle has phones), and new forms of information an electronic control and software system management created through the use of IT. that continuously optimizes the operation Rather than reducing paper consumption, of key components, ensuring that the car electronic mail has actually increased it by 40 always performs in its most efficient mode. percent, with dramatic impacts on associated • Researchers at the Pacific Northwest energy use—from running printers to support- National Laboratory are developing a “smart ing one of the most energy-intensive industries grid” that will prompt consumers to vary in the world, the paper industry.And although their energy loads as electricity prices ordering products electronically would change.This will increase the operating effi- intuitively seem to require less energy than ciency of existing plants by reducing the driving to different stores, this has turned out need for additional grid capacity and by not to be true. One study of “tele-shopping” enabling advanced controls and sensors to showed no net transport savings, while another improve the efficiency of appliances. It will found it took 55 percent more fuel to deliver also provide renewable energy with easier groceries purchased online. access to the grid and energy markets. By some accounts, however, consumers in —Tawni Tidwell industrial nations are reducing their energy use with IT through changes in product inventories SOURCE: See endnote 32.

heating, and space heating—life’s essentials— oping world, where per capita consumption and most of this energy is derived from non- has risen faster than income and where energy commercial, traditional fuels. For example, use for buildings tripled between 1971 and nearly three fourths of India’s population 1996. Television ownership increased five- relies on traditional biomass for cooking. fold in East Asia and the Pacific between Even so, demand for modern appliances is ris- 1985 and 1997. But appliance penetration ing across the developing world as well. (See rates are still relatively low in developing Table 2–3.)34 countries, so the potential for growth is enor- In fact, most of the growth in electricity mous. In India, sales of frost-free refrigerators demand since 1990 has occurred in the devel- are projected to grow nearly 14 percent annu-

33 State of the World 2004 MAKING BETTER ENERGY CHOICES

Ta b l e 2 –3. Appliance Ownership in Industrial and Developing Countries, Selected Years

Country Year Refrigerator Clothes Washer Dishwasher Air Conditioner (number per 100 households) United States 1973 100 70 25 47 1992 118 77 45 69 1998 1151 77 50 72 Japan 1973 104 96 0 16 1992 117 99 0 131 Western Europe2 1973 91 69 5 0 1992 111 89 24 1 India 1994 7 2 –– 1996 9 4 –– 1999 12 6 –– China rural/urban 1981 0/0 0/6 – 0/0 1992 2/53 12/83 – 0/0 1998 9/76 23/91 – 1/20

1Other sources show continued increases to 2000. 2United Kingdom,West Germany, France, and Italy. SOURCE: See endnote 34. ally. The International Energy Agency expects entire markets. (See Chapter 5.) Still, much that, based on current policies, world elec- more could be done. Technologies available tricity demand will double between 2000 today could advance appliance efficiency by and 2030, with the greatest demand increase at least an additional 33 percent over the in the developing world and the most rapid next decade, and further improvements in growth in people’s homes.35 dryers, televisions, lighting, and standby Yet the same needs could be met with far power consumption could avoid more than less energy. Efficiency programs have proved half of projected consumption growth in the highly effective to date, and continued industrial world by 2030.36 improvements could take us a long way In developing countries, people could toward meeting this rising demand. The save as much as 75 percent of their energy United States established national standards through improvements in building insula- in 1987 after a proliferation of state-level tion, cooking, heating, lighting, and elec- programs. In response, manufacturers trical appliances. Unfortunately, diffusion of achieved major savings in appliance energy more-efficient technologies is extremely slow use, nearly tripling the efficiency of new refrig- due to high initial costs, the lack of modern erators between 1972 and 1999 while saving fuels such as piped gas, and failures of exist- consumers money. In Europe, higher energy ing distribution systems. Experiences in Thai- prices combined with standards and labels, land and Brazil show what is possible, such as the German Blue Angel, have influ- however. In the early 1990s, facing a 14- enced consumer choice and have led manu- percent annual increase in demand for elec- facturers to produce more-efficient products tricity, the Thai government initiated a in order to compete, thereby transforming partnership with manufacturers to improve

34 State of the World 2004 MAKING BETTER ENERGY CHOICES

the efficiency of buildings, lighting, and cold tricity use has doubled over the past 30 years appliances (such as refrigerators and air con- in the rest of the country, it has remained con- ditioners). By 2000, had exceeded stant in California.39 its energy savings and CO2 reduction tar- The energy demands of buildings can be gets by at least 200 percent. Between 1996 dramatically reduced without increasing con- and 1998 alone, the market share of effi- struction costs by using an integrated cient refrigerators skyrocketed from 12 to 96 approach to the building “envelope” (the percent. And in Brazil, thanks greatly to walls, roofs, foundations, and so on) and the labeling and voluntary standards, consumers mechanical and electrical systems. Many new lowered refrigerator-related energy use by buildings in Europe and the Asia-Pacific 15 percent from 1985 to 1993.37 region were built incorporating this Improvements in the design and con- approach, including the European Parlia- struction of buildings could also yield signif- ment building in Strasbourg in France, Pots- icant energy savings. According to energy damer Platz in Berlin, and Aurora Place in analyst Donald Aitken, “Buildings remain Sydney, Australia.40 the most underrated aspect of energy eco- Around the world, people are erecting nomics, and the most unexploited opportu- “green” buildings that include additional nity for improving efficiency.” Potential energy-saving features such as daylighting, savings in existing buildings are enormous, natural cooling, high performance windows, and consumers have already begun making superior insulation, and photovoltaics (PVs). improvements. In the EU, building con- According to the Rocky Mountain Institute, struction is responsible for more than 12 per- lighting consumes up to 34 percent of U.S. cent of economic activity, and over half of this electricity, including energy requirements for is for retrofitting existing buildings. But new offsetting waste heat. Full use of advanced buildings offer the greatest potential for sav- lighting technologies alone could eliminate ings, and the numbers are not insignificant— the need for 120 1,000-megawatt power Americans alone erected 1.7 million new plants in the United States, saving money private homes in 2002.38 and improving human health and produc- Because many buildings stand for at least tivity as well.41 50–100 years—and some last for centuries— Encouraged by the U.S. Leadership in it is essential to get them right the first time. Energy and Environmental Design (LEED) Even in cold climates, people can reduce the program—a voluntary standard for green heating needs of new buildings by 90 percent buildings—developers built the world’s first through a combination of design and mate- green “high-rise” in New York City. These rial improvements, while lighting and other Battery Park City apartments will use 35 per- energy needs can be lowered as well. As most cent less energy and 65 percent less electric- people do not build their own homes or ity than an average building during peak offices, efficiency of building design and mate- hours, with PVs meeting at least 5 percent of rials generally rests on government regula- the demand. And on Earth Day in May 2003, tions. California’s buildings are far more Toyota opened a new California building efficient than the U.S. average because the complex constructed with steel from recycled state’s building code is updated regularly, automobiles, including efficient design and based on current technologies. Perhaps most lighting and boasting one of North America’s telling is the fact that while per capita elec- largest commercial PV systems.42

35 State of the World 2004 MAKING BETTER ENERGY CHOICES

From California to Kenya to Germany, required to make and move them is omitted consumers are installing minute to megawatt- from national accounts. As a result, some sized PV systems on the rooftops of houses experts argue that energy intensity is actually and businesses. In 2002, more than 40,000 increasing in some nations, because they Japanese homeowners added 140 megawatts effectively import energy inputs from overseas. of PV installations, thanks to supportive gov- For example, by one estimate, the energy ernment policies. Generating power locally embodied in Australia’s imports exceeds that with solar or wind energy is not only cleaner of its exports.46 than conventional electricity, it also reduces The energy invested in a particular thing or eliminates transmission and distribution during its life, from cradle to grave, is called losses, which range from 4–7 percent in indus- the “embodied energy” of that object. The trial nations to more than 40 percent in parts amount of embodied energy that an item of the developing world.43 contains depends greatly on the technology Elsewhere people are painting roofs and used to create it, the degree of automation, planting rooftop gardens to reduce their the fuel used by and the efficiency of a par- energy consumption by 10–50 percent. Ger- ticular machine or power plant, and the dis- mans developed modern green roof tech- tance the item travels from inception to nology, inspired by the sod roofs and walls in purchase. The value differs considerably from Iceland. Replacing dark, heat-absorbing sur- place to place, and even from house to house. faces of rooftops with plants lowers ambient By some estimates, people can live in a temperatures and reduces energy use for heat- typical house for 10 years before the energy ing and cooling. Examples of green roofs they use in it exceeds what went into its com- can be seen around the world, from Chicago’s ponents—steel beams, cement foundation, City Hall to Amsterdam’s Schiphol Airport window glass and frames, tile floors and car- and Ford Motor Company’s Rouge River peting, drywall, wood paneling or stairs— Plant in Michigan—all 4.2 hectares (10.4 and its construction. And the embodied acres) of it.44 energy in the structure is rarely static. As people remove old materials and install new Energy in Everything We Buy ones, add another room or a new deck, the embodied energy in the house increases.47 Everything we use has associated and com- As with houses, large amounts of energy pounding energy inputs, and the largest share are required to assemble our automobiles, of global energy consumption goes into pro- to construct and operate the manufacturing ducing our vehicles, appliances, buildings, plants, and to fabricate the various inputs and even our clothes and food. In the 1970s, that make up a car. Most of the energy use manufacturing such products required 25–70 associated with making a vehicle is for the percent of total energy (varying widely by manufacture of steel, plastic, glass, rubber, and country). This share has declined steadily in other material inputs. The larger a vehicle, the all countries as the transportation and build- more energy required, adding further signif- ing sectors have grown even more rapidly, but icance to the trend toward larger cars and energy use in manufacturing is still rising as SUVs. And once we take a car on the road, we buy and use more and more stuff.45 its requirements extend to all the energy Many manufactured goods cross borders needed to construct and maintain the high- and oceans to reach us, where the energy ways and bridges we travel, the parking lots,

36 State of the World 2004 MAKING BETTER ENERGY CHOICES

the auto dealers and parts stores, and the consumption is rising in some nations is open many fueling stations needed to keep it run- for debate, and depends greatly on the energy ning. In total, the energy use associated with intensity of countries manufacturing the a car can be 50–63 percent higher than the goods consumed. For example, South Korea direct fuel consumption of the vehicle over its has the most energy-efficient steel industry in lifetime, and the environmental impacts are the world, and transporting by ship is rela- also enormous.48 tively energy-efficient. So exporting Korean But the largest share of energy use asso- cars to countries that manufacture steel less ciated with vehicles is driving them. To run efficiently, such as the United States, can our vehicles we extract petroleum from the actually reduce the embodied energy of vehi- earth, transport it to convenient locations, cles on U.S. roads.52 and refine it into useful fuel. Petroleum refin- ing is one of the world’s most energy- demanding industries—and the most In 1998, petroleum refining accounted energy-intensive in the United States. In for 8 percent of total U.S. energy 1998, petroleum refining accounted for 8 consumption. percent of total U.S. energy consumption.49 In many countries, an increasing share of fuel use for household transport is to reach In fact, there are extreme differences in the enormous out-of-town “hypermarkets” that energy intensity of manufacturing industries are replacing neighborhood food stores. from one country to another. In the early Today many people use almost as much 1990s, the Japanese and Germans used less energy to collect some foods as producers than half as much energy per unit of output do to get them to market. And the farther in their heavy industries as Canadians and food travels, the higher its embodied energy, Americans did, due primarily to differences in not only because it requires more transport energy prices. Japan, South Korea, and coun- fuel but also because it needs more preserv- tries in Western Europe have the most effi- atives and additives, refrigeration, and pack- cient manufacturing sectors, whereas aging. In much of the world, food developing countries, the former Soviet bloc, transportation to local stores and then to our and a few industrial countries—particularly homes is among the largest and fastest-grow- the United States and Australia—have the ing sources of greenhouse gas emissions.50 least efficient. Yet some developing countries Producing our food also requires massive have taken the opportunity to leapfrog to amounts of energy. While much comes from modern technologies, rivaling Japan and the sun, nearly 21 percent of the fossil energy Europe in manufacturing efficiency.53 we use goes into the global food system. By supporting items and processes that David Pimentel of Cornell University esti- have lower embodied energy, as well as the mates that the United States devotes about 17 companies that produce them, consumers percent of its fossil fuel consumption to the can significantly reduce society’s energy use. production and consumption of food: 6 per- Unfortunately, labeling programs so far report cent for crop and livestock production, 6 only direct energy consumption of products, percent for processing and packaging, and 5 not their full embodied energy, making it percent for distribution and cooking.51 difficult to compare one product to another. The question of whether embodied energy In spite of this, many consumers have already

37 State of the World 2004 MAKING BETTER ENERGY CHOICES saved large amounts of energy by recycling generally quite energy-intensive, such as the and by purchasing recycled materials rather United States for gas and oil, Australia for than relying on virgin resources. Producing coal, and Scandinavia for electricity.55 aluminum from recycled material, for exam- When prices are low, energy use for indi- ple, requires 95 percent less energy than man- viduals represents a smaller share of the cost ufacturing it from raw materials would.54 of doing business, manufacturing a product, or running a home; consequently, invest- Policy and Choice ments in energy savings are low. Over the long term, prices affect what we choose to We are constantly making choices that affect own, the size of our homes, how much we our energy use. In fact, the amount and type use our cars and appliances, and even the of energy we consume is a result of two goods and technologies available to us. How- kinds of choices: those we make as a society ever, government policy plays a large role, and those we make as individuals and fami- sometimes propping up or undercutting lies. Society’s decisions to tax or subsidize energy prices. Through subsidies, taxes, stan- activities—such as driving and road building, dards, and other measures, government poli- for example—encourage people to adopt cies have a direct impact on energy supplies, certain lifestyles, both extending and limit- demand, and the efficiency of our homes, ing their choices. But as individual con- appliances, cars, and factories.56 sumers we still have important choices to Auto and fuel taxes in many countries, in make, from how much we drive to whether conjunction with investments in public tran- we insulate our homes. Two individuals with sit and bicycle infrastructure, affect ownership the same incomes, living in the same societies trends and distance traveled by car and even and in similar climates, often use very dif- the characteristics of the vehicle fleet, and ferent amounts of energy as a result of per- they can encourage the use of public trans- sonal choices. portation, bikes, and rail. Where govern- If we are to meet the energy needs of the ments or companies subsidize public transit, billions of people who now lack modern people are more apt to commute by bus or energy services, and at the same time bring subway than by car. In Denmark, where the energy use into balance with the natural tax on auto registrations exceeds a car’s retail world, new energy choices will be required— price, and where rail and bike infrastructure both at the individual level and at the societal are well developed, more than 30 percent of level. Government policies are one way that families do not even own cars—mostly societies make energy choices, and policies because they do not want them rather than that affect the price of energy are among the because they cannot afford them. Congestion most important. charges, such as those recently introduced As economies develop, factors such as cli- in London, can also encourage commuters to mate, population density, and rate of urban- make more-efficient energy choices.57 ization become less important, and energy Even choice of home size and location is prices become the fundamental factors deter- influenced by taxes, housing policies, and mining a nation’s energy intensity. In fact, standards. The United States offers a full countries with higher energy prices—like tax deduction on home mortgage interest, Japan and Germany—also have lower energy which enables people to buy homes of all intensities, while those with lower prices are sizes but also encourages large homes in

38 State of the World 2004 MAKING BETTER ENERGY CHOICES

sprawling communities. Sweden’s tax policy national objectives to improve efficiency. By also favors home ownership, but because the late 1990s, per capita household energy housing policy has focused for decades on consumption there exceeded average levels in apartments, most people choose apartment Europe. And subsidies are often of greatest living, and cities are more compact as a benefit to those who do not need them. Up result. Homes and their contents are more until 2003, for example, the Nigerian gov- efficient in places like California and Japan, ernment provided annually more than $2 where building codes and appliance stan- billion in fuel subsidies that benefited the dards are becoming increasingly stringent rich at least as much as the poor. The subsi- as technologies improve.58 dies also encouraged the smuggling of cheap And governments can influence the fuel out of the country, requiring Nigeria to amount of embodied energy in the products import fuel at higher cost.61 people use and the waste left behind. At least 28 countries—from Brazil and Uruguay to China and throughout Europe—now require At least 28 countries now require manufacturers to take back products for reuse manufacturers to take back products and recycling. As a result, companies become for reuse and recycling. more interested and invested in the disas- sembly and recycling of their goods, increase the quality and lifetime of their products, Combined with billions of dollars pro- and thus reduce the amount of energy that vided each year by the World Bank and goes into making them.59 export-credit agencies for carbon-intensive Still, most countries favor auto and air fossil fuel projects, national subsidies also travel over less energy-intensive alternatives, forestall possible alternatives such as effi- and they are biased toward conventional ciency and renewable energy technologies, energy over renewable energy and toward encourage energy-intensive industries to move new supplies over efficiency measures. In the to developing countries, and amount to lost mid-1990s, governments worldwide were opportunities for those nations to leapfrog to handing out $250–300 billion annually to new technologies.62 subsidize fossil fuels and nuclear power. Since Failure to internalize the full costs of then, several transitioning and developing energy acts as a subsidy as well because con- countries have reduced energy subsidies sig- sumers do not pay directly for the environ- nificantly, but global subsidies for conven- mental, social, or security impacts of their tional energy remain many magnitudes higher energy choices—whether the choice is for than those for alternatives such as renew- the source of the energy or for the amount ables and efficiency. And countries the world they decide to use. For decades, government over invest enormous amounts of money in attempts to resolve energy problems and asso- large transport infrastructure and energy- ciated challenges have focused almost entirely intensive manufacturing instead of less inten- on reducing intensity of production rather sive, less damaging alternatives.60 than tackling the motivations and problems Because subsidies artificially reduce the associated with our ever-rising consumption. price of energy, they can lead to overcon- Unfortunately, the energy efficiency improve- sumption. South Korean policies have sup- ments made on the production end have pressed electricity prices, undermining been more than offset by rising levels of

39 State of the World 2004 MAKING BETTER ENERGY CHOICES energy use on the consumer end. environmental stewardship, the University But several countries have begun pro- of California campuses and Los Angeles Col- moting sustainable consumption through lege District committed to reducing energy green taxes, shifting the tax burden from consumption, purchasing green power, and labor to energy and other resources, often due installing photovoltaics on campus build- to concerns about environmental problems ings. These two university systems together such as climate change. As part of its effort to could increase U.S. grid-connected PV instal- dramatically reduce national greenhouse gas lations by 30 percent.64 emissions, for instance, Germany enacted Some consumers are going even further. new taxes on conventional energy in 1999, Local authorities and representatives of providing financial incentives for energy con- municipalities from all over Europe have servation and renewable energy technologies signed the Brussels Declaration for a Sus- and a reduction in payroll taxes.63 tainable Energy Policy in Cities, committing While government policy acts to influence to work for sustainable energy use in Europe energy consumption in many ways, con- and encouraging the creation of a legal sumers’ own decisions also have a major framework to support the effort. In 1992, impact. Around the globe, consumers are people in more than 30 Dutch municipalities making a difference, for better or worse. voted to eliminate cars from their inner cities, Whether people buy a new hybrid vehicle or while all over the Netherlands parking for a “Hummer,” whether they travel by plane, bicycles far exceeds spaces for cars at railway train, or bicycle, or whether they decide not stations as a result of customer demand. The to go somewhere at all are choices that make Germans and Swiss started car sharing in the a difference. Unfortunately, more and more 1980s, and the concept has since spread to consumers are choosing larger appliances, more than 550 communities in eight Euro- bigger homes, and tank-like vehicles for sin- pean countries with at least 70,000 mem- gle-person trips on urban roads to malls or bers. Car sharing is now catching on in North hypermarkets. As a counterbalance, though America as well, with programs in more than not a large one, other consumers are pur- 40 U.S. cities, from Seattle to Washington, chasing efficient hybrid cars, choosing locally D.C.65 grown produce, installing PVs, and buying Communities of people in more than 40 green power. (See also Chapter 6.) countries have created “ecovillages,” work- In much of Germany and Denmark, indi- ing to achieve sustainable lifestyles through viduals singly and as part of cooperatives ecological design and construction, renew- have installed wind turbines to provide local able and passive energy use, community power for their communities. Elsewhere, building spaces, and local, organic agricul- people are tapping into renewable energy ture. But it is not necessary to live in an through green power markets. By the end of ecovillage to reduce overall energy use and 2002, more than 980 megawatts of new impact on the natural environment. Califor- renewable energy capacity had been added to nians proved this when the energy crisis of meet the demand of green power customers 2001 led them, through behavioral and tech- in the United States, and another 430 nological changes, to use 7.5 percent less megawatts were planned or under construc- electricity than in the previous summer. And tion. And as the result of a student-run cam- in London a new community—Zero Emis- paign calling for national leadership in sions Development (ZED), whose housing

40 State of the World 2004 MAKING BETTER ENERGY CHOICES

units were sold out before its completion— energy services can also provide opportuni- was built to minimize pollution and energy ties for increased income, and thus for further use through a combination of green tech- quality-of-life improvements. According to nologies and designs, proximity to public Suárez, the additional benefit per unit of transit, a shared fleet of electric vehicles, and energy drops as energy consumption prominently displayed meters that enable approaches 1,000 kilograms of oil equivalent residents to track their resource consumption. (kgoe) per person per year, and at Architect Bill Dunster, inspired by the fact 1,000–3,000 kgoe per person the benefits of that most energy is wasted through everyday additional energy use begin to decline sig- choices, asserts that “you can get a better nificantly. Beyond this point, even tripling a quality of life through making these changes, country’s per-person energy consumption so why not do it?” 66 does not correlate with an increase in that It is widely assumed that quality of life nation’s HDI number. Countries that are and energy consumption are inextricably nearing 3,000 kgoe per person include Italy, linked. Energy can improve lives by providing , and South Africa; in contrast, Amer- services that meet basic needs and lift people icans use nearly three times as much energy out of sickness, hunger, cold, and poverty. And the desire for a “better quality of life”— Germany enacted new taxes on still too often defined as a larger home and more vehicles, appliances, and possessions— conventional energy in 1999, drives further energy consumption. But does providing financial incentives for there come a point beyond which more energy conservation and renewable energy use provides only small marginal ben- energy technologies. efits? How much do we really need to achieve a good quality of life? To answer these questions, it is useful to per person.67 look at the relationship between perceived In a different attempt to measure quality quality of life in various nations and their use of life, researcher Robert Prescott-Allen has of energy. The Human Development Index developed the Wellbeing Index. (See Chap- (HDI) was created by the United Nations to ter 8.) This is a numerical ranking of 180 emphasize people rather than economic countries based on 87 indicators of human growth alone as the focus of development. It and ecosystem well-being, including health, measures knowledge, longevity, and living education, wealth, and individual rights and standards. Energy analyst Carlos Suárez has freedoms, as well as diversity and quality of mapped out the correlation between HDI ecosystems, air and water quality, and resource and energy consumption. For the poorest use. According to the index, Sweden ranks people, even small increases in energy use can first in well-being in the world while the bring about dramatic improvements in the (UAE) is nearly last, quality of their lives, both directly and indi- and yet the average person in the UAE con- rectly. For example, electric lighting reduces sumes nearly twice as much energy as the eye strain and lengthens hours available for average Swede does. (See Table 2–4.) Aus- education, modern fuels for cooking lower trians, on the other hand, use about 61 per- health risks, and powered pumps reduce time cent as much energy as Swedes, yet still rank spent collecting water. Improvements in near the top for well-being. Thus there is no

41 State of the World 2004 MAKING BETTER ENERGY CHOICES

Table 2–4. Energy Use and Well-being, Selected Countries energy? No one knows for sure, but it certainly Well-being Per Capita Share of Sweden’s Per will not be easy. Increas- Country Rank1 Energy Use Rank2 Capita Energy Use ing populations and (percent) growing levels of per Sweden 1 10 100 capita consumption— Finland 2 6 112 particularly in the devel- Norway 3 8 104 oping countries, where Austria 5 26 61 Japan 24 19 70 75 percent of the world United States 27 4 140 now lives—have the Russian Federation 65 17 71 potential to overwhelm Kuwait 119 3 162 even the most ambi- United Arab Emirates 173 2 190 tious energy technology efforts.70 1Out of 180 countries. 2Based on total primary energy supply. SOURCE: See endnote 68. By 2050, global population is projected to increase more than fixed relationship between energy use and 40 percent, to 8.9 billion people. If everyone perceived well-being, and there is potential for in the developing world were to consume great advances on the consumption front the same amount of energy as the average per- while improving quality of life.68 son in high-income countries does today—a This is encouraging news because the sta- level significantly below per capita consump- tus quo is not sustainable—socially, eco- tion in the United States—energy use in the nomically, or environmentally. There is developing world would increase more than growing evidence worldwide that current eightfold between 2000 and 2050. If every- patterns of energy consumption are actually one on Earth consumed at this rate, total degrading the quality of life for many peo- global energy use would increase fivefold ple—worsening air and water pollution, over this period.71 increasing health problems, raising economic Although this rate of growth is highly and security costs associated with fuel extrac- improbable, conventional sources of fossil tion and use, and weakening the natural sys- fuels are unlikely to meet rising demand over tems on which we rely for our very existence, the next century. And increasing our use of including the global climate. Many devel- conventional fuels and technologies will fur- oping nations, with huge populations in ther threaten the natural environment, pub- densely settled areas, are rapidly realizing lic health, and international stability, with these limits and starting to address them. significant implications for our quality of life. For example, severe congestion and pollution We will be hard-pressed to meet global problems in Shanghai have forced the city to energy needs even with renewable energy limit the number of new vehicle registra- and major improvements in efficiency if cur- tions each month.69 rent consumption trends continue. Con- Can Earth sustain our growing energy sumption patterns will have to change as needs in the twenty-first century, even with a well. We will have to find new ways to satisfy rapid and dramatic shift to more efficient the needs of mind and body while reducing technologies and the heavy use of renewable consumption of energy for transportation

42 State of the World 2004 MAKING BETTER ENERGY CHOICES

and in our buildings, and while minimizing infrastructure investments, regulation, incen- the energy embodied in all that we buy. tives, and energy pricing. Political will and The Secretary-General of the Organisa- effective, appropriate policies are essential for tion for Economic Co-operation and Devel- driving change.72 opment, which represents the world’s But it is also up to us as individuals—both wealthiest nations, recently acknowledged as consumers and as members of diverse com- that around the world “there is growing con- munities—to recognize the links between sensus that energy use patterns need to be rad- our consumption choices and the impacts ically altered.” Governments can help to we have on the world around us. We must shape energy use through measures such as come to grips with the limits we face and change the way we use energy.

43 BEHIND THE SCENES Computers

The post-industrial informa- these machines is a toxics trap. A typical tion economy is often monitor with a cathode ray tube (CRT) mistakenly characterized as display contains two to four heralding an era of “demate- kilograms of lead, as well rialization” because tiny as phosphor, barium, and semiconductors, the base hexavalent chromium. ingredient for computer Other toxic ingredients chips and electronic devices, include cadmium in chip yield high value and utility. resistors and semiconduc- But semiconductors are in fact tors, beryllium on mother- more materials-intensive than most “tra- boards and connectors, and ditional” goods. A single 32-megabyte brominated flame retardants in microchip requires at least 72 grams of chemi- circuit boards and plastic casings. cals, 700 grams of elemental gases, 32,000 Plastics, including polyvinyl grams of water, and 1,200 grams of fossil chloride (PVC), make up 6.3 kilograms of an fuels. Another 440 grams of fossil fuels are average computer. The combination of vari- used to operate the chip during its typical life ous plastics makes recycling a challenge. PVC span—four years of operation for three hours is especially difficult to recycle, and it conta- a day. The total mass of secondary materials minates other plastics during the process.3 used to produce the 2-gram chip is 630 times The electronics industry is the world’s that of the final product. For comparison, the largest and fastest-growing manufacturing resources needed to build a car weigh about industry, and due to high rates of product twice as much as the final product.1 obsolescence, electronic waste (e-waste) is The chips are made in “clean rooms” free growing rapidly. By 2005, one computer will of dust and other particles that can spoil the become obsolete for every new computer put delicate silicone wafers. But workers in these on the U.S. market. Often, computers are rooms are exposed to a host of chemicals that discarded not because they are broken but might be associated with cancers, miscar- because rapidly evolving technology makes riages, and birth defects. These facilities also them undesirable or incompatible with newer generate huge volumes of chemical waste that software. Americans replace their Pentium- have contaminated groundwater at numerous class desktop PC after just two to three years high-tech sites. Santa Clara County in Califor- of use. Large institutions often do regular nia, the birthplace of the semiconductor upgrades; Microsoft’s 50,000 employees industry, contains more toxic waste sites than worldwide receive a new computer every any other county in the United States.2 three years, on average.4 The number of personal computers in the Government researchers estimate that world rose fivefold from 1988 to 2002—from three quarters of all computers ever sold in 105 million to over half a billion. Each of the United States are lying in basements and

44 State of the World 2004 BEHIND THE SCENES: COMPUTERS

office closets, awaiting disposal. The ones that are dismantled using hammers, chisels, screw- are junked often end up in landfills or inciner- drivers, and even bare hands. Workers crack ators. About 70 percent of the heavy metals CRT monitors to remove the copper yoke, found in U.S. landfills comes from e-waste. while the rest of the CRT is dumped on open These toxins can leach into soil and ground- land or pushed into rivers. Local residents say water and, if people are exposed to them, the water now tastes foul from lead and other cause damage to the central nervous system, contaminants.7 endocrine disruption, interference with brain Without any protective clothing or respira- development, and organ damage. Incinera- tory equipment, workers use paint brushes tion is just as harmful. The burning of or their bare hands to open empty printer PVC and brominated flame retardants, for cartridges and brush any residual toner into example, releases dioxins and furans—two of buckets. According to both Xerox and Canon, the most deadly persistent organic pollutants.5 carbon black and other toner ingredients Old computers from the industrial world cause lung and respiratory irritation. Workers make their way to foreign shores via the recy- are also exposed to toxic lead-tin solder fumes cling industry, which estimates that 50–80 while heating circuit boards to recover gold- percent of U.S. e-waste collected for recycling containing chips, and the acid baths used to is sent to Asia, mainly to China, India, and dissolve and precipitate out the gold emit Pakistan. According to the U.S. Environmen- chlorine and sulfur dioxide gases. Heaps tal Protection Agency, it is 10 times cheaper of PVC cables are burned in open areas to to ship CRT monitors to China than it is to recover copper wiring. Ironically, China recycle them domestically. This lower cost, banned the import of solid wastes in 1996 along with the weak regulatory system in and added a specific prohibition in 2000 receiving nations, is driving the toxics trade against old computers, monitors, and CRTs, despite an international ban on it under the but these laws are poorly enforced.8 main treaty on hazardous wastes, the Basel As industrial countries adopt stricter laws Convention. (The United States is the only regulating the dumping of e-waste in domes- industrial country that has not ratified the tic landfills and incinerators, the flow of com- Basel Convention; the U.S. export of hazar- puters to developing countries will likely dous materials remains legal and recently increase unless other measures are introduced became exempt from export regulations.)6 to deal with the waste at home. In 2002, the An investigation by the Basel Action Net- European Union parliament adopted two work and Greenpeace China in December “extended producer responsibility” directives, 2001 found that most computers in Guiyu, an requiring electronics manufacturers to phase e-waste processing center in China, are from out the use of hazardous materials and to North America and, to a lesser degree, Japan, be responsible for the recovery and recycling South Korea, and Europe. The study found of e-waste.9 that computers in these “recycling” facilities —Radhika Sarin

45 CHAPTER 3

Boosting Water Productivity

Sandra Postel and Amy Vickers

In this morning’s cup of coffee and this and rivers—including major ones such as the evening’s sip of tea reside molecules of water Amu Dar’ya, Colorado, Ganges, Indus, Rio that have cycled through Earth’s atmos- Grande, and Yellow—now run dry for por- phere thousands upon thousands of times. tions of the year. Large inland lakes, notably Liquid water has been on Earth for at least Central Asia’s Aral Sea and northern Africa’s 3 billion years, circulating between the sea, Lake Chad, have shrunk to shadows of their air, and land. Powered by the sun, this former dimensions. Worldwide, freshwater cycling creates an illusion of plenty: fresh wetlands—ecosystems that do a remarkable water seems limitless because it falls from the job of purifying water—have diminished in sky year after year. area by about half. At least 20 percent of Over the last two decades, however, that Earth’s 10,000 freshwater fish species are at illusion has been shattered by the scale of risk of extinction or are already extinct.1 human influences on Earth’s freshwater The scale and pace of human impacts on ecosystems—the rivers, lakes, wetlands, and freshwater systems accelerated over the past underground aquifers that store, move, and half-century along with population and con- cleanse water as it cycles. Water tables are sumption growth. Worldwide, water demands falling from the overpumping of groundwa- roughly tripled. The number of large dams ter in large portions of China, India, Iran, (those at least 15 meters high) climbed from Mexico, the Middle East, North Africa, Saudi 5,000 in 1950 to more than 45,000 today— Arabia, and the United States. Many streams an average construction rate of two large

Sandra Postel is co-author of Rivers for Life: Managing Water for People and Nature (Island Press, 2003) and director of the Global Water Policy Project in Amherst, MA. Amy Vickers, author of the award-winning Hand- book of Water Use and Conservation: Homes, Landscapes, Businesses, Industries, Farms (WaterPlow Press, 2001), is an engineer and water conservation specialist based in Amherst, MA.

46 State of the World 2004 BOOSTING WATER PRODUCTIVITY

dams a day for 50 years. For a time, we reg- The fact that our economic balance sheets istered only the benefits of these engineering do not reflect these services means that the projects and paid little attention to the social true cost of our water use is much higher than and ecological costs. We measured the addi- we realize. As more and more water is tional hectares irrigated, kilowatt-hours gen- diverted to agriculture, industries, and cities, erated, and populations served, but not the the amount left to do nature’s work gets fisheries destroyed, aquatic species imperiled, smaller and smaller. Eventually, ecosystems people displaced from their homes, or sus- stop functioning. The tragic health and eco- tainability of the water use patterns created by nomic conditions surrounding the Aral Sea, large-scale water development.2 which has lost more than 80 percent of its vol- A sustainable and secure society is one ume because of excessive river diversions, are that meets its water needs without destroying a clear warning about the fateful endpoint of the ecosystems upon which it depends or the this trajectory.5 prospects of generations yet to come. The Scientists now know that healthy ecosys- good news is that it is possible to achieve tems require not just a minimum quantity this goal. and quality of water but a pattern of water flow Currently agriculture accounts for about that resembles their natural flow regime. This 70 percent of world water use, industry for is because species have spent millennia becom- about 22 percent, and towns and municipal- ing adapted to nature’s flow variability—the ities for 8 percent. Opportunities to increase natural cycle of highs and lows, floods and the efficiency of water use on farms, in fac- droughts—and their lives are keyed to it. They tories, and in cities and homes have barely migrate, spawn, nest, and feed when nature been tapped. Efficiency improvements alone, cues them to do so. By disrupting natural however, will not suffice. In light of popula- flow patterns through the construction of tion growth and rising affluence, individuals dams, reservoirs, and diversion projects, have an important role to play by making humans have unwittingly destroyed many of responsible choices about their consumption the habitat and life-support conditions that our patterns—from diets to material purchases.3 earthly companions—and the ecological ser- vices they provide for us—require.6 A New Mindset for What does this imply for the consumption Managing Water and management of fresh water? It means that the old goal of continuously striving to Unlike copper, oil, and most other com- meet ever-rising demands is a losing propo- modities, fresh water is not just a resource that sition. Achieving an optimal balance between acquires value only when it is extracted and meeting human needs and protecting valuable put to human use. Most fundamentally, fresh ecosystem functions requires allocating suf- water is a life support. When we pump or ficient water throughout the year to sustain divert water to meet human demands, we those functions. Once that ecosystem alloca- tap into a living system that myriad other tion is established, the challenge is to use the species depend on for their survival and that remaining water to satisfy human demands performs valuable services for the human efficiently, equitably, and productively. economy. The work carried out by wetlands Making this shift is easier said than done. alone can be worth on the order of $20,000 But here and there, it is beginning to happen. per hectare per year.4 In Australia, water extractions from the Mur-

47 State of the World 2004 BOOSTING WATER PRODUCTIVITY ray-Darling river basin—the nation’s largest Measured roughly as the value of eco- and most economically important—have been nomic goods and services per cubic meter of capped in an effort to arrest the severe dete- water used, water productivity tends to rioration of that river’s ecological health. increase with national income for three main These efforts come none too soon: the Mur- reasons. First, because crop production is so ray’s flow dropped so low in 2003 that its water-intensive and crop prices are so low mouth became clogged with sand. South relative to most other goods, a shift toward Africa’s innovative 1998 water law calls for a more industrial economy increases eco- meeting the basic water requirements of both nomic output per cubic meter of water. Sec- people and ecosystems before water is allo- ond, pollution control laws such as those cated to non-essential uses. This freshwater adopted in Japan, the United States, and “reserve” gets top priority and, if imple- many European countries often make it more mented as intended, will ensure that water economical for factories to recycle and reuse withdrawals remain within the ecological lim- their process water than to release it to the its defined by scientists and communities. In environment. Third, as economies shift from the United States, in a case involving water manufacturing to service industries, water allocation on the island of Oahu, the Hawaii productivity tends to rise even further. Ger- Supreme Court ruled in August 2000 that many’s economy, for instance, now generates underlying every private diversion of water is $40 of output per cubic meter of water, more “a superior public interest in this natural than 10 times that of India’s. (See Figure bounty” and that public trust interests, which 3–1.)8 include ecosystem protection, are to take pri- Water productivity in the United States ority over private commercial uses in water (which has a much larger portion of water allocation decisions.7 devoted to irrigated agriculture than Ger- Setting limits on the use of rivers and other many does) registers about $18 per cubic freshwater ecosystems is the key to sustainable meter. Today, the U.S. economy generates 2.6 economic progress because it protects the times more economic value per cubic meter ecosystems underpin- ning the economy while Bangladesh Source: FAO, USGS, OECD spurring improvements Egypt (2000 dollars) in water productivity— India Peru the net benefit derived China from each unit of water extracted from the nat- Mexico Russian Federation ural environment. Just South Africa as improvements in labor United States productivity—the out- Brazil Spain put per worker—help Australia an economy, so do France improvements in water Germany productivity—the out- 0 10203040 put per cubic meter of GDP per cubic meter of water use water. (One cubic meter Figure 3–1. Water Productivity of National Economies, equals 1,000 liters.) Selected Countries, 2000

48 State of the World 2004 BOOSTING WATER PRODUCTIVITY

withdrawn from its rivers, lakes, and Real GDP per cubic meter of annual water withdrawals 20 aquifers than it did in 1960. (See Figure Source: USGS, OECD 3–2.) Still, despite this progress, the (2000 dollars) United States has all the telltale signs of 15 unsustainable water use—including groundwater depletion, the loss of wet- lands, decimated fisheries, and dried-up 10 rivers. Why? Policymakers have yet to limit human water use to ecologically 5 sustainable levels—a boundary that would actually foster much higher levels 9 0 of water productivity. 1950 1960 1970 1980 1990 2000 Figure 3–2. Water Productivity of U.S. Economy, Water-Rich,Water-Poor 1950–2000

Earth’s hydrologic cycle distributes water renewable water supply of less than 500 cubic very unevenly across the planet. Just six coun- meters per year, roughly on a par with Alge- tries—Brazil, , Canada, Indonesia, ria. Water use on the North China Plain China, and Colombia—account for half of already exceeds the sustainable supply. In Earth’s total renewable freshwater supply of most years, the lower Yellow River now runs 40,700 cubic kilometers (counting only river out before reaching the sea. And across much and groundwater runoff, not evaporation of the plain, which produces one quarter of and transpiration by plants). Whether a region China’s grain, underground water tables are is hydrologically rich or poor depends in part falling by 1–1.5 meters annually. As water on how much of the global endowment it economist Jeremy Berkoff observes, water receives relative to its population size. Canada, scarcity in the North China Plain will “tend for instance, ranks near the top of water to fall on those least able to afford it—on wealth, with more than 92,000 cubic meters smaller farmers growing grains in more iso- of water per inhabitant. At the water-poor end lated locations.”11 of the spectrum are Jordan with annual Water-poor places usually make heavier renewable supplies of 138 cubic meters per demands on rivers and aquifers than water- person, Israel with 124, and Kuwait with rich ones do (see Table 3–1) because in drier essentially none.10 climates crop production—a very water-inten- National figures mask much of the world’s sive activity—requires irrigation. Egypt’s water water stress, however, because water is often use per capita is nearly twice that of Russia’s distributed unevenly within countries as well. not because Egyptians are water gluttons China, for instance, has 21 percent of the (although they use more than their fair share world’s people but only 7 percent of Earth’s of the Nile), but because all of their cropland renewable fresh water—and most of that sup- needs irrigation, whereas only 4 percent of ply is in the southern portion of the country. Russia’s does. The United States, however, The North China Plain, which includes the does emerge as a water glutton: it has one of Yellow River, is one of the most populous the highest per capita usage rates in the world regions of water scarcity in the world. Home even though only 11 percent of its cropland to some 450 million people, it has a per capita is irrigated.12

49 State of the World 2004 BOOSTING WATER PRODUCTIVITY

Table 3–1. Estimated Annual Water does not imply deprivation; nor does natural Withdrawals Per Capita, Selected abundance imply access.13 Countries, 2000 Easing both overconsumption and under- consumption are flip sides of the global water Water Withdrawals challenge. The most urgent task is to provide Country Per Capita all people with at least the minimum amount (cubic meters per person per year) of clean water and sanitation needed for good Ethiopia 42 health. Today, one out of five people in the Nigeria 70 developing world—1.1 billion in all—daily Brazil 348 face risks of disease and death because they South Africa 354 lack “reasonable access” to safe drinking Indonesia 390 China 491 water, defined by the United Nations as the Russian Federation 527 availability of at least 20 liters per person per Germany 574 day from a source within 1 kilometer of the Bangladesh 578 user’s home. The large gap in coverage has India 640 almost nothing to do with water scarcity: France 675 Indonesia, for instance, has a natural water Peru 784 endowment exceeding 13,000 cubic meters Mexico 791 Spain 893 per person, yet one quarter of its people do Egypt 1,011 not have safe drinking water. Globally, pro- Australia 1,250 viding universal access to 50 liters per person United States 1,932 per day by 2015 would require less than 1 percent of current global water withdrawals. SOURCE: See endnote 12. There is more than enough water, but so far the political will and financial commitments So the picture is still incomplete without to provide the poor with access to it have not considering affluence and poverty. All it takes been sufficient.14 is a flight into Phoenix, Arizona, in the south- In 2000, the United Nations General western United States to see an oasis city Assembly adopted as one of the Millennium that defies its natural water endowment. Development Goals the target of halving, by Although it gets just 19 centimeters of rain- 2015, the proportion of people lacking fall a year, Phoenix boasts a landscape lush affordable access to safe water. Two years with green lawns, golf courses, and backyard later, at the World Summit on Sustainable swimming pools. But this luxury comes at a Development in Johannesburg, nations sim- high price—the depletion of aquifers and ilarly committed to halving by 2015 the pro- water imports from the distant Colorado portion of people lacking access to adequate River at U.S. taxpayer expense. An overflight sanitation. The spread of sanitation services of the East African nation of Ethiopia, on has lagged well behind the provision of house- the other hand, where in 2003 more than 12 hold water, leaving 2.4 billion people world- million people faced famine, reveals a land wide without basic sanitation. (See Table thirsting for water even though 84 percent of 3–2.) To meet the new commitments, water the Nile River’s flow originates within its ter- services will need to reach an additional 100 ritory. Because of the influence of power, million people and adequate sanitation an politics, and money, natural scarcity of water additional 125 million people each year

50 State of the World 2004 BOOSTING WATER PRODUCTIVITY

Ta b l e 3 –2. Populations Lacking Access person. Officials estimate that the remaining to Safe Drinking Water and 6 million people will have access by 2008.17 Sanitation, 2000 To service the poorest residents in South Africa yet achieve reasonable cost-recovery, a Share of Population low life-line price was set for the first 25 liters Without Access to per day, with rates much higher above that Safe Adequate level. Because even the minimum rates bur- Region Drinking Water Sanitation dened poor families, officials have reportedly (percent) begun to make the life-line quantity free. In Africa 36 40 the handful of regions where the govern- Asia 19 53 ment has contracted with private corpora- Latin America tions to manage water systems, however, & Caribbean 13 22 cost-recovery appears to take priority over the constitutionally mandated right to water, SOURCE: See endnote 15. causing residents to protest. In Johannes- burg, for instance, where the water utility between 2000 and 2015.15 signed a management contract with the While ambitious, these achievable targets French corporation Suez, pre-pay water are essential milestones on the path to uni- meters have been installed that dispense only versal water and sanitation coverage. Accord- as much water as families have paid for in ing to U.N. statistics, five countries— advance. Private water corporations, con- Bangladesh, Comoros, Guatemala, Iran, and cerned primarily with increasing shareholder —succeeded in halving the pro- profits, have little incentive to meet the basic portion of their populations lacking safe drink- needs of the poor unless required by public ing water between 1990 and 2000. (These authorities to do so.18 statistics do not account, however, for the dis- covery of poisonous levels of arsenic in Water, Crops, and Diets groundwater wells across large areas of Bangladesh.)16 Agriculture uses about 70 percent of all the South Africa has progressed in the provi- water extracted from Earth’s rivers, lakes, sion of water services as well. When the and underground aquifers, and as much as 90 African National Congress assumed power percent in many developing countries. Recent in 1994, some 14 million South Africans had projections indicate that by 2025 numerous no access to safe drinking water. The post- river basins and countries will face a situation apartheid constitution ratified in 1996 made in which 30 percent or more of their irriga- clean water a universal right, and the 1998 tion demands cannot reliably be met because water law that established a two-part water of water shortages. These include most river reserve—to meet the basic water require- basins in India, the Hai and Yellow basins in ments of all people and ecosystems—made the China, the Indus in Pakistan, and many river extension of water supply services a high pri- basins in Central Asia, sub-Saharan Africa, ority. Between 1994 and April 2003, the North Africa, Bangladesh, and Mexico.19 nation’s Community Water Supply and San- Raising the productivity of agricultural itation Programme provided access to 8 mil- water use is critical to meeting people’s food lion people at an average cost of $80 per needs as water stress deepens and spreads.

51 State of the World 2004 BOOSTING WATER PRODUCTIVITY

This challenge has three major parts: deliv- institutional, and agronomic measures. A ering and applying water to crops more effi- growing number of farmers around the world ciently, increasing yields per liter of water are finding, for instance, that drip irrigation consumed both by irrigated and rain-fed systems—which deliver water directly to the crops, and shifting diets so as to satisfy nutri- roots of plants at low volumes through per- tional needs with less water. forated tubing installed on or below the soil A large portion of water that is stored surface—can save water and improve har- behind dams and diverted through canals for vests at the same time. Compared with con- irrigation never benefits a crop. A 2000 review ventional flood or furrow irrigation, drip found that surface water irrigation efficiency methods often reduce the volume of water ranges between 25 and 40 percent in India, applied to fields by 30–70 percent and Mexico, Pakistan, the Philippines, and Thai- increase crop yields by 20–90 percent. The land; between 40 and 45 percent in combination can mean a doubling or tripling and Morocco; and between 50 and 60 per- of water productivity.22 cent in Israel, Japan, and Taiwan. The large Worldwide, micro-irrigation methods share of water not reaching the roots of crops (including drip and micro-sprinklers) are is not necessarily lost or wasted: it may, for used on some 3.2 million hectares, only instance, seep through a field or canal and slightly more than 1 percent of irrigated recharge groundwater, becoming the supply land. A handful of water-short countries now for another farmer. Yet some of it is lost to rely on it heavily, however. (See Table 3–3.) evaporation from soil or canal surfaces. Either Moreover, the area under drip and other way, these inefficiencies carry high costs: micro-irrigation techniques has expanded water is not available when and where needed, markedly in a number of countries over the aquatic habitats are destroyed unnecessarily, last decade, including more than a doubling more land becomes salinized, and more fresh in Mexico and South Africa, a 3.5-fold water is polluted by salts and pesticides.20 increase in Spain, and a nearly ninefold Most regions have made only modest gains increase in Brazil. Although starting from a in improving irrigation efficiency. With irri- small base, China and India have also been gation water often priced at less than one expanding the use of drip irrigation to cope fifth of its true cost and with groundwater with growing water shortages. 23 pumping largely unregulated, farmers and Changes in cropping patterns and grow- irrigation managers have little incentive to ing methods also offer opportunities to get upgrade their practices. Improvements in the more crop per drop. This challenge is par- timing and reliability of water deliveries are a ticularly salient for the production of rice, prerequisite to many of the efficiency mea- the preferred staple of about half the human sures farmers themselves can take. Growers in population. More than 90 percent of the some districts of California, for instance, world’s rice is grown in Asia, where many would like to shift to more-efficient irrigation rivers and aquifers already are overtapped systems but need greater certainty about the and the pressure to shift water from farms to frequency, flow rate, and duration of their cities is escalating. Over the last quarter-cen- water deliveries to do so.21 tury, the widespread adoption of high-yield- There is a rich menu of options for improv- ing and early-maturing rice varieties led to a ing the productivity of irrigation water, 2.5- to 3.5-fold increase in the amount of rice including a suite of technical, managerial, harvested per unit of water consumed—an

52 State of the World 2004 BOOSTING WATER PRODUCTIVITY

Ta b l e 3 –3. Use of Drip and Micro-irrigation, how to irrigate more efficiently, Selected Countries,1991 and Circa 20001 but how to irrigate at all. Most of the roughly 800 million peo- Area Irrigated by Share of Total Irrigated ple who are hungry or mal- Drip and Other Area Under Drip and Micro-irrigation Methods Micro-irrigation, nourished belong to farm Country 1991 Circa 2000 Circa 2000 families in sub-Saharan Africa and South Asia. For them, con- (thousand hectares) (percent) ventional irrigation equipment 25.0 35.6 90 is too expensive, yet access to Israel 104.3 125.0 66 irrigation water is their key to Jordan 12.0 38.3 55 South Africa 102.3 220.0 17 more stable and productive har- Spain 160.0 562.8 17 vests, greater food security, and Brazil 20.2 176.1 6 higher incomes. Increasing United States 606.0 850.3 4 poor-farmer access to irrigation Chile 8.8 62.1 3 through the spread of afford- Egypt 68.5 104.0 3 able technologies for small plots Mexico 60.6 143.1 2 would vastly improve water China 19.0 267.0 <1 India 17.0 260.0 <1 productivity—yielding great health and social benefits per 26 1Micro-irrigation typically includes drip (both surface and liter of water consumed. subsurface) methods and micro-sprinklers; year of reporting One model of success is varies by country. found in Bangladesh, where SOURCE: See endnote 23. poor farmers have bought more than 1.2 million human-pow- impressive achievement. Further gains will ered devices called treadle pumps that give be harder to win. Many studies have shown, them access to shallow groundwater and let however, that the traditional practice of flood- them grow crops for market during the dry ing rice fields throughout the growing season season, boosting incomes an average of $100 is not essential for high yields. Applying a per $35 pump in the first year. Colorado- thinner water layer or even letting rice fields based International Development Enterprises dry out between irrigations can in some cases is now parlaying its experience in Bangladesh reduce water applications by 40–70 percent and numerous other countries into a global without significantly lowering yields.24 multidonor effort called the Smallholder Irri- Similarly, researchers have found that grain gation Market Initiative, which aims to pro- yields can often be sustained with 25 per- vide poor farmers with access to affordable cent less irrigation water than normally irrigation—including low-cost drip systems applied as long as the crops receive sufficient and treadle pumps—toward a goal of lifting water during their critical growth stages. 30 million rural farm families out of poverty Called deficit irrigation, this practice is becom- by 2015.27 ing a necessity in some water-short areas. On Across large parts of India, community the North China Plain, for example, farmers groups are reviving the use of traditional now irrigate wheat three times a season rather tanks (ponds), check dams, and other struc- than five.25 tures to collect and store rainwater to irrigate For many poor farmers, the question is not their crops during the dry season and to

53 State of the World 2004 BOOSTING WATER PRODUCTIVITY recharge groundwater. In the Alwar district Ta b l e 3 –4. Water Consumed to Supply of Rajasthan, 2,500 ponds (called johads) Protein and Calories, Selected Foods1 have been built in 500 villages, increasing crop and milk production markedly. By Water Consumed Water Consumed to Supply 10 to Supply replenishing groundwater, the johads also Food Grams of Protein 500 Calories have lifted the water table from an average of 60 meters below the surface to 6 meters.28 (liters) These examples only scratch the surface of Potatoes 67 89 the many ways farmers and water managers Groundnut 90 210 can improve the efficiency of irrigation, make Onions 118 221 Maize (corn) 130 130 better use of natural rainfall, and increase Pulses (beans) 132 421 crop yields per liter of water consumed. Wheat 135 219 Through their dietary choices, individual Rice 204 251 consumers also have an important role to Eggs 244 963 play—one that will prove critical to doubling Milk 250 758 agricultural water productivity. Poultry 303 1,515 The various foods we eat require vastly Pork 476 1,225 Beef 1,000 4,902 different amounts of water to produce. They also vary in the amount of nutrition they 1Based on California crop yields and water offer—including energy, protein, calcium, productivity; takes into account only the crops’ fat, vitamins, and iron. Combining these two water requirements, not irrigation efficiencies features provides a measure of nutritional or other factors. SOURCE: See endnote 29. water productivity—how much nutritional value is derived from each unit of water con- sumed. Using crop water requirements and ing this transition by 2025, when the U.S. yields for California, researchers Daniel population is projected to total more than Renault and Wes Wallender estimated nutri- 350 million people, would lower the nation’s tional water productivity for principal crops dietary water requirements at that time by and food products. The results were reveal- 256 billion cubic meters per year—a savings ing: it takes five times more water to supply equal to the annual flow of 14 Colorado 10 grams of protein from beef than from Rivers. Many other benefits would result as rice, and nearly 20 times more water to sup- well—including reduced heart disease, less ply 500 Calories from beef than from rice. , and less pollution of streams (See Table 3–4.)29 and bays from industrial animal feedlots.30 With its high meat content, the average Worldwide, ensuring a healthy diet for all U.S. diet requires 5.4 cubic meters of water people in the face of growing water scarcity per person per day—twice as much as an will require adjustments at both the high and equally (or more) nutritious vegetarian diet. low ends of the diet spectrum. The nearly 1 Even a partial shift away from animal products billion people who are malnourished need would make a large difference. For example, to eat more in order to live healthy lives. cutting the intake of animal products in half Expanding access to minimum levels of irri- and replacing them with highly nutritious gation water can help achieve this goal. More vegetable products would reduce the water equitably sharing the water embodied in food, intensity of the U.S. diet by 37 percent. Mak- through trade and aid, will also be important.

54 State of the World 2004 BOOSTING WATER PRODUCTIVITY

And the sensible dietary shift just described for the U.S. population would free up enough BOX 3–1. DESALINATION— water to provide healthy diets for nearly 400 SOLUTION OR SYMPTOM? million people, nearly one quarter of the number expected to be added to the devel- A growing number of cities are looking to de-salted seawater or brackish water to oping world’s population by 2025.31 save them from future water shortages. There are currently about 9,500 desalina- Cities and Homes tion plants worldwide, with an estimated capacity of 11.8 billion cubic meters per The water demands—and shortages—of year—0.3 percent of current global water many cities throughout the world are expand- use. An energy-intensive process, desalina- ing rapidly. With nearly half of the global tion is concentrated in the oil-rich Persian population now living in urban areas, a figure Gulf and Middle East, which account for about half of the global capacity. Both that will increase to 60 percent by 2030, energy requirements and costs have meeting the growing water desires of the been falling with improved technologies, rich and the water needs of the poor is now however, and worldwide desalination a significant challenge. (See Box 3–1.) While capacity is expanding at an annual rate of cities claim less than 10 percent of the world’s some 11 percent. Israel’s plan to generate freshwater withdrawals, their concentrated as much as half of its urban water supplies consumption requires complex, capital-inten- from desalination by 2008 could conceiv- ably free up other water sources for sive infrastructure that draws deeply from equitable sharing with Palestinians. finite surface and subsurface water supplies.32 But for most of the world, is desalina- Excessive water demands have come at a tion a sensible choice or another expen- cost. The majority of the world’s 16 mega- sive supply-side solution? On a unit cities—those with 10 million or more inhab- basis, most conservation and efficiency itants—lie within regions experiencing mild measures can meet new water needs for to severe water stress, a condition where with- 10–25 percent of the cost of producing desalinated water. It makes little sense drawals are outstripping available supplies. to de-salt the sea, and to add more As urban water demands increase, the pres- greenhouse gases to the atmosphere in sure on agricultural and rural areas to sell or the process, when reducing waste and surrender their water rights will intensify.33 increasing efficiency can supply water The headline story on urban water use more cost-effectively and with less and management can be summed up in one ecological harm. word: waste. “We need…to reduce leakage, SOURCE: See endnote 32. especially in the many cities where water losses are an astonishing 40 percent or more of total water supply,” declares U.N. Secre- tary-General Kofi Annan. Leakage and other pated through leakage, illegal hook-ups, and losses are often overlooked and sometimes poor accounting. As much as a third of the hidden sources of waste: most water system water supplies in a typical Arabian Gulf coast managers are unable to account for 15–40 city may be lost to leaky pipes and mains. Tai- percent of their supplies. In developing wan loses nearly 2 million cubic meters of regions such as Africa, it is common for 50–70 water daily to leakage, about the same volume percent of total water extracted to be dissi- as 325 million toilet flushes. These losses are

55 State of the World 2004 BOOSTING WATER PRODUCTIVITY estimated to cost $200 million per year.34 Ta b l e 3 –5. Water System Leakage “Water accountability” is a prime indica- and Losses, Selected Countries tor of a utility’s efficiency and management, yet water utilities commonly fail at this most Estimated Average basic maintenance task. (See Table 3–5.) Losses of Total Often the poorest countries, whose people Country Service Area Water Supplied lack adequate supplies, have the highest rates (percent) of water waste, although the privatized water industry’s record in industrial countries is Albania nationwide up to 75 hardly stellar. (See Box 3–2.) Water system Canada Kingston, Ontario 38 leakage and other losses—commonly referred nationwide 20–30 to as “unaccounted-for water” (UFW) or Denmark Copenhagen 3 “nonrevenue water”—is the volume that is withdrawn but that never reaches, or is never France Paris 30 nationwide up to 50 recorded as having served, an end-user. It is usually calculated as the difference between Japan Fukuoka 5 the water “produced” (as measured by a Jordan nationwide 48 meter at the point of extraction or treatment Kenya Nairobi 40 plant) and the water sold (based on customer Singapore nationwide 5 meter readings), although the water industry South Africa Johannesburg 42 has long lacked consistent standards for defin- Tshwane (Pretoria) 24 ing, measuring, and reporting UFW. Most Spain nationwide 24–34 UFW is due to leakage from neglected mains and pipes, but theft and meter inaccuracies Taiwan nationwide 25 Taipei 42 also play a role, particularly in poor and aging systems. Thus a good deal of UFW represents United States nationwide 10–30 water that could beneficially serve other users, Bethlehem, PA 27 and another portion of it results in lost rev- enue because the water is used but not paid SOURCE: See endnote 35. for. The economic value of lost water due to meter reading failures or theft is often up to 15-percent UFW standard, yet the most 10 times the marginal operating cost associ- recently reported figures on statewide water ated with leakage.35 losses list 52 water suppliers with UFWs at 30 U.S. cities, considered to have some of percent or higher. To its credit, the Kansas the most modern water technologies and Water Plan has set UFW reduction as one of infrastructure, have UFWs ranging from 10 its primary objectives.36 to 30 percent, and sometimes higher. In the Recovery of water “lost” due to leakage, absence of national codes to define and mea- faulty measurement, or corrupt accounting sure water losses, some states set their own constitutes a great untapped water supply standards. These range from 7.5 to 20 per- that could help cities and regions facing water cent but are not well enforced. Only a few scarcity meet their true water needs. Argu- states report water loss figures to the public. ments that water lost to leakage is not sig- For example, Kansas, whose western section nificant because it recharges aquifers or overlies the declining Ogallala aquifer, has a supplies users elsewhere ignore the fact that

56 State of the World 2004 BOOSTING WATER PRODUCTIVITY

tats to wither, and to disappear. Like BOX 3–2. PRIVATIZATION AND dental cavities, decaying pipes can be ignored LEAKAGE: ACCOUNTABILITY for a time but ultimately cannot be avoided; LACKING the longer the problem is neglected, the more costly its repair. Unless existing infrastruc- Despite the promises of greater efficien- ture is water-tight, proposed capital projects cies and “smart management” systems that are supposed to come with privatized designed to meet water “needs” are specious. water systems, a number of investor- Copenhagen, Denmark, with only 3 per- owned water companies fail to account cent UFW (roughly 1.6 cubic meters per for the massive volumes of water their person per year, or about a gallon a day), is systems lose to leaks and other a bright exception to the water industry’s unmeasured or unexplained uses. historically poor recordkeeping. The Copen- The much-touted water loss reduction hagen water department has also had a steady goals for the privatized British water sys- tem have yet to be realized, and the reality decline in daily per capita household use is that some “companies have still not among its half-million residents since it set achieved their economic level of leakage,” conservation targets and initiated a series of according to a report by the House of educational campaigns and water rate Commons. Measuring leakage accurately increases. Perhaps the strongest incentive for is all the more difficult in the United maintaining tight water systems in Denmark Kingdom because only 20 percent of is that by law, utilities are taxed (0.7 euros, households are metered, which makes company leakage estimates “subject to about 85¢, per cubic meter) if their leakage manipulation,” according to the report. rate exceeds 10 percent. In 2000, only 8 out Following the privatization of water of 40 of the largest water suppliers in Den- systems in 1989, leakage levels across the mark reported a loss over 10 percent. (See U.K. water industry rose to an average of Box 3–3 for descriptions of other urban effi- 30 percent by 1995.The Office of Water ciency programs.)37 Services, which regulates the water and Reducing leakage and using water more sewerage industry in England and Wales, intervened and set mandatory leakage efficiently also saves energy, since pumping, reduction targets. Several companies with treating, and distributing water requires high loss levels, notably Thames Water energy at each stage. California’s water sys- Utilities LTD, serve areas facing supply tems are one of the state’s largest energy shortfalls. In 2003, water leakage and consumers because they move water long losses by Thames Water accounted for distances and over high elevations. On aver- over 25 percent of all water leakage in age, pumping one acre-foot (1,234 cubic England and Wales, yet the company pro- vides water services to only 15 percent meters) of water through the Colorado River of billed customers there. Aqueduct to southern California takes approximately 2,000 kilowatt-hours (kWh) of SOURCE: See endnote 35. electricity, while sending an acre-foot there through the State Water Project requires about 3,000 kWh. In a typical southern Cal- water extractions come at a cost. Water that ifornia home, the energy required to pro- is displaced from its original “service area” in vide potable water can rank third behind that nature and then squandered in the “service” required to run the air conditioner and refrig- of leaky pipes causes rivers to run dry, habi- erator. Since using water more efficiently

57 State of the World 2004 BOOSTING WATER PRODUCTIVITY

BOX 3–3. URBAN WATER CONSERVATION PROGRAMS THAT SAVE WATER AND MONEY

A number of cities and water systems have system leakage rates (about 5 percent) in launched water efficiency programs in recent Japan, and its per capita water use is about years, and several have achieved impressive 20 percent less than other comparably sized water and cost savings: cities. Fukuoka has accomplished these water savings through active leak detection and • Singapore reduced unaccounted-for water repair, sophisticated metering techniques, from 10.6 to 6.2 percent from 1989 to 1995 rainwater harvesting, use of reclaimed water and saved over $26 million in avoided capital for toilet flushing, installation of efficient facility expansions through aggressive leak faucet devices in over 90 percent of house- detection and repair, pipe renewal, and holds, and promotion of citizen awareness 100-percent metering (including the fire about water issues. department). By 2003, UFW had dropped to only 5 percent. Industrial and commercial • Since the late 1980s, the Massachusetts meters are replaced every four years and res- Water Resources Authority (MWRA), which idential meters every seven years to ensure provides wholesale water supplies to over accurate billing and to minimize unmetered 40 cities and towns in the Boston area, has water losses. Singapore water managers also reduced systemwide water demands by about promote public education, school programs, 25 percent by implementing a comprehensive water audits, and reuse of nonpotable water demand-reduction program, including aggres- by industries. Illegal connections bring fines sive leak repairs and the installation of water- of up to $50,000 or three years in prison. In efficient plumbing fixtures and devices.This 1995, Singapore’s 3 million residents used an allowed the cancellation of a plan to dam the average of 1.2 million cubic meters per day; Connecticut River—a politically controversial by 2003, total water demand had increased proposal—and saved MWRA’s 2.1 million only 8 percent although the population had customers more than a half-billion dollars in grown by 40 percent to 4.2 million. capital expenditures alone. • Fukuoka, Japan, known as the Water Conser- vation Conscious City, has one of the lowest SOURCE: See endnote 37.

reduces energy use, it also reduces the output All together, the water required to service of climate-altering greenhouse gases that energy demands is substantial—in the United threaten to disrupt river flows and hydro- States, an estimated 8.3 liters per kWh of logical systems around the world.38 delivered electricity. Thus the average U.S. Conserving water clearly conserves energy, household, using 10,000 kWh of electricity but conserving energy also conserves water. per year, is indirectly also consuming an addi- Thermoelectric power plants (coal, oil, nat- tional 83 cubic meters of water—a volume ural gas, nuclear, or geothermal) use up water equivalent to nearly 14,000 flushes of an effi- through evaporation, as excess heat is cient toilet.39 removed from condensers. Mining the fuels Household water use varies greatly world- used to run these plants also consumes water. wide and says a great deal about variations in Hydroelectric power generation results in wealth and culture. (See Figure 3–3.) For evaporation of water from storage reservoirs. example, people living in the United Kingdom

58 State of the World 2004 BOOSTING WATER PRODUCTIVITY

use only about 70 per- Kenya (piped households) Source: See endnote 40 cent as much water as Uganda (piped households) the most water-thrifty Tanzania (piped households) Americans do. Indoor Copenhagen, Denmark water use in U.S. United Kingdom homes is estimated to Singapore Manila, Philippines average 262 liters per Waterloo, Canada capita a day (lpcd). Melbourne, Australia Households that install Sydney, Australia water-efficient fixtures Seattle, United States (toilets, showerheads, Tampa, United States and faucets) and appli- Phoenix, United States ances (clothes washers 0 200 400 600 800 1000 and dishwashers) and Liters per capita per day that reduce leakage use Figure 3–3. Household Water Use, Selected Cities and Countries only 151–170 lpcd. Since 1997, all toilets, urinals, faucets, and least per liter, and those who use the least pay showerheads installed in the United States the most. Low-income and poor city dwellers have been required to meet water efficiency who are not connected to water systems often standards established by the U.S. Energy Pol- must turn to alternative and costly supplies, icy Act (EPAct) of 1992. By 2020, these effi- such as water vendors who may charge many ciency standards are projected to save some times more than customers pay for piped 23–34 million cubic meters per day, enough water service. For example, the poor in Delhi water to supply four to six cities the size of pay informal vendors $4.50 per cubic meter New York City.40 of water, nearly 500 times the 1¢ per cubic Studies of 16 U.S. localities show that the meter paid by those with a house connection. water reductions from the EPAct standards In Manila, water vendors charge the poor will save water utilities between $166 million 42 times more than the price paid by domes- and $231 million over the next 15 years as a tic users with piped water.42 result of deferred or avoided investments in The domestic water demands of the afflu- new or expanded drinking water treatment or ent take a dramatic upward trajectory with storage capacity. The energy requirements of the presence of irrigated lawns. By volume, water and wastewater treatment facilities are the biggest drinking problem in the United projected to decline by 6 billion kWh annu- States is not alcohol but lawn watering. The ally. Some of these water, energy, and cost sav- irrigation of U.S. lawns and landscapes daily ings are now under threat, however: several claims an estimated 30 billion liters of major fixture manufacturers are actively pro- water—a volume that would fill 14 billion six- moting sales of tower-like shower stalls with packs of beer. The average irrigated lawn multi-headed nozzles, some of which deliver uses about 38,000 liters per summer. Even over 300 liters per minute—more than most worse, one resident of water-strapped Orange people in the world use in a day. 41 County, Florida, was billed for 15.9 million When it comes to water use and costs paid liters of water one year, most of it used to irri- by rich and poor, there is typically an inverse gate his 2.4-hectare property. That volume relationship: those who use the most pay the of water roughly equals what 900 Kenyans

59 State of the World 2004 BOOSTING WATER PRODUCTIVITY use in a year.43 Landings in Savannah, Georgia, are reducing Manicured lawns and turf-carpeted cor- water use through measures such as weather- porate, government, and roadside areas across controlled irrigation, limited watering of tees the United States cover between 12 million and fairways, use of native plants and natural and 20 million hectares, an area larger than features in roughs, and organic soil and plant the state of Louisiana—and more than is maintenance.46 planted in any single agricultural crop. The Memberships in natural landscaping orga- United States also has about 60 percent of the nizations such as the Wild Ones and Eco- world’s golf courses; the 700,000 hectares logical Landscaper are growing rapidly, they cover soak up some 15 billion liters of pointing to people’s desire for a healthier water per day. Lawns and golf courses not relationship to the land. Others are mindful only guzzle vast amounts of water, they do so of the financial benefits. CIGNA Corporation during the hottest months of summer, when in Bloomfield, Connecticut, spent about flows in many rivers and streams are at their $63,000 over five years to convert much of lowest levels.44 its 120-hectare conventional corporate lawn U.S. lawn and garden enthusiasts annually to attractive walking meadows and wildflower apply more than 45 million kilograms of fer- patches, reaping the company several hundred tilizers and chemicals to kill bugs, weeds, and thousand dollars annually in cost savings from fungi. In fact, homeowners use nearly 10 reduced water, fertilizer, pesticide, and equip- times more pesticide per hectare of turf than ment and maintenance needs. As CIGNA’s farmers use on crops. Fertilizers and chemi- landscape manager explained, “What are you cals not taken up directly by grasses and plants going to do, spend $5,000 on dandelion often run off into streams or seep through to control?” 47 aquifers, where they may contaminate drink- ing water and eutrophy lakes and ponds. (See Industrial Water Use and Box 3–4.)45 Material Goods Consumption While more-efficient sprinklers and irri- gation systems can reduce lawn water con- Industries account for about 22 percent of the sumption, a more fundamental reform of world’s total freshwater withdrawals, but they Americans’ lawn-addiction is taking place claim a far higher share in industrial countries through a burgeoning natural landscape and (59 percent on average) than they do in native plant movement. Homeowners and developing ones (10 percent). Industrial corporations are realizing lasting and sub- demands in developing and emerging stantial water savings by planting native and economies are growing rapidly and will com- drought-adaptive grasses, groundcovers, wild- pete for scarce water supplies with both cities flowers, and plants that thrive naturally in and farms. Moreover, industries generate their local climates. The landscapes of Prairie large volumes of wastewater, and in devel- Crossing, a subdivision outside of Chicago, oping countries much of it is currently and of the Sears, Roebuck & Company head- released untreated into nearby rivers and quarters in Hoffman Estates, , for streams, polluting scarce supplies.48 instance, are designed to embrace natural The total volume of industrial water features instead of overriding them. Simi- demand is not well understood because large larly, golf courses such as Prairie Dunes Coun- industries often tap—and do not meter— try Club in Hutchinson, Kansas, and The water directly from their own wells or nearby

60 State of the World 2004 BOOSTING WATER PRODUCTIVITY

BOX 3–4. DRINKING YOUR NEIGHBOR’S LAWN AND MEDICINE CABINET

“It’s early morning, do you know where your screen agents, antibiotics, and plasticizers. drugs are?” asks the U.S. Environmental Protec- Virtually no medical literature documents tion Agency’s Christian Daughton in an article the extent, risks, or solutions to the problem of in The Lancet.“More than likely, some are on drugs as pollutants and what they are doing to their way to local streams, rivers, and perhaps human health and the environment.At present, even farms, as sewage biosolids used as PPCP contaminants in drinking water remain fertiliser.” In a study of 139 streams sampled largely unregulated.At least with pesticides, in 30 states, the U.S. Geological Survey found some communities are not taking any chances. that 80 percent contained traces of at least In Canada, both the Montreal suburb of Hud- one drug, endocrine-disrupting hormone, son and Halifax in Nova Scotia prohibit the insecticide, or other chemical—some at levels cosmetic (purely aesthetic) use of pesticides, that have been shown to harm fish and other such as for lawns.“Better to err on the side of aquatic life.This may not be surprising, given safety than suffer while awaiting some scientific that the United States is the world’s largest proof,” pointed out one community leader. user of pesticides and that more than 3 billion Despite a challenge to the law by the lawn and prescriptions are written each year for the chemical industries, the Canadian Supreme nearly half of all Americans who take at least Court ruled that municipalities across Canada one medication daily. Studies in Canada, the have the right to ban pesticide use on public United Kingdom, and Germany also have found and private property. residues of pharmaceutical and personal care products (PPCPs) in fresh water, including sun- SOURCE: See endnote 45.

rivers and lakes. Worldwide, the major water- motivation for efficiency investments for many using industries include thermal electric power, industrial facilities, other incentives exist as iron and steel, pulp and paper, chemicals, well, including the need to comply with per- petroleum, and machinery manufacture. Most mit requirements, advances in onsite treat- use their largest volumes of water for cooling, ment technologies that allow process water to washing, processing, and heating.49 be recycled and reused, and the availability of An impressive number of industrial and low-cost reclaimed nonpotable water. For commercial users have cut their water example, all of Singapore’s sewage is treated demands anywhere from 10 to 90 percent at six water reclamation plants for reuse by while boosting productivity and profits. (See industries, helping to conserve high-quality Table 3–6.) Often these investments in water water for drinking and other purposes. efficiency pay themselves back within two Increased water and sewer rates also can act years and yield energy savings and pollution as an incentive for manufacturers to con- prevention benefits as well. For example, serve; such pricing strategies sometimes back- Unilever, a multinational producer of food, fire on water suppliers, however, by home, and personal care products, used an motivating customers to stop drawing munic- average of 4.3 cubic meters of water per ton ipal water and switch to an onsite well.51 of production in 2002, a one-third drop from With the expansion of manufacturing the 6.5 cubic meters per ton used in 1998.50 enterprises in developing countries, pollu- While cost savings will be the primary tant loads are rising along with industrial

61 State of the World 2004 BOOSTING WATER PRODUCTIVITY

Ta b l e 3 –6. Examples of Industrial Water Savings from Conservation

Industrial Category or Product Company Savings Water Efficiency Measures

Dairy United Milk Plc, 657,000 cubic Reverse osmosis (RO) membrane system (milk and other England meters per year; recovers and treats milk condensate for dairy products) $405,000 per year reuse throughout the plant, eliminating the need for an external supply. Excess recovered water will be offered for sale to other users in plant area. Computer IBM, worldwide 690,000 cubic Water savings in 2000 were 4.6 percent (plants and labs) meters per year of total used; 375,000 cubic meters per year saved from multiple water efficiency projects and 315,000 cubic meters saved from recycling and reuse. Steel Columbia Steel 1.63 million cubic Replaced once-through cooling system Casting Co., Inc., meters per year; with recirculated cooling towers. North Portland, $588,000 per year Installed recycling system and storage OR, U.S.A. tanks for rainwater capture and reuse of nonpotable wash water. Optimized manufacturing practices. Pharmaceutical Millipore Corp., 31,000 cubic Process wastewater recycled using RO (life science Jaffrey, NH, U.S.A. meters per year; technology; $61,000 investment was research and $55,000 per year paid back in 1.2 years in reduced water, biopharmaceuticals) wastewater, and energy costs. Chocolate Ghirardelli Choc- 78,840 cubic Installed a recirculating cooling water olate Co., San meters per year loop, eliminating potable water use for Leandro,CA,U.S.A. cooling chocolate in large tanks. Home Construction Gusto Homes, 50 percent water Millennium Green project involved instal- England savings by house- lation of a rainwater harvesting system holds (50 cubic and underground storage in 24 homes meters per year) and the company’s offices. Dual flush toilets, aerated showerheads and toilets, and solar water heaters also installed. Produce Unigro, Plc, 9,000–18,000 Sealed, climate-controlled facility uses (pesticide-free fresh England cubic meters per the Greengro Farming system and fruit, vegetables, year; $7,400 per includes precision irrigation and rain- and herbs) year water harvesting, requiring 30 percent less water per unit crop yield than conventional irrigation. Beer Anheuser-Busch 90,850 cubic Water meters installed throughout facili- Inc., nationwide, meters per year ties to track use. Recalibrated bottle and U.S.A. can rinsing equipment.

SOURCE: See endnote 50.

62 State of the World 2004 BOOSTING WATER PRODUCTIVITY

water demands, posing risks to aquatic life and human health. The food and beverage, pulp BOX 3–5. ACTIONS INDIVIDUALS and paper, and textiles industries account for CAN TAKE TO REDUCE THEIR IMPACTS ON FRESH WATER more than three fourths of organic water- pollutant loads in developing countries. Tex- tile rinse water contains dyes, for example, that • Purchase fewer material goods. deplete oxygen levels in rivers and lakes when • Eat a nutritious, less meat-intensive diet. discharged untreated. By capturing and recy- • Select native plants and grasses for lawns cling these dyes within the manufacturing and landscapes and rely on natural rain- process, factories can reduce pollution loads fall only. and save on input costs. In the West African • Install water- and energy-efficient nation of Ghana, a pilot program called the appliances and fixtures. Waste Stock Exchange Management System • Push for local land use ordinances that aims to increase the reuse and recycling of protect wetlands, aquifers, and watersheds. industrial waste products in order to protect coastal and freshwater ecosystems. With the • Serve on local water management boards to monitor and enforce water slogan “one person’s waste, another person’s protection strategies. raw material,” the initiative reportedly has received an enthusiastic response from local manufacturers.52 Just as individual choices about diets and ufacturing. And aluminum products made landscapes can make a big difference on the with scrap aluminum require just 17 percent total human impact on water bodies, so can as much water as the same product made choices about the consumption of material with raw aluminum.54 goods. (See Box 3–5.) Virtually everything people buy—from clothes to computers to Policy Priorities cars—takes water to make, and the manu- facturing process may result in pollution of There is no mystery about why so much of streams and lakes as well. People who drive the water extracted for human use is wasted gas-guzzling sport-utility vehicles rather than and mismanaged: the policies that drive water fuel-efficient cars, for instance, are not only decisions in most cases foster inefficiency and consuming about three times more gasoline misallocation rather than conservation and per kilometer driven, they are also indirectly sustainable use. Instead of despairing about using much more water since it takes 18 liters a new era of water scarcity, we need to con- of water to produce just one liter of gasoline.53 front old errors of waste. In the environmentalist’s credo of reduce, First, it is essential for governments to ful- reuse, recycle, reducing material purchases fill their obligation to protect the public trust always stands on top. When people do buy in water. Most freshwater ecosystems are not something, however, they can lower their priced or valued in the marketplace, yet they water and energy impacts by choosing prod- support our economies and lives with ser- ucts made from recycled materials. Buying vices worth hundreds of billions of dollars a recycled paper rather than virgin paper prod- year. Laws and regulations that safeguard ucts, for instance, saves not only trees and these functions are critical because market energy but also the water used in paper man- forces alone—including water pricing and

63 State of the World 2004 BOOSTING WATER PRODUCTIVITY

trading—will never adequately protect non- $25–30 billion a year to Asia’s agricultural market values. The European Union’s 2000 economy, the adoption and enforcement of water directive, South Africa’s 1998 water policies that lead to its sustainable use are law, and a handful of state laws in the United urgently needed.57 States are promising examples of govern- Tiered water pricing is an economic tool ments attempting to assume their responsi- that can promote more efficient and equitable bilities to protect the public trust in water.55 use of water. With this method, the unit price Governments and communal authorities of water to a user increases along with the vol- need to institute or strengthen groundwater ume used. This allows a basic-needs level of regulations. A classic common-pool resource, household water use to be priced very low, groundwater is susceptible to overuse because with greater use priced at a much higher rate the collective impact of each user acting out in a stair-step fashion. A 2002 study of 300 of self-interest is the depletion of the supply Indian cities found that only 13 percent use for all. Sustainable use of renewable aquifers such increasing block rate structures. More- requires that total withdrawals not exceed the over, even when they are used, the lowest- level of replenishment. As researchers at the Sri priced blocks sometimes include far more Lanka-based International Water Manage- water than needed to satisfy basic household ment Institute point out, however, “nowhere requirements. In Bangalore, for example, the in the world do we find such an ideal regime first two blocks together covered up to 50 actually in operation…. Precious little is being cubic meters of water per month, a usage done to reduce demand for groundwater or commensurate with average household use in to economize on its use.” 56 the United States.58 Particularly in wealthy localities, pricing alone is unlikely to discourage profligate In eastern Massachusetts, residents water use. For high-income households with have drained the Ipswich River dry large lawns, for instance, keeping grass green during several recent years because of all year long is often more important to them their heavy pumping of groundwater than their water bill. In such areas, restrict- for lawn irrigation. ing water use is the next step. In eastern Massachusetts, residents have drained the Ipswich River dry during several recent years Not only is groundwater insufficiently reg- because their heavy pumping of groundwa- ulated, its use is often subsidized in various ter for lawn irrigation depleted its summer ways. In Texas, farmers who pump water base flows. In 2003, the conservation group from the diminishing Ogallala aquifer can American Rivers listed the Ipswich as one of claim a depletion allowance on their tax the 10 most endangered rivers in the coun- returns. India’s farmers get subsidized energy try. That May, the state Department of Envi- worth $4.5–5 billion a year to pump 150 ronmental Protection set mandatory water billion cubic meters of groundwater—a per- withdrawal restrictions on each town per- verse incentive to deplete the nation’s aquifers. mitted to use the Ipswich. When river flows While propping up production in the short drop to a specified level, these communities run, these subsidies only hasten the rate of must institute mandatory water conserva- overexploitation and the ultimate day of reck- tion measures. Because of a wet summer in oning. With groundwater contributing 2003, the true test of the policy is yet to

64 State of the World 2004 BOOSTING WATER PRODUCTIVITY

come. But it makes clear that the state’s conserve, because they can sell their saved interest in protecting the river’s flow takes pri- water and receive extra income. Where clear ority over private homeowners’ interests in property rights or entitlements to water exist, having a green lawn.59 “cap-conserve-and-trade” can be an effec- Along with strong regulations and more tive strategy for protecting ecosystems and effective pricing, markets for water can help boosting water productivity. improve the efficiency of use and allocation. Finally, individual consumers have impor- With a cap placed on extractions from the tant personal policy choices to make as well. Murray-Darling river basin in Australia, for By choosing a healthy and less water-intensive example, water trading among willing sellers diet, an attractive and climate-appropriate and buyers is helping reallocate the available landscape, and a lifestyle with fewer material supply. The city of Adelaide may soon pur- goods, individuals can lessen their impact on chase water from farmers since it has reached Earth’s freshwater systems without sacrificing the limit of what it can extract from the river. personal satisfaction. Such choices can turn The ability to trade water encourages users to water consumers into water stewards.

65 BEHIND THE SCENES Antibacterial Soap

“Getting rid of germs is now vegetable or animal fats (tallow) and water. more fun than ever,” reads the In the process, the fats are broken down label on a bottle of fruit-scented into liquid glycerol (glycerin—which is Dial liquid soap, the leading usually removed for other cosmetic and antibacterial brand in the pharmaceutical uses) and fatty-acid salts, United States. In reality, which make up the crude soap however, the skyrocketing curds. These curds are global production and use boiled in water to of such cleansers poses remove impurities, some not-such-fun health then poured into molds and environmental risks. and cut into bars.3 Liquid soaps, shower gels, Some of the earliest traces of and body washes with antibacterial soap were found in Babylonian clay properties have grown increasingly pots dating to 2800 BC. Before germ- popular in recent years. In the United States, killing versions came along in 1948, soap got 75 percent of liquid soaps and nearly 30 per- rid of microorganisms by making surface dirt cent of bar soaps now contain triclosan and and oils slippery enough to be rubbed and other chemical compounds engineered to rinsed off. Since World War II, human-made attack surface germs. Although labeled anti- chemicals have altered the traditional recipe. bacterial, most of these are actually antimicro- They include surfactants that enhance sudsing bial, attacking viruses as well as bacteria.1 and solubility, antimicrobial compounds such as The world market for soap is projected to triclosan, and plasticizers known as phthalates.4 grow steadily, from $5.5 billion in 2003 to Like any industry, soap manufacturing $6.1 billion in 2008, reports the Icon Group, consumes raw materials and uses energy, such a global market research firm. The biggest as fossil fuels, to heat the boilers, and these growth is expected in Asia and the Pacific, fuels create air pollution as they are burned. where the soap industry anticipates that eco- Other byproducts include solid fatty wastes nomic growth will spur consumer demand for and chemicals that can run off, polluting enhanced soap products, including antimicro- waterways. But it does not have to be this bials. In India and China, where liquid soap is way: in Tunisia, one factory that makes soap viewed as an expensive luxury product, Proc- from olive oil pressings has installed energy- ter & Gamble is now producing an antibacte- efficient boilers and controls on releases of rial version of its Safeguard bar soap.2 waste into air and water—and the plant has All soap is produced through a chemical saved more money every year than the initial reaction known as saponification, in which an retrofit cost.5 alkali, such as caustic soda (sodium hydrox- In addition to industrial effluent, there’s ide), potash (potassium hydroxide), or old- the problem of used soap rinsing down the fashioned wood ash (lye), is heated with drain after consumers have washed with it.

66 State of the World 2004 BEHIND THE SCENES:ANTIBACTERIAL SOAP

A 2002 study by the U.S. Geological Survey Columbia University School of Nursing and found that chemicals in pharmaceuticals and lead author of a 1992 National Institutes of detergents—among them triclosan and phtha- Health report on the trend. The authors rec- lates—are entering water bodies across the ommend washing hands with ordinary soap United States in low concentrations through and warm water after using the toilet and wastewater. These are a matter of concern, as before preparing food as the best way to pre- safe drinking water levels have not been set for vent colds and food-borne disease.9 most of these chemicals.6 Nor, despite modern obsessions with dis- Triclosan and other antimicrobials raise infection, is a home stripped of bacteria nec- troubling health and environmental issues. The essarily a good thing. Actually, it may have production of triclosan can create highly toxic the opposite effect: a recent study found that dioxins—hormone-disrupting, carcinogenic adolescents who lived on farms and were reg- chlorine compounds that readily disperse in the ularly exposed to dust and germs were less environment and collect in the food chain. likely to have asthma and allergy symptoms Triclosan can also cause nausea, vomiting, than teens raised in rural but non-farm and diarrhea if swallowed—which the soap’s settings. Researchers suggest that exposure to “fruit flavors” may tempt children to try.7 bacteria, fungi, and dust might actually help Most urgently, though, the American strengthen children’s immune systems.10 Medical Association and the U.S. Centers for The solution? Consumers should stop buy- Disease Control and Prevention (CDC) are ing antimicrobial-spiked soaps and other cautioning against home use of antibacterial home cleaning products, a move that could soaps because these products are contributing eventually push industry to cut back on their to the rise of drug-resistant bacteria. The heavy promotion and production worldwide. World Health Organization has launched a “Antibacterial soaps and lotions should be campaign against the misuse of antibiotics, reserved for the sick patients, not the healthy noting that diseases such as tuberculosis, pneu- household,” noted Dr. Stuart Levy of the monia, and malaria have become resistant to Alliance for Prudent Use of Antibiotics at several antibiotics normally used to treat them. . To stop the spread of germs Triclosan acts by destroying enzymes in bacte- in hospitals, the CDC advises health care pro- ria cell walls so that they cannot replicate; it fessionals to use alcohol-based hand-rub gels, targets the same enzyme as does the antibiotic which do not pose the same risk of antibiotic isoniazid, used to treat tuberculosis.8 resistance as antimicrobials. The gels can also Moreover, studies have shown that antimi- be used in homes where a family member has crobial soaps are not any more effective at AIDS or another immune system problem. getting rid of germs than regular soaps. “We But because these products cannot wash off found antimicrobial or antibacterial soaps plain old dirt, they are no substitute for plain provide no added value over plain soap,” old soap.11 said Elaine Larson, associate professor at the —Mindy Pennybacker, The Green Guide

67 CHAPTER 4

Watching What We Eat

Brian Halweil and Danielle Nierenberg

In the mid-1980s, Mexican coffee farmers from the right to organize into cooperatives told the Dutch aid organization Solidari- to certain basic safety requirements. In con- dad that they were barely making ends meet. trast to the unfair relationship in which the As long as an international glut of coffee kept coffee drinker seemed to benefit—albeit prices for the raw beans down, aid from unwittingly—from the suffering of the coffee industrial countries was not much help. In grower, buyers of Max Havelaar coffee paid addition, Solidaridad learned that the grow- a small premium to ensure a better life for ers and their families became sick when using farmers and communities at the other end of fungicides and other toxic chemicals that the transaction.2 were in vogue around the world. All of this The idea was not completely new. As early was being endured for each cup of espresso as the 1950s, groups like Oxfam in the United and cappuccino enjoyed by Dutch citizens Kingdom, Ten Thousand Villages in the thousands of miles away—not by Mexicans.1 United States, and Stichting Ideele Import in Solidaridad responded by joining up with the Netherlands offered products from devel- other Dutch aid groups to create the Max oping countries. But the influence of these Havelaar Foundation. (Max Havelaar was “Third World shops” was limited and the the conscientious Dutch protagonist in a market was small.3 nineteenth-century novel that depicts the The real innovation of Max Havelaar was harsh colonial treatment of the Dutch East “to introduce fair-trade food into the mass Indies.) The Foundation developed a “fair market and work with commercial busi- trade” label that guaranteed coffee growers a nesses,” according to Rita Oppenhuizen, set price above world market levels—a price who handles public relations for the Foun- that would cover their production costs and dation. Fifteen years after the first pack of assure a decent living—and set a range of Max Havelaar–labeled coffee arrived in Rot- other social and environmental conditions, terdam harbor, the brand can be found in at

68 State of the World 2004 WATCHING WHAT WE EAT

least 90 percent of Dutch supermarkets and ing these out are not simply looking for a bar- holds over 3 percent of the coffee market. gain or flashy packaging: they are proactive The lower house of Parliament, most gov- and inquisitive. Still, these distinctions remain ernment ministries, and most provincial gov- on the fringe—in spite of a rapidly growing ernment halls serve Max Havelaar coffee. but relatively small counter cuisine—and most Max Havelaar–labeled chocolate was intro- people are not ready to view themselves as duced in 1993 and is used by four major activist eaters or to know the intimate origins Dutch chocolate makers. Honey followed of their next meal. The rise in international in 1995. The first Max Havelaar–certified food trade and the proliferation of heavily bananas arrived in 1996 (and now account processed and packaged foods has further for 5 percent of the Dutch market), and tea distanced most people from what they eat, was introduced in 1998.4 both geographically and psychologically.6 More recently, the notion that food could But because humanity devotes such a large be fair has evolved even further. In the United share of the planet’s surface to food produc- States, the United Fruit Workers unrolled a tion—25 percent, more than the world’s fair apples campaign, which is a collaboration forested area—it is impossible to separate the between farm workers, apple growers, and way farmers raise food from the health of supermarkets to assure workers on apple rivers, wetlands, forests, and our living envi- farms—many of whom are recent immi- ronment. According to a report from the grants—a living wage, the right to organize, Union of Concerned Scientists, our food and access to basic employee benefits. Farm- choices rival transportation as the human ers and the Soil Association in the United activity with the greatest impact on the envi- Kingdom are working to extend the “fair ronment. One European study found that trade” distinction to locally grown produce, food consumption accounts for between 10 arguing that the caprices of free trade and and 20 percent of the environmental impact agribusiness consolidation have crippled of the average household. When Annika Carls- Britain’s rural areas as badly as Africa’s.5 son-Kanyama at the University of Stockholm compared the amount of greenhouse gas A Revolution in Every Bite emissions generated by different food choices, she found that a meat-rich meal made with People do not eat just to survive, of course, imported ingredients emits nine times as but also to socialize, to feel pleasure and sat- much carbon as a vegetarian meal made with isfaction, and to define who they are. Increas- domestically produced ingredients that do ingly, people eat to make a political statement not have to be hauled long distances.7 and to help change the way farmers raise Whether someone buys Chilean seabass their crops. “Fair” food is just one of the from factory trawlers emptying the ocean of growing number of distinctions that eaters fish, pesticide-laden apples shipped halfway now use to assure that their eating habits do around the planet, or meat raised in giant fac- not destroy the planet or farmers. “Certified tories swollen with manure, many food pur- organic” for fruits and vegetables, “pasture- chases currently support destructive forms raised” for beef, “sustainably caught” for of agriculture. (See Box 4–1.) For people liv- seafood, and “bird friendly” for coffee, cocoa, ing in wealthier nations, where hunger is not and rainforest crops are a few other labels widespread, ubiquity and cheapness obscure seen more often these days. Consumers seek- many of these problems. The “glamour”

69 State of the World 2004 WATCHING WHAT WE EAT associated with luxury foods has also encour- fer to forget. Many of the risks endured by aged the wealthy to turn a blind eye to how farmers, consumers, and food businesses are such items reach their tables. (See Box 4–2.)8 wrapped up in the same syndrome of con- Heavy dependence on chemicals, from spicuous consumption that pervades other antibiotics and pesticides to fertilizers and aspects of the economy. (See Chapter 1.) For food preservatives, represents the “conven- instance, proponents of genetically modified tional” way to raise food—that is, most agri- crops, which are often created by combining cultural ministries, colleges, and farm the genetic material of wholly unrelated extension offices promote monocultural fields species that would not reproduce in nature, and a related cocktail of chemicals. Farmers suggest that these crops are essential to help accept exposure to toxic chemicals as an feed the growing global population and to inevitable risk they would prefer not to take, drive the cost of food down. Any risks carried and consumers accept residues of these tox- by this latest generation of agricultural tech- ins as an unfortunate truth they would pre- nology, they argue, pale compared with the

BOX 4–1. SCOURING THE SEA

Industrial fleets have fished out at least 90 per- will the millions of communities and businesses cent of all large ocean predators—tuna, marlin, that depend on them for food and income. swordfish, sharks, cod, halibut, skates, and floun- Reversing this problem, say experts, requires der—in just the past 50 years, according to international cooperation. In 2002 at the World a study in Nature in 2003.“We’re so good at Summit on Sustainable Development, 192 killing things,” says lead researcher Ransom nations signed on to a non-binding agreement Myers of Dalhousie University in Canada,“that to restore fisheries stocks to their maximum we don’t even know how much we’ve lost.” sustainable yield by 2015.This will mean lower- According to oceanographers not connected ing the percentage of fish killed each year by with the study, this research gives the “best evi- reducing quotas, cutting subsidies, reducing dence yet that recent fish harvests have been bycatch (fish that are thrown away because sustained at high levels only because the fleets they are not economically profitable), and cre- have sought and heavily exploited ever more ating networks of marine preserves to protect distant fish populations.” fish stocks. The widespread use of massive trawlers On the local level, marine conservation (huge ships that literally scrape the bottom organizations are helping consumers find sus- of the ocean) and long-liners (boats that drag tainable fish at their local grocery stores and lines with baited hooks up to several miles restaurants by providing easy-to-carry informa- long) has been a recipe for disaster for most tion cards. Small enough to fit into a wallet, of the world’s large predatory fish.When these these cards provide consumers with a short list predators disappeared from the oceans, smaller of eco-friendly fish species to choose from.The fish were able to rebound their populations, Seafood Choices Alliance, a coalition of chefs, but only for a short time before they, too, hoteliers, wholesalers, retailers, and fishers, has became overfished. It is those larger fish, gone one step farther. It is encouraging restau- according to co-author Boris Worm of the rants, hotels, and markets not to sell species Institute for Marine Sciences in Germany, known to be sharply in decline. that “we most value” for their economic and ecosystem services.And if the fish disappear, so SOURCE: See endnote 8.

70 State of the World 2004 WATCHING WHAT WE EAT benefits of more food and cheaper food. growing human appetite for meat.)9 (Currently, this technology is used not to Perhaps the most overt example of con- feed hungry people, but primarily to raise sumption gone awry in the food supply is the corn and soybeans to feed livestock and the expanding waistlines and the crippling rise in

BOX 4–2. LUXURY FOODS

From foie gras to shark fin soup to caviar, con- ulate that all sturgeon species are threatened sumers around the world have always craved to some degree; Beluga sturgeon, the most rare and exotic foods as symbols of wealth famous source of caviar, may no longer be and glamour. People will pay dearly for them, reproducing in the wild.Americans alone despite a sometimes marginal nutritional value: import more than 40,000 kilograms of caviar the $57-billion trade in coffee, cocoa, wine, and per year—accounting for over 40 percent of tobacco is worth more than international trade the world’s caviar sales—despite a price tag in grain. Growing consumer classes in nations of $2,000 per kilogram. like China and India mean that more people Fishers also kill as many as 100 million sharks around the world can afford such foods.The each year to feed the world’s appetite for shark cachet of such dishes draws partly from their meat and shark fin soup—a delicacy in China high price and scarcity, although this invariably since AD 960 and today revered in Asian cuisine obscures the brutal and ecologically disastrous around the world. Hunters typically catch and conditions behind their production. defin sharks while the animals are still alive, Consider pâté de foie gras.Although the throwing them back into the ocean, where they French consume 90 percent of all foie gras, it either drown or bleed to death. In Asia, traders is considered a delicacy by wealthy consumers might offer 30–40 different species and can sell throughout the world.The name, which literally fins for up to $400 per kilogram. But like stur- means fat liver, gives little indication of how it geon, sharks reproduce slowly, and overfishing is produced. Foie gras is made by force-feeding is pushing their stocks into rapid decline. ducks and geese large amounts of food through groups, ecologists, marine tubes or pipes.This causes the birds’ livers to biologists, chefs, and other concerned groups become abnormally large—they can weigh in are spearheading efforts to ban and stigmatize at more than 10 times the size of a normal certain types of luxury cuisine, and more gen- bird’s liver—not to mention a range of other erally to get people to think before they eat. health problems, including liver hemorrhaging, Animal welfare advocates are campaigning for throat bruising, and even suffocation. U.S. and British restaurants and chefs to get The global trade in caviar has affected foie gras off their menus. In the Netherlands, animal welfare in a different way. Caviar is the chefs voluntarily did this (although customers unfertilized eggs (the roe) of female sturgeons can still ask for it), and other countries have and, more recently, of salmon, paddlefish, and banned the force-feeding of ducks and geese. other species that have grown in popularity The Convention on International Trade in as sturgeon populations have shrunk. Overhar- Endangered Species of Wild Fauna and Flora vesting, habitat loss, pollution, and the slow has called for stricter catch and export quotas, reproduction rates of these large fish have all as well as a universal caviar labeling system. contributed to the declines, which are most International bodies are also working to ban notable in the Caspian Sea states of the former the wasteful practice of shark fin harvesting. Soviet Union, the source of over 90 percent of the world’s sturgeon roe. Fishery experts spec- SOURCE: See endnote 8.

71 State of the World 2004 WATCHING WHAT WE EAT obesity that is becoming epidemic not only in erless. Boycotts of food companies and food the richest nations but in the urban centers of products, grassroots lobbying campaigns poor countries as well. Nutritionists, psy- against certain pesticides, and selection of chologists, and consumer advocates agree various ecolabeled foods all represent exam- that at least one of the causes of the obesity ples of the power that consumers can wield epidemic has been the tendency of food com- to influence farming. panies looking for new customers to flood the At first blush, getting agribusiness behe- media with advertising and to make food as moths to change might seem like a fantasy, yet ubiquitous as possible—a combination that McDonald’s recently responded to concerns makes overeating almost inevitable.10 of animal rights activists and environmental- Part of the evolving role of the consumer ists by encouraging its meat suppliers to will include understanding that—as contro- change certain industry-wide practices. And versial as this may sound—cheap food might Kraft, the world’s largest food company, not always be desirable, particularly when announced plans to stop advertising directed the price stamped on an item does not reflect at children, to shrink its portion sizes, and to the subsidies that governments give to farm- eliminate some of its most unhealthy prod- ers or the cost of cleaning up environmental ucts. William Vorley of the International Insti- problems caused by agriculture. Recent sur- tute for Environment and Development veys from Germany, the United States, and argues that the high level of concentration in the United Kingdom estimate that people agribusiness, in which just a handful of large pay billions of dollars each year to clean up the companies control every step of the food pollution and cope with the other costs asso- chain, can actually facilitate this sort of ciated with modern farming: from removing activism because the targets are relatively few pesticides from drinking water to repairing the and obvious. This logic helped jumpstart the damage from soil erosion to the loss of birds “Race to the Top” project to push the few and other wildlife.11 supermarket chains that dominate the U.K. Artificially low prices also obscure the market “towards a greener and fairer food sys- fact that food grown nearby and eaten sea- tem.” The concentration “makes retailers sonally can often be cheaper, and more very sensitive to campaigns designed around healthful, than foods grown and shipped ethics, safety or environment,” Vorley notes, from thousands of miles away. For instance, because no chain wants to appear to be the surveys from southwest England showed least ethical in the public eye.13 that food sold at farmers’ markets and While these may look like isolated con- through a farm-to-home delivery scheme— sumer actions, they are aimed at grabbing including fruits, vegetables, meat, eggs, and control of how food is produced and steering certified organic produce—was on average the global food system away from its current 30–40 percent cheaper than similar products trajectory. The local manifestation of this from the local supermarket.12 “food democracy” will naturally vary around Although food industry officials and econ- the world, and the motivations will not always omists often point to consumer demand for be humanitarian but will include more selfish cheap food as the ultimate driver of how we concerns like taste, food safety, personal farm, consumers have had little direct impact health, and the preservation of open spaces. on how food production has evolved. Yet The choices in the average supermarket are, this does not mean that consumers are pow- of course, endless. But some of the most pro-

72 State of the World 2004 WATCHING WHAT WE EAT

found changes “eaters” can make include outside—and the consumers who buy this rethinking their relationship with meat, select- meat, which might be labeled as “pasture-fed” ing food produced without agrochemicals, or “free-range”—are helping clean up what and buying locally grown food. Meat repre- has become the most ecologically destructive sents the most resource-intensive segment and unhealthy sector of global farming— of our diet; agrochemicals keep farmers tied industrialized animal production. (See Figure to a monotonous agricultural landscape; and 4–1.) Global meat production has increased local food represents the best hope for return- more than fivefold since 1950, and factory ing power to the people who raise food as well farming is the fastest growing method of ani- as those who eat. mal production worldwide. Industrial sys- tems are responsible for 74 percent of the From Farm to Factory— world’s total poultry products, 50 percent and Back of pork production, 43 percent of the beef, and 68 percent of the eggs. Industrial coun- Like most pigs in the midwestern United tries dominate production, but developing States, the more than 200 sows that live on nations are rapidly expanding and intensify- Paul Willis’s farm in Iowa love to eat corn. ing their production systems. According to But Willis’s animals have a diet and a lifestyle the U.N. Food and Agriculture Organiza- very different from the other 15 million hogs tion (FAO), Asia has the fastest-developing raised in that state. Along with the grain that livestock sector, followed by Latin America Willis’s hogs eat on a daily basis, they graze and the Caribbean.16 outside on pastures and are not confined in Modern meat production, some might the concrete factories that dominate Ameri- argue, is the only way to meet the growing can pork production. Not only do Willis’s ani- appetite for meat around the world. By 2020, mals get the chance to exhibit their natural people in developing countries will consume and instinctive behaviors, like rooting for more than 39 kilograms per person—twice as food, playing, and nest-making, but the meat much as they did in the 1980s. People in they produce is healthier and tastes better industrial countries, however, will still con- than the pork produced on factory farms.14 sume the most meat—100 kilograms a year Because pigs thrive under these more nat- by 2020, the equivalent of a side of beef, 50 ural conditions, Willis can raise his meat with- chickens, and 1 pig. Yet it is questionable out the use of antibiotics or growth whether the system that delivers all this meat promoters, which lowers his costs. And to them can persist as its deficiencies mount instead of selling his meat to one of the big and as alternatives such as vegetarianism and companies that control most hog produc- pasture-raised meat flourish.17 tion in the United States—Smithfield or The cascading problems of animal facto- IBP—Willis markets his pork through the ries begin with the cramped conditions and Niman Ranch, a California-based company the feedlot diet. Cows are ruminants, mean- started in 1982 to distribute humanely raised ing they digest grasses, legumes, and crop meat products to consumers and restaurants.15 residues. But their feedlot ration consists of Willis is part of a growing movement of a mixture of corn and soybeans, since cows farmers and consumers helping livestock go and other animals on this diet can quickly back to their roots. Although the shift might gain weight—and fatter livestock bring a seem old-fashioned, farmers that raise animals higher market price. Although many con-

73 State of the World 2004 WATCHING WHAT WE EAT

Feed Manure • A calorie of beef, pork, INPUTS OUTPUTS • Manure from intensive or poultry needs 11–17 pig operations stored calories of feed. in lagoons can leak into • 95 percent of soybean groundwater or pollute harvest is eaten by nearby surface water. animals, not people. Methane • Feed containing meat and • Belching, flatulent live- bone meal can cause mad stock emit 16 percent cow disease, which has of the world’s annual affected thousands of cat- production of methane, a tle in industrial countries. powerful greenhouse gas. Water • Producing 8 ounces Disease of beef requires 25,000 • Eating animal products liters of water. high in saturated fat and cholesterol is linked to Additives cancer, heart disease, • Cows, pigs, and chickens other chronic illnesses. get 70 percent of all • Factory farm conditions antimicrobial drugs in the can spread E. coli, United States. Salmonella, and other Fossil Fuels food-borne pathogens. • A calorie of beef takes • Creutzfeldt-Jakob 33 percent more fossil fuel disease, the human energy to produce than a variant of mad cow calorie of energy from disease, has killed at least potatoes would. Source: See endnote 16. 100 people.

Figure 4–1. Industrial Meat: Inputs and Outputs sumers have come to expect the taste, texture, more antibiotics by volume than humans do. and appearance of industrial meat marbled According to the World Health Organiza- with fat, this grain-fed beef has a number of tion and FAO, the widespread use of these hidden costs. First, cows tend to suffer from drugs in the livestock industry is helping to bloating, acidosis, liver abscesses, gas, and breed antibiotic-resistant microbes, and mak- other symptoms of this rich diet. Second, ing it harder to fight diseases among both ani- the standard diet in factory farms has also mals and humans alike. But the crowded, been linked to the spread of food-borne unsanitary conditions weaken the animals pathogens, such as Escherichia coli 0157:H7, further, and Salmonella, E. coli, and other which can contaminate meat or even veg- lethal diseases can spread rapidly in the etables if the raw manure is used as fertilizer. unhealthy herd or flock.19 It turns out that the grain diet also encour- Animals raised in crowded conditions, ages the growth of the harmful microbe in says Ian Langford of the University of East the cow’s stomach, whereas a grass diet elim- Anglia, encourage the growth and spread of inates the microbe.18 microorganisms in meat because they often This is one reason that cattle and other live- arrive at slaughterhouses covered in feces. stock are fed low levels of antibiotics. In the “The problem,” according to Langford, United States, livestock consume eight times “isn’t with the consumer looking after the

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food well enough, but…in the food pro- grass-fed products have higher levels of con- duction process.”20 jugated linoleic acid, which can block tumor These kinds of modern factory farming growth and lower the risk of obesity and innovations and technologies have the poten- other diseases.23 tial to create food safety disasters. For instance, These health claims have prompted many bovine spongiform encephalopathy (BSE, people to seek out meat raised on pasture known as mad cow disease) is a virus caused without antibiotics, hormones, or any of the by feeding cattle the renderings of other rumi- other inputs that are tied to factory farming. nants, and it can be spread to humans who eat But people who have curbed their meat con- infected meat. Since it was first reported in the sumption might also be interested in the eco- United Kingdom in 1986, BSE has been logical implications of moving animals back detected in 33 countries, and health officials outside. According to Canadian scientist estimate that 139 people worldwide have suc- Vaclav Smil, feeding animals grain is “highly cumbed to variant Creutzfeldt-Jakob disease, inefficient and an absurd use of resources.” a related illness in humans.21 Producing just one calorie of flesh—beef, Similarly, outbreaks of avian flu in densely pork, or poultry—requires 11–17 calories of populated chicken farms in Hong Kong dur- feed, according to Smil, whereas animals raised ing the past five years have led to massive on pasture require little if any grain. As a culls of thousands of chickens. The disease result, a diet high in grain-fed meat can require jumped the species barrier for the first time two to four times more land than a vegetar- in 1997, killing 6 of the 18 people infected. ian diet. When people eat less meat, it is In 2003, avian flu spread to humans again, unlikely that the forgone feedgrain will reach killing two. Dr. Gary Smith of the Univer- hungry mouths, but it does mean considerably sity of Pennsylvania School of Veterinary less pressure is put on farmland to raise vast Medicine warns that these diseases and oth- monocultures of corn and soybeans.24 ers will continue to spread because “the Reversing the human health and envi- nature of farming nowadays is such that ronmental problems caused by our appetite there is much more movement of animals for modern meat will mean eating fewer ani- between farms than there used to be…The mal products. Animals raised on pasture do problem is that the livestock industry is oper- not mature as quickly as feedlot animals do, ating on a global, national, and county level.” and rangelands will support fewer total ani- The recent foot-and-mouth disease epidemic mals than can be squeezed into feedlots. in the United Kingdom is a perfect example But demand for meat is growing, especially of how just a few cows can spread a disease in the developing world, where rising across an entire nation.22 incomes and urbanization are changing diets. Food safety outbreaks aside, nutritionists According to David Brubaker, former Exec- have found that grain-fed livestock are not as utive Vice President and CEO of PennAg healthy as the grass-fed alternative. Animals Industries, people in developing nations do raised in feedlots accumulate Omega 6 fatty not have the luxury of choosing expensive acids (the bad fats), which have been linked pasture-raised or organic meat. Instead, they with cancer, diabetes, obesity, and immune are climbing up the protein ladder and fol- disorders. In contrast, grass-fed meat contains lowing the bad example of producing and Omega 3 fatty acids, like those found in fatty eating low-quality animal products set by fish, which help lower cholesterol. In addition, the United States and other “fast-food

75 State of the World 2004 WATCHING WHAT WE EAT nations.” Curbing this appetite will mean per bird are considerably lower: no antibi- encouraging developing nations to preserve otics, growth promotants, pricey feed, or traditional methods of raising livestock that huge sheds to maintain. But he has also both support local economies and enrich found a niche in the Filipino market by giv- the environment.25 ing consumers a taste of how things used to The inefficient inputs to factory farms are be. His chickens are part native and part mirrored by inefficient outputs in terms of Sasso (a French breed) and are better adapted waste. When livestock waste can be used to to the climate of the Philippines, unlike white fertilize crops, it enriches the soil and is a chickens that are vulnerable to heat. Not key part of a healthy farm—one of the main only are Inocencio’s chickens raised reasons that farmers around the world keep humanely, they are nutritious and taste good. livestock. Yet the waste produced by thou- They are just 5 percent fat, compared with 35 sands of animals in confinement facilities usu- percent in white chicken, and they do not ally exceeds the amount of land available to contain any antibiotics.27 handle it. As a result, manure goes from Creating the space and market for these being a valuable agricultural resource to being sorts of farms will sometimes require more a toxic waste. Manure contains nitrates, which than just actions by farmers. In Poland, where at high concentrations can cause methemo- almost every farm raises a few pigs on pasture globinemia (blue baby syndrome), cancer, or hay, large meat corporations have begun and algal blooms and eutrophication of sur- stepping in. Animex, the Polish subsidiary of face waters. The lagoons used to store liquid Smithfield, the world’s largest pork producer, waste are also vulnerable to natural disasters, has plans to turn some of the country’s rich- as discovered in North Carolina when they est and most productive land into concen- burst during Hurricane Floyd in 1999, flood- trated animal feeding operations (CAFOs) ing miles of waterway with excrement and like those that now dot the landscapes of causing massive fish kills.26 North Carolina and Iowa in the United Farmers who begin to see the role of ani- States. However, activists from the U.S.- mals differently often enjoy a range of unex- based Animal Welfare Institute have teamed pected benefits. In the Philippines, Bobby up with Andrzej Lepper, head of the Polish Inocencio has transformed the way many Farmers’ Union, to oppose Smithfield’s Filipinos produce and eat chicken. Once a attempt to take over the Polish hog industry. factory farmer, Inocencio raised white chick- By showing Polish farmers how CAFOs have ens for Pure Foods, one of the largest com- destroyed many small-scale U.S. livestock panies in the Philippines, and followed the farms, they hope they can convince them standard model of squeezing tens of thou- and the Polish government to resist corpo- sands of birds into cage-lined buildings. But rate agriculture.28 in 1997, he decided to revive village-level Such coalitions are prompting some cor- poultry enterprises that support family-size porations to change their minds about how farms. He began raising free-range chickens meat is made. In 2002, bowing to pressure and teaching other farmers how to do the from animal rights and public health groups, same. His birds roam freely in large tree- McDonald’s announced that it would stop covered areas of his farm that he encloses buying eggs from chickens confined in bat- using recycled fishing nets. And Inocencio’s tery cages and forced to lay additional eggs farm is profitable—in part because his costs through starvation—practices already banned

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in Europe but still permitted in the United tion, provided expert support in the field, States. By 2004, McDonald’s will require and paid farmers in their first years of con- chicken suppliers to stop giving their birds version. The program grew from 9 certified antibiotics to promote growth and will choose organic farms in 1993 to 106 in 1998, and indirect suppliers who do not use antibiotics then to 290 farms in 2001 covering 6,469 over those who do.29 hectares of land, together with 8 certified Since McDonald’s is one of the largest organic processing companies and 11 other buyers of chicken in the United States, the certified organic companies. This sector still company’s decision to change its standards represents a small fraction of the country’s will have a domino effect on the entire meat total area and food market. Nonetheless, industry. And Wendy’s, Burger King, and groundwater contamination rates in the com- Kentucky Fried Chicken have recently hired munities surrounding the converted farms animal welfare specialists to research and have dropped substantially, and locals are devise new standards to ensure better animal enjoying a new source of chemical-free food.32 welfare. The World Bank, too, has changed Other regions around the world have also its mind about funding large-scale livestock used to prevent groundwa- projects in developing nations. In 2001, the ter pollution. Since 1992, local authorities in Bank said that as the livestock sector grows Munich and Leipzig have offered financial “there is a significant danger that the poor are incentives to farmers who switch to organic being crowded out, the environment eroded, methods and have watched the nitrate levels and global food safety and security threat- in untreated groundwater fall from well over ened.” It promised to use a “people-cen- 40 milligrams per liter in the 1980s to less tered approach” to livestock development than 26 milligrams in 1996. The utilities in projects that will reduce poverty, protect envi- these German cities do not just provide pay- ronmental sustainability, ensure food security, ments and consultation: the Munich water and promote animal welfare.30 company helps market the organic produce grown in its district and uses only local, Food Without Pollution organic produce in its canteen. (The author- ities estimate that the total spent so far is just Just a few years ago, drinking the water in one seventh of what they would have spent Lithuania was a public health risk. Concen- on new water purification and processing trations of nitrate, a fertilizer byproduct that technology.)33 is poisonous in high doses, were well above As these government agencies have found, safe limits—six times the acceptable level in although organic produce generally costs some regions. Since the 1950s the Lithuan- more at the grocery store—a result, industry ian Ministry of Agriculture and Ministry of analysts say, of limited distribution and mar- Environmental Protection had struggled to keting—organic farming can actually be reduce the high rates of fertilizer and pesti- much cheaper in a range of other ways. cide applications in the northern Karst region, Researchers at the University in Essex found the nation’s agricultural epicenter, where the that the cost to the public of removing pes- groundwater had become severely contami- ticides from drinking water supplies in Eng- nated. But in 1993 they began to encourage land is equivalent to one quarter of what farmers to forgo chemicals.31 farmers pay for the chemicals. They also esti- They offered classes in organic produc- mated that organic farming cost society one

77 State of the World 2004 WATCHING WHAT WE EAT third as much in terms of pesticide pollution, large scale. It is true that farmers converting erosion, and other fallout as nonorganic to organic production often encounter lower farming did. A study from the Philippines yields in the first few years, as the soil qual- found that the health costs to farmers from ity, soil life, and insect populations recover spraying pesticides—sick days, visits to clin- from years of assault with chemicals. It may ics, and medication—exceeded the value of take several seasons to refine the new crops saved from pests, not to mention the approach. And because of the emphasis on cost of the sprays, powders, and other pesti- crop diversity as a means to reduce pest prob- cides in the first place.34 lems, organic farms will not raise the same Since agricultural chemicals running off of crop every year, making it difficult to compete farm fields disrupt or simply kill the benefi- with other farms on total production of a cial organisms living in the soil, streams, single crop. But studies have shown that lakes, and coastal waterways, it is no sur- organic farming can be just as productive prise that studies from around the world and generally more profitable.37 have found that organic farms harbor a A recent survey comparing organic and greater number and diversity of birds, insects, nonorganic yields at agricultural research wild plants, and earthworms and other soil stations in the United States found that life than nearby nonorganic farms. In other organic corn yields were 94 percent of con- words, organic agriculture is not just a reac- ventional yields, organic wheat yields were 97 tion to industrial farming. It is a healthier way percent, organic soybean yields were 94 per- for humans to raise food. As the toll of chem- cent, and organic tomatoes showed no yield ical-intensive agriculture mounts, a more difference.38 organic approach to farming might be the A seven-year study from Maikaal District only option.35 in central India involving 1,000 farmers cul- Public interest in organic foods has already tivating 3,200 hectares found that average pushed global sales to an estimated $23 bil- yields for cotton, wheat, chili, and soy were lion in 2002, more than a 10-percent increase equal or up to 20 percent higher on the from the previous year, according to Organic organic farms than on nearby convention- Monitor, a consulting firm that tracks the ally managed ones. Farmers and agricultural industry. Farmers from Australia to Argentina scientists attributed the higher yields in this raise certified organic crops on nearly 23 million hectares, and many more raise crops Canada ($850 mill.) without agrochemicals, either by choice or Japan ($350 mill.) necessity, but are not certified as organic. Rest of world North America and Europe still account for ($725 mill.) United States most of the sales, though markets are grow- Germany ($2.8 bill.) ing rapidly in all regions. (See Figures 4–2 ($11 bill.) and 4–3.)36 Some of the biggest obstacles to the con- Other United Kingdom tinued spread of organic farming tend to be Europe ($1.6 bill.) conceptual. Many farmers, agricultural Source: ($3.2 bill.) Italy ($1.2 bill.) researchers, and people who make farm pol- IFOAM France ($1.2 bill.) icy simply believe that farming with fewer or Figure 4–2. Global Sales of Organic no synthetic chemicals is not feasible on a Foods, Circa 2002

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Million Hectares Africa, and Latin America of the adoption 12 Source: IFOAM of organic agriculture significantly 10 increasing yields in comparison with “unimproved traditional practices.” He 8 notes, “Many cases show that organic farming increases food security and farm 6 incomes. This holds true for certified 4 systems aimed mainly at northern markets and informal ones aimed at local mar- 2 kets.” Parrot describes several mecha- nisms at work, including the use of 0 manure and compost to help conserve Italy Spain China Canada France water and buffer farmers against drought AustraliaArgentina UruguayGermany conditions and the elimination of expen- United States United Kingdom sive artificial inputs, which can reduce 41 Figure 4–3. Top National Plantings of indebtedness. Certified Organic Land, Circa 2002 Perhaps a more important question than whether organic farming is feasible dry region to the emphasis on cover crops, is how much longer farmers can continue to compost, manure, and other practices that depend on heavy doses of agrochemicals. increased organic matter (which helps retain Pests have shown an uncanny ability to dodge, water) in the soils.39 resist, and evolve around anything we throw A study from Kenya found that while at them, so that today farmers actually lose a organic farmers in “high potential areas” greater share of their crop to pests than they (those with above-average rainfall and high did 50 years ago. Even genetically engineered soil quality) had lower maize yields than crops, which were touted as helping to elim- nonorganic farmers, organic farmers in areas inate pesticide use, are vulnerable to the resis- with poorer resource endowments consis- tance treadmill. Researchers at Iowa State tently outyielded conventional growers. In University have discovered at least four species both regions, organic farmers had higher net of common weeds that have developed resis- profits, return on capital, and return on tance to Roundup herbicide, the product labor.40 used with herbicide-tolerant plants that have A 2002 FAO report noted that “organic been grown in the Midwest for less than a systems can double or triple the productivity decade. This will necessitate further pesti- of traditional systems” in developing nations cide use. In this futile effort, farmers have but suggested that yield comparisons offer a spent billions of dollars attacking increasingly “limited, narrow, and often misleading pic- resistant pests with increasingly potent chem- ture” since “the multiple environmental ben- icals, and most pesticides have ended up in efits of organic farming, difficult to quantify our water, air, soil, and bodies.42 in monetary terms, are essential ingredients Although the public benefits of organic in any comparison.” Nick Parrott of Cardiff farming—reduced water pollution or University, who recently assessed the poten- increased wildlife—are fueling some of the tial of organic farming in the developing growth in sales, the greatest interest has world, found numerous examples from Asia, come from consumers with more personal

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concerns. Parents, for instance, may choose adverse effects in animal studies. But human to feed their newborns organic baby food— dietary exposure can exceed these conserva- knowing that small, developing bodies are tive definitions of acceptable risk. more sensitive to endocrine-disrupting pes- “The possibility that you are getting to an ticides, residues of antibiotics and growth unsafe level increases because of the multiple hormones, and other synthetic ingredients residues in the diet,” on top of exposure used routinely in food production. Then from drinking water, air, and other sources, they may decide to make a shift for the entire says Edward Groth, a senior scientist with household. Organic farming is the only sys- the Consumers Union. Groth notes that 40 tem of food production in which consumers different organophosphate pesticides are have a clear sense of what practices are approved for use on crops in the United allowed and forbidden, and farmers not only States alone, and that since all organophos- must demonstrate that they are not spraying phates share the same mechanism of toxic known pollutants on the land but also must effects, “it’s reasonable to assume that the follow any number of practices that actually impacts are additive or synergistic.” restore the landscape, from crop rotation to Researchers recently found that men with cover-cropping to composting. This level of higher levels of three common pesticides in transparency does not exist with most food their urine showed dramatically lower sperm production, where farmers are allowed to counts and a higher incidence of irregular use a cocktail of chemicals, feed indiscrimi- sperm. And toxicologists are now finding nate amounts of antibiotics and hormones to that a mixture of chemical fertilizers (nitrates) animals, and even apply sewage sludge to and pesticides, the two major inputs in indus- their fields. trial agriculture that often end up in ground- water together, can actually exacerbate the adverse health effects of exposure to each. Consumers eating organic fruits and Groth adds that exposure for young chil- vegetables are exposed to one third dren, because of their smaller bodies and as many pesticide residues as they greater sensitivity, is more likely to be in the would get in conventional produce. dangerous range. “But the kind of harm we’re talking about”—damage to the ner- vous system that shows up later in life, for There is abundant evidence that farmers instance, as a learning disability—“is subtle regularly exposed to pesticides run a higher and unlikely to be detected without careful risk of certain cancers, immune system mal- studies of large populations,” he says.43 functions, mental illness, and a range of other Exposure is clearly exacerbated by eating conditions. Tests on animals have demon- food grown with pesticides. Researchers ana- strated that large doses of common chemicals lyzing thousands of U.S. Department of are highly toxic. But most experts agree that Agriculture food samples found that con- it is harder to pin down the health effects of sumers eating organic fruits and vegetables chronic exposure to lower levels of pesticides are exposed to one third as many pesticide in the food supply or groundwater. Govern- residues as they would get in conventional ment regulators generally consider the safe produce, which was also six times as likely to level for humans to be 100 times, or even carry multiple pesticide residues. And a 1,000 times, less than levels that have no recent study found that children fed pre-

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dominantly organic produce and juice had Eat Here only one sixth as many pesticide byproducts in their urine as children who ate conven- One of the hottest concepts in the food indus- tionally farmed foods.44 try is “traceability.” The term describes the Most of the studies on the health and ability of a restaurant or grocery store or ecological impacts of pesticide use have been hungry shopper to know where a food item conducted in the industrial world. But some came from, who produced it, what chemicals of these concerns are most acute in the were sprayed on it, and any number of other developing world, not simply because farm- characteristics that reach beyond traditional ers there continue to use some of the most concerns of taste, price, and packaging. Get- toxic pesticides—the ones banned in wealth- ting this information depends, to a large ier nations—but also because these same extent, on shortening the distance between farmers are finding heavy chemical use less the farmer and the eater. affordable and appropriate for their condi- The motivation to eat local food is as var- tions. In India, according to the Ministry of ied as the foods themselves. Homemakers Agriculture, 32 of the 180 pesticides regis- responding to recent food scares and craving tered for use have been banned in other fresh food. Urbanites rebelling against an countries due to health concerns. Between anonymous, long-distance food chain. Envi- 1998 and 2001, India produced 40,000 ronmentalists trying to halt urban sprawl and tons of these compounds each year. the loss of green spaces. Nutritionists push- Monocrotophos, an insecticide highly toxic ing less processed foods. Farmers trying to sal- to the neurological system whose registration vage their livelihood. Politicians in developing was canceled in the United States in 1988, countries hoping homegrown food can help is India’s top-selling pesticide.45 them retain precious foreign exchange. Chefs, Although most people select organic food restaurateurs, and food connoisseurs awak- for what it does not have, there is recent evi- ening to the pleasures of regional cuisines dence that such produce contains substan- and artisinal dishes. tially higher concentrations of antioxidants Preserving distinct flavors and “the right and other health-promoting compounds to taste,” is only part of the mission of a than crops produced with pesticides. A Uni- new international movement called Slow versity of California study confirmed a long- Food. This 17-year-old group, which has held suspicion among some nutritionists 75,000 members in 80 nations, views the and agricultural scientists that heavy use of social interactions between eaters and bakers, pesticides and chemical fertilizers can disrupt butchers, and farmers, as well as meals shared the ability of crops to synthesize certain with friends and family, as inseparable from phytochemicals—compounds that have the joy of eating. Carlo Petrini, founder and antioxidant properties and are associated president, notes that the price societies have with reduced risk for cancer, stroke, heart paid for having access to every possible food disease, and other illnesses. Some observers at any time of year is “the deliberate devel- noted the irony of conventional produce opment of species with characteristics func- carrying both traces of chemicals that are tional only to the food industry and not to known or suspected carcinogens and fewer the pleasure of food, and the consequent compounds that help our bodies ward off sacrifice of many varieties and breeds on the cancer.46 altar of mass-production.”47

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In the Peruvian Andes, the Association lots of energy, reduce greenhouse gas emis- for Nature Conservation and Sustainable sions, keep money in their community, and Development (ANDES) is not only trying to gain a certain peace of mind that comes from preserve traditional cropping patterns as a knowing their farmers.49 way to improve farm incomes, it is also reviv- A good rule of thumb is that the farther ing an east-to-west food trading corridor food travels, the less money is retained by the started by the Incas thousands of years ago. farmer and the rural community. The hauling, In Choquecancha, the central town along packaging, processing, and brokering of the this corridor, people exchange highland foods food gobbles more and more of the final (potatoes, guinea pigs, lama, lima beans, ama- price. This leakage of money out of commu- ranth, and local tubers such as ulloco, oca, and nities—and the ability of local food to help mashua) for lowland foods (cocoa, coca, staunch it—can be particularly relevant where mangos, papaya, and coconut). For Peru- people are still engaged in agriculture. A vians who have moved to lowland urban study by the New Economics Foundation in areas, where fast food and processed cuisines London found that every £10 spent at a local are nudging out the local fare, this market food business is worth £25 for the local area, allows them to share in the diverse mountain compared with just £14 when the same foods enjoyed in the area for thousands of amount is spent in a supermarket—that is, a years. In this case, people are paying not just pound or a dollar, a peso, or a rupee spent for the nutritional value, according to Ale- locally generates nearly twice as much income jandro Argumedo of ANDES, but also “to for the local economy.50 preserve the spiritual stewardship of the This sort of multiplier is part of the moti- mountain cultures, the highland cultures, vation behind the Navdanya (Nine Seeds) and the indigenous varieties that end up pro- movement in India founded in 1987 by the viding the best nutrition.” ANDES plans to Research Foundation for Science, Technol- open a restaurant in Cuzco that would feature ogy and Ecology to protect local varieties of local foods.48 wheat, rice, and other crops from patents The movement to preserve farms, farm- by cataloguing them and declaring them land, and cuisines is evolving at a time when common property. “We started the move- food travels farther and is controlled by a ment to anticipate genetic engineering and smaller number of global entities than ever patent monopolies in agriculture,” explained before. The value of international food trade Indian activist and scientist Vandana Shiva, has tripled since 1960 and the volume has who heads Navdanya, “but also to bolster the quadrupled. In the United States, the aver- village economies.” Navdanya started set- age food item travels 2,500–4,000 kilometers, ting up locally owned seed banks, farm sup- about 25 percent farther than in 1980. In the ply shops, and storage facilities, and it United Kingdom, food travels 50 percent encouraged a shift to organic agriculture to farther than two decades ago. A “traditional” reduce dependence on imported chemicals. Sunday meal in Great Britain made from “Right now we have over 3,000 villages in imported ingredients generates nearly 650 which farmers have basically created what times the transport-related carbon emissions we call ‘Freedom Zones,’ those are agricul- as the same meal made from locally grown tures that are free of chemicals, free of cor- ingredients. (See Figure 4–4.) As a result, porate inputs, free of hybrid seeds, free in the people who eat local produce can help save future of patents and genetically engineered

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crops.” Working with Strawberries Source: Jones farmers’ organizations, 8,772 km women’s groups, and CALIFORNIA church groups, Nav- danya has set up over Broccoli Potatoes 20 seed banks in seven 8,780 km 2,447 km states. Movement orga- GUATEMALA ITALY nizers estimate that All- they serve more than British 48 km 10,000 farmers and Blueberries Runner beans 18,835 km 9,532 km have rescued more NEW ZEALAND THAILAND than 1,500 hundred varieties of rice, hun- dreds of millets, pulses, Beef joint Carrots 21,462 km 9,620 km oilseeds, and vegetable AUSTRALIA varieties.51 SOUTH AFRICA Local crop diversity Figure 4–4. Local Versus Imported Ingredients: Britain might provide all that is available to eat in many of the poorest Borlaug recently wrote in the New York nations, where people cannot readily afford Times when he made a plea for greater food imported food. In Zimbabwe, urban farmers self-sufficiency in Africa. In 2000, several have found a market for indigenous vegetables school districts in northern Italy passed new in city-dwellers who crave a gastronomic link laws mandating that the region’s schools to their country’s cultural identity. House- favor local and organic produce when buy- holds depend on roughly 25 indigenous veg- ing for their cafeterias. There are now over etables, including Lady’s finger (also known 300 organic school meal services in Italy, as okra), Spider flower, Horned cucumber, and and hundreds more local meal services. Offi- bottle gourd, which provide a source of highly cials and citizens pushed for this shift partly nutritious leafy vegetables from August to to preserve the rural landscape and farm December—the typical season of scarcity—giv- livelihoods, but they also found that the ing the poor both a source of income and fresher meals with fewer processed ingredi- nutrition. The government’s Crop Breeding ents could save money, were healthier, and Institute is helping farmers raise these crops by tasted better.53 distributing seed and developing processing Greater self-sufficiency, in turn, means that and preservation technologies. Governments nations, regions, and communities command can also encourage domestic farm economies greater control over how food is produced. with procurement programs that get local “In the present food marketplace, there are crops into government offices, hospitals, and great inequalities with respect to voting schools.52 power, and more fundamentally, with respect “School lunch programs, for example, can to control,” according to sociologist JoAnn provide a significant stimulus to the expan- Jaffe of the University of Regina in Canada, sion of commercial food markets, if the pro- a situation due in part to how the food sys- duce involved is locally grown,” Nobel tem has sprawled. Jaffe suggests a retaliatory laureate and agricultural scientist Norman strategy of “eating lower on the marketing

83 State of the World 2004 WATCHING WHAT WE EAT

chain” by buying food as locally as possible celebrates traditional cooling beverages, in order to regain sovereignty and to create including brews made from coconut, mango, a direct route for feedback between farmer litchi, barley, and rhododendron. “Our fes- and eater. (Eating lower on the marketing tivals are a way to help people regain confi- chain will often be healthier, because buying dence in their traditions.”55 more food directly generally means eating more fresh fruits and vegetables, and because The Rise of Food Democracy many of the extra steps between the farmer and the consumer remove nutrients and fiber Food democracy is a term that might best and add fat, sugar, salt, and other fillers.) In describe the growing number of farmers, contrast to the backroom decisionmaking consumers, chefs, and food businesses resist- behind fewer corporate doors, farmers’ mar- ing the temptation to eat blindly and instead kets, community-supported agriculture, and eating deliberately. Yet rethinking our rela- locally owned food businesses all tend to tionship with food is not simply about giving return decisionmaking power to the local up meat or the so-called convenience of shop- community.54 ping at a chain grocery store. Changing our diets is about adding some- thing back to our lives that has been lost—our Eating is not a choice, but a necessity. connection to food and the people who pro- But we do have the right—and the duce it. Whether someone is a farmer, a responsibility—to choose how our restaurateur, a politician, a banker, an entre- food is produced. preneur, a student looking for a career, or a concerned parent, we all need to know more about the food that we buy and eat. And In many communities, these food busi- there are an infinite number of entry points nesses no longer exist. The local butcher to eat more deliberately and reinforce food and baker, the dairy and the cannery, have democracy. Eating is not a choice, but a folded under waves of consolidation. As necessity. But we do have the right—and the restaurants, school cafeterias, supermarkets, responsibility—to choose how our food is and other food businesses begin buying produced. From shopping at a local farmers’ more food locally—and as consumers market to preparing meatless meals to buying demand it—the forgotten infrastructure can fair-trade coffee and cocoa, small but grow- gradually re-emerge. Navdanya recently ing groups of consumers all over the world are opened a local cafe in Delhi, similar to the voting with their forks and their wallets for a planned ANDES cafe in Cuzco, linking the healthier food system. countryside and city by promoting Indian The typical consumer will not necessarily food traditions and celebrations that revolve take these steps alone. And although few around the seasonal harvests. In Hope’s Edge, people would tolerate their governments Navdanya’s Maya Jani explains, “Navdanya mandating what they eat, governments com- wants to retrieve indigenous food and drink mand considerable power to change the way from extinction through pleasure—and fast, we grow food—through everything from before our taste buds are completely stolen regulations on what chemicals farmers use to by Pepsi and Coke.” During the scorching the sort of research promoted at agricul- summer months, Navdanya’s panna festival tural universities. (See Box 4–3.) As noted

84 State of the World 2004 WATCHING WHAT WE EAT

ple—and can use these purchases to encour- BOX 4–3. POLICY PRIORITIES FOR age certain agricultural markets. (See also RETHINKING OUR RELATIONSHIP Chapter 6.) The Swedish Environmental WITH FOOD Protection Agency recently joined with the Swedish Food Administration and the • Governments should shift the money Swedish Consumer Agency on a campaign spent on agricultural subsidies each year—more than $300 billion—into to link food habits not only with nutrition support for ecological farming. but also with the environment. This collab- • Governments should consider taxing orative effort resulted in a cookbook called pesticides, synthetic fertilizers, factory Mat Med Känsla för Miljö—Food with a farms, and other polluting inputs or Sense for Environment—which argues that farm practices. consumers can substantially reduce energy • Governments should work with farming use in the food chain by making the right organizations to increase the share of 56 their land under organic production to food choices. 10 percent over the next 10 years by In the realm of food, governments and improving organic certification programs, corporations quite often lag behind con- by boosting organic know-how at sumers and are slow to make change without agricultural universities, research centers, some widespread and persistent public out- and extension agencies, and by providing cry. Historically, the biggest food-related subsidies or tax credits to farmers in the victories in the consumer movement, includ- first few years of conversion. • Governments should reform interna- ing mandatory nutritional and ingredients tional trade agreements to eliminate labels, grew out of consumer efforts despite export subsidies, food dumping, and reluctance from governments and the food other unfair trade practices that restrict industry. In hindsight, the changes always the ability of nations to protect and build seemed logical and well overdue. The domestic farm economies by forbidding required grassroots energy, in turn, often domestic price support and tariffs on originates from a shift in mindset. Changing imported goods. • Governments, from the national to the our collective menu, Stuart Laidlaw writes in local level, should use food procurement Secret Ingredients: The Brave New World of for schools, hospitals, government offices, Industrial Food, means producing food that and other institutions to support ecolog- “doesn’t kill fish or send children running ically raised crops from local farmers. inside at recess to escape the pesticides…. We should do these things…not because the SOURCE: See endnote 56. food on our plate would be better for us, but because it would be better for the planet.” The potential for recreating the collective earlier, governments buy considerable menu is vast—and so is the need. But the amounts of food for schoolchildren, gov- work will always depend on motivated indi- ernment offices, and armies—the U.S. gov- viduals searching for a more secure liveli- ernment provides more than 26 million hood, a stronger community, a healthier meals each day to schoolchildren, for exam- environment, or simply a delicious meal.57

85 BEHIND THE SCENES Bottled Water

The next time you visit your solids and deriving from a pro- local food store, you may be tected underground water astonished by the proliferation source. Spring water, in of bottled water choices, from contrast, need not have a high-end names like Perrier constant mineral composition and Evian to their low-rent and is usually cheaper. store-brand cousins. World- Purified water, also called wide, bottled water consump- drinking water, is taken from tion is growing at an annual lakes, rivers, or underground rate of 12 percent, though in springs and has been newer markets like India, it is treated—making it almost increasing by as much as 50 identical to tap water.3 percent annually. Consumers Bottled water’s skyrocketing popularity has across the globe now spend an estimated $35 a number of causes. In Asia and the Pacific, billion a year on this water.1 population growth and problems with local Although its contents might appear the water quality and supply are the biggest same everywhere, bottled water essentially factors. (Currently 1.5 billion people world- comes in three different forms: natural wide have no access to safe drinking water, mineral water, spring water, and purified and 12 million people die each year from dis- water. Under the European Union’s eases brought on by unsanitary water.) Bulk definition, natural mineral water is “microbio- packaging made bottled water more affordable logically wholesome water, originating in in India, the United States, and many other an underground water table or deposit and countries in the early 1990s. And, prompted emerging from a spring tapped at one or more by advertising, many consumers buy bottled natural or bore exits.” In Europe, mineral water as an alternative to soft drinks and alco- water’s reputation for health benefits dates hol because it is perceived to be safer than tap back to the Roman Empire. The actual bene- water and, particularly in France, because it fits of these minerals, however, are regarded tastes better than tap water.4 today as minimal. While the sources of these Yet many people are concerned about the waters are protected from pollution, since the environmental costs of producing bottled water is not disinfected it can contain naturally water. A leading concern is that growing occurring bacteria. And though bottlers guard demand for the water could put a strain on against it, contamination is always possible, as existing water resources. In recent years, seen in the 1990 worldwide recall of Perrier several international beverage companies due to high benzene levels.2 have been exploring water-rich Canada as In the United States, the Food and Drug a source for bottled water. To prevent this, Administration defines natural mineral water several Canadian provinces have banned, or as having 250 parts per million total dissolved are considering banning, the bulk export of

86 State of the World 2004 BEHIND THE SCENES: BOTTLED WATER

fresh water.5 gium, Canada, Denmark, Finland, Germany, The Container Recycling Institute reports the Netherlands, Norway, Sweden, Switzer- that sales of virgin resin PET (polyethylene land, and 11 states in the United States.8 terephthalate), the plastic most commonly Americans say one main reason they drink used in water bottles, shot up to 738 million bottled water is because it is safer than tap kilograms in 1999, more than double the water. Yet a four-year Natural Resources amount in 1990. Producing 1 kilogram of Defense Council study tested a thousand bot- PET plastic requires 17.5 kilograms of water tles sold in the United States and found that and results in air emissions of 40 grams of about one fifth contained chemicals such as hydrocarbons, 25 grams of sulfur oxides, 18 toluene, xylene, or styrene—known or possi- grams of carbon monoxide, 20 grams of ble carcinogens and neurotoxins. In India, nitrogen oxides, and 2.3 kilograms of carbon tests by the Centre for Science and Environ- dioxide. In terms of water use alone, much ment in February 2003 found high pesticides more is consumed in making the bottles than levels in sampled waters, resulting in govern- will ever go into them.6 mental quality certificates being taken away As for distribution, one large difference from a number of brands and warnings issued between bottled water and tap water comes to Coca-Cola and PepsiCo.9 from the fossil fuels burned to transport it by The United Nations declared 2003 to be truck, train, or boat instead of by pipe. The the International Year of Freshwater, and it is World Wildlife Fund, while noting that 75 working to improve the quality of fresh water percent of bottled water is produced for local worldwide. One of the targets under the U.N. consumption, argues that international com- Millennium Development Goal of ensuring panies should invest in bottlers aiming at local environmental sustainability is to halve the markets and ship bottled water in bulk proportion of people without safe drinking containers. Yet even this would be more inef- water by 2015. Yet given the environmental ficient than public drinking water systems.7 impacts of the use and disposal of bottled Among the largest issues besetting bottled water, it is worth asking if there is not a bet- water is plastic waste. According to the Con- ter way to distribute this vital resource. For tainer Recycling Institute, in 2002 some 14 those of us fortunate enough to have the billion water bottles were sold in the United option, tap water (filtered, if necessary) is the States, 90 percent of which were thrown in cheaper, less polluting choice.10 the trash—even though most of them were —Paul McRandle, The Green Guide made of recyclable PET plastic. In June 2003, the Pollution Control Board of West Bengal, India, determined that bottle produc- ers were responsible for collecting used bot- tles and recycling them. Effective bottle bills promoting recycling also exist in Austria, Bel-

87 BEHIND THE SCENES Chicken

Most chickens follow one of the equipment to keep it two paths: they are raised going; once you throw to lay eggs (layers) or only in the chickens, feed, for their meat (broilers). and other miscellaneous They begin their journey expenses, the start-up costs along the industrial food in industrial countries reach at chain in breeding farms least $1 million.2 owned by Tyson Foods, Per- Once on the farm, each laying due Chicken, or some other hen is put into a wire battery cage agribusiness company. There, with as many as nine other birds. These eggs are kept warm by care- layers will each produce about 300 eggs per fully controlled incubators. Breeders make year—more than three times as many as sure that chicks all hatch at close to the same chickens did a century ago, thanks to genetic time by artificially inseminating the mother manipulation and growth-promoting drugs hens. After hatching, chicks destined to be mixed into their feed. Hens are also tricked layers come into contact with humans for into laying more eggs by round-the-clock the first, and often the only, time. Workers artificial lighting. Their cages, stacked one sex the chicks when they are one day old, on top of the other and covered in dripping throwing the males into large bins. These feces, allow for little movement. The hens are unlucky chicks are ground up (sometimes easily startled because they rarely have any while they are still alive) for use as fertilizer human contact. Usually the only birds that or animal feed.1 producers have to touch are those that have Females are put on an assembly line and somehow escaped from a cage or have died painfully debeaked with hot blades. After from stress.3 18–20 weeks, the chicks (along with feed, Not surprisingly, chickens kept in these antibiotics, and other inputs) are shipped to conditions are more susceptible to disease and contract growers. The layers are housed in tend to die much earlier than traditionally 60-by-360–foot barns (as are the broilers)— raised chickens. In fact, after a year or so about half the size of a football field. Each most hens are so worn out that their egg barn can hold more than 90,000 chickens; production declines. Producers used to send since the business of raising chickens has gone hens off to be processed into cat and dog high-tech, one farmer can usually manage an food, chicken nuggets, and even baby food. entire barn with little help. Although these But in some places they are killed on-farm or farmers own their own land and incur most of transported to specialty and live-animal mar- the financial risk, they never own the chicks kets, where meat from birds at the end of they raise. From start to finish, the chicks are their laying life is still valued for its taste.4 branded as company property. The barn costs Broiler chickens have an even shorter life- about $250,000, plus another $200,000 for span. Although they are not kept in individ-

88 State of the World 2004 BEHIND THE SCENES: CHICKEN

ual cages, broilers are packed tightly into Salmonella, which are common in industrial sheds without much leg or wing room—each growing environments.7 bird is given about 9 by 9 inches of floor But not all farmers are raising chickens in space. They are not exposed to outside light a factory. According to the U.N. Food and or fresh air, and they have unnaturally long Agriculture Organization (FAO), backyard days because the windowless sheds are lit for and free-range chickens account for as much up to 23 hours a day.5 as 70 percent of both egg and meat produc- Each day these chickens eat about 0.86 tion in some of the poorest countries. These kilograms (1.9 pounds) of specially designed chickens not only provide food, they are also feed, which may contain antibiotics or a source of economic security. Farmers can growth promoters. Although chickens are use them, says Robyn Alders of FAO, as a efficient at converting grain into protein, “kind of credit card, instantly available for their living conditions make them very sale or barter in societies where cash is not susceptible to respiratory diseases. So abundant.” They are also an important source producers have a long history of adding to of pest control and fertilizer. Projects in the feed antibiotics much like those used to Bangladesh and South Africa are improving treat human disease. (A study in 2002 found poultry health, providing income for that 37 percent of the broilers found in members of poor communities, and giving major grocery stores are contaminated with native chicken breeds—which are already antibiotic-resistant pathogens.) Often these adapted to heat and low-input conditions—a chickens gain so much weight so quickly that chance to survive.8 they cannot stand up. Chickens raised in fac- Some chicken and egg producers in rich tory farms often suffer from lameness, and countries are also responding to consumer many die of heart attacks because their hearts demand for organic, humanely raised are not strong enough to support their chickens. At West Wind Farms, the only farm disproportioned bodies.6 in the state of Tennessee providing certified When they weigh about 2 kilograms, organic meats and poultry, Ralph and broilers are rounded up by workers known as Kimberlie Cole raise 600 chickens every year catchers, stuffed into cages, and taken to pro- on organic pasture and grains. The chickens cessing plants. Workers sort, cut, and weigh range on small patches of grass near mobile the chickens for distribution to grocery stores chicken houses that can be moved from field and restaurants. Wrapped in plastic, the pack- to field. The Coles refer to the chickens as ages of thighs, wings, and legs bear little part of their “soil improvement crew” resemblance to a live animal. Some packages because they fertilize the soil and control carry warnings to consumers to cook chicken pests. Raising chickens this way—instead of in completely to prevent the meat, often conta- factory farms—can help the the environment, minated with feces, from spreading food- and it is certainly kinder to the chickens.9 borne illnesses, such as Escherichia coli and —Danielle Nierenberg

89 BEHIND THE SCENES Chocolate

The next time you bite into a bar of where. It is also of great chocolate, think of that taste as a significance to conser- link to some of the world’s vation because all the most endangered major cocoa areas— forests—and to the in the Caribbean, millions of farmers Central and South America, who live near them. the Indonesian-Malaysian archi- Chocolate comes pelago, and West Africa—are from the seeds of a small “biodiversity hotspots.” These rainforest tree, the cacao are regions that have been identified as global (Theobroma cacao). The cacao is conservation priorities because they are native to northern South America and unusually rich in biodiversity and highly perhaps also to southern Central America. Its threatened. Cocoa is a hotspot crop.3 fruit is about the size of a small melon and is The cacao tree is shade-tolerant, so it can packed with those seeds—the cocoa beans. be grown under forest canopy. In rainforest These are processed in various ways to make areas, agriculture generally displaces forest, cocoa, cocoa butter, and chocolate.1 but cocoa allows farmers to earn a living Cocoa is grown commercially in nearly under the trees—or at least, under some 60 countries, but production is concentrated trees. (Reasonable yields can probably be in just a few of these. Côte d’Ivoire, the achieved while maintaining 50–60 percent of world’s leading producer, accounted for 35 the original canopy cover.) Unfortunately, percent of the 2002 cocoa bean harvest, down most of the world’s cocoa is grown on lands from its peak share of 41 percent in 1999 and that have largely lost their original cover— 2001. The top five producers in 2002—Côte either to the cocoa itself or to some activity d’Ivoire, Ghana, Indonesia, Nigeria, and that preceded its introduction. In Indonesia, Brazil—accounted for 79 percent of global for example, cocoa farming has often production. At present, over 70,000 square followed the logging of primary forest. So kilometers are in cocoa production world- despite its shade tolerance, cocoa has often wide, an area a little larger than the country been an agent of deforestation, although of Ireland. Production area has grown sub- usually the result is a kind of “deforestation stantially in recent decades, expanding by lite.” That is because cocoa is often grown nearly a quarter since just 1990.2 together with other tree crops, both native Because the cacao tree requires a plentiful and introduced. Some of these “agroforests” and constant water supply, it can only be cul- are quite complex and support a considerable tivated commercially in rainforest biomes. share of local wildlife. On the other hand, This limitation is a kind of economic blessing: cocoa is sometimes grown as a monoculture whatever value cocoa adds to rainforest areas in full sun, an arrangement that supports far cannot be undermined by growing it else- less diversity.4

90 State of the World 2004 BEHIND THE SCENES: CHOCOLATE

On a global scale, cocoa’s contribution to to determine how much of this money actu- tropical deforestation is minute—perhaps ally makes its way back to the farms, but one third of 1 percent of the world’s original a very generous estimate would be 6–8 per- tropical forest area is now in cocoa. But on a cent, and it is likely considerably less. Even regional scale, cocoa farming has sometimes this small share of cocoa’s wealth, however, been a major force in the landscape. For has meant a better life for millions of farmers example, cocoa accounts for more than 13 and their families. Yet the economy of cocoa, percent of the original forestlands of Côte like its ecology, has a bleak side as well. d’Ivoire, and it is still chewing up forest in Labor abuse is apparently rife in the Ivoirian parts of West Africa and Indonesia. But it cocoa region. Persistent reports that some does not have to work this way. In some farmers are enslaving thousands of child places, cocoa farming has already become a migrant workers have sparked widespread de facto conservation system. In Bahia, criticism of the industry. In 2002, Côte Brazil, for instance, and south central d’Ivoire responded by ratifying a treaty Cameroon, cocoa is cultivated under against labor abuse of children, and the big thinned native forest in areas where little chocolate companies launched an initiative other forest remains. By default, the farms that aims to certify Ivoirian chocolate as have in effect become the forests.5 “slavery-free” by 2005. (It is not clear what Cocoa has important social potential too. effect the country’s civil war might have on Outside of Brazil and Malaysia, where it is that goal.)7 mostly grown on large farms, cocoa is gener- What should consumers make of all these ally a smallholder crop. Thousands of West issues? The next time you decide to indulge African cocoa farms consist of less than 1 your taste for chocolate, you might explore hectare (about 2.5 acres), and the average the shelves for a label that promises three farm size in Côte d’Ivoire is under 3 hectares. things. First, look for a high cocoa content. Cocoa works well on a small scale because of Generally, more cocoa means higher quality its relatively high value and because the cacao and—at least potentially—more farm income. tree responds to extra care. Skilled smallhold- Next, look for a “fair trade” brand or ers, whose cocoa orchards are small enough the mark of a similar socially responsible to “garden,” can achieve rates of productivity producer. And even though cocoa does not beyond the reach of big farms, which have generally have a “shade-grown” certification, too many trees to look after individually. it is well worth looking for an organic brand. Potentially, at least, cocoa rewards labor.6 One of the most common cocoa pesticides in But from the farmers’ point of view, West Africa, for example, is lindane, an those rewards are poorly distributed. On the organochlorine cousin of DDT. Eliminating retail level, the chocolate business is worth such chemicals would be a boon to both $42–60 billion annually, depending on how farmworkers and forests.8 “chocolate product” is defined. It is difficult —Chris Bright

91 BEHIND THE SCENES Shrimp

Shrimp has long been helped drive annual shrimp on the menu of coast- consumption below 3 dwelling humans. kilograms per person.4 Tomb paintings from From modest ancient Egypt depict beginnings a few scenes of fishermen pul- decades ago, the ling shrimp from the Nile. shrimp industry has And for centuries Southeast become one of the Asian farmers have kept a few wild shrimp most lucrative fisheries cordoned off in coastal ponds for easy picking.1 in the world. The United States and Japan Today’s multibillion-dollar shrimp indus- alone imported $7 billion worth of shrimp in try bears little resemblance to shrimp harvests 2000. Yet this industry is also among the most of old. For one thing, the small, leggy destructive. Roughly three quarters of the crustacean is no longer a delicacy enjoyed pri- shrimp on the market is “wild captured”— marily by those living close to the source. mostly by fishing boats dragging huge conical Today, huge quantities of shrimp are nets (trawls) over estuaries, bays, and contin- produced in the developing world for ental shelves. Trawlers scour the seabed in a consumption in Japan, the United States, and manner likened to clearcutting—destroying Western Europe. Shrimp production is no habitat and scooping up whatever lies in the small matter: in 2001, over 4.2 million tons paths of the trawls. This method wreaks havoc of shrimp swam into the global marketplace.2 on some of the most biologically productive China produces more shrimp than any spots within the marine ecosystem.5 other country, hauling in over 1.2 million Shrimp fishing as practiced today is not tons in 2000, more than double its total from only destructive, it is incredibly wasteful a decade before and over three times as much as well. Turtles, fish, and other marine as each of its nearest competitors—India, species swept up in the nets are considered Thailand, and Indonesia. But the bulk of unprofitable “bycatch” and are generally China’s harvest stays in that country. The dis- deposited—dead—back into the ocean. In tinction of being the top shrimp exporter temperate areas, the bycatch-to-shrimp ratio goes to Thailand.3 might be 5:1. In the tropics, the bycatch In the late 1990s, the United States passed ratio reaches 10:1, and it runs even higher in Japan as the primary customer in the shrimp some fisheries. All told, shrimping accounts trade, with yearly imports reaching 300,000 for one third of the world’s discarded catch, tons. In fact, by 2001 shrimp had displaced while producing less than 2 percent of canned tuna as the top seafood choice on global seafood.6 American dinner plates. The Japanese are still In the 1980s, technological innovations first in per capita consumption, however, triggered a boom in shrimp aquaculture to despite a recent economic downturn that supplement ocean captures. By 1989, shrimp

92 State of the World 2004 BEHIND THE SCENES: SHRIMP

farms had blossomed along tropical coastlines murders are all too common.9 around the world and were churning out one Indian physicist and environmental advo- quarter of the world’s shrimp harvest. Since cate Vandana Shiva once estimated that the then, the market share for farmed shrimp has average shrimp farm provided perhaps 15 leveled off, its growth hampered in part by jobs on the farm and 50 security jobs around widespread disease outbreaks in densely the farm, while displacing 50,000 people stocked shrimp pens.7 through loss of land and loss of traditional Shrimp aquaculture has been no more fish and agriculture. One Filipino fisherman ecologically benign than wild capture. A typ- lamented: “The shrimp live better than we ical shrimp farm produces copious amounts do. They have electricity, but we don’t. of waste, some of it highly toxic. Chemicals The shrimp have clean water, but we don’t. and fertilizers used in the farms seep into The shrimp have lots of food, but we are local water sources and estuaries, while farm- hungry.”10 ers dump much of the waste directly into The shrimp industry has a long way to go the ocean. before it could be considered remotely sus- Where shrimp farms are planted, native tainable, and many advocacy groups suggest mangrove forests often are rooted out. Man- consumers simply avoid shrimp to ease the groves have many functions, serving as a burden on both ecosystems and people. On breeding ground and home to many species a positive note, a consortium involving the (including providing nurseries for 85 percent World Bank, the U.N. Food and Agriculture of the tropics’ commercial fish species), acting Organization, and the World Wide Fund for as water filters, and offering critical protection Nature is exploring environmental certification against shoreline erosion and violent tropical standards for aquaculture. And the Sea Turtle storms. Nearly one quarter of the world’s Restoration Project and others are working remaining tropical mangrove forests were with industry to develop and promote devices destroyed over the past two decades, in major that drastically reduce bycatch. Meanwhile, part to make way for shrimp farms.8 grassroots environmental groups in farmed A host of human rights abuses have areas are teaming up with international accompanied the serious environmental nongovernmental groups to promote more degradations of shrimp farming, as powerful ecologically sound shrimp farming. In one interests running the farms clash with local case, the Mangrove Action Project and the people harmed by the operations. Typically, Small Fishers Federation of Sri Lanka bring domestic and foreign investors with few or fishing communities and other stakeholders no ties to local communities come in to together to promote conservation and work establish the farms, in the process destroying with shrimp farmers to curb mangrove vital resources, draining away livelihoods, destruction and protect fish habitat.11 and leaving locals destitute. Land seizures, —Dave Tilford, violent intimidation of local fishers, even Center for a New American Dream

93 BEHIND THE SCENES Soda

Soda, with its decadent nies in India when scientists from the sweetness, has shown itself to environmental group the Centre for have universal appeal. In 2002, Science and the Environment found people drank 185 billion liters of pesticides in major soda brands soda, making it the third most pop- throughout the country—a ular commercial beverage in the finding later confirmed by world, after tea and milk. Yet the government.2 unlike these two, soda is a Soda gets much of complex blend of ingredi- its taste, its texture, and ents, including water, sweet- all of its calories from a eners, carbon dioxide, dozens generous dose of sweeten- of natural and artificial flavorings, ers. The average can of non- and frequently caffeine. Once these are diet soda, 355 milliliters, has 38 mixed, bottlers neatly package the drink in grams (or 150 calories) of added sweeten- attractive bottles or cans, market it, and ers. Along with promoting tooth decay, distribute it for the enjoyment of people in sugars displace healthier foods or, when just about every country in the world.1 consumed along with a regular diet, increase Water is soda’s main ingredient and is also total caloric intake. Thus, added sugars can central to processing its other ingredients lead to nutrient deficiencies or obesity. This and packaging materials. The average is of particular concern with children and bottling plant churns out more than 300,000 adolescents, who are more susceptible to liters of soft drinks each day—a process that dietary deficiencies and whose dietary habits demands up to 1.5 million liters of water, are especially malleable. In the United States, enough to meet the minimum requirements as annual soda consumption doubled to 185 of at least 20,000 people. In some water- liters per person between 1970 and 2001, stressed areas, bottlers have actually come milk consumption fell 30 percent. At the into conflict with local communities. In same time, total calcium intake by adolescents Plachimada, India, for example, the local fell significantly, while overweight and obesity authorities revoked a Coca-Cola bottling rates nearly tripled, to 14 percent (while plant’s license in April 2003 after residents reaching 61 percent in adults). A recent study complained about wells drying up, the showed that children who drink sugar-sweet- diminished quality of the remaining water, ened drinks are more often obese and that and the release of toxic effluents. But after this risk increases another 60 percent with pressure from the Coca-Cola Company, one each additional beverage consumed.3 of the largest foreign investors in the Indian Caffeine is one of soda’s other main ingre- economy, the national government is consid- dients—found in 80 percent of the global ering repealing this decision. More recently, volume of the top 10 major carbonated soft new troubles have sprouted for soda compa- drinks. While the soda industry claims it uses

94 State of the World 2004 BEHIND THE SCENES: SODA

caffeine to enhance flavor, studies have shown the 32 billion soda cans they discarded in that people cannot find significant differences 2002, they would have saved 435 thousand between caffeinated and non-caffeinated tons of aluminum—enough to rebuild the samples. More likely, caffeine is added for its world’s entire commercial air fleet more than stimulant properties, which gives soda its one and a half times. A coalition of U.S. envi- extra kick as well as helping to produce loyal ronmental groups is currently working to cre- customers. Caffeine is physiologically addic- ate a new law that would set a national goal tive at just 100 milligrams per day—and at of 80-percent recovery of beverage containers less for children. One can of Pepsi contains and would allow the industry to design its 41 milligrams of caffeine.4 own system to achieve this. This strategy has While bottlers in some countries still rely been a success in Sweden, where a national partially on reusable glass bottles, more com- goal has maintained a recovery rate of 86 per- monly they use plastic bottles or aluminum cent, driven primarily by an industry-imposed cans. In 2001, bottlers around the world filled bottle deposit of 10¢. Michigan, the one some 159 billion plastic bottles, 112 billion state in the United States with a 10¢ bottle cans, and 72 billion glass bottles. Once pack- deposit, has a 95-percent recovery rate.6 aged, the sodas are shipped regionally by While environmentalists are hoping to truck to stores, restaurants, schools, and vend- reduce container waste, nutritionists and ing machines. To make sure people buy these government officials seek to moderate overall beverages, soda companies spend billions on soda consumption, largely to combat the advertising—on television, billboards, and the growing obesity epidemic in children. Cali- Internet, among other media. The Coca-Cola fornia, for instance, passed a law that will Company and PepsiCo., the two largest soft phase out the sale of all junk food (including drink firms, are the thirteenth and twentieth soda) in its public elementary schools by the largest advertisers in the world. Together they start of 2004. California also currently taxes spent $2.4 billion on ads in 2001. Companies junk food, which helps to reduce overall con- also work behind the scenes to ensure a ready sumption while also serving as a potential supply of soda for all who suddenly have an source of revenue for more health education. impulse for something sweet. For example, Some countries, such as Sweden and Poland, bottlers in the United States often sign exclu- have gone as far as banning commercials sive contracts with school boards, offering on children’s television, recognizing that a share of the profits for selling a certain audience’s susceptibility to marketing amount—a strategy that is being replicated messages. Nevertheless, in 2002 soda sales around the world.5 grew 2.1 percent globally. Industry experts The average can of soda, once opened, predict that soda will pass milk as the world’s lasts perhaps 20 minutes before being tossed. second most consumed beverage within the In the United States, as often as not, it ends next five years.7 up in the garbage. If Americans had recycled —Erik Assadourian

95 CHAPTER 5

Moving Toward a Less Consumptive Economy

Michael Renner

In 1895, traveling salesman King Camp Consumption as a Way of Life Gillette came up with the idea of dispos- able razor blades—a product consumers The technological advances of the past cen- would have to keep coming back for again tury or so have made it possible “to produce and again. Sales soon soared, reaching more more than was demanded and to offer more than 70 million by 1915, and today Gillette than was needed,” as journalist Edward Roth- is a company with $10 billion annual stein pointed out recently in the New York turnover. What started out as one business- Times. Endless economic growth driven by man’s high-profit vehicle for ensuring an unbridled consumption has been elevated to endless stream of sales became a widely the status of a modern religion. This is as embraced concept of great endurance— much an objective of corporate executives planned obsolescence.1 wanting to keep shareholders happy as it is a Fast-forward to the present: in mid-2003, goal of political leaders with an eye on win- the Walt Disney company announced that it ning the next election.3 would soon test-market a new DVD that is Brushing aside doubts about whether intended to replace rental video discs and material possessions and human happiness cassettes and that stops working after a short, travel along a common trajectory (see Chap- pre-set time. Opening the DVD’s airtight ter 8), some observers argue that the mass- package kicks off a chemical countdown that production, mass-consumption, mass-disposal renders the disc unusable after a mere 48 system is no less than sheer economic neces- hours. The sophisticated technologies sity. In 1950, for instance, U.S. marketing involved may be strictly from the twenty-first analyst Victor Lebow wrote that “Our enor- century, but the underlying philosophy hews mously productive economy…demands that to that time-honored concept pioneered by we make consumption a way of life.… We Gillette and his contemporaries.2 need things consumed, burned up, worn out,

96 State of the World 2004 MOVING TOWARD A LESS CONSUMPTIVE ECONOMY

replaced, and discarded at an ever-increas- that can be discarded relatively quickly rather ing rate.”4 than items that embody valuable energy and But the compulsive worship at the altar of materials and that should be well maintained consumption has brought humanity right to and designed for long life spans. the edge of an environmental abyss—deplet- Cheap raw materials, many of which orig- ing resources, spreading dangerous pollu- inate in developing countries, sustain the tants, undermining ecosystems, and consumer cornucopia. The overall quantities threatening to unhinge the planet’s climate of raw materials traded internationally are balance. Stepping back from this precipice expanding sharply, but commodity prices will require a major reduction in human have been on a downward trajectory since the claims on Earth’s resources. mid-1970s, part of an ongoing slide that Humanity’s deep divides complicate this reaches back to the beginning of the twenti- task. Even as evidence grows that the global eth century. The massive extraction of fuels, consumer class of about 1.7 billion people minerals, and timber ravages ecosystems in (see Chapter 1) will need to rein in its vora- developing countries, triggers social upheaval, cious material appetite, an equally large num- and in some cases has led to devastating ber of people in an emerging global middle resource wars, even as most people in the class are striving to emulate the perceived areas affected derive little benefit.7 “good life.” And close to 3 billion people— the global poor—struggle to survive on just Cheap raw materials, many of which 5 a few dollars a day. originate in developing countries, It is often said these days that the planet cannot bear the burden of everyone in the sustain the consumer cornucopia. developing world owning as many cars, refrig- erators, and other consumer goods as Amer- Although the old industrial nations remain icans, Europeans, or Japanese on average do. major producers, growing volumes of mer- From the standpoint of global justice and chandise are made in poor countries. Partic- equality, however, the solution cannot be a ularly in labor-intensive industries like textiles system of consumer apartheid that upholds and apparel, multinational corporations are western binge habits but denies the poor a continually searching for cheaper labor, and decent standard of living. Instead, the rich many developing countries seek to compete need to curb their outsized material appetites. against one another by keeping workers’ Rough calculations suggest that in order to wages low. China has emerged as a major accommodate the twin imperatives of envi- producer of cheap, primarily “low-end” con- ronmental protection and social equity, the sumer goods, exported mainly to the North rich nations may need to cut their use of American market. Its trade surplus with the materials by as much as 90 percent over the United States skyrocketed from a little more next few decades.6 than $10 billion in 1990 to $103 billion in At the moment, the world is hurtling in the 2002. Even Mexico, long a center of low-cost opposite direction. Modern economies are factories, finds itself increasingly unable to capable of producing huge quantities of goods compete because Chinese wages on average at very low cost. This leads both producers are just a quarter of those prevalent in Mex- and consumers to regard more and more ico. Just since 2001, one seventh of Mexico’s products as little more than commodities maquiladora export plants have shut down.8

97 State of the World 2004 MOVING TOWARD A LESS CONSUMPTIVE ECONOMY

Opinions diverge widely on whether such omy. Many are not only under discussion, export strategies and the pursuit of liberalized but are beginning to be implemented. To trade more generally can bring about mean- make a difference, however, these efforts ingful development. But whether low wages will need to be scaled up considerably, and are seen as an inevitable ingredient of a suc- political and structural barriers to change cessful export strategy or as a symbol of must be struck down. exploitation and an impediment to vibrant domestic markets, it seems clear that they Government’s Toolbox sustain consumerism. The global consumer class is obviously Governments can take a number of steps to key to reshaping the relationship between facilitate the transition to a less consumptive consumption and sustainability—not only economy. Prominent among the needed mea- because it claims the bulk of the world’s sures are recalibrating tax and subsidy policies, resources, but also because its actions echo pursuing pro-environment procurement rules, around the world. Yet solutions need to take and establishing appropriate product stan- into account the ways in which developing dards and labeling programs. countries are tied into the global economy Numerous subsidies allow the prices of and their desire to emulate the materials- fuels, timber, metals, and minerals (and prod- intensive model that is still widely perceived ucts incorporating these commodities) to be as embodying “the good life.” It is critical to far lower than they otherwise would be, devise ways to reduce the environmental bur- encouraging greater consumption. Limits in den associated with consumption, particu- data availability prevent a complete account- larly so that an increase in consumption levels ing of subsidies for environmentally harmful in poorer countries is fully compatible with activities, and underlying methodologies and the goal of sustainability. definitions may differ from study to study. But To support the move toward a less con- a recent report by the Organisation for Eco- sumptive economy, consumers and produc- nomic Co-operation and Development ers will need to pay close attention to the full (OECD) estimates that global subsidies lifecycle of products. This means they need to amount to something like $1 trillion a year, concern themselves not just with the charac- with OECD member states accounting for teristics of the product itself, such as how three quarters of the total.9 much energy its use may require, but also with A study by researchers Norman Myers and the materials and production methods used Jennifer Kent puts perverse subsidies in six to manufacture the product and the kinds and sectors—agriculture, energy, road trans- types of wastes generated in the process. In portation, water, fisheries, and forestry—at addition, both consumers and producers need about $850 billion or more annually. In addi- to consider how effectively goods actually tion, there are about $1.1 trillion worth of deliver wanted services and comforts, how quantifiable environmental “externalities.” long products last, and what happens to them (See Table 5–1.) Although these are not sub- once they reach the end of their useful life. sidies in a formal sense, they do represent A range of tools is potentially at the dis- uncompensated costs that have to be borne posal of governments, companies, and indi- by society at large and that, like subsidies, have vidual consumers to make progress toward distorting and detrimental impacts. For the overall goal of a less consumptive econ- instance, the environmental and health costs

98 State of the World 2004 MOVING TOWARD A LESS CONSUMPTIVE ECONOMY

Table 5–1. Estimates of Global nomic activities more adequately. Carbon Environmentally Harmful Subsidies taxes, levies on the use of nonrenewable and Externalities energy and virgin materials, landfill fees, and other waste and pollution charges provide Quantifiable Sector Subsidies Externalities Total an incentive for manufacturers to move away from heavy fossil fuel use, to boost energy and (billion dollars) materials productivity, and to curtail the gen- Agriculture 260 250 510 Fossil Fuels, Nuclear eration of wastes and emissions. Rather than Energy 100 200 300 merely imposing a new tax, though, the con- Road Transportation 400 380 780 cept most discussed is tax shifting. Current tax Water 50 180 230 systems make natural resource use far too Fisheries 25 n.a. 25 cheap and render labor too expensive. Eco- Forestry 14 78 92 tax revenues would be used to lighten the tax Total 849 1,088 1,937 burden now falling on labor, which would encourage job creation.11 SOURCE: See endnote 10. Discussed theoretically since the late 1970s, ecological tax shifting started to associated with car use are not charged to become a reality in the 1990s in a growing motorists, which makes individual automobile number of European countries, with most of travel cheap in comparison with rail and other the momentum occurring between 1990 and modes of transportation. Subsidies and 1994. Denmark, Germany, Italy, the Nether- uncompensated externalities combined are lands, Norway, Sweden, and the United King- equivalent to 5–6 percent of the global econ- dom introduced reforms linking a variety of omy—about the same size as the German green taxes to reductions in social security economy.10 contributions. Before adjustment for infla- Phasing out destructive subsidies and shift- tion, environmental tax revenues in the Euro- ing even a portion of those funds to renew- pean Union (EU) more than quadrupled able energy, efficiency technologies, clean between 1980 and 2001, to 238 billion euros. production methods, and public transit would (See Table 5–2.) The bulk of these revenues give the transition toward sustainability a are derived from taxes on gasoline, diesel, powerful boost. and motor vehicles.12 Ecological tax reform is another key mea- Notwithstanding these totals, eco-tax shifts sure. The intent is to make market prices to date remain relatively limited. Environ- reflect the full environmental costs of eco- mental taxes in OECD countries account on

Table 5–2. Environmental Tax Revenue, European Union, Selected Years

Environmental Taxes 1980 1990 2001 (billion euros) Revenues 54.6 130.4 237.7 (percent) Revenues as a Share of All Taxes and Social Contributions 5.8 6.2 6.5 Revenues as a Share of Gross Domestic Product 2.2 2.5 2.7

SOURCE: See endnote 12.

99 State of the World 2004 MOVING TOWARD A LESS CONSUMPTIVE ECONOMY

average for only 6–7 percent of all tax rev- ject at all to the eco-tax. Companies in the enues. Payroll taxes and mandatory social mining and manufacturing sectors, utilities, security contributions, in contrast, weigh in construction firms, and agricultural enter- at 25 percent. (In the European Union, with prises were assessed at only 20 percent of the its extensive social programs, labor’s tax bur- nominal tax rate levied on natural gas, heat- den is far higher—between 45 and 47 percent ing oil, and electricity. At the beginning of in the late 1990s.)13 2003, however, that preferential rate rose to This is not to say that nothing has been 60 percent, and the government said that accomplished. In Germany, for instance, an industry may soon have to pay the full rate if eco-tax levied on different forms of energy it does not meet a voluntary 2010 goal of 16 consumption was first introduced in 1999, reducing CO2 emissions by 35 percent. with four subsequent annual increases in the To grow into a major tool for sustainabil- tax. By 2002, it had already helped avoid ity, the scope of eco-tax reform needs to emissions of more than 7 million tons of car- become far broader and loopholes need to be

bon dioxide (CO2). Annual revenues have closed. This will require winning difficult grown from about $4 billion in 1999 to an political battles against those interested in estimated $19 billion in 2003. Reductions in maintaining the status quo. The challenge is social security contributions made possible by illustrated by the German experience, where these funds helped create 60,000 additional opposition politicians and parts of the media jobs by 2002, a number expected to rise to launched an intense campaign to discredit 250,000 by 2010.14 eco-taxes. Having risen rapidly to broad acceptance by all political parties and the All modern economies can be leaner general public in the 1990s, eco-tax reform suffered an equally fast decline in popularity without being doomed. once it was implemented.17 Another important tool that governments Unfortunately, eco-taxes are frequently can wield is procurement, as described at weakened by a variety of loopholes—grant- length in Chapter 6. From the federal to the ing exemptions to certain industries or local level, government authorities in indus- energy sources, applying reduced tax rates to trial countries spend trillions of dollars on energy-intensive firms, or making companies public purchases every year. By buying envi- eligible for partial reimbursements. Often ronmentally preferable products, they can this is done in the name of preserving the exert a powerful influence on how products competitiveness of domestic industries on the are designed, how efficiently they function, world market. Such arguments will lose trac- how long they last, and whether they are tion if national policies can be harmonized. handled responsibly at the end of their use- (See Chapter 7.) That is what the European ful lives. Well-designed purchasing rules can Union is attempting to do with an energy drive technological innovation and help estab- taxation directive that is to take effect in lish green markets.18 2004. So far, however, the deliberations that Governments further influence product were begun in 1997 have yielded a disap- development through regulatory tools. pointing compromise text that waters down National standards have been adopted in a the initial draft.15 growing number of countries to save energy In Germany, coal and jet fuels are not sub- and water, for instance. By 2000, 43 countries

100 State of the World 2004 MOVING TOWARD A LESS CONSUMPTIVE ECONOMY

had household appliance efficiency programs private groups) can evaluate whether a prod- in place—seven times as many as in 1980. uct conforms to existing standards or verify Most of these were in Europe and Asia.19 the accuracy of environmental claims made by Standards, which “push” the market by manufacturers.22 requiring manufacturers to meet mini- All the tools discussed here—subsidy mum standards, are well complemented by phaseouts, tax shifts, green procurement, ecolabeling programs, which “pull” the mar- product standards, and labeling programs— ket by providing consumers with the requi- will need to be expanded dramatically to put site information to make responsible consumption on a sustainable footing. But purchasing decisions, and hence encourage doing so is often an uphill battle. The failure manufacturers to design and market more of the international community to agree on eco-friendly products.20 reductions in agricultural subsidies during Labeling schemes have been developed trade talks in September 2003 in Mexico for a wide range of products, including appli- demonstrated all too vividly the entrenched ances, electricity, wood products, and agri- nature of vested interests. cultural goods such as coffee and bananas. Some focus on a single product or product Lean and Clean class, whereas others evaluate a broad range of items. The first, and most comprehensive, Industrial economies mobilize enormous labeling program—Germany’s Blue Angel— quantities of fuels, metals, minerals, con- just celebrated its twenty-fifth anniversary. struction materials, and forestry and agricul- The number of products covered grew from tural raw materials. A study for the European about 100 in 1981 to 3,800 today. Both Union found that in 1997, the per capita governmental and private labeling programs material throughput amounted to about 80 have mushroomed in recent years.21 tons per American, 51 tons per citizen of the In fact, there are competing labels in some EU, and 45 tons per Japanese. Using differ- product areas, which can confuse consumers ent methodologies, a study by the World and may even thwart eco-friendly consump- Resources Institute arrived at similar figures, tion choices. Some programs, particularly though it pegged Japanese material flows at industry-sponsored ones, may make vague just 21 tons per person.23 or unsubstantiated claims concerning recycled None of today’s industrial economies are content of a product, organic food-growing truly sustainable. All modern economies can methods, biodegradability, and other issues. be leaner without being doomed. Given Others may be based on relatively low per- broadly comparable living standards, if Euro- formance standards. Concerned about these peans can live on roughly half the material problems, a recent OECD report argued: throughput mobilized on behalf of Ameri- “To avoid a general discredit of labeling cans (and the Japanese survive on even less), schemes, some kind of regulatory instru- there is significant room for improvement in ments may be needed to signal to consumers the United States—the paragon of con- that certain schemes are more appropriate sumption that much of the rest of the world for certain issues than others.” Such regula- strives to emulate. tion may take the form of certification In fact, most material flows in industrial schemes. A range of qualified certification economies serve no useful purpose whatsoever bodies (government agencies or accredited and never actually pass through the hands of

101 State of the World 2004 MOVING TOWARD A LESS CONSUMPTIVE ECONOMY any consumer. So-called hidden flows Tons 100 account for slightly more than 60 percent Source: WRI of total materials flow in the EU—a por- 80 tion that has remained more or less Domestic Output for Consumption unchanged in the last two decades. In the 60 United States, hidden flows account for Hidden Flows more than 70 percent, and in Japan, for 40 just under half. (See Figure 5–1.) These hidden flows include waste materials 20 from mining and other industries, over- burden (earth removed by mining firms 0 to reach desired ores), dredging materi- United States Germany Japan als, carbon dioxide and other emissions Figure 5–1. Material Requirements Per Person and pollutants, and soil loss from farm- in the United States, Germany, and Japan, 1996 land erosion. The term “hidden flows” is apt as they are for the most part invis- ible to consumers. This is particularly the case paper thinner and vehicles lighter and to cut with the rising quantities of wastes associated the amount of energy needed to operate with the extraction from developing coun- products—from light bulbs to washing tries of natural resources that are then machines and automobiles. Specifically, the imported by industrial nations.24 advocates of dematerialization have pushed Dealing with the hidden flows requires that for Factor 10—policies that aim at providing some of the most destructive activities—min- a given volume of goods and services with one ing, smelting, and logging, in particular—be tenth as much material input.25 downsized. This can be accomplished by While the technological potential for dema- improving energy and materials efficiency, terialization is far from exhausted, there has boosting recycling and reuse, and lengthening already been some de-coupling between eco- the lifetime of products, so that there is far less nomic growth and material throughput. In the need to extract virgin raw materials. But there European Union, for instance, resource pro- is also ample space for reducing the environ- ductivity (measured as gross domestic prod- mental impact of the goods and uct per total material requirements) improved services actually delivered to consumers. 39 percent between 1980 and 1997. But this Dematerialization, clean production, and achievement has not translated into a lower “zero-waste” closed-loop systems are some overall claim on resources: in Western Europe, of the key concepts behind a new approach. North America, and Japan, total resource A range of studies and assessments have consumption has remained fairly constant and affirmed the potential of a “dematerializa- at unsustainably high levels.26 tion” strategy—a concept pioneered by Rocky Why is that? While per-unit materials con- Mountain Institute co-founders Amory and sumption has declined, consumer tastes and Hunter Lovins, eco-entrepreneur Paul wants keep spiraling upward: cars and houses Hawken, and German researcher and politi- are getting larger and fancier, vacation travel cian Ernst Ulrich von Weizsäcker. It aims to has increasingly shifted toward long-distance reduce the amount of raw materials needed air travel, diets have become more meat- to create a product by, for example, making based, and there is a steady flow of ever-new

102 State of the World 2004 MOVING TOWARD A LESS CONSUMPTIVE ECONOMY

gadgets and related “accessories.” And indus- an effort to move away from industrial ortho- trial economies experienced an unexpected doxy in which, in “cradle-to-grave” fashion, rebound effect: lower per-unit energy or raw materials are extracted and processed, materials requirements translate into lower and the substances not directly useful to a fac- consumer costs, which in turn encourage tory become unwanted waste. An alternative increased usage. Efficiency gains have repeat- “cradle-to-cradle” system seeks to build inte- edly been canceled out or even overwhelmed. grated, closed-loop systems, in which the For instance, greater automobile fuel effi- byproducts of one factory become the feed- ciency means that motorists can drive longer stock of another, instead of becoming envi- distances for the same cost. And ever-expand- ronmental time bombs. (See Box 5–1.) Some ing numbers of automobiles mean that the mill byproducts, including ash from sludge auto industry’s claim on fuel and materials like and bark incineration and carbon dioxide aluminum, copper, steel, and plastic keeps from a lime kiln, are being used by other local rising. As important as dematerialization is, industries. In fact, several companies decided therefore, it alone appears insufficient in the to locate near the mill to take advantage of face of the consumption juggernaut.27 its byproducts.30 The toxic products of our material society are another pressing concern. Advocates of In Western Europe, North America, and “clean production” say that there are plenty Japan, total resource consumption has of opportunities to reduce and perhaps elim- inate the reliance on toxic materials in man- remained at unsustainably high levels. ufacturing, to prevent air and water pollution, and to avoid hazardous waste generation.28 Environmentalists widely regard the com- A pulp and paper mill on the Androscog- munity of Kalundborg in Denmark as a trail- gin River in Jay, Maine, presents an inspiring blazer of industrial ecology. An increasingly example. At the beginning of the 1990s, the dense web of symbiotic relationships among mill, owned by industry giant International a number of local companies there has slowly Paper, was a major polluter and had an antag- been woven over the past three decades, yield- onistic relationship with its work force and the ing both economic and environmental gains. local community. A management shakeup led For instance, natural gas previously flared off to active cooperation with local stakeholders, by Denmark’s largest refinery is being used as and state and community environmental reg- feedstock in a plasterboard factory, desulfur- ulations proved major drivers of change. An ized fly-ash from a coal-fired power plant (also initial focus on “end-of-pipe” pollution con- the country’s largest) goes to a cement man- trol quickly gave way to pollution prevention ufacturer, and sludge containing nitrogen and measures. The mill dramatically reduced phosphorus from a pharmaceutical plant is releases of organic pollutants and mercury; used as fertilizer by nearby farms.31 eliminated dioxin, furan, and chloroform emis- Instead of a master plan, the present net- sions; and cut particulate emissions in half. It work in Kalundborg actually evolved both reduced hazardous waste generation from 6 slowly and spontaneously from a series of million pounds in 1990 to 300,000 pounds bilateral agreements, all of which were con- in 1998, and slashed the amount of solid cluded in the first place because they were waste going to landfills by 91 percent.29 economically attractive. This experience pre- More ambitiously, the mill managers made sents a real-life alternative to industrial ortho-

103 State of the World 2004 MOVING TOWARD A LESS CONSUMPTIVE ECONOMY

BOX 5–1. THE CRADLE-TO-CRADLE ALTERNATIVE

Imagine a world in which all the things we flows. Just as in the natural world, in which make, use, and consume provide nutrition for one organism’s “waste” cycles through an nature and industry—a world in which growth ecosystem to provide nourishment for other is good and human activity generates a living things, cradle-to-cradle materials circu- delightful, restorative ecological footprint. late in closed-loop cycles, providing nutrients While this may seem like heresy to many for nature or industry.This model recognizes in the world of sustainable development, the two metabolisms within which materials flow destructive qualities of today’s cradle-to-grave as healthy nutrients. industrial system can be seen as the result of a First, nature’s nutrient cycles constitute the fundamental design problem, not the inevitable biological metabolism. Materials designed to outcome of consumption and economic activ- flow optimally in the biological metabolism ity. Indeed, good design—principled design are biological nutrients. Products conceived as based on the laws of nature—can transform these nutrients, such as biodegradable packag- the making and consumption of things into a ing, are designed to be used and safely regenerative force. returned to the environment to nourish living This new conception of design—known as systems. Second, the technical metabolism, cradle-to-cradle design—goes beyond retro- designed to mirror the earth’s cradle-to-cra- fitting industrial systems to reduce their harm. dle cycles, is a closed-loop system in which Conventional approaches to sustainability valuable, high-tech synthetics and mineral often make the efficient use of energy and resources—technical nutrients—circulate in a materials their ultimate goal.While this can perpetual cycle of production, recovery, and be a useful transitional strategy, it tends to remanufacture. Ideally, all the human systems reduce negative impacts without transforming that make up the technical metabolism are harmful activity. Recycling carpet, for example, powered by the renewable energy of the sun. might reduce consumption, but if the attached Biological and technical nutrients have carpet backing contains PVC, which most car- already entered the marketplace.The pet backing does, the recycled product is still upholstery fabric Climatex Lifecycle is a blend on a one-way trip to the landfill, where it of pesticide-residue-free wool and organically becomes hazardous waste. grown ramie, dyed and processed entirely Cradle-to-cradle design, on the other hand, with nontoxic chemicals.All of its product and offers a framework in which the effective, process inputs were defined and selected for regenerative cycles of nature provide models their human and ecological safety within the for wholly positive human designs.Within this biological metabolism.The result: the fabric framework we can create economies that trimmings are made into felt and used by gar- purify air, land, and water, that rely on current den clubs as mulch for growing fruits and veg- solar income and generate no toxic waste, etables, returning the textile’s biological that use safe, healthful materials that replenish nutrients to the soil. the earth or can be perpetually recycled, and Honeywell, meanwhile, is marketing a textile that yield benefits that enhance all life. for the technical metabolism, a high-quality car- Over the past decade, the cradle-to-cradle pet yarn called Zeftron Savant, which is made framework has evolved steadily from theory of perpetually recyclable nylon 6 fiber. Zeftron to practice. In the world of industry it is creat- Savant is designed to be reclaimed and repoly- ing a new conception of materials and material merized—taken back to its constituent

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BOX 5–1. (continued)

resins—to become new material for new the principal home and source of technical carpets. In fact, Honeywell can retrieve old, nutrition—the place where metals are conventional nylon 6 and transform it into forged, polymers synthesized, and tractors, Zeftron Savant, which is in effect “upcycling” computers, and windmills designed and manu- rather than downcycling an industrial material. factured. Cities send these materials forth The nylon is rematerialized, not demater- into the world and receive them back as ialized—a true cradle-to-cradle product. they move through closed-loop cycles.The In the commercial carpet industry, material countryside, meanwhile, can be seen as the recovery systems are providing a model for home of the biological metabolism. Materials the development of technical metabolisms. generated there—food, wood, fibers—are cre- Shaw Industries, for example, has developed a ated through interactions of solar energy, soil, technical nutrient carpet tile for its commer- and water and are the source of biological cial customers.The company guarantees that nutrition for rural communities and nearby all of its nylon 6 carpet fiber will be taken cities. One of the city’s fundamental roles in back and returned to nylon 6 carpet fiber, this metabolism is to return biological and its safe polyolefin backing returned to nutrition in a safe, healthy form, say as clean safe polyolefin backing. Raw material to raw fertilizer, back to the rural soil.These flows of material. A cradle-to-cradle cycle. nutrients and energy are the twin metabolisms Shaw’s technical nutrient carpet tile is of the living city, the engines of the vibrant conceived to be a product of service, a key economies of the future. element of the cradle-to-cradle strategy. Prod- Even nations as vast and influential as ucts of service are durable goods, such as car- China have adopted cradle-to-cradle pets and washing machines, designed by their strategies. Building on a 4,000-year-old tradi- manufacturer to be taken back and used tion of sustainable agriculture,Vice Minister again.The product provides a service to the of Science and Technology Deng Nan customer while the manufacturer maintains announced in September 2002 that China ownership of the product’s material assets. will begin to develop industries and products At the end of a defined period of use, the based on cradle-to-cradle principles through manufacturer takes back the product and the China–U.S. Center for Sustainable Devel- reuses its materials in another high-quality opment. China is already developing a cradle- product.Widely practiced, the product-of- to-cradle village as well as solar and wind service concept can change the nature of power enterprises. consumption as human systems powered by The cradle-to-cradle strategy allows us to renewable energy reuse valuable materials see our designs as delightful expressions of through many product lifecycles. creativity, as life-support systems in harmony On a large scale, cradle-to-cradle thinking with energy flows, human souls, and other liv- can transform the nature of economies. In ing things.When that becomes the hallmark of Chicago, for example, these principles are productive economies, consumption itself will serving as a reference point as Mayor Richard have been transformed. Daley strives to make the city the greenest —William McDonough and Michael Braungart, in America, a hub of energy effectiveness and McDonough Braungart Design Chemistry beneficial material flows. In a cradle-to-cradle economy, cities are SOURCE: See endnote 30.

105 State of the World 2004 MOVING TOWARD A LESS CONSUMPTIVE ECONOMY doxy. But replicating this model may not be instance, German chemical giant BASF all that easy. Setting up a zero-waste industrial invented a new material made from an infi- symbiosis takes considerable time. And it may nitely recyclable nylon-6 fiber; it can be be more workable to construct such recipro- taken back to its constituent resins and made cal webs piece by piece rather than drawing into new products. The Swiss textile firm up overly ambitious plans from the outset. Rohner and the textile design company Still, the notion of clean production is attract- DesignTex jointly developed an upholstery ing growing interest around the world. fabric that, once it has been removed from Among other places, companies are work- a chair at the end of its useful life, will nat- ing toward this goal in China, Fiji, India, urally decompose.35 Japan, Namibia, the Philippines, Puerto Rico, The EPR philosophy had its beginnings in and Thailand.32 Germany’s Packaging Ordinance of 1991. Holding producers responsible for taking Take It Back! back and managing packaging waste, the law triggered steady reductions in packaging It is much more likely that resource con- materials. More important, it is widely cred- sumption will be minimized and the gener- ited with motivating many other govern- ation of wastes and emissions avoided if ments in Europe, Asia, and Latin America to manufacturers factor environmental consid- embrace this concept. Since then, the EPR erations in from the very beginning when approach has spread far beyond packaging they design products, develop production to encompass a growing range of products technologies, and select materials. To encour- and industries, including consumer electronics age companies to move in this direction, a and electric appliances, office machinery, cars, growing number of governments are adopt- tires, furniture, paper goods, batteries, and ing “extended producer responsibility” (EPR) construction materials. (See Table 5–3.)36 laws that require companies to take back Europe remains at the center of the EPR products at the end of their useful life. These movement. Many European governments typically ban the landfilling and incineration have passed EPR legislation, and the Euro- of most products, establish minimum reuse pean Union has promulgated directives for and recycling requirements, specify whether packaging, electronics, batteries, and auto- producers are to be individually or collec- mobiles in an effort to harmonize the some- tively responsible for returned products, and times divergent national efforts.37 stipulate whether producers may charge a fee Driven by concern over rapidly accumu- when they take back products.33 lating electrical and electronics waste from The goal of EPR is to induce manufac- computers, cell phones, and similar equip- turers to assess the full lifecycle impacts of ment, the EU adopted an Electronic and their products. Ideally, they will then elim- Electrical Equipment Directive in February inate unnecessary parts, forgo unneeded 2003. Member states are to enact imple- packaging, and design products that can menting national legislation by August 2004 easily be disassembled, recycled, remanu- (they are free to impose more-restrictive poli- factured, or reused.34 cies), and equipment producers need to have Part of the challenge is to develop mate- systems in place to take back and manage rials that can easily be reused or otherwise electrical and electronic waste free of charge will not linger in a landfill for centuries. For to consumers by August 2005. For products

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Ta b l e 5 –3. Extended Producer Responsibility Laws, Selected Industries1

Product Area or Industry Countries with EPR Laws Packaging More than 30 countries, including Brazil, China, Czech Republic, Germany, , Japan, Netherlands, Peru, Poland, South Korea, Sweden,Taiwan,and Uruguay (bever- age containers only) Electric and Currently more than a dozen countries, including Belgium, Brazil, China, Denmark, Electronic Equipment Germany (voluntary only), Italy, Japan, Netherlands, Norway, , South Korea, Sweden, Switzerland, and Taiwan Vehicles Brazil, Denmark, France, Germany, Japan, Netherlands, Sweden, and Taiwan Tires Brazil, Finland, South Korea, Sweden, and Taiwan;Uruguay is considering voluntary measures Batteries At least 15 countries, including Austria, Brazil, Germany, Japan, Netherlands, Norway, and Taiwan;Uruguay is considering voluntary measures

1EU Directives have been promulgated in all the sectors covered in the table except tires. In addition to national rules adopted by a number of EU members independently, these directives are binding on all current 15 members of the EU (and will be binding for 10 East European countries that are to become EU members). SOURCE: See endnote 36.

marketed prior to August 2005, the costs has prevented federal take-back legislation. It are to be shared by all producers according to is tempting to assume that U.S. companies their market share; for items sold later, pro- operating worldwide will eventually decide ducers have individual responsibility. (While that, having to meet EPR requirements in individual responsibility provides an incentive Europe and elsewhere, they might as well to undertake environment-friendly design embrace such policies in the United States as changes that reduce company compliance well. IBM began offering product take-back costs, there is also a danger that separate programs as early as 1989 in Europe, and take-back systems may bring a duplication then initiated a more-restricted program in of efforts and possibly higher costs.)38 the United States in 1997. But IBM may be A companion directive on Restrictions on an exception; the evidence to date provides Hazardous Substances requires that manu- limited hope for such a development.40 facturers of electronic and electrical equip- A number of state and local governments ment no longer use lead, mercury, cadmium, (including Florida, Maine, Massachusetts, hexavalent chromium, and the brominated Minnesota, South Carolina, and Wisconsin) flame retardants PBDE and PBB in products have expressed interest in European-style sold after 1 July 2006. There is growing con- take-back laws. If a patchwork of local regu- cern worldwide about these hazardous mate- lations were to arise, it is conceivable that rials; Japan is the leader in eliminating such companies may decide that national (though substances from electrical and electronic prod- perhaps still voluntary) rules are preferable. ucts, and China has announced that it will That is exactly what happened with regard to model its policy on the EU Directive.39 nickel-cadmium batteries—and the industry The United States is lagging behind on launched a nationwide take-back and recycling producer responsibility. Industry opposition initiative in 1995.41

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Some companies are launching voluntary it is difficult to set up workable collection take-back efforts to avert mandatory pro- systems when the turnover pace is so fast and grams. Under increasing pressure from reg- the volume of materials mounts rapidly.44 ulators and grassroots groups to deal with electronics waste, major computer manufac- Rethinking Products turers like Dell, Hewlett Packard, and IBM and Services have set up voluntary programs. Return rates tend to be low, however, because consumers Today’s industrial economies are able to churn are typically charged $20–30 when they bring out large quantities of goods with consider- a product back.42 able ease and at such low cost that there is a Other companies and industries see EPR great incentive to regard most merchandise as as an opportunity to lower production costs throwaways, intended to fall apart easily, or to marshal goodwill with environmentally rather than designing and manufacturing for conscious consumers. Carpet manufacturers durability. Many consumer products are made and some of their major suppliers, for in such a way as to discourage repair and instance, see take-back as a vehicle to gain replacement of parts, and sometimes even competitive advantage and accordingly have render this plain impossible. And even when initiated a variety of programs for reusing something can be repaired, the cost is often and recycling used carpet materials. Kodak too high relative to a new item. That is started a take-back program for disposable because the cost of discarding the embedded cameras in 1990 (but a quarter of the cam- valuable materials and labor is not accounted eras are believed to still end up in landfills). for, and the value of materials embedded in Nike set up a “Reuse-a-Shoe” program to new products is not fully reflected in the pur- “downcycle” old sneakers. The outsole rub- chase price. ber and midsole foam from used shoes are Durability, repairability, and “upgradabil- converted into surface material for running ity” are essential to lessen the environmental tracks and other athletic facilities and play- impact of consumption. For easy refurbishing grounds. The fabric from the shoe uppers and upgrading (so that durability does not becomes padding under carpets.43 translate into a technological dead-end that Still, progress is limited in the United prevents the introduction of more efficient States. And despite substantial strides in designs), a “modular” approach permits access Europe, a number of technical and political to individual parts and components, which challenges remain. Plastics recycling has allows them to be replaced easily. Companies proved resistant to easy solutions, as have cer- like Xerox (in its copiers and printers) and tain packaging materials that consist of a com- Nortel (in telecommunications) have adopted plex amalgam of layers of different materials. this philosophy. By working to extend and Industry opposition is far from defeated: In deepen useful product life, companies can Germany, the retail industry is undermining squeeze vastly better performance out of the an ambitious attempt to require the return of resources embodied in products rather than all beverage bottles and cans and to discour- selling the largest possible quantity. Although age the use of throwaways. Finally, the rapid EPR laws do not as such address the issue of pace at which many electronic devices, such as product longevity, they can be an incentive for cell phones, palm pilots, and computers, companies to move in this direction.45 become obsolete is a tremendous challenge: When goods do not wear out rapidly, they

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need not be replaced as frequently. An obvi- Table 5–4. Energy Savings Gained by ous implication is that fewer goods will be Switching from Primary Production produced, and that might mean that com- to Secondary Materials panies have less business. But there will be Material Savings greater opportunity and incentive to main- tain, repair, upgrade, recycle, reuse, and (percent) remanufacture products, and thus greater Aluminum 95 Copper 85 business and job potential throughout the life Plastics 80 of a product. Steel 74 Already, recycling and remanufacturing Lead 65 have become substantial industries. The Paper 64 Bureau of International Recycling in Brussels SOURCE: See endnote 46. estimates that in at least 50 countries the recycling industry processes more than 600 million tons annually. With an annual turnover ufacturing, this program led Xerox to design of $160 billion, the industry employs more its products from the very beginning with than 1.5 million people. Not only does recy- remanufacturing in mind and to make every cling keep materials out of landfills and incin- part reusable or recyclable. As a result, 70–90 erators, it provides substantial energy savings percent of the equipment (measured by by replacing new raw materials extraction weight) returned to Xerox at the end of its and processing with secondary materials. (See life can be rebuilt. Like some of its com- Table 5–4.)46 petitors, Xerox also remanufactures spent Remanufacturing is also becoming a seri- cartridges for copy machines and printers; in ous business, particularly in areas like motor 2001, it rebuilt or recycled about 90 percent vehicle components. Remanufacturing oper- of the 7 million cartridges and toner con- ations worldwide save at least 11 million bar- tainers returned to it by consumers. All in all, rels of oil each year—an amount of electricity the company estimates that environment- equal to that generated by five nuclear power friendly design has kept at least half a million plants—and a volume of raw materials that tons of electronic waste out of landfills would fill 155,000 railroad cars annually. In between 1991 and 2001.48 the United States, remanufacturing is a $50- Extended producer responsibility, reman- billion-plus annual business and employs close ufacturing, and related concepts logically lead to half a million people directly in 73,000 dif- to a whole new way of thinking about prod- ferent firms; this is roughly equal to employ- ucts, the way an economy functions, and ment in the entire U.S. consumer “durables” what it is supposed to accomplish. Instead of industry. According to Walter Stahel of the merely selling goods—as many as possible, Product-Life Institute in Geneva, the reman- with little thought to what happens after a sale ufacturing sector in EU member countries is made—manufacturers move on to provide accounts for about 4 percent of the region’s a desired service. In the future, consumers gross domestic product.47 may lease or rent products rather than buy- Xerox is one of the pioneers of this con- ing them outright. By retaining ownership, cept, having embarked on an Asset Recycle manufacturers also remain responsible for Management initiative in 1990. While the proper upkeep and repair, take the necessary company had previously done some reman- steps to extend product life, and ultimately

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recover the item’s components and materials such companies thrive.51 for recycling, reuse, or remanufacturing. Man- One often-cited example of a company ufacturers may work directly with their cus- seeking to reinvent itself in this way is Inter- tomers or may rely on retailers. But the face, one of the world’s largest commercial emphasis would be on “quality retail,” advis- carpet manufacturers. After its founder and ing consumers on the best lease options avail- CEO, Ray Anderson, had an environmental able and on quality and upkeep of products; epiphany in the mid-1990s, the firm launched counseling them on how to extend usefulness an effort to slash its environmental impact and with the least amount of energy and materi- to move from selling to leasing office carpets. als use; and diagnosing whether upgrades or It succeeded in substantially reducing its other changes would maximize the usefulness energy and water consumption and cutting its of a product. Such arrangements would reliance on petroleum-based raw materials. In amount to constructing an entirely new kind 1999, it introduced “solenium,” a material of service economy, quite unlike the service that lasts four times as long as traditional car- economy of today.49 pets, uses up to 40 percent less raw material and embodied energy, and can be entirely Consuming better does not obviate the remanufactured into new carpets instead of need to consider moderation in overall being thrown away or “down-cycled” into less valuable products.52 consumption levels. In perhaps its most audacious move, Inter- face launched an “Evergreen lease” in 1995. Several companies have begun to translate Under this, the company retains ownership of this concept into reality. Xerox already leases the carpet and remains responsible for keep- three quarters of its equipment. Carrier ing it clean in return for a monthly fee. Reg- Corp., instead of selling air-conditioning ular inspections would permit the company to equipment, is creating a program to sell cool- focus on replacing just the carpet tiles that ing services and advising customers on show most of the wear and tear instead of the energy-efficiency measures that will help entire carpet, as in the past. This more-tar- reduce air-conditioning needs. Dow Chem- geted replacement helps reduce the amount ical and Safety-Kleen have begun to lease of material required by some 80 percent.53 organic solvents to industrial and commer- But only about a half-dozen or so leases cial customers, advising them on their proper were ever actually signed, as most customers use, and recovering these chemicals instead opted for a traditional purchase instead. The of making the customer responsible for dis- program did not succeed for a variety of rea- posing of them. This gives them a strong sons, some specific to the carpet business. incentive to use fewer solvents.50 Some customers felt the lease agreement was Some companies specialize in “perfor- too complex or too inflexible, locking them mance contracting,” helping institutional cus- into a long-term arrangement that limited tomers—private firms, government agencies, their future options. But perhaps the biggest hospitals, and others—identify ways to cut problem was cost—a reflection of Interface’s their use of energy, raw materials, and water. emphasis on high-quality material and high- In marked contrast to traditional business quality maintenance services. In the end, the interests, it is avoided resource consumption company felt compelled to drop the Ever- and prevented waste and pollution that makes green lease.54

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The Interface story is at once encouraging individuals and households, there is a broader, and cautionary. It is clear that the new busi- more structural, aspect that governments ness model the company was proposing is need to address. still facing enormous hurdles. As with all rad- The predominance of highly individualized ical challenges to established practice, broad consumption patterns inevitably leads to the acceptance will not come quickly. multiplication of many goods and services on a grand scale. This virtually ensures redun- Public Consumption and dancy and far greater material requirements Sustainable Credit than necessary. Governments and communi- ties can take action to strike a better balance More-efficient and cleaner technologies are between private and public forms of con- essential instruments in the sustainability sumption. Even in the most market-oriented toolbox. And the emergence of a new type societies there are public libraries, swimming of service economy will provide additional pools, and parks. Such organized sharing of maneuvering space in the quest for a more facilities and amenities can be expanded. For sustainable economy. Sooner rather than instance, car-sharing is rapidly gaining adher- later, however, we need to confront the ents in cities across Europe and elsewhere, specter of insatiable consumerism itself. There providing a much-needed, if partial, alterna- is a danger that the consumer juggernaut tive to private ownership of vehicles and the will overwhelm even the most sophisticated strictly commercial rentals of cars. Govern- methods and technologies that can be devised ments can facilitate such initiatives by grant- to make consumption lean and super-effi- ing favorable tax terms. Local communities cient. Consuming better does not obviate the can also set up tool-sharing arrangements, need to consider moderation in overall con- so that not everyone has to own a separate sumption levels. It is worth recalling eco- drill, circular saw, or lawnmower.56 logical economist Herman Daly’s warning Government action is also indispensable in that “to do more efficiently that which should overcoming the immense structural impedi- not be done in the first place is no cause for ments to lower consumption levels and to rejoicing.”55 more public forms of consumption. Nowhere How should societies go about the task of is this more pronounced than in transporta- discouraging “excessive” consumption? While tion: low-density, sprawling settlement pat- a well-designed luxury tax can play a useful terns translate into large distances separating role, there will always be controversy as to homes, workplaces, schools, and stores—ren- what constitutes an unnecessary luxury. Hew- dering public transit, biking, and walking dif- ing to “consumer sovereignty,” capitalist soci- ficult or impossible. While the decision on eties leave it almost entirely up to individuals what kind of automobile to buy is up to con- to make purchasing decisions, considering sumers, the need to buy one at all is fre- government regulation as an unwelcome quently out of their control. Likewise in intrusion (while conveniently overlooking housing, homeowners have a range of choices the incessant attempts to manipulate “sover- for heating and air-conditioning. But it is in eign consumers” by advertising campaigns). developers’ and builders’ hands whether a Clearly, a command-and-control approach is house incorporates adequate insulation and neither workable nor desirable. But while energy-efficient windows; these fundamental specific purchasing decisions are best left to decisions dictate heating and cooling needs

111 State of the World 2004 MOVING TOWARD A LESS CONSUMPTIVE ECONOMY over the life of the house. and average credit card debt topped $12,000 In recognition of these realities, the OECD in 2002. In the United Kingdom, consumer has referred to an “infrastructure of con- debt almost tripled (in current terms) between sumption” that compels people to engage in 1991 and 2001. In Germany, consumer credit involuntary patterns of consumption. As doubled in 1989–99 to 216 billion euros, and important as it is for consumers to choose in 2001 almost a quarter of all households had more-efficient products, this alone cannot outstanding consumer debts. And the num- overcome these structural constraints. For- ber of Dutch households seeking bankruptcy ward-looking government policies—improved help doubled in 1992–99.59 land use planning, environment-oriented Until the mid-1990s, consumers outside norms and standards, and the creation of a North America and Western Europe rarely reinvigorated public infrastructure that allows ran up large amounts of personal debt. Now for greater social provision of certain goods credit card spending is expanding rapidly and services—will help ensure that consumers among emerging middle-class consumers in are not overly compelled to make consump- Asia, Latin America, Eastern Europe, and tion-intensive “choices.”57 even parts of Africa. The amount of money Another key area where government action charged to credit cards by South Koreans is needed is consumer credit. The unrelent- more than doubled in 2001, but 2.5 million ing drumbeat of advertising, which insinuates South Koreans have fallen into arrears on that corporate brands symbolize desirable their payments. Personal bankruptcies are ris- lifestyles and that individuals’ happiness is ing not only in South Korea, but also in innately related to the merchandise they own, Argentina, Brazil, Chile, China, Mexico, has helped propel consumer tastes steadily and Thailand.60 upward. But advertisers’ ability to project Whereas consumer credit is now geared to new “needs” easily outstrips the reach of maintaining the hyper-throughput economy, consumers’ wallets; “wants” always seem to which encourages people to carry high per- be greater than available means. sonal debts, finance in a sustainable con- Particularly since the 1990s, the savings sumption economy will need to devise ways to rate in most OECD countries has been allow—and to reward—the purchase of effi- falling, while household debt is on the rise. cient, high-quality, durable, and environment- Young adults, vulnerable to the aggressive friendly products. These undoubtedly have a marketing directed at them by banks and higher up-front cost of purchase, but over other credit card issuers, are increasingly time such items will be economically more sinking into a debt morass. The number of advantageous to consumers than cheaper, 20–24 year olds facing personal bankruptcy flimsier items that must be replaced frequently. in Germany, for instance, rose one third just Governments could help consumers by between 1999 and 2002.58 offering advantageous credit terms for cer- U.S. consumers’ indebtedness is now tain purchases. The Japanese and German growing twice as fast as their incomes. Out- governments do this to support the instal- standing U.S. consumer credit soared in the lation of solar roofs on private homes, but last two decades, reaching $1.8 trillion in many other eco-friendly purchases could be July 2003. (See Figure 5–2.) The share of encouraged in the same way. Or govern- U.S. credit card holders with an outstanding ments can offer targeted rebates. The Cana- balance each month has grown to 61 percent, dian government, for instance, announced in

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Billion Dollars human work. In the United States, 2000 (2001 dollars) for example, only about 12 hours of work per week were needed in 2000 1500 to produce as much as 40 hours did in 1950. In principle, this can trans- late into either of two objectives: 1000 raising wages (in line with produc- tivity) while holding working hours 500 constant, or providing greater leisure time while holding income from Source: Federal Reserve Board wages constant. In practice, it has 0 1950 1960 1970 1980 1990 2000 2010 mostly been the former. Most people have been locked into a “work-and- Figure 5–2. U.S. Consumer Credit Outstanding, spend” pattern. Greater disposable 1950–2003 Tons income translates into greater con- sumer purchases. And the lure of August 2003 that it would earmark C$131.4 advertising, “keeping up with the Joneses,” million (US$95 million) for a program that and other factors make it seem as though offers an average rebate of C$1,000 per every penny earned is needed to stay on the home to entice owners into making energy material treadmill.63 efficiency upgrades.61 Since the rise of mass industrialization in To further encourage the manufacture and the late nineteenth century, there has been purchase of environmentally benign prod- an ongoing tug-of-war between employers ucts, governments could design policies that and unions over working hours. Employees offer tax rebates for the best-performing have struggled for less work time—in the products while taxing those that fall short of form of shortened workdays or weeks, standards. A graduated system could be con- extended vacation time, earlier retirement, or structed in which rates of both rebates and paid leave. These efforts were primarily moti- fees are scaled according to how efficient, vated by a desire to improve the quality of life long-lasting, or otherwise environment- and to create more jobs. While environ- friendly an item is. Such a blend, known as a mental issues have not played a central role, “feebate,” has been used to some extent vis- channeling productivity gains toward more à-vis energy producers, but the concept has leisure time instead of higher wages that can not yet been implemented in a consumer set- translate into ever-rising consumption also ting. A feebate system might even be more increasingly makes sense from an ecological effective if hitched up with other policies, perspective (assuming that greater leisure such as ecolabeling and EPR laws.62 does not primarily translate into activities that are environmentally questionable, such Escaping the as long-distance air travel for vacationing in Work-and-Spend Trap “exotic” locales).64 It took close to a century to arrive at the Industrial economies are extraordinarily pro- 40-hour workweek in most industrial coun- ductive—meaning that the same quantity of tries. Where once there was a common trend output can be produced with less and less toward shorter hours throughout the indus-

113 State of the World 2004 MOVING TOWARD A LESS CONSUMPTIVE ECONOMY trial world, there is Hours 2,800 now an increasing Source: Hayden divergence between 2,600 the United States United Kingdom and Europe. In a 2,400 reversal of the situ- Japan ation prior to the 2,200 1970s, Americans now work longer 2,000 Germany than most Euro- France 1,800 peans. (Japanese United States workers, mean- 1,600 while, still have by far the longest 1,400 hours.) (See Figure 1913 1929 1938 1950 1960 1973 1990 1998 5–3.)65 Figure 5–3. Annual Hours Worked Per Person Employed in Major Most employers Industrial Countries, Selected Years,1913–98 have been very reluctant to agree to more reductions, and States were working longer-than-desired a shift in the employer-union balance of hours in the late 1990s, up from under half power, with waning union strength and ris- in 1992. At the same time, however, Boston ing pressure from globalization, has made College economist Juliet Schor reports that further change difficult. By and large, a full- “during the first half of the 1990s, a fifth of time job at something like 40 hours per all Americans went through some type of week is still considered the norm for anyone voluntary downshift, with just over half wanting to be considered eligible for intending it to be a permanent change.” employment with career advancement “Downshifting” is shorthand for a with- opportunities. But the discussion has shifted drawal, or partial withdrawal, from the labor from fixed weekly hours to introducing force, which is sometimes triggered by a quiet greater flexibility, with employers and shift in values and behaviors away from con- employees promoting competing notions sumerism. (Although some people reduce and interests. Employers are seeking the their hours voluntarily, however, others are ability to turn the spigot of labor supply on compelled to accept part-time work against and off according to fluctuations in the their wishes.)67 demand for their products. Employee On the other hand, trading income for demands center on more individual options time is not a realistic option for many people to accommodate personal and family needs in the face of adverse wage trends. In the and to achieve greater “time sovereignty.” United States, average hourly wages and Several promising models of this have salaries were largely stagnant between the emerged in Europe. (See Table 5–5.)66 early 1970s and the mid to late 1990s. And More than Americans, Europeans prefer average figures mask a sharply increased work time reductions over additional income degree of inequality in income distribution growth. Even so, surveys show that almost during the past quarter-century. For the bot- two thirds of all employees in the United tom 10 percent of workers, wages in 2001

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Table 5–5. New Approaches to Work Time in Europe

Country Status Belgium Established a “time credit” system that allows individuals to work a four-day week for up to five years and to take a one-year leave of absence during a career while receiving a paid allowance from the state. Denmark Pioneered a system of paid educational, child care, and sabbatical leaves that allows job rotation between the employed and unemployed. (Variations on this scheme were later put in place by Belgium, Finland, and Sweden.) Netherlands In 1982 government, business, and labor agreed on work time reductions in return for wage moderation. Length of workweek was cut from 40 to 38 hours in the mid-1980s and to 36 hours in early 1990s.Voluntary part-time work expanded dramatically, with part-time workers legally entitled to the same hourly pay, benefits, and promotional opportunities as full-timers. Legislation in 2000 extended the right to reduce hours to all workers, while part-timers can request longer hours.

SOURCE: See endnote 66.

were no higher than in 1979; in fact, as many omy will indeed be purchased. This means as 70 percent of the work force did not fare that capital accumulation can go forward, much better, seeing virtually no real wage which drives technical innovation, which in gain until 1998.68 turn results in growing labor productivity A significant fraction of the population (and which provides, at least in principle, the has felt compelled to work additional hours, rising incomes and purchasing power neces- often taking on second jobs just to make sary for consumerism). This dynamic may ends meet. Overall, there are a number of fall apart if consumers do not spend enough.70 contradictory trends. In Europe, wage trends And there is a further complication: have been more favorable, but wage growth although sustainability requires that material has nonetheless lagged behind the expan- appetites be curbed, the enormous overca- sion of labor productivity. To be workable, pacities that have arisen in many industries then, work time reduction policies need to be seem to demand that consumption be stim- accompanied by wage increases to narrow the ulated. The global automobile industry, for income differential between rich and poor.69 instance, is operating at only 70 percent of its productive capacity. In the semiconductors New Dynamics and Values industry, capacity utilization runs to just 65 percent, in telecommunications equipment, As described throughout this chapter, with a mere 50 percent. If anything, the world the help of a wide range of policy tools mod- economy faces growing contradictions. ern economies can be made far less con- Export-driven economies in a number of sumption-intensive. Still, what does developing countries are rapidly expanding consuming less mean for a capitalist economy their output. China’s steel, chemical, con- geared toward perpetual economic expan- structions materials, and mobile phone indus- sion? After all, the consumerist culture does tries, for example, are likely to double their play an important role: it ensures that the production capacities in the next three years, goods produced by a hyper-productive econ- bringing additional pressure to bear.71

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A huge share of the world’s exports is world economy into a tailspin. But it is far being absorbed by the land of consumerism- more likely that a less consumptive economy par-excellence, the United States. During will come about quite gradually. That would the 1990s, the U.S. economy acted more allow time to reorient how the economy and more like a giant vacuum sucking in functions, giving companies an opportunity much of the world’s surplus production. to adjust.73 (See Box 5–2.) Since 1995, U.S. domestic Smoothing a transition will be a series of demand has grown at twice the rate of the investments and technological innovations other industrial nations. The U.S. current to accomplish the shift toward sustainability. account balance (measuring trade flows and Promoting renewable energy sources; expand- financial transfers) went from plus $3.7 bil- ing public transit systems; replacing ineffi- lion in 1991 to minus $503 billion in cient machinery, equipment, buildings, and 2002—a record level. The dollars that flow vehicles with far more efficient models; out of the United States to pay for swelling redesigning products for durability—all these imports are circulating back to the United activities amount in effect to an ecological States, as foreign investors buy U.S. treasury stimulus program for the economy. notes, bonds, stocks, and real estate. These It is crucial to retool not only the economy, dollar flows have created a vast reservoir of but also economic thought. Right now, eco- global liquidity. This explosion of credit has nomic actors are primed to respond to quan- been a major engine of world economic titative growth signals. The concept of the activity. But it has encouraged large overin- gross domestic product, in which all eco- vestment in virtually every major industry. nomic activities are lumped together whether And the well-being of the global economy they contribute to or detract from well-being, has grown steadily more dependent on ever- reigns supreme. (See Chapters 1 and 8.) A expanding consumption in the United States. sustainable economy needs a different way of At least some observers, including analysts measuring human activity and of providing at the Economic Policy Institute in Wash- signals to investors, producers, and con- ington and Stephen Roach, chief economist sumers. It needs a different theory, aban- at Morgan Stanley, think that this system is doning the outdated assumption that inherently unstable and cannot go on quantitative growth is unconditionally desir- expanding indefinitely.72 able and embracing instead the notion of qualitative growth. Most fundamental, though, is a shift in A sustainable economy needs a human perceptions of economic value. In different way of measuring human Natural Capitalism, Amory Lovins and co- activity and of providing signals to authors Hunter Lovins and Paul Hawken investors, producers, and consumers. make the case for “a new perception of value, a shift from the acquisition of goods as a measure of affluence to an economy where Arguably then, from both an environ- the continuous receipt of quality, utility, and mental and an economic perspective, a course performance promotes well-being.” In such correction is in order. But is a recalibration an economy, corporate revenues and profits feasible? Certainly, a large and sudden decline would no longer be associated with maxi- in consumer spending would likely send the mizing the quantity of stuff produced and

116 State of the World 2004 MOVING TOWARD A LESS CONSUMPTIVE ECONOMY

BOX 5–2. U.S. CONSUMERS, CHEAP MANUFACTURES, AND THE GLOBAL SWEATSHOP

During the last decade, American consumers have exacerbated these problems.The Asian increased their annual spending on goods and financial crisis of the late 1990s was a direct services at roughly 3 percent a year, about as result of neo-liberal reforms imposed by fast as in earlier decades. If consumption is the U.S.Treasury through the International measured by quantities of items, however, Monetary Fund, which led a number of Asian rather than flows of money, rates of acquisition economies to collapse under the weight of for a wide range of manufactured products are privatization and decontrol of capital.Wages far higher. Standard economic thinking views throughout the region plummeted after the this trend as a pure gain in consumers’ welfare. crisis. Indonesian garment wages and benefits But from an environmental point of view, it is fell to 15¢ an hour. In Bangladesh, which has a negative. Newer economic reasoning and become the fourth largest apparel-exporter evidence also recognize that when spending to the United States, wages fell to a range of satisfies status and social goals rather than 7–18¢ an hour.Wal-Mart, which controls 15 purely functional needs, there is much less true percent of the U.S. apparel market and is the welfare to be gained from additional consump- world’s largest clothing retailer, continuously tion.The main reason for high rates of product squeezes labor costs in Chinese factories— acquisition is that the prices of manufactured they can be as low as 13¢ per hour, and the goods have fallen substantially in the past norm is below 25¢. (Higher-priced clothing decade.This is not due to superior efficiency or lines, such as Ralph Lauren and Ellen Tracy also technologies, however.The structure and rules rely on cheap Chinese labor.) Workers have governing the global economy have depressed had little success resisting these conditions, labor costs and plundered natural resources. because the transnational companies go Consider the case of clothing, a historically elsewhere if workers make demands and valuable commodity. In 1920, the average U.S. because factory owners enjoy political protec- household spent 17 percent of its total expendi- tions from their governments. Furthermore, tures on clothing. In 2001, the figure was a mere the displacement of rural workers from land 4.4 percent, despite the fact that consumers and livelihood as a result of transnationals’ were buying far more garments. Indeed, cloth- activities ensures a steady stream of new ing has become so cheap that it is hard to recruits to urban factories. give away.The surfeit of clothes is largely attrib- Meanwhile, these factors have led to declin- utable to the exploitation of female labor in ing prices in the United States, where apparel apparel factories throughout Asia and Central prices fell by 10 percent over the last decade, America. Labor’s share of production is at his- with an especially sharp drop after the Asian torically low levels, and wages have fallen below downturn.The number of garments purchased subsistence. First-hand accounts from workers has skyrocketed, increasing a stunning 73 and western observers in factories producing percent between 1996 and 2001. Consumers for Disney, Nike, Liz Claiborne, and many other reduced how frequently they wear new items U.S. firms have found that people frequently and discarded their purchases at record rates. work more than 100 hours a week.Workers By 2001, the average U.S. consumer purchased are subjected to arbitrary supervisory author- 48 new pieces of apparel a year. Goodwill offi- ity; cases of physical, sexual, and verbal abuse cials report that rates of consumer discard are common and well documented; and unions rose by 10 percent a year throughout the are not permitted. 1990s. Clothing became a disposable, and hence Developments in the new global economy freely available, good.

117 State of the World 2004 MOVING TOWARD A LESS CONSUMPTIVE ECONOMY

BOX 5–2. (continued)

Similar, albeit less dramatic dynamics have remunerated workers under environmentally occurred with other consumer goods. U.S. safe conditions.This will help satisfy elementary consumers spend about $30 billion a year on criteria of justice, such as the right of foreign toys, 60 percent of which are made in Chinese and domestic laborers to a decent livelihood sweatshops, where wages and working condi- and the right of all people to share in Earth’s tions are similar to those in apparel. Since bounty. But this is a political as well as a 1994, toy prices have fallen by 33 percent, and consumer issue. Current policies are moving us children on average get 69 toys a year.The away from these sustainability conditions. Con- prices of personal computers and peripheral siderable research on the effects of the World equipment have fallen by 81 percent since 1997 Bank and the International Monetary Fund as a result of more powerful chips, low wages, show that they mainly represent the interests and the offloading of environmental costs. of the U.S. government, and U.S. corporations, In 2001, nearly 23 million new computers at the expense of workers and domestic indus- were purchased, with similar numbers being tries in poor countries.As opposition to the discarded. It is estimated that in 2005, 63 global economy has mounted, the U.S. adminis- million personal computers will be retired in tration has responded with large increases in the United States alone. Falling prices and rising military expenditures.A just and healthy global quantities also characterize appliances, sporting economy will ultimately be rooted in a world- goods equipment, tools, hardware, and outdoor wide structure of wages that are high enough equipment and supplies. Department store to support strong domestic demand, a closer prices declined by nearly one third since 1993, balance of power between capital and labor, and durable goods prices fell by 57 percent. In and more equal distributions of income and part this is due to the steady downward pres- wealth.The need for environmentalists to make sure on prices from Wal-Mart as the company common cause with others concerned about exploits labor abroad and domestically and as global justice and peace has thus become a it takes advantage of taxpayer subsidies for most urgent task. trucking costs and unaccounted environmental degradation. —Juliet Schor, Professor of Sociology, Sustainable consumption requires higher Boston College prices for consumer goods and a shift to higher quality, longer lived products made by well- SOURCE: See endnote 72.

sold but rather with deriving the most service a particular Web site—but consumers, man- and best performance out of a product, and ufacturers, financial institutions, and gov- therefore minimizing energy and materials ernments do need to develop a new consumption and maximizing quality.74 understanding of what is truly valuable and As much as the dot-com boom of the what is therefore worth doing. 1990s was an illusion, it did show the poten- Without doubt, serious political obstacles tial for perceiving value in new ways—ones need to be overcome. Vested interests, par- less connected to the mobilization of physi- ticularly in the energy and mining industries, cal resources per se. The future may not lie in are adept at defending lucrative subsidies and “counting eyeballs”—that is, determining opposing meaningful environmental tax how many pairs of eyes can be attracted to reform. Throughout the economy, many

118 State of the World 2004 MOVING TOWARD A LESS CONSUMPTIVE ECONOMY

manufacturing companies are wedded to the products rather than pursuing quality retail. business model they are familiar with and are The staying power of these interests should inclined to stick with the assumptions of yes- not be underestimated. A less consumption- terday rather than venture into the still highly oriented economy is possible, but it will take unfamiliar territory of product take-back and government action, consumer education, and related concepts. And retailers, particularly in growing numbers of corporate trailblazers the United States, are strongly oriented to make it happen. toward maximizing sales of ostensibly cheap

119 BEHIND THE SCENES Cell Phones

Cell phones have rocketed into products that present the clear- ubiquity. In 1992, less than 1 est threat to human and environ- percent of people in the world mental health when they are had a mobile phone and only one being created or destroyed, third of all nations had a cellular as they contain toxics-rich network. Just 10 years later 18 semiconductor chips. Lifecycle percent of people had a cell analyses identify the phone’s phone—1.14 billion, more than chip-containing circuit board, liq- the 1.10 billion with a conventional uid crystal display, and batteries as phone line—and more than 90 per- the biggest hazards, followed by cent of countries had a network.1 the hard-to-recycle plastic casing. More Europeans now send and In the United States, the world’s receive short text messages with their second largest market for cell phones mobile phones than use the Internet from after China, handsets are cast off on personal computers. The Philippines leads average after 18 months, and the research the world in text messaging via cell phone; group INFORM estimates that by 2005, con- indeed, “txting” by protesters to organize ral- sumers will have stockpiled some 500 million lies against former President Joseph Estrada used mobiles that are likely to end up in land- was a factor in his ouster. In Africa, mobile fills, where they could leach some 312,000 phones outnumber fixed lines at a higher ratio pounds of lead.4 than on any other continent; entrepreneurs Their small size makes phones easier to there who sell the use of their cell phones are discard than computers, but they are also bringing service to villagers who previously more easily reused. Extending the life of had to walk miles to place a call.2 phones in this way lessens their environmental As people mainly chat on cell phones, the toll. Charitable groups have partnered with handset draws radio waves closer to their companies to refurbish used handsets—some heads than most other electronic gadgets do. are programmed to dial emergency services A 10-country study backed by the World and given to victims of domestic violence or Health Organization to determine whether the elderly, while others are resold in develop- cell phone use could be implicated in cancers ing countries—and companies such as ReCel- of the head and neck is due to be finished by lular buy and sell used phones in bulk.5 2004. With long-term data not yet available, Competing standards for cellular networks researchers advise people to plug an earpiece are one reason mobile devices are discarded into their phone, so they can hold the hand- so quickly in the United States; in contrast, set further away. And a study group assem- Europe has had a single standard since bled by the British government discouraged the early 1980s. As companies stuck with excessive cell phone use by children.3 outmoded equipment would lose out, the Like computers, cell phones are short-lived industry has thwarted attempts by the

120 State of the World 2004 BEHIND THE SCENES: CELL PHONES

International Telecommunication Union to rule prohibits the use of certain toxins in forge consensus on a single standard, but electronics, including lead, mercury, cadmi- some industry watchers believe such a move um, hexavalent chromium, and certain bro- is inevitable as the number of users grows.6 minated flame retardants.9 Ultimately, incentives for companies to The new European laws are spurring study design and recycle less-toxic cell phones hold of eco-friendly technologies. For example, the most promise for lightening the environ- Nokia has been working with university scien- mental burden. Since 1998, Japan has made tists to develop biodegradable plastics and producers take back major electrical appli- phones that disassemble for easy recycling ances; this mandate now extends to comput- when triggered by high temperature.10 ers, and regulations for other electronics are The California-based Silicon Valley Toxics on the horizon. Companies must pay for Coalition is campaigning for U.S. take-back recycling their products, prompting firms legislation. In the absence of national laws, such as Sony to invest in technologies that Minnesota has pioneered legislation making are easily recyclable.7 producers responsible for certain toxic mate- The Netherlands, Norway, Sweden, and rials, Massachusetts banned electronic waste Switzerland all have “extended producer from landfills and created a fund to recycle responsibility” programs that include cell electronics, California introduced a limited phones, in which consumers pay advance dis- ban and expects local governments to cover posal fees to fund recycling. Certification pro- recycling costs, New York recently required grams in a few countries let consumers know vendors to accept and recycle any cell phones which mobiles are most environmentally they sell, and other states are drafting bills to friendly: in Germany, the Blue Angel label reduce the amount of electronic trash they goes to phones that meet standards for toxic must dispose of.11 content, and in Sweden, TCO Development At the international level, in late 2002 certifies handsets according to emissions, the secretariat of the Basel Convention on ergonomic, and environmental criteria, hazardous waste trade convened major manu- including whether they are easily recyclable.8 facturers to launch a new mobile phone Two directives from the European Com- working group. In recent years, the health mission entered into force in 2003, sending hazards of toxic electronic trash have received the strongest environmental signal yet to more media attention as environmental electronics companies. The Waste Electrical activists have documented the export of U.S. and Electronic Equipment directive will electronic scrap to Asia. The convention sec- make each company responsible for collec- retariat intends the new mobile phone group ting and recycling its own new goods after to be the first of several efforts to work with August 13, 2005, while all firms will be col- industry on the waste problems associated lectively responsible for electronics put on with particular products.12 the market before that date. A companion —Molly O’Meara Sheehan

121 CHAPTER 6

Purchasing for People and the Planet

Lisa Mastny

In the spring of 2001, two students at Con- ronmental concerns into all stages of their necticut College in the northeastern United procurements. In doing so, they are helping States circulated an ambitious petition. Con- to spur markets for a wide range of environ- cerned about the school’s emissions of harm- mentally preferable products. Global sales of ful air pollutants, they urged their classmates energy-efficient compact fluorescent lamps to support a voluntary hike in student activ- (CFLs) have increased nearly 13-fold since ity fees to fund the university’s membership 1990, for example, to some 606 million units in a local renewable energy cooperative. More in 2001. The use of solar energy and wind than three quarters of the students backed the power has surged by more than 30 percent proposal, and it won unanimous support annually over the past five years in countries from both the student government and the like Japan, Germany, and Spain. Retail sales Board of Trustees. Although the coop closed of organic produce in the United States have down a year later, the seeds for the transition grown by at least 20 percent annually since had been planted. By January 2003, Con- 1990, to $11 billion per year, while U.S. necticut College was meeting 22 percent of sales of hybrid-electric cars doubled in 2001.2 its electricity needs from renewable wind Even so, green markets are tiny relative to energy—the largest share of energy obtained conventional ones. The U.S.-based Natural this way by a U.S. college or university.1 Marketing Institute estimates that the global Around the world, growing numbers of demand for “health and sustainability” prod- universities, corporations, government agen- ucts—from alternative transport to organic cies, and other institutions are reviewing their foods—reached a record $546 billion in purchasing habits and incorporating envi- 2000. But this still represents only about 1

An expanded version of this chapter appeared as Worldwatch Paper 166, Purchasing Power: Harnessing Insti- tutional Procurement for People and the Planet (Washington, DC: Worldwatch Institute, July 2003).

122 State of the World 2004 PURCHASING FOR PEOPLE AND THE PLANET

percent of the total world economy.3 into the environment, endanger the health of Green markets are faring better in some humans and the ecological systems we depend regions than others. In Europe, for instance, on. These impacts can occur at any stage of recycled paper now costs the same as or less a product’s lifecycle: obtaining the raw mate- than virgin paper, mainly because consumers rials, manufacturing, packaging, transport, have increasingly sought it out. Municipal use, and even after disposal.6 purchasers in Dunkerque, France, save Just how powerful is institutional pur- roughly 50¢ per ream (about 16 percent) by chasing? Consider governments. In industrial buying recycled. In the United States, how- countries, public purchasing accounts for as ever, paper buyers generally still pay a pre- much as 25 percent of the gross domestic mium of 4–8 percent for recycled content. product (GDP). (See Figure 6–1.) Govern- Despite extensive efforts to boost the market ment procurement in the European Union share of recycled paper, an estimated 95 per- (EU) alone totaled more than $1 trillion in cent of U.S. printing and writing grade paper 2001, or roughly 14 percent of GDP. In (which accounts for more than a quarter of North America, it reached $2 trillion, or about the U.S. paper market) is still made from vir- 18 percent of GDP. This purchasing occurs at gin wood fiber. Domestic use of recycled all levels of government: in 2002, the U.S. paper has actually declined in recent years, and government spent roughly $350 billion on unless demand for it picks up, the manufac- goods and services (excluding military spend- turing infrastructure could soon disappear.4 ing), while the country’s state and local These markets are even smaller in the authorities spent more than $400 billion.7 developing world, though interest in renew- Corporations, universities, religious bod- able energy and other product areas is grow- ies, and other large institutions also have sig- ing in many countries. Overall resource use nificant purchasing power. Many businesses, in the developing world is still low relative to for instance, buy not only myriad finished the industrial world, but rising consumer products, such as pens and computers, but demand for everything from cars to com- also raw materials, packaging, and other goods puters will make strengthening local markets as inputs into the manufacturing process. By for environmentally sound technologies one estimate, aggregate spending by compa- increasingly important.5 nies along their “supply chains” far outweighs the consumption of the finished products by Greening Institutional individuals. As production becomes ever more Procurement global, manufacturers can play an important role in influencing the environmental behav- Through the things they buy, institutions ior of suppliers in other countries, including wield great influence over the future of our in the developing world.8 planet. Nearly every purchase an organization Meanwhile, universities spend billions of makes, whether it is a ream of copier paper or dollars each year on everything from campus a new office building, has hidden costs for the buildings to cafeteria food. In the United natural environment and the world’s people. States, roughly 3,700 colleges and universi- Many products require huge inputs of water, ties collectively bought some $250 billion in wood, energy, metals, and other resources goods and services in 1999—equivalent to that are not always renewable. And they often nearly 3 percent of the nation’s GDP and contain toxic chemicals that, when released more than the GDP of any country but the

123 State of the World 2004 PURCHASING FOR PEOPLE AND THE PLANET

Percent with significant payoffs.10 30 Source: OECD Most organizations that make 25 high-value purchases engage in some form of competitive bid- 20 ding, meaning that they open 15 their procurement up to many potential suppliers when award- 10 ing contracts. “Greening” pro- 5 curement means that in addition to specifying basic requirements 0 for quantity, price, function, or Italy Spain Japan Canada France Austria safety, institutional buyers make Denmark Germany Switzerland environmental demands on their United StatesNetherlands United Kingdom suppliers as well. For instance, Figure 6–1. Government Spending as Share of GDP they may ask that products meet in Selected Countries, 1998 certain standards for energy effi- ciency or have a specific recy- world’s 18 largest. Religious institutions have cled content, or even that the suppliers similar clout, managing vast numbers of themselves have green credentials. (See Box schools and houses of worship around the 6–1.) (Purchasers may also stipulate certain cri- world. And international institutions like the teria for social justice, though this is not very United Nations and the World Bank buy common. The government of Belgium, for large quantities of goods and services to run instance, is considering barring public con- their headquarters and operations in industrial tracts with companies whose production con- countries as well as to sustain their field offices ditions support anti-democratic regimes or and activities in the developing world—giv- do not respect human rights.)11 ing them a unique opportunity to help build For many common institutional purchases, sustainable markets worldwide. The United alternatives now exist that are less resource- Nations alone bought nearly $4 billion worth intensive, less polluting, and less harmful to of goods and services in 2000.9 human and environmental health than their But the sheer volume of their purchasing conventional counterparts. By buying paper is only one reason institutions can be pow- with even a small percentage of recycled con- erful agents for positive environmental tent, for instance, institutions can divert sig- change. “Unlike many individuals, large nificant amounts of waste from landfills. They institutions take a very systematic approach can also save energy, wood, and other to their purchasing,” notes Scot Case of the resources: the New York–based group Envi- Maryland-based Center for a New American ronmental Defense estimates that if the entire Dream. “Purchases are clearly defined in U.S. catalog industry switched its publications detailed contracts that specify nearly every to just 10-percent recycled content paper, aspect of the product or service being the savings in wood alone would be enough bought.” With structured methodologies to stretch a 1.8-meter-high fence across the already in place, inserting environmental United States seven times.12 considerations into institutional purchasing Buying greener products can also bring can be a relatively straightforward process, health benefits to employees and other build-

124 State of the World 2004 PURCHASING FOR PEOPLE AND THE PLANET

Pollution Prevention Project reports that 6 BOX 6–1. GREENING PURCHASING out of every 100 janitors in Washington state CONTRACTS have lost time from their jobs as a result of injuries related to the use of toxic cleaning In contracts with suppliers, purchasers products, particularly glass and toilet clean- can ask that: ers and degreasers.13 • Products display one or more positive Many institutions are finding that green environmental attributes, such as recy- purchasing saves money as well. Some green cled content, energy or water efficiency, products are cheaper right away than their low toxicity, or biodegradability. conventional alternatives. Recycled toner car- • Products generate less waste, including tridges for printers and copiers, for instance, by having less packaging or being durable, reusable, or remanufactured—the city can sell for a third of the price of new car- of Santa Monica in California asks its tridges. Other items, such as low-flush toilets vendors to supply cleaning products in or compact fluorescent lamps, bring consid- concentrated form to save packaging. erable cost savings over their lifetimes. • Products meet certain environmental Although CFLs cost up to 20 times more criteria during manufacturing or produc- than incandescent bulbs, they last 10 times tion, such as that paper be processed longer and use a quarter of the electricity to chlorine-free or be made out of timber produce the same amount of light. Buying from a sustainably managed forest. goods that are durable, remanufactured, or • Suppliers reclaim or take back items recyclable can lower the costs of product such as batteries, electronics equipment, maintenance, replacement, or disposal. Mean- or carpeting at the end of their useful while, cleaners and other products that are less lives—some U.S. federal agencies now toxic can reduce the insurance and workers’ use “closed-loop” contracts, requiring contractors to pick up used oil products, compensation expenses associated with cer- tires, and toner cartridges for disposal. tain workplace injuries.14 • Suppliers themselves have environmental Perhaps most important, rising institu- credentials—some government purch- tional demand can play a key role in building asers in Switzerland give preference to larger markets for greener goods and ser- companies that have or are putting in vices. If these consumers increasingly seek place environmental management systems. out products and services that are more ben- eficial to the environment, producers will SOURCE: See endnote 11. have a greater incentive to design and produce them. As markets for these items grow, pro- pelled by the forces of competition and inno- ing occupants. Many common purchases, vation, the resulting economies of scale will including paints used on walls and furniture, eventually drive down prices, making greener pesticides for buildings and grounds mainte- purchases more affordable for everyone. nance, and products for custodial cleaning, contain toxic ingredients like heavy metals and Pioneers in Green Purchasing volatile organic compounds. These substances can pollute indoor air and accumulate in liv- Most institutions that buy green are target- ing tissue, endangering human and environ- ing smaller purchases, like paper and office mental health. The Janitorial Products supplies, that are easy to shift without signif-

125 State of the World 2004 PURCHASING FOR PEOPLE AND THE PLANET icant changes in the organization’s practices. lose competitiveness by pursuing resource- But some others have begun to fundamentally intensive or environmentally destructive meth- restructure the way they do business. ods. The sportswear manufacturer Nike, for At the corporate level, green purchasing instance, has boosted the organic cotton con- pioneers include companies in virtually all tent of its clothing because it worries about the sectors of the economy, including banks, potential health and environmental liabilities hotels, automakers, clothing retailers, and associated with conventional cotton produc- supermarkets. (See Table 6–1.) Many of these tion, which requires high inputs of chemical businesses are motivated by enlightened self- pesticides and fertilizers. “It’s the only intel- interest: they are finding that by embracing ligent way to do business,” says Heidi energy efficiency measures and other rela- McCloskey, global sustainability director at tively small-scale changes in their internal Nike Apparel. “By managing and designing operations, they can reduce their environ- out every harmful product, Nike won’t be at mental impacts as well as improve their prof- risk of paying higher costs in the future.” In itability. In 1992, the Business Council for 2001, more than a third of the cotton gar- Sustainable Development endorsed this ments the company produced contained at approach as “eco-efficiency.” L’Oreal, the least 3-percent certified organic cotton.17 world’s largest cosmetics manufacturer, cut its Nike is in the vanguard of companies that greenhouse gas emissions 40 percent between now hope to take a leading role in pushing 1990 and 2000 while increasing production wider markets for green products. In 2001 it 60 percent, largely by installing energy-effi- helped launch Organic Exchange, a network cient lighting in its facilities and introducing of 55 businesses that intends to expand the a recycling program to cut back on waste use of organic cotton in manufacturing sig- incineration. Anheuser-Busch and IBM are nificantly over the next 10 years. Other com- among the many other companies that have panies, including Texas Instruments, Levi saved millions through improvements in water Strauss, and Ford Motor Company, have and energy efficiency.15 joined the Recycled Paper Coalition, founded Even in cases where green purchasing in 1992 to use bulk corporate purchasing does not lead to direct savings, it can bring power to boost the supply and quality of overall business benefits. In a recent study for recycled paper products (and to wean com- the Center for Advanced Purchasing Studies, panies off virgin paper before regulations Craig Carter and Marianne Jennings found require it). The coalition’s 270 members that increased corporate social responsibility bought nearly 150,000 tons of recycled paper is generally correlated with higher revenues, in 2002, with an average postconsumer con- healthier and safer work environments, and tent of 29 percent.18 improved relationships with customers and But balancing green purchasing with the suppliers—factors that can more than out- corporate profit motive can be a delicate weigh any potential monetary costs. Green process. Because companies are ultimately purchasing can also be a way for companies responsible to their bottom lines and to win “PR” points with their supporters beholden to shareholder and supplier rela- and critics (though some environmental tionships, in some cases it can still be a com- groups maintain that this is just a form of petitive disadvantage to do the right thing. “greenwashing”).16 Jeffrey Hollender, CEO of Seventh Gener- Many companies also realize that they may ation, a manufacturer of environmentally

126 State of the World 2004 PURCHASING FOR PEOPLE AND THE PLANET

Ta b l e 6 –1. Examples of Green Purchasing in Selected Companies

Bank of America Boosted recycled paper purchases by 11 percent in 2001 to 54 percent of paper bought. Reuses and refurbishes office furniture and carpeting and uses recycled materials in fix- tures and bank service counters.Aims to include supplier environmental requirements in all future contracts. Boeing By 1999, had retrofitted more than half of its floor space with efficient lighting, cutting en- ergy costs by $12 million annually and saving energy that could power some 16,000 homes. Canon Gives priority in its global purchasing to nearly 4,600 company-approved green office supplies. Now working to green its procurement for plants in Japan,Asia, and North America. Outreach to suppliers has led to high rates of compliance with existing policies. Federal Express In 2002, pledged to replace all 44,000 fleet vehicles with diesel-electric trucks that would increase fuel efficiency by half and cut smog- and soot-causing emissions by 90 percent. Hewlett-Packard In 1999, committed to buying paper only from sustainable forest sources. Gives prefer- ence to suppliers that provide green products and have green business practices. Restricts or prohibits use of certain chemicals in manufacturing and packaging. IKEA Gives preference to wood from forests that are either certified as being sustainably managed or in transition to these standards. Buys wood via a four-step process that encourages suppliers to seek forest certification. McDonald’s Spent more than $3 billion on recycled-content purchases between 1990 and 1999, including trays, tables, carpeting, and packaging. In 2001, adopted compostable food packaging made from reclaimed potato starch and other materials. Has installed energy- efficient lighting in restaurants. Migros In 2002, the Swiss supermarket became the first European retailer to stop buying palm oil supplies from ecologically unsound sources in Malaysia and Indonesia.Audits its suppliers for compliance with environmental criteria and labels products that “protect tropical forests.” Riu Hotels By switching to bulk purchases of breakfast items, the German chain was able to cut waste by 5,100 kilograms annually, saving 24 million items of individual packaging and an average of 5 million plastic garbage bags each year. Staples In 2002, pledged to boost the average recycled content in its paper goods to 30 percent and to phase out purchases from endangered forests. Uses energy-efficient lighting and roofing material in its buildings. By end of 2003, aims to buy only recycled paper products for internal operations and to boost green power purchases to 5 percent. Starbucks Since November 2001, has offered financial incentives and supplier preference to coffee farmers who meet certain environmental, social, economic, and quality standards. In 2002, 28 percent of paper fiber used was post-consumer and 49 percent contained unbleached fiber. Toyota In 2001, switched some 1,400 office supply items and 300 computers and other equipment to green alternatives. Achieved 100-percent green purchasing in these areas in 2002. In fiscal year 2001, bought 500,000 kilowatt-hours of wind power and aims to boost this to 2 million kilowatt-hours per year.

SOURCE: See endnote 15.

127 State of the World 2004 PURCHASING FOR PEOPLE AND THE PLANET sound household goods, notes that his com- chasing by city, state, and regional govern- pany is constantly weighing the urge to boost ments. Christoph Erdmenger, coordinator the recycled content of its products against of eco-procurement activities at the Interna- the higher cost of doing so. “At the final tional Council for Local Environmental Ini- analysis, it’s far better to make a slightly less tiatives (ICLEI), notes that in most countries environmentally benign product for a time with strong green purchasing activities, local than it is to find yourself out of business and authorities have been the forerunners. In unable to make any difference at all,” Hol- Europe, 250 municipal leaders from more lender says. “The trick is achieving a bal- than 30 countries pledged in the Hannover ance between moving too fast and not Call of 2000 to use their purchasing power moving fast enough.”19 “to direct development toward socially and Over the past decade or so, calls for greener environmentally sound solutions.” Kolding in government procurement have escalated as Denmark set an ambitious goal in 1998 of well. Most recently, delegates attending the incorporating environmental considerations 2002 World Summit on Sustainable Devel- into 100 percent of its framework purchasing opment in Johannesburg reiterated the need by 2002. By May 2001, roughly 70 percent to “promote public procurement policies that of its purchasing requests had specified and encourage development and diffusion of envi- integrated environmental demands, primar- ronmentally sound goods and services.” Many ily in the areas of food, office equipment, governments also increasingly recognize the cleaning products, information technology, value of greening operations as a way to and health care supplies.22 streamline costs and achieve wider environ- The United States has also seen greater mental policy goals, such as reducing waste progress in greening government purchases and meeting targets for energy efficiency.20 at the state, county, and city levels than at the Although some governments took steps national level. In 1999, Santa Monica, Cali- to green their purchasing as early as 20 years fornia, became the first U.S. city to buy 100 ago, most activity only dates from the 1990s. percent of its municipal power from renew- (See Table 6–2.) Several countries—including able sources, including geothermal and wind Austria, Canada, Denmark, Germany, Japan, energy. The state of Minnesota now has some and the United States—now have strict 110 different contracts for green products national laws or policies requiring govern- and services, including alternatively fueled ment agencies to buy green (though this does vehicles, low-toxicity cleaning supplies, not mean they always do so). In most other energy-efficient computers, and solvent-free countries where green purchasing now occurs, paint. Other local pioneers include the states either policies “recommend” that purchasers of Massachusetts, Vermont, and Oregon; the consider environmentally preferable options or city of Seattle, Washington; and Kalamazoo no specific policy exists, although purchasers County in Michigan.23 are able to consider environmental variables in In the developing world, Taiwan is one of their buying. As at the industry level, most a few countries that have formalized green government activity has focused on buying public purchasing, stating a preference for recycled or energy-efficient products, although approved green products in a 1998 presi- interest in renewable energy and other green dential decree. Other governments have purchases is rising as well.21 implemented legislation to support recycling There has also been a flurry of green pur- programs, yet initiatives to actively promote

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Ta b l e 6 –2. Examples of Government Green Purchasing

Austria Local-level activities date to the late 1980s. Federal laws from 1990 and 1993 require public authorities to insert environmental criteria in product specifications. (The 1993 law has been adopted by eight of nine provinces.) Since 1997, the Ministry of Environ- ment has helped municipalities and other ministries buy green. In 1998, the government approved basic green buying guidelines in areas like office equipment, building, cleaning, and energy. Canada A strong national legislative and policy framework for green purchasing exists. Goals include making 20 percent of federal power purchases from green sources by 2005 and, where cost-effective and operationally feasible, running 75 percent of federal vehicles on alternative fuels by April 2004. Environment Canada’s policy directs purchasers to consider product lifecycle impacts, to use ecolabeled products, and to adopt recycling, energy efficiency, and other green criteria when purchasing. Denmark A world leader in green purchasing. A 1994 law requires all national and local authorities to use recycled or recyclable products, and all authorities must also have a green purchasing policy.As of 2000, 10 of 14 counties had policies.At least half of the munici- palities also attest to having or developing policies. Germany Federal waste law requires public institutions to give preference to green products in purchasing. State and municipal directives also require inclusion of environmental criteria in requests for bids, though economic criteria take priority in evaluation. Japan Another world leader in green purchasing, starting with local government activity in the early 1990s.A 2001 law requires national and local governmental organizations to develop policies and buy specified green products.As of early 2003, authorities in 47 prefectures and 12 major municipalities were buying green, and nearly half the 700 municipalities had policies. Most progress is in the areas of paper, office supplies, infor- mation technology equipment, cars, and home appliances. United Kingdom Rules allow purchasers to use environmental criteria in purchasing as long as this does not prevent fair competition.Authorities can choose how much weight will be given to environmental and other criteria when awarding contracts.Government departments were required to obtain at least 5 percent of their energy from renewable sources by March 2003, which must increase to 10 percent by 2008. United States A wide array of laws and policy directives requires federal agencies to buy green items, including recycled-content and energy-efficient products and alternatively fueled vehicles. Agency-wide coordination and implementation has been poor but is improving.Among the states, 47 of 50 boast “buy-recycled” policies, some dating to the late 1980s.At least a dozen states have broadened these to include other green purchases.

SOURCE: See endnote 21. and buy recycled products have been slower greater use of recycled plastic and paper and to take off. There has been talk about getting has introduced more-efficient neon bulbs for green purchasing into government policy in street lighting.24 Brazil, Iran, Mexico, and Thailand, and the In most cases, it is too early to judge the government of Mauritius is moving toward overall impact of these government pioneers.

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A few notable successes, however, point to the Pressures and Drivers tremendous ability of green purchasing to influence markets. For instance, ICLEI attrib- Institutions of all kinds increasingly face a utes the ascendance of recycled paper to a wide range of regulatory and consumer pres- standard office supply in many European sures to buy green. For instance, many gov- countries to the cumulative demands of pub- ernments now offer rebates, tax breaks, and lic authorities, which have given this product other economic incentives to encourage a competitive edge. A similar shift happened businesses, schools, individuals, and other when the U.S. government boosted the recy- consumers to invest in everything from cled content standard for federal paper pur- energy-efficient appliances to alternatively chases to 30 percent in 1998. In 1994, only fueled vehicles. In 2002, the U.S. Archdio- 12 percent of the copier paper bought by cese of Los Angeles received thousands of federal agencies had recycled content, and it dollars in local rebates when the Cathedral was only 10-percent recycled material. By of Our Lady of the Angels became the city’s 2000, however, 90 percent of the paper pur- first religious edifice to install solar panels chased by the government’s two leading paper on its roof, generating enough energy to buyers had 30-percent recycled content. The power both the building and more than 60 spike in government demand not only residences.27 boosted the overall market standard for recy- Governments are also using their regula- cled content, it also helped elevate the stand- tory authority to essentially force institutions ing of the government’s main recycled paper to make greener purchases. New laws or reg- supplier, Great White.25 ulations that require manufacturers to meet Government green purchasing can be par- certain standards for energy efficiency or recy- ticularly effective in pushing markets where clability influence the way many companies public buying accounts for a significant share now design and make their products. Vehicle of overall demand or where a technology is manufacturers, for instance, have had to changing rapidly, as in the case of computer rethink both their sourcing and use of mate- equipment. The U.S. government, the world’s rials in order to meet the terms of a new single largest computer purchaser, buys more European Union directive on end-of-life vehi- than 1 million machines annually—roughly 7 cles, which aims to reduce the portion of old percent of new computers worldwide. In cars that ends up in landfills. By 2007, 85 per- 1993, President Bill Clinton issued an exec- cent by weight of every new vehicle must be utive order requiring federal agencies to buy made from recyclable components (currently, only computer equipment that meets the effi- vehicle recycling is limited to the 75 percent ciency requirements described under the gov- by weight that is metallic). DaimlerChrysler ernment’s Energy Star program. Today, largely hopes to exceed this standard and achieve as a result of this increased demand, 95 per- 95 percent recyclability by 2005, in part by cent of all monitors, 80 percent of computers, boosting its use of recovered plastic and other and 99 percent of printers sold in North materials. If widely adopted, this recycling America meet Energy Star standards. Ana- process could save the world automotive lysts have linked a similar jump in the envi- industry $320 million per year.28 ronmental performance of Japanese electronics Governments are not the only ones push- to that country’s preeminence in the green ing institutions to buy green. Around the purchasing of these items.26 world, individual consumers are beginning to

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translate personal concerns about their health, in boycotts and other direct actions to pres- the environment, and social justice into sure companies into shifting their buying greener buying at the household level. Today, practices. In recent years, advocacy groups some 63 million U.S. adults, or approxi- like the Rainforest Action Network (RAN) mately 30 percent of households in the coun- and ForestEthics have organized public try, do some form of environmentally or actions in the United States and around the socially conscious buying, according to a sur- world to get leading retailers like Home vey by LOHAS Consumer Research. In the Depot to stop buying wood products origi- United Kingdom, ethical purchases by indi- nating in old-growth forests. (See Box 6–2.) viduals—in areas ranging from organic foods Michael Marx, executive director of to renewable energy—increased 19 percent ForestEthics, notes that a key factor behind between 1999 and 2000, six times faster than the success of these campaigns has been their the overall markets in the various sectors.29 focus on the private sector: “It’s important These consumers increasingly expect bet- to target corporate customers because they ter environmental performance from the have an image. The goal is to raise the cost institutions that guide them, the businesses of doing business in an environmentally they support, and the products they buy. unfriendly way.” Marx believes that boycotts Manufacturers in the United States report a and other public shaming actions can be growing volume of consumer requests for much more effective tools for pushing envi- environmental information about their prod- ronmental change than, for example, lob- ucts, such as whether they contain recycled bying for regulatory action, which could content. The 1999 Millennium Poll on Cor- take years or even decades.32 porate Social Responsibility found that some 60 percent of consumers in 23 countries now expect companies to tackle key envi- Today, some 63 million U.S. adults, or ronmental and social issues through their approximately 30 percent of households, businesses, in addition to making a profit do some form of environmentally or and generating jobs.30 socially conscious buying. Consumer pressure was instrumental in getting municipal authorities in Ferrara, Italy, to introduce organic food into local school In other cases, NGOs are actively part- cafeterias. After a group of concerned parents nering with leading corporations to help drew attention to the poor quality of food them redirect their significant purchasing being served in kindergartens in 1994, the power toward environmental ends. The town established a commission to study the Alliance for Environmental Innovation, a possibility of switching its food procurement. project of the nonprofit Environmental Within four years, Ferrara had systematized Defense, is working with companies like Cit- the purchasing of organic food into a special igroup, Starbucks, Bristol-Myers Squibb, and procurement request, and by 2000, 80 per- Federal Express to shift industry purchases of cent of the food served in the city’s kinder- paper, vehicles, and other products. And the gartens was organic.31 new Climate Savers Program, a joint initiative Growing numbers of concerned con- of the World Wide Fund for Nature and the sumers, shareholders, and nongovernmental Virginia-based Center for Energy and Climate organizations (NGOs) are also participating Solutions, works with global companies like

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BOX 6–2. HOME DEPOT’S COMMITMENT TO SUSTAINABLE WOOD PRODUCTS

In the mid-1990s, the San Francisco–based purchases soared from $20 million to more Rainforest Action Network launched a high- than $200 million. profile campaign to pressure Home Depot, the The company’s decision had a significant world’s largest home improvement retailer, to ripple effect on the wider home improvement improve its wood buying practices.The Atlanta- and home building markets.Within a year of based chain sells more than $5 billion worth of the shift in policy, retailers accounting for well lumber, doors, plywood, and other wood prod- over one fifth of the wood sold for the U.S. ucts annually in its 1,450 stores worldwide. home remodeling market, including leading RAN used consumer boycotts, in-store competitors Lowe’s and Wickes, Inc., demonstrations, ad campaigns, and shareholder announced that they too would phase out activism to draw public attention to Home endangered wood products and favor certified Depot’s practice of buying wood products wood.Two of the nation’s biggest homebuilders that originate in highly endangered forests also pledged not to buy endangered wood. in British Columbia, Southeast Asia, and the These policy shifts have raised the overall Amazon. In August 1999, largely in response standard for the timber industry.With many to this pressure, the company announced that companies now scrambling to get FSC it would phase out all purchases of old-growth approval, it could soon be a liability for other wood by the end of 2002.As of January 2003, wood producers not to get certified. Michael it had reduced its purchases of Indonesian Marx of ForestEthics notes that “one statement lauan (a tropical hardwood used in door com- from Home Depot did more to change British ponents) by 70 percent and shifted more than Columbia’s logging practices than 10 years of 90 percent of its cedar purchasing to second- environmental protest.” and third-generation forests in the United But critics worry that Home Depot has not States.Today, the company claims to know the gone far enough in using its market power to original wood source of roughly 8,900 of its influence its suppliers. One obstacle has been products. the higher cost to vendors of buying certified Home Depot also pledged to give wood or producing synthetic alternatives, preference to products certified as coming though Home Depot has agreed to absorb any from sustainably managed forests. (Currently, price increases.Another challenge has been roughly 1 percent of wood sold worldwide is weaning consumers away from environmentally certified.) Between 1999 and 2002, the number unsound options.According to the company, of its suppliers selling wood approved by the few customers are specifically asking for certi- Forest Stewardship Council (FSC), a leading fied wood. forest certification body, jumped from only 5 to 40, and the value of its certified wood SOURCE: See endnote 32.

Johnson & Johnson, IBM, Nike, and Overcoming Obstacles Polaroid to boost their energy efficiency and use of green power. Similarly, the World For the past few years, economist Julia Resources Institute is recruiting leading com- Schreiner Alves has been trying to push her panies to help meet its goal of developing cor- employer, the state of São Paulo in Brazil, to porate markets for 1,000 megawatts of new green its government purchasing. Home to green power by 2010—enough capacity for 30 million people, São Paulo is second among 750,000 American homes.33 all Brazilian states in purchasing power. But

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Alves is one of the only people in her agency in the developing world, where environ- calling for greener purchasing, and she says mental or product standards are often so that many of her colleagues, particularly in the weak that buyers make poor-quality, or even purchasing department, are simply insensitive dangerous, purchases. Corruption and weak to the potential of green buying to generate enforcement in procurement offer buyers positive environmental change.34 little incentive to make the most efficient At a practical level, the success of green pur- purchases, much less buy environmentally chasing often comes down to the role of the preferable products.36 professional purchaser. An institution’s pro- As governments worldwide update their curement department wields considerable procurement procedures and close loopholes power. In the United States, government pur- that allow for inefficiency, waste, and cor- chasing departments supervise 50–80 per- ruption, this could either lead to more-restric- cent of total buying. When purchasing is tive regulations that make it harder to buy highly centralized, a single decision made by green or offer new opportunities. The Euro- just one or a handful of buyers can have a pean Commission, for instance, is now explor- tremendous ripple effect, influencing the prod- ing the legal possibilities for green purchasing ucts used by hundreds or even thousands of under the European Union Procurement individuals. As a result, the buying activities of Directives, which have historically made no institutional purchasers often have far greater reference to environmental concerns. A July consequences for the planet than the daily 2001 communication examined how green choices of most household consumers.35 criteria might be integrated into different Unfortunately, many purchasers are not yet stages of EU procurement, from product harnessing their tremendous power to lever- specification to supplier selection.37 age change. In some cases, they simply are not In addition to ongoing legal uncertainties, aware of the influence they could have. But green purchasing faces formidable political they also face serious legal, political, and challenges. As markets for environmentally institutional obstacles at all stages of their preferable products grow, industries that have work—from establishing a green purchasing an ongoing stake in conventional produc- program to selecting green products. Unless tion (such as oil companies, fertilizer com- these barriers are addressed and the gap panies, and other manufacturers of less between good intentions and practical results environmentally sound products) will likely is narrowed, today’s pioneering green pur- lose out. These interests are using their sig- chasing initiatives could be swallowed up in nificant influence over institutional purchas- the rising swell of consumption. ing decisions to prevent product alternatives Because of the often complex legal frame- from gaining ground. For years, Tom Fer- work surrounding procurement, inserting guson of Perdue AgriRecycle has attended green demands into the purchasing process trade shows and garnered support from gov- is usually more easily said than done. Pro- ernment buyers for his organic fertilizer prod- curement rules can vary depending on the uct, which is derived from recycled poultry volume, value, or type of purchase, making litter. But he is not breaking into the market, it difficult for purchasers to determine he says, because federal specification codes do whether environmental considerations are not allow purchasers to buy alternatives like compatible with existing procedures. Green the one he sells. He notes that powerful purchasing can be particularly challenging industry groups, such as the Fertilizer Insti-

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tute, will protect chemical agribusiness con- zations have no history of environmental tracts at all costs. And “if the product or ser- responsibility, getting employees to recog- vice is not in the government spec, then the nize the benefits of adopting more environ- hands of the government procurer—no mat- mentally sound practices can take time. ter how well meaning he is—are tied.”38 Purchasers, managers, and product end-users are often accustomed to the status quo and resistant to new methods that may complicate Many green purchasing efforts fall short their work. Moreover, skepticism about the because organizations do not set strict functionality of many green products per- targets for the activity and there is no sists. For instance, many purchasers still avoid system of accountability. buying recycled paper because they believe it to be of substandard quality, even though these types of performance problems have Even when the political climate is more largely been overcome. receptive, purchasers face other obstacles to Selecting a focus for green purchasing can buying green. In most institutions, rules be challenging as well. Should an institution require them to buy the product or service target smaller, off-the-shelf commodities like that best meets their needs at the lowest cleaning products, office furniture, and paper price, which can rule out more expensive or bigger-ticket items like buildings and trans- environmentally preferable products. Luz port? Ideally, the initiative would focus on Aída Martínez Meléndez of Mexico’s Ministry changes that make the greatest difference of Environment and Natural Resources com- overall, in terms of environment benefits and plains that finding affordable product alter- market influence. But this usually is not the natives is one of the biggest barriers to green case. Stuttgart, Germany, for instance, focuses purchasing in her agency.39 its green buying primarily on paper, cleaning But some institutions are finding innova- products, and computer equipment, even tive ways to address price concerns. In 2001, though 80 percent of municipal spending the city of Chicago and 48 suburbs pooled goes for electricity, heating, and the con- their jurisdictional resources to buy a larger struction and renovation of buildings.41 block of electricity at a reduced rate, and Ultimately, the target may depend on an they will use the savings to meet at least 20 institution’s environmental priorities, finan- percent of group power needs with renewable cial and legal constraints, and the overall ease sources by 2006. Kansas City and Jackson or likelihood of adopting the changes. The County in have agreed to pay a pre- city of Santa Monica, California, kicked off its mium of 15 percent more for alternative green purchasing effort in 1994 with less- fuels, cleaning products, and other products toxic cleaning products because a large body they consider environmentally preferable. of knowledge about product alternatives Other institutions allow purchasers to com- already existed. Without doing too much pare products based on the lifetime cost of additional research, buyers were able to ownership, rather than simply the purchase replace traditional cleaners with less-toxic cost—which often reveals the green choice to options in 15 of 17 product categories, sav- be cheaper.40 ing 5 percent on annual costs and avoiding There are also internal institutional obsta- the purchase of 1.5 tons of hazardous mate- cles to buying green. Because many organi- rials per year. Japan’s Green Purchasing Net-

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work, which encourages consumers of all tally preferable products in their procure- kinds to buy green, is thought to be partic- ment and contracting above a specified dol- ularly successful because it focuses mainly on lar limit. But two recent reports, by the U.S. office supplies and electronics. (Some of the Environmental Protection Agency (EPA) group’s members, which include local gov- and the U.S. General Accounting Office, ernments, corporations, and NGOs, have found that not only were few federal agen- achieved 100-percent green procurement of cies meeting the green requirements, but these items.)42 the majority of agency purchasers were not One important way to institutionalize even aware of the rules.45 green purchasing is by establishing an explicit Julian Keniry, director of the Washington- written policy or law that reinforces the based National Wildlife Federation’s Cam- activity. Copenhagen’s strategy, which went pus Ecology program, says that many green into effect in 1998, specified that within purchasing efforts fall short because organi- two years all office supplies had to be PVC- zations do not set strict targets for the activ- free, all photocopiers had to use 100-percent ity and there is no system of accountability. recycled paper, all printers had to use dou- “Policies alone aren’t enough,” she says. ble-sided printing, and all toner cartridges “They need to be coupled with the goal-set- had to be reused.43 ting process. Otherwise, they’re just words on But having a policy on the books does paper.” The more specific and quantifiable not always guarantee that the activity will an institution’s goals, the greater the likelihood take place. The United Kingdom’s forward- that green buying will actually happen.46 thinking timber procurement rule is a case in In some cases, institutions do not impose point. In 2000, in response to rising world- any sanctions for noncompliance, giving wide concern about illegal logging, the cen- purchasers little incentive to abide by the tral government adopted a policy requiring all rules. The 2000 EPA survey, for instance, departments and agencies to “actively seek” attributed lax federal compliance with U.S. to buy wood products certified as coming “buy-recycled” laws to weak enforcement; from sustainably managed forests. A Green- even if purchasers were aware of the rules, peace investigation in April 2002, however, they did not always perceive them to be revealed that authorities were clearly flouting mandatory. To encourage compliance, this law when they refurbished the Cabinet Vorarlberg in Austria now holds a regional Office in London with endangered sapele contest to reward the most environmentally timber from Africa. Following up on the inci- friendly town hall for its buying practices, dent, the House of Commons Environmen- while in the United States, Massachusetts tal Audit Committee confirmed that there gives prizes to the most successful state, has been “no systematic or even anecdotal evi- municipal, and business green purchasers.47 dence of any significant change in the pattern At the same time, most institutional of timber procurement.”44 accounting systems are not set up to track Many U.S. green buying laws, too, have purchases of recycled or green products, failed to live up to expectations. Under the making it difficult to monitor activity. The 1976 Resource Conservation and Recovery ongoing decentralization of many govern- Act and subsequent updates, federal agencies ment, university, and other institutional pur- are required to consider the use of certain chasing operations compounds the recycled, bio-based, and other environmen- accountability problem. Canada’s large gov-

135 State of the World 2004 PURCHASING FOR PEOPLE AND THE PLANET ernment agencies now issue some 35,000 mation has left manufacturers, environmen- individual credit cards, allowing employees to talists, and others confused about what exactly select and charge their own supplies up to a constitutes a “green” product or service. fixed dollar limit, while more than half of Should an “environmentally sound” paper, for U.S. federal purchases are charged on gov- instance, contain a maximum percentage of ernment bankcards.48 recycled content? Come from a sustainably Some institutions are tackling the moni- harvested forest? Be processed chlorine-free? toring problem the old-fashioned way: tally- Or some combination of the above? For many ing green purchasing receipts by hand. But green products, widely recognized environ- others are developing more sophisticated sys- mental standards or specifications do not yet tems. Kolding, Denmark, is creating an elec- exist. In some cases, green products are so tronic form for recording green purchases, innovative that only a handful of companies and the U.S. government has made head- produce them, or they undergo such a high way in getting an automated tracking sys- rate of technological change that standards or tem for green products into the federal specifications simply have not been devel- procurement system. Other institutions are oped. Yet without agreement on what’s really avoiding the responsibility altogether, putting “green,” many manufacturers remain reluc- the onus on suppliers. U.S. renewable energy tant to invest in more environmentally sound retailer Green Mountain Energy, for example, technologies.51 requires its paper supplier, Boise Cascade, to Fortunately, sophisticated tools are being provide summary reports on all Green Moun- developed to help both manufacturers and tain purchases of recycled paper.49 purchasers evaluate the environmental per- formance of products. One particularly Identifying Green Products promising technique, lifecycle assessment (LCA), offers a methodology for identifying An added challenge in “buying green” is and quantifying the inputs, outputs, and knowing exactly what to look for. Relatively potential environmental impacts of a given little is known about the environmental char- product or service throughout its life. (See acteristics of most products and services on Box 6–3.) Volvo, for instance, now uses life- the market today, making it tough for buyers cycle considerations to provide detailed infor- to compare products effectively. Tracing a mation on the various environmental impacts product’s origins up the chain of production that arise during vehicle manufacturing and can be particularly difficult. A purchaser may use. And the U.S. Department of Com- unwittingly buy paper originating from virgin merce’s new BEES software (Building for forests in Southeast Asia (where forests are Environmental and Economic Sustainabil- rapidly being cleared for agriculture and other ity) uses lifecycle data to help buyers compare purposes) because it has been repackaged and rate the environmental and economic and sold under so many different brand names performance of building materials based on that even most vendors cannot confirm its their relative impacts in areas like global source. Without the time or scientific back- warming, indoor air quality, resource deple- ground to extensively research green product tion, and solid wastes.52 offerings, many purchasers simply prefer to be Agreement is also emerging, at least among told what to buy.50 some stakeholders, on how to define certain The absence of sound environmental infor- green goods, such as paper and cleaning

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BOX 6–3. THE LIFECYCLE APPROACH

A lifecycle approach allows us to look for the initiative works to develop and disseminate unintentional consequences of our actions practical tools for evaluating the opportunities, throughout the entire life of products—from risks, and trade-offs associated with products the extraction of the raw materials to the and services over their whole lifecycle.The Ini- disposal of the product. By offering more tiative is governed by an International Life complete information about everything from Cycle Panel, which also serves as a key global our transport systems to our energy sources, forum for stakeholders and lifecycle experts it can help us redirect consumption in a more from around the world. sustainable direction.“Consumers are increas- The Initiative contributes as well to the ingly interested in the world behind the prod- wider 10-year framework of programs to pro- ucts they buy,” notes Klaus Töpfer, Executive mote sustainable consumption and production Director of the U.N. Environment Programme patterns called for at the World Summit on (UNEP).“Lifecycle thinking implies that every- Sustainable Development in Johannesburg in one in the whole chain of a product’s lifecycle, 2002.The Johannesburg Plan of Implementation from cradle to grave, has a responsibility and stressed the need for “policies to improve the a role to play.” products and services provided, while reducing In 2001, in response to a call from govern- environmental and health impacts, using, where ments for a lifecycle economy, UNEP and appropriate, science-based approaches, such as the Society of Environmental Toxicology life cycle analysis.” and Chemistry jointly initiated a Life Cycle —Guido Sonnemann, Division of Technology, Initiative.Through its three main programs— Industry, and Economics, UNEP on Life Cycle Management, Life Cycle Inventory data, and Life Cycle Impact Assessment—the SOURCE: See endnote 52.

products. In November 2002, some 56 envi- Many purchasers (and other consumers) ronmental groups across North America also seek guidance from national, regional, adopted a set of common environmental cri- and global ecolabeling initiatives. Ecolabels teria for environmentally preferable paper are seals of approval used to indicate that a and released detailed guidance to advise paper product has met specified criteria for envi- buyers about their choices. That same year, ronmental soundness during one or more government purchasers, industry represen- stages of its lifecycle. Though the range of tatives, and environmental groups joined products and services that carry ecolabels is forces under a new North American Green relatively small, labels can already be found on Purchasing Initiative to develop uniform cri- everything from green electricity to wood teria and contract language for green pur- products. Certifiers include government agen- chases of energy, paper, and cleaning cies, NGOs, professional or private groups, products. One working group scored a big and international accreditation bodies. (See victory by agreeing on a single set of criteria also Chapter 5.)54 for identifying green cleaning products in Some institutions allow their purchasers to government contracts (previously, purchasers specifically call for ecolabeled items in their had used up to 17 different types of con- contracts. The city of Ferrara, Italy, for tract language).53 instance, seeks to buy paper that carries the

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Nordic Swan ecolabel. But many purchasers explains Scot Case, director of procurement (particularly those from government) hesitate strategies for the Center for a New American to endorse specific ecolabeled products, ask- Dream. “A company could face legal liabili- ing instead that their suppliers satisfy the ties if customers suddenly learn that many of labels’ underlying criteria. The state of Penn- its cleaning products, for example, are a toxic sylvania has indicated a desire to buy only witches’ brew of known carcinogens and cleaning products and paints that meet criteria reproductive toxins.”57 set by Green Seal, a U.S. nonprofit organi- Several other tools also now help pur- zation that has developed rigorous environ- chasers more easily identify environmentally mental standards in some 30 product preferable products and services. Many orga- categories. A leading concern is that singling nizations publish green purchasing guide- out specific labeled products could create an lines or product lists for their purchasers to unfair barrier to trade under the rules of the reference or provide detailed training manu- World Trade Organization, by discriminating als to lead buyers through the process. The against smaller suppliers that may not be able U.S. EPA, for example, offers recommenda- to meet the costs of qualifying for and com- tions for purchasing some 54 different recy- plying with the labels. (See Chapter 7.)55 cled-content products, including traffic cones, toner cartridges, plastic lumber, garden hoses, Japan’s Green Purchasing Network now and building insulation. The city of Göteborg, Sweden, holds training seminars, lectures, boasts some 2,730 member organizations, and workshops to inform purchasers and including Sony,Toyota, and Canon. other stakeholders about legal requirements, specific tools, and best practices for green There has been significant industry oppo- procurement. By 2000, 80–90 percent of sition to ecolabeling as well, particularly in the municipal staff there (both purchasers and United States. Green Seal president Arthur end-users) had been trained in green pur- Weissman explains that manufacturers like chasing.58 Procter & Gamble, a leading producer of household goods, have used a variety of tac- Spreading the Movement tics—from legal arguments to extensive gov- ernment lobbying—to prevent green certified For many years the effort to publicize and pro- products from entering the U.S. marketplace. mote greener purchasing practices was scat- “The way they see it, it interrupts the rela- tershot, with much duplication of effort and tionship to the consumer,” says Weissman. “A little cross-fertilization of ideas. But this is third party interferes with the brand.”56 beginning to change. Today initiatives at the In some cases, global manufacturers with international, regional, and local levels seek multiple product lines have resisted efforts to both to address the obstacles to green pur- single out any of their products as environ- chasing and to accelerate its adoption. And as mentally preferable out of a concern that this more institutions recognize the benefits, they might make their more conventional offerings are beginning to share information and to look bad. “Once companies begin identifying learn from each other’s successes and failures. some of their products as environmentally A number of organizations and networks, preferable, customers will want to know mainly in Europe, North America, and Japan, what’s wrong with the other products,” now publish green purchasing information,

138 State of the World 2004 PURCHASING FOR PEOPLE AND THE PLANET

collect success stories, and publicize trends. office products, conferencing and printing They primarily target institutions with sig- services, cleaning products, cafeteria pro- nificant purchasing power, such as govern- curement, and electronics. EPA has also ments and large corporations, though many launched several pilot projects, including of their strategies are also applicable at a partnerships with the Department of Defense smaller scale. Some of these groups partner (to green military operations and installa- directly with industry leaders and govern- tions) and with the National Park Service (to ment officials to encourage greener purchas- help parks both green their purchasing and ing. Others rally the grassroots to boycott or educate visitors about consumption). otherwise pressure manufacturers or other Through its central database of information, institutions to change their buying practices. the EPA also serves as a clearinghouse on Many also use their resources to promote more than 600 environmentally preferable public debate and generate media interest in products and services, including links to 130 the green purchasing movement. local, state, and federal green contract spec- ICLEI’s Eco-Procurement Program, ifications, to 523 product environmental per- launched in 1996, is a leader in promoting formance standards, and to 25 lists of vendors green purchasing among governments, busi- and products that meet these standards.60 nesses, and other institutions across Europe. The Maryland-based Center for a New More than 50 cities and other local govern- American Dream helps large purchasers, par- ments in 20 countries now belong to the ticularly state and local governments, incor- group’s Buy-It-Green Network, which helps porate environmental considerations into members exchange information and experi- their purchasing decisions. Its Procurement ences, join forces, and make joint green pur- Strategies Program was an active driver behind chases. The organization also holds yearly the new North American Green Purchasing conferences and publishes a magazine that is Initiative in 2002, which aims to generate a distributed to more than 5,000 purchasers in critical mass for green purchasing on the con- Europe. And in one of the first efforts of its tinent. The group also hopes to serve as a cen- kind, ICLEI is working on a project to quan- tral clearinghouse for green purchasing tify the environmental savings associated with information for manufacturers, purchasers, green purchasing, in order to determine how and suppliers.61 best to strategically combine the purchasing Japan’s Green Purchasing Network (GPN) power of cities and to spread green purchas- now boasts some 2,730 member organiza- ing across Europe. For instance, the project tions, including more than 2,100 businesses has found that replacing the 2.8 million desk- (among them Panasonic, Sony, Fuji, Xerox, top computers that EU governments buy Toyota, Honda, Canon, Nissan, and Mit- annually with energy-efficient models could subishi); 360 local authorities in places like reduce European emissions by more than Tokyo, Osaka, Yokohama, Kobe, Sapporo, 830,000 tons of carbon dioxide equivalent.59 and Kyoto; and 270 consumer groups, co- In North America, a leading proponent of ops, and other NGOs. GPN holds country- institutional green purchasing is the U.S. wide seminars and exhibitions on green EPA’s Environmentally Preferable Purchasing purchasing, publishes purchasing guidelines program, created in 1993 by presidential and environmental data books on different executive order. The program offers support products and services, and offers awards to and information in such areas as construction, exemplary organizations.62

139 State of the World 2004 PURCHASING FOR PEOPLE AND THE PLANET

In higher education, more than 275 uni- chasing in the developing world are also versity presidents and chancellors in over 40 under way, though considerable work remains countries have signed on to the 1990 Talloires to be done. ICLEI’s ERNIE (Eco-Respon- Declaration, a 10-point action plan that, sible Purchasing in Developing Countries among other things, encourages universities and Nearly Industrialized Economies) pro- to establish policies and practices of resource gram, supported by the Global Environment conservation, recycling, waste reduction, and Facility, is working with local authorities in environmentally sound operations. In the several cities—including São Paulo, Brazil; hospitality industry, the International Hotels Durban, South Africa; and Puerto Princessa, Environment Initiative, a global nonprofit Philippines—to develop green purchasing network of more than 8,000 hotels in 11 pilot projects. The initiative focuses mainly on countries, sponsors a Web-based tool to help buying energy-efficient appliances, and aims hotels improve their environmental perfor- to address the various market and other bar- mance (and save money) through purchases riers to green procurement, including the of everything from energy-efficient lighting need to build capacity for local suppliers and to environmentally preferable flooring mate- manufacturers.65 rials, refrigerators, and minibars.63 One way institutions can help spread green purchasing to the developing world is by using their own procurements to strengthen Since 1992, DaimlerChrysler has tapped local green markets. For instance, the United Brazil’s rainforests for environmentally Nations, World Bank, donor agencies, and sound coconut fiber and natural rubber, multinational corporations that operate in which it now uses in car seats and headrests. these countries can seek to buy a greater por- tion of their goods and services from local green suppliers, helping to build capacity for There are also efforts to bring greater sustainable production. Since 1992, Daim- media attention to green purchasing. In Feb- lerChrysler has tapped Brazil’s rainforests for ruary 2001, the Danish Environmental Pro- environmentally sound coconut fiber and tection Agency launched an intensive natural rubber, which it now uses in car seats, television, newspaper, and leaflet campaign to armrests, and headrests. In doing so, the raise interest in products carrying ecolabels. automaker has not only eliminated the use of Japan’s Green Purchasing Network has synthetic inputs in these vehicle parts, it has worked hard to feature green purchasing also boosted local markets for renewable prominently on television, in newspapers, materials and generated income and employ- and at government or corporate seminars. ment for farmers.66 Organizations of all kinds also now use the In most cases, however, it is a big enough Internet to inform their buyers about green challenge simply to get international institu- purchasing, offering procedural tips and links tions to buy from developing countries, much to alternative products and services. King less buy green. Although some of these insti- County, in the state of Washington, uses its tutions do try to buy locally, their procure- comprehensive Web site and e-mail bulletins ment generally favors businesses in the to disseminate success stories and other green industrial world. (In fact, most donor agen- purchasing developments.64 cies tie their aid to purchases back home.) In Fledgling efforts to spread green pur- 2000, only about a third of the procurements

140 State of the World 2004 PURCHASING FOR PEOPLE AND THE PLANET

by the U.N. system went to the developing Clearly, the world’s institutions have sig- world. Occasionally, these institutions make nificant power to bring about environmental socially responsible demands in their pur- and social change through their purchases. chasing: UNICEF, for instance, seeks to But no matter how environmentally sound develop sourcing policies and strategies that this purchasing is, it still uses resources and support national goals for boosting children’s generates wastes. To truly mitigate the welfare. But so far they have rarely specified impacts of their consumption, institutions environmental criteria, in part because there will need to find ways to meet their needs is a risk that putting green specifications in without buying new products—for instance, contracts could alienate smaller suppliers that by eliminating unnecessary purchases and may not be able to meet them.67 extending the lives of existing products. Pori, By boosting green purchases in develop- Finland, has implemented a citywide service ing countries, international institutions can for reusing goods that enables employees not only stimulate markets, they can also from any municipal department to trade or clean up their own acts in the face of mount- give away products they no longer need or ing criticism about the environmental use. And since 1994, the University of Wis- impacts of their activities. There is rising consin-Madison’s SWAP (Surplus With a Pur- interest, for example, in inserting environ- pose) project, which has subsequently been mental criteria into the procurements asso- expanded statewide, has helped divert ciated with World Bank lending, as part of reusable office furniture, computers, and larger efforts to green the Bank’s opera- other goods away from landfills and to other tions. The Bank is now working with a coali- users on campus and around the state.69 tion of other multilateral development banks, Green purchasing is not the only way to U.N. agencies, and NGOs to stimulate green minimize the problems associated with exces- purchasing both within and outside member sive consumption. But it is an important step institutions. This interagency group hopes to along the way to achieving a more sustainable also mainstream the idea of incorporating world. As individuals, we will need to push the social justice criteria into members’ pro- organizations we work for and rely on to curement decisions.68 join us in building such a world.

141 BEHIND THE SCENES Paper

For most if its history, paper existed as a devised a method of making paper precious and rare commodity. Now it from wood. It took several more covers the planet. In modern times, decades for trees to become the raw we hardly notice most of the paper material of choice, as others refined drifting through our lives. From Keller’s technique and found ways to the contents of our in-boxes mass-produce wood-based paper.2 to the currency in our wal- In the twenty-first century, we lets to the containers for hardly think of paper as derived our frozen dinners, paper from anything but wood. Indeed, is never far from reach. 93 percent of today’s paper comes Globally, paper con- from trees, and paper production is sumption increased more responsible for about a fifth of the total than sixfold over the latter half wood harvest worldwide. Newly cut trees of the twentieth century. The United account for 55 percent of the total supply, States—at 331 kilograms per person per year, while 7 percent comes from non-tree sources and roughly 30 percent of the world’s total and the remaining 38 percent is from recycled annual use—is the biggest paper user. On a wood-based paper.3 per capita basis, the Japanese are next, at 250 Trees around the world feed the global kilograms each. Though invented as a tool to paper supply. U.S. woodlands represent the communicate, about half the paper in today’s largest contributor, at 30 percent of the total, consumer society serves another purpose: but that share has been shrinking in recent packaging. From precious to disposable— decades as China and other developing coun- paper now represents a big chunk of the tries increase production. Paper production modern waste stream, accounting for has been moving within the United States as roughly 40 percent of the municipal solid well. When logging was curtailed in ancient waste burden in many industrial countries.1 forests of the Pacific Northwest, paper While paper gets its name from “papyrus,” production moved to lower-profile but a water reed plucked, pounded, and pressed biologically rich second-growth forests in the into service by ancient Egyptians to record Southeast. These forests now supply one hieroglyphs, fibrous paper as we know it was quarter of the world’s paper. And second- invented in China less than 2,000 years ago. growth forests supply 54 percent of the total Over the next two millennia, rags and hemp paper derived from virgin wood worldwide. were popular raw materials for paper. The Tree plantations (often planted on newly Gutenberg Bible, the first and second drafts of deforested lands) are next at 30 percent, and the U.S. Declaration of Independence, and the old-growth, mostly boreal, forests account original works of Mark Twain were all printed for the remaining 16 percent.4 on hemp-based papers. It wasn’t until 1850 The process of turning trees into paper that Friedrich Gottlob Keller of Germany begins at the chip mill, where a series of

142 State of the World 2004 BEHIND THE SCENES: PAPER

rotating blades reduces logs to poker-chip- papers. In 2002, the 270 members of the sized pieces. The chips are carted to pulp U.S.-based Recycled Paper Coalition—an mills, which may be thousands of kilometers organization of major industries, nongovern- away, where they are mixed with chemicals in mental organizations, and government agen- vast pressure cookers and digested into a wet cies formed to use bulk purchasing power to paste the consistency of oatmeal. Washed and foster the market for recycled paper—bought bleached several times, this mix is finally nearly 150,000 tons of recycled paper, with an pressed and dried, emerging as large rolls of average postconsumer content of 24 percent.7 paper for public consumption. In the end, a Tackling packaging waste can also reap big piece of writing paper might contain fibers dividends. Germany is a pioneer in this area, from hundreds of different trees that have passing an ordinance in 1991 that required collectively traveled thousands of kilometers packaging producers and distributors to take from forest to consumer. back and reuse or recycle packaging materials, Making paper is extremely resource-inten- including paper. In the following three years, sive. A ton of paper requires two or three wastepaper recycling in Germany shot up to times its weight in trees, along with a great 54 percent, after stagnating at 45 percent for deal of water and energy. Worldwide, the nearly 20 years. In 2003, the European pulp and paper industry is the fifth largest Union Parliament adopted a law that would industrial consumer of energy, and uses more require member governments to set waste water to produce a ton of product than any paper recycling goals of 60 percent by 2008.8 other industry. Paper mills can be obnoxious Paper is also returning, on a limited scale, neighbors, emitting foul odors and gener- to its nonwood roots. Several alternative fibers ating large quantities of air and water pollu- are now on the market—from the old standby, tion and solid waste. Though paper mills in hemp, to kenaf (a leafy member of the hibis- the industrial world have taken some steps to cus family), agricultural residues (cereal clean up, elsewhere mills continue to spew straws, cotton linters, banana peels, coconut appalling amounts of untreated toxic waste shells, and others), and even denim scraps. into the air, land, and waterways.5 Many “agrifibers” yield more pulp-per-acre Individuals and large institutions can help than forests or tree farms, and they require reduce the paper burden in a number of fewer pesticides and herbicides. Fewer chemi- ways—from being more mindful in the office cals and less time and energy are needed to about paper use to being more diligent about pulp agricultural fibers because they contain recycling. Recycling saves more than trees. less lignin, a glue-like substance that makes Using recycled content rather than virgin fibers plants and trees stand erect. In the future, to produce paper creates 74 percent less air some of these nonwood sources might once pollution and 35 percent less water pollution.6 again become significant sources of paper. Large institutions, in particular, can play a —Dave Tilford, key role in driving the market for recycled Center for a New American Dream

143 CHAPTER 7

Linking Globalization, Consumption,and Governance

Hilary French

In May 2003, a delegation of indigenous that the position of our communities is no to leaders from the Ecuadorian and Peruvian oil exploration, no to dialogue and negotia- Amazon visited Washington, D.C., to tell tion, no to deforestation, no to contamina- people about the environmental and social toll tion, and no to all oil activities.”2 of oil extraction by U.S.-based corporations These indigenous leaders provided a vivid on their lands. Following meetings in Wash- reminder of the great but often hidden toll ington, the delegation went to Houston, that consumption in the world’s richest coun- Texas, to meet with Burlington Resources, a tries can take on distant peoples and places. company that holds two oil development The delegation’s visit put a human face on the concessions covering 400,000 hectares of tendency of today’s global economy to insu- their ancestral territory.1 late consumers from the various negative On behalf of 100,000 Shuar, Achuar, and impacts of their purchases by stretching the Kichwa people living on approximately 1.6 distance between different phases of a prod- million hectares of pristine rainforests, the uct’s lifecycle—from raw material extraction delegation delivered a letter to the Chief to processing, use, and finally disposal. While Executive Officer of Burlington Resources sales of sport-utility vehicles have skyrock- calling on the company to cease all oil activ- eted in the United States over the last decade, ities in the area and to leave the territory for instance, few if any of the new owners stop immediately. Citing the toxic contamination to ponder the connection between their and forest destruction left behind by previous recent purchase and the fate of indigenous oil development operations elsewhere in the peoples whose lives and livelihoods have been Amazon, the president of the Independent torn asunder in the push for petroleum.3 Federation of Shuar Peoples declared emphat- Although the Amazonian delegation’s visit ically that “the Shuar and Achuar people of was in some ways a cautionary tale, it also the Ecuadorian Amazon want it to be known offered grounds for hope, as it demonstrated

144 State of the World 2004 LINKING GLOBALIZATION, CONSUMPTION,AND GOVERNANCE

how the environmental and social challenges tion systems. (See Table 7–1.)5 accompanying economic globalization are The rapid globalization of the consumer spurring innovative forms of political mobi- economy over the 1990s was closely linked lization across international borders. To shift with a general economic boom that saw rapid to environmentally sustainable patterns of growth in the movement of goods, services, consumption and production worldwide, we and money across international borders. The need to strengthen such alliances in pursuit value of world trade in goods increased by of the new ground rules needed to forge a nearly 50 percent during the decade, climb- global economy based on protecting rather ing from $4.22 trillion to $6.25 trillion. than plundering the planet’s natural wealth. Exports of commercial services such as bank- ing, consulting, and tourism expanded even The Spread of “McWorld” faster. (See Figure 7–1.) Foreign direct invest- ment (FDI) also surged dramatically, reach- Benjamin Barber’s Jihad vs. McWorld, first ing a peak of $1.4 trillion in 2000. The FDI published in 1995, was unusually prescient in explosion was spurred in part by a frenzy of describing our complicated world, in which corporate mergers, although that trend has two seemingly contradictory scenarios play dramatically reversed during the last few years out simultaneously: one “in which culture is in response to the global economic slow- pitted against culture, people against peo- down and a general weakening of business ple, tribe against tribe” and a second in which confidence following the terrorist attacks on “onrushing economic, technological, and the United States in September 2001. The ecological forces…demand integration and growth of global trade and investment of uniformity and…mesmerize peoples every- recent decades has contributed to lower costs where with fast music, fast computers, and fast for many consumer goods, such as clothing, food…, one McWorld tied together by com- computers, and toys—a phenomenon that is munications, information, entertainment, hailed by traditional economists while decried and commerce.”4 by critics of the global consumption binge. The global spread of “McWorld” is rapidly (See Chapter 5.)6 bringing the consumer society of the West to One subcomponent of the broader overall the rest of the world. Shortly after the fall of expansion in world trade has been rapid the Berlin Wall in 1989, billboards for west- growth in trade in a range of particularly envi- ern tobacco and liquor brands began to ronmentally sensitive commodities, such as appear widely in Eastern Europe and the for- minerals, forest products, fish, and agricultural mer Soviet Union, sometimes in the same produce. (See Figure 7–2.) The value of world central squares that once featured the busts trade in forest products, for instance, climbed of Communist leaders. And visitors to some fourfold between 1961 and 2001, reaching a of the most remote outposts of the develop- peak of $148 billion in 2000, before dropping ing world often find Coca-Cola kiosks at the to $132 billion in 2001. At the same time, end of the road. McDonalds itself currently Earth’s overall forest cover has steadily operates 30,000 restaurants in 119 coun- declined. Trade is by no means the only fac- tries, while the German-based enterprise tor in this, but it has played a significant role. Siemens is represented in 190 countries, Similarly, the value of world fish exports nearly where it sells mobile phones, computers, tripled between 1976 and 2001, reaching medical supplies, lighting, and transporta- $56 billion in 2001. At the same time, the

145 State of the World 2004 LINKING GLOBALIZATION, CONSUMPTION,AND GOVERNANCE

Table 7–1. The Spread of “McWorld”

Corporation Global Presence

Hennes & Mauritz The Sweden-based clothing company employs 39,000 people in 17 European countries and the United States. It operates 893 stores and plans to open 110 more, expanding into Canada, in 2003.Turnover was $6.8 billion in 2002. H&M uses suppliers in Europe and Asia.

Levi Strauss This American company sells clothing in more than 100 countries, and its trademark is registered in 160 countries. It employs 12,400 people worldwide. It reported total sales of $4.1 billion in 2002, and a net income of $151 million in 2001.

Tata Group The Tata Group operates in seven industry sectors, including transportation, energy, chemicals, and communications services. Developed in India, it now has business partners in 11 countries across the world. It reported a turnover of $2.9 billion in 2001–02, more than double that of the previous year.

Altria Group, Inc. The Altria Group is the parent company of Kraft Foods, the second largest branded food company in the world, and Philip Morris, the most profitable international tobacco company.The Altria Group had net revenues of $80.4 billion in 2002, including $28.7 billion from the international tobacco market. It employs 169,000 people in 150 countries.

Siemens This German company employs 426,000 people and is represented in 190 countries. It sells mobile phones, computers, medical supplies, lighting, and transportation systems. In 2002, Siemens’ net sales amounted to $96.4 billion, of which 79 percent were international. One million people hold shares in the company.

Yum! Brands Formerly part of PepsiCo, this company and its six subsidiaries—KFC, Pizza Hut, Taco Bell,A&W,All-American Food Restaurants, and Long John Silvers—had global sales of over $24 billion in 2002. It operates 32,500 restaurants in more than 100 countries and employed 840,000 people in 2002.Yum! Brands opened 1,000 restaurants outside of the United States in 2001, nearly 3 per day. China now has 800 KFCs and 100 Pizza Huts.

McDonald’s Corp. McDonald’s serves 46 million customers each day. It operates 30,000 restaurants in 119 countries. Its total revenue was $15.4 billion in 2002. On opening day in Kuwait City, the line for the McDonald’s drive-through was over 10 kilometers long.

Domino’s Pizza Domino’s opened its 7,000th store in 2001 and is active in 60 countries. Sales for all countries added up to $4 billion in 2002. Its delivery people drive over 14 million kilometers each week in the United States alone. Domino’s uses 149 million pounds of cheese each year and 26.8 million pounds of pepperoni.

Coca-Cola Coca-Cola sells more than 300 drink brands in over 200 countries. More than 70 percent of the corporation’s income originates outside of the United States, and its net revenues reached $19.6 billion in 2002. Coca-Cola employs 60,000 people in Africa alone.

SOURCE: See endnote 5.

146 State of the World 2004 LINKING GLOBALIZATION, CONSUMPTION,AND GOVERNANCE

world saw a deterioration in the health of Trillion Dollars 9 the world’s fisheries, with the U.N. Food (2001 dollars) and Agriculture Organization estimating 8 that 75 percent of the world’s fish stocks 7 are now fished at or beyond their sus- 6 Goods and Services tainable limits.7 5 In a rather different kind of global exchange, countries whose ecological 4 Goods footprints exceed their available ecolog- 3 ical capacity often import goods from 2 countries enjoying surpluses, leading to 1 ecological trade deficits. (See Chapter 1 Source: IMF for a discussion of the ecological footprint 0 1950 1960 1970 1980 1990 2000 2010 accounting system, which measures the amount of productive land an economy Figure 7–1. World Export of Goods and requires to produce the resources it needs Services, 1950–2002 and to assimilate its wastes.) Nations vary greatly in the size of these deficits; countries reducing the incentive to address unsustain- as diverse as Japan, the Netherlands, the able consumption patterns at their roots. (See United Arab Emirates, and the United States Box 7–1.) The world’s attention was first are all major importers of ecological capital. focused on the waste export problem in a (See Figure 7–3.) Although there are times significant way in the mid-1980s, when a when this sort of global transfer makes eco- series of highly publicized incidents—such logical and economic sense, in effect it is as Philadelphia’s wandering “garbage barge,” enabling countries to live beyond their eco- Million Tons logical means.8 60 Source: FAO The growing glob- alization of the world 50 economy also serves to shield consumers Sugar and Sweetners 40 and producers from the wastes generated in making, using, and 30 ultimately disposing Rice of the multitude of 20 Vegetables goods and gadgets Soybeans that characterize the 10 consumer economy. Meat The resulting “out of sight, out of mind” 0 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 mentality has the effect of shifting these Figure 7–2. World Exports in Selected Commodities, burdens to others and Trillion Dollars 1961–2001 9 147 State of the World 2004 LINKING GLOBALIZATION, CONSUMPTION,AND GOVERNANCE

Hectares developing countries 25 Source: Redefining Progress are not entitled to have the same options for material con- 20 Available Capacity Ecological Footprint sumption that have long been taken for 15 granted by western consumers, the global adoption of industrial 10 country–style con- sumption patterns would place unbear- 5 able strains on the health of Earth’s nat- ural systems.10 0 In the face of this India ChinaBrazil IsraelRussia Japan U.A.E. Mexico Greece France Finland Canada conundrum, some Indonesia Germany Australia SouthSouth Korea Africa Netherlands analysts from the New ZealandUnited States United Kingdom developing world have Figure 7–3. Ecological Footprint Per Person in recent years begun in Selected Nations, 1999 to emphasize the opportunities rather a ship loaded with toxic ash that was turned than the downsides that await countries shift- away from three states and five nations over ing to environmentally sustainable economies. 16 months—put the spotlight on the grow- The China Council for International Coop- ing international commerce in hazardous and eration on Environment and Development, for solid wastes. More recently, the profusion of instance, noted in a recent statement that electronic wastes created by the information “China’s remarkably low per capita con- age has led to a flourishing international trade sumption pattern is an opportunity to avoid in discarded computers, televisions, tele- the mistakes of many other countries that phones, and the like.9 have developed very high levels of material and With markets for many consumer goods energy consumption. Moving towards more becoming saturated in industrial countries, sustainable consumption patterns could lead corporate strategies increasingly rely on to more competitive domestic enterprises and visions of rapid growth in developing coun- greater access to international markets.” The tries, leading to increases in purchases of all challenge is to develop strategies for leapfrog- manner of goods, from cars and televisions ging directly to an economy where producers to paper and fast food. This trend is partic- use cutting-edge green technologies on a ularly pronounced in the Asia-Pacific region, widespread basis and where consumers prac- which is now home to an estimated 684 mil- tice sustainable purchasing as a matter of lion members of the global consumer class— course. (See Chapters 5 and 6.)11 more than in Western Europe and North More than two years since terrorist attacks America combined. (See Chapter 1.) While on New York and Washington brought the it is ethically problematic to suggest that Jihad and McWorld paths onto a direct col-

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BOX 7–1. FAIR TRADE AND THE CONSUMER

As poet and farmer Wendell Berry noted Carcinogenic smoke fills the air around the recently:“One of the primary results—and one dumps.The region’s water has become so pol- of the primary needs—of industrialism is the luted that drinking water must be trucked in separation of people and places and products from 30 kilometers away. from their histories.” Each minute, practically, in Consumer desires and the welfare of those the life of the modern consumer contains hid- caught up in the process of meeting those den interactions with people and portions of desires can be intertwined in complex ways. the planet hundreds or thousands of miles Local people may depend financially on the away.The global trade network allows con- industry producing the goods even as they suf- sumers in large part to shed their dependence fer the harm caused by the industry.The harm on immediate surroundings.The unfortunate is seen as an unfortunate but unavoidable side consequence is that consumers are shielded effect. But the damage to local resources and from the profound effects their choices can the adverse conditions under which people have on the lives of people at the other end toil are typically byproducts of efforts to keep of the production and consumption line. prices low for the end-consumer.To cite one While the benefits of free trade flow to example, the banana industry in Panama consumers and middle merchants, the burdens employs a whopping 70 percent of the popula- routinely flow elsewhere—out to the end tion.To boost production, bananas are grown points along the trade lines.We extract in huge, monoculture plantations that are resources from and dump wastes into areas heavily dosed with pesticides applied directly occupied by the poor and underrepresented. by unprotected workers or through indiscrimi- Although someone at the other end of the nate aerial spraying.The chemicals pollute the line is always there to accept the messy job of local water supply and have been linked with cleaning up after industrial-world consumers, increased cancer rates in communities near the those harmed frequently are not among those plantations. In essence, the welfare of the work- compensated, or the compensation is dwarfed ers and communities has been left out of the by the damage to vital local resources. final price. The growing problem of electronic waste Better practices depend on consumers provides one vivid example. Consumers have understanding the issues and supporting better little cause to contemplate what lurks within systems. In the banana industry, activist groups the plastic case of a computer or mobile have begun to call attention to the plight of phone, or what becomes of an electronic item workers, inspiring some companies to change scrapped for a newer model.To see what their practices. Dole, for instance, is expanding happens, they would have to travel to places its efforts to farm organic bananas, grown with- like the Guiyu region of China’s Guangdong out pesticides.And Chiquita’s Latin American Province. Hundreds of trucks rumble through plantations are now 100-percent certified by there every day, carting spent computers, print- the Rainforest Alliance’s Better Banana Project, ers, and televisions from North America to which inspects plantations to verify that they dumping grounds scattered among the small are using sustainable practices that are health- villages of the region. For a dollar or two a ier for banana consumers and for the environ- day, unprotected migrant workers sift through ment, as well as beneficial for employees. mounds of electronic waste—burning plastics, “Fair trade” is emerging in connection with cracking apart cathode-ray tubes, and pouring some commodities as a tool to provide farmers acid over circuit boards to extract precious and independent producers with more control metals and other valuable materials within. over the sale of their products and a closer

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BOX 7–1. (continued)

connection with end-consumers. Under fair- Though still a small share of the market, fair- trade systems, small producers band together trade coffee sales grew by 12 percent in 2001, to form cooperatives, selling directly to compared with overall growth in coffee retailers for a guaranteed minimum price. At consumption of just 1.5 percent. present, coffee is the most visible example. Consumers have the power to make the In recent years, coffee prices paid to farmers global trading system more just and sustainable. plummeted to all-time lows while profits for Outrage over unjust conditions and market big coffee retailers remained substantial. In demand for more socially responsible products Central America, well over a half-million can help change the way companies do business coffee workers lost their jobs. Once-thriving and create a better atmosphere for those at villages turned into ghost towns, their former the ends of production and consumption lines. inhabitants crowded into dangerous shanty- When the effects of consumption are hidden towns on the outskirts of urban centers. from view, social and environmental costs tend Through fair trade, many farmers are able to be left off the balance sheets and reforms to stay afloat. Members of the Oromiya Coop- are difficult to enact. Greater awareness on erative in Ethiopia get more than twice what the part of consumers and a willingness to their neighbors receive selling coffee on the act on that awareness, however, can reconnect open market. Fair trade has environmental ben- consumer items to their histories and can efits as well. Farmers with more-stable markets counter the harm that often accompanies gain the breathing room to adopt a long-term unconscious consumption. focus. Members of the Miraflor Cooperative in Nicaragua—like many fair-trade coffee cooper- —Dave Tilford, Center for a New American Dream atives—grow shade-grown, organic coffee in areas once heavily dosed with pesticides. SOURCE: See endnote 9.

lision course, it appears increasingly clear that transform unsustainable patterns of con- neither scenario will bring about a stable and sumption and production. secure future. Just prior to the first anniver- sary of September 11th, tens of thousands of Global Cooperation for people from around the globe gathered in Sustainable Consumption Johannesburg, South Africa, for the World Summit on Sustainable Development. Con- The first concentrated international atten- ference participants implicitly rejected both tion to consumption and production issues the Jihad and McWorld paths while embrac- came a decade before the Johannesburg con- ing the cause of building an environmentally ference, when the United Nations convened sound and socially just global society. Sus- the Earth Summit in Rio de Janeiro in 1992. tainable development proponents worldwide At this historic gathering, governments offi- now face the challenge of keeping both pub- cially recognized underlying consumption lic attention and political will focused on the and production patterns as key driving forces urgent need to breathe life into the many for unsustainable development and high- important international agreements forged lighted the responsibility of nations to reverse in Johannesburg, including commitments to them. Since then, consumption and produc-

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tion issues have been treated as two sides of to revise the U.N. Guidelines for Consumer the same coin in the world of international Protection. These guidelines are not bind- policy. This fusion reflects the inextricable ing, but nonetheless they offer a tool for gov- links between the two phenomena: it is ernments to use in developing their own impossible to use sustainable products if policies. The revised guidelines, adopted in nobody has produced them. But the linkage 1998, encourage governments to implement also reflects the reality that most govern- a range of policy innovations to promote sus- ments find it more politically palatable to tainable consumption, including conducting discuss the production side of the equation impartial environmental testing of products, than controversial lifestyle issues.12 strengthening regulatory mechanisms for con- Agenda 21, the lengthy action plan for sumer protection, and integrating sustainable sustainable development that emerged from practices into government operations. Unfor- the Rio conference, highlighted the disparity tunately, a 2002 survey by the U.N. Environ- between the “excessive demands and unsus- ment Programme (UNEP) and Consumers tainable lifestyles among the richer segments” International concluded that countries were and the inability of the poor to meet their basic making only slow progress in implementing needs for food, good health, shelter, and edu- the guidelines, with 38 percent of responding cation. It also called on international institu- governments indicating they were not even tions and national governments to undertake aware of them.15 a number of initiatives to reverse unsustainable Several other international organizations consumption and production patterns, such as were active on consumption and production promoting greater energy and resource effi- issues in the decade following the Earth Sum- ciency, minimizing waste generation, encour- mit. The Paris-based Organisation for Eco- aging environmentally sound purchasing nomic Co-operation and Development, a decisions by both individuals and govern- forum on economic and social policies for the ments, and shifting toward pricing systems world’s major industrial countries, has spon- that incorporate hidden environmental costs. sored a series of meetings and research papers These commitments were particularly note- aimed at encouraging governments to imple- worthy in light of repeated pronouncements ment innovative policies on sustainable con- from U.S. officials that the American way of sumption and production, including life was not negotiable at Rio.13 ecolabeling systems that help consumers select Responsibility for overseeing follow-up environmentally sound products, “take-back” activities fell to the U.N. Commission on legislation requiring producers to retrieve Sustainable Development (CSD), an inter- packaging and discarded goods, reductions in governmental body that meets annually to government subsidies to environmentally track efforts to implement the agreements harmful industries, and environmental taxes reached in Rio. The CSD has provided a use- to internalize environmental costs into the ful venue for several discussions of con- price of products. (See Chapter 5.)16 sumption and production issues among UNEP is another active player in efforts governments and nongovernmental observers to promote sustainable consumption on a over the last decade. But despite much talk, global scale. This Nairobi-based U.N. pro- the deliberations have produced little in the gram launched a Life-Cycle Initiative in 2002 way of concrete action.14 to bring together industry leaders, acade- One exception has been a successful effort mics, and policymakers to encourage the

151 State of the World 2004 LINKING GLOBALIZATION, CONSUMPTION,AND GOVERNANCE development and dissemination of practical carbon dioxide emissions targets in the 1997 tools for evaluating the environmental Kyoto Protocol to the U.N.’s Framework impacts of products over their entire lives. Convention on Climate Change need to shift UNEP also cooperates with other U.N. agen- toward less fossil-fuel-intensive energy use in cies and the World Bank to encourage col- order to meet them.18 laboration on the greening of procurement Enough countries have now formally rat- procedures at these institutions. It works ified both the fish and biosafety conventions with industries of particular importance to the to bring these treaties into legal force, mak- quest for sustainable consumption, including ing their provisions binding on participating the advertising, fashion, finance, and retail nations. This is not yet the case for either the sectors, to encourage them to take steps to POPs Convention or the Kyoto Protocol, promote sustainable consumption and pro- although many signatory countries are duction. And it seeks to engage nongovern- nonetheless in the process of changing their mental organizations (NGOs) in the shift national policies accordingly.19 toward sustainable consumption, including In addition to initiatives by international consumer and youth groups. (See Box 7–2.)17 institutions and governments, the decade The 1990s also saw governments make since the Rio conference also saw the devel- progress toward strengthening several inter- opment of new information tools such as national treaties that address threats to the international labeling and certification sys- global environment. These are more binding tems in response to a heightened sensibility than the cooperative activities just described on the part of individual consumers to the ties and thus form a key component of broader that bind them through global product chains efforts to change unsustainable patterns of to people and communities in distant lands. consumption and production. For example, One example is the growing popularity of nations participating in a 1995 accord on coffee, bananas, and other produce that meet the cooperative management of international the criteria for being labeled as either organic fisheries committed to developing national or traded on fair economic terms, or both. policies to restore fish stocks to healthy lev- (See Chapter 4.) Another case in point is the els, thereby encouraging sustainable fish har- impact of the Forest Stewardship Council vesting and consumption. Governments that (FSC), an independent body established in signed the 2000 Cartagena Protocol on 1993 to set standards for sustainable forest Biosafety to the U.N. Convention on Bio- production through a cooperative process logical Diversity agreed to abide by a system involving timber traders and retailers as well of prior informed consent for international as environmental organizations and forest shipments of genetically modified organisms dwellers. A decade later, the FSC had certi- (GMOs) and products containing them, fied over 39 million hectares of commercial which gives importing countries greater con- forest in 58 countries, more than six times as trol over whether to use such products much area as in 1998, although still only domestically. Countries abiding by the 2000 some 1 percent of the world’s forests.20 Stockholm Convention on Persistent Organic A Marine Stewardship Council (MSC) Pollutants (POPs) pledge to regulate the pro- modeled on the FSC was created a few years duction and use of 12 particularly harmful later. Seven fisheries to date have been certi- chemicals, including eliminating 9 of them fied as meeting the MSC’s environmental altogether. And countries agreeing to the standard for being well managed and sus-

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BOX 7–2. HARNESSING THE POWER OF YOUNG PEOPLE TO CHANGE THEWORLD

There are more than 1 billion young people use and disposal of products, but that they are between the ages of 15 and 24, according to less aware of the impact of their shopping the U.N. Population Fund, and more than 500 habits, particularly for food and clothing. It also million young people will enter the labor force found that young people consider environmen- in developing countries over the next decade. tal, human rights, and health issues to be major These numbers point to the huge potential concerns for the future, but that they favor indi- influence that young people can have in shaping vidual over collective action to address them. a better future as a result of their lifestyle While the survey found that young people choices and their professional contributions. do not generally make links between their per- But the buying and decisionmaking powers of 1 sonal behavior and global problems, there are billion young people today are far from homo- nonetheless many examples of youth activists geneous. Half of them live in poverty. At the who are hard at work urging their communities other end of the spectrum, young people in and governments to promote sustainable con- affluent societies account for a growing share sumption. For example, a 23-year-old Peruvian of total consumption and are under constant activist enlisted Shell in a project paying for the pressure to buy more.With the globalization installation of solar panels in a remote moun- of cinema, television, and advertising, there is tain village, a youngster in Cameroon travels a danger that the tendency of these media to from village to village to teach other young glorify the materialistic youth lifestyles in the people how to use water more safely and effi- world’s most affluent countries could have a ciently, young “supermarket rangers” in Sweden negative impact on the attitudes and consump- have opened a dialogue with supermarkets to tion patterns of other youngsters. ensure that sustainable products are easily In response to these trends, the U.N. Envi- available to consumers, and in the United States ronment Programme and UNESCO did a sur- young people have developed a gift guide with vey in 2000—called “Is the Future Yours?”—on fair-trade and enviromentally friendly gift sug- attitudes toward consumption among people gestions. In response to the survey results and between the ages of 18 and 25. More than a subsequent workshop convened to discuss 8,000 people in 24 countries responded to the them, UNEP and UNESCO launched the survey, providing important information about YouthXchange Project to develop tools to help the aspirations and interests of youth, their young people take action to promote sustain- awareness of environmentally and ethically able consumption. responsible consumption, and their vision of their roles in improving the world for the —Isabella Marras, U.N. Environment Programme future.The survey found that young people understand the environmental impact of their SOURCE: See endnote 17. tainable, including the Alaska salmon fish- so that sustainably harvested products are ery, the New Zealand hoki fishery, and the the rule rather than the exception will require Western Australian rock lobster fishery; many new incentives and regulations to bring about more are currently in the assessment stages. a broader transformation in the global mar- Some 170 MSC-certified seafood products are ketplace. (See Chapters 5 and 6.)21 now offered in 14 countries. But as with for- Toward this end, several important initia- est products, these still represent only a small tives to encourage global corporations to share of total production. Tipping the balance adopt more sustainable production tech-

153 State of the World 2004 LINKING GLOBALIZATION, CONSUMPTION,AND GOVERNANCE niques have unfolded over the last decade. In investments in cleaner production and eco- 2000, the United Nations launched the efficiency, enhancing corporate environmen- Global Compact, which calls on participating tal and social responsibility, and promoting companies to integrate nine core values the internalization of environmental costs related to human rights, labor standards, and and environmentally sound public procure- environmental protection into their opera- ment policies. (See Box 7–3.) 23 tions. More than 1,200 companies from over The Plan of Implementation also endorses 50 countries have signed on so far, although the development of a 10-year framework of critics have charged that the program requires programs at the international level to support little in the way of specific actions and that it regional and national initiatives to accelerate fails to provide for effective monitoring of the shift toward sustainable consumption and implementation or compliance. More recently, production, including offering a better range 17 leading banks from 10 countries adopted of products and services to consumers, pro- the Equator Principles for managing envi- viding them with more information about ronmental and social risks in lending opera- the health and safety of various products, tions. Participating banks agreed to require and establishing programs of capacity build- clients borrowing money for large projects ing and technology transfer to help share such as dams and power plants to adhere to these gains with developing countries. In the World Bank’s environmental and social June 2003 the United Nations convened an standards, which are rapidly developing into international experts meeting in Marrakech to de facto international baselines for both pub- jumpstart this process, and it has organized lic and private investments.22 related regional meetings in both Asia and Despite these steps forward, the sobering Latin America.24 reality is that the limited gains made since In addition to the formal process just 1992 in shifting toward more-sustainable described, the World Summit also gener- patterns of consumption and production have ated more than 230 partnership agreements been largely overwhelmed by the continued in which diverse stakeholders pledged to global growth of the consumer society. Del- take joint action to help achieve the broad egates spent many hours during the World range of targets related to sustainable devel- Summit in Johannesburg debating what they opment that were agreed to in Johannes- might do to turn this situation around. The burg. Several of these partnerships were power of vested interests and institutional specifically linked to the cross-cutting chal- inertia translated into reluctance on the part lenge of changing unsustainable patterns of of many governments to commit to a clear consumption and production. (See Table program of action toward this end. Nonethe- 7–2.) For instance, a bicycling refurbishing less, the official Plan of Implementation that project led by the Dutch NGO Velo Mon- governments agreed to stipulates that all dial and supported by the bicycle manufac- countries should promote sustainable con- turer Shimano plans to collect bikes for sumption and production patterns and that repair and distribution in Africa. The part- governments, international organizations, ners in the initiative expect to gather 12,500 the private sector, and NGOs, among others, bicycles (one container) a week in the first should play important roles in bringing about year, growing to up to daily shipments by the needed shifts. Among other things, the 2006, as the market requires. And the U.S.- Plan of Implementation calls for increasing based Collaborative Labeling and Appliance

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BOX 7–3. HIGHLIGHTS FROM THE JOHANNESBURG PLAN OF IMPLEMENTATION

The Johannesburg Plan of Implementation is costs and incorporates the financial burden one of two negotiated documents from the of pollution into the price of a product. 2002 World Summit on Sustainable Develop- • Incorporate lifecycle analysis into policy, in ment. It encourages countries to fulfill their order to track a product from production to commitments from the 1992 Rio Earth Summit consumption and disposal. Use this approach by participating in a 10-year framework of pro- to increase product efficiency. grams on sustainable consumption and produc- tion. Broad expectations and goals for this • Support public procurement policies that framework include the following: encourage the development of environmen- tally sound goods and services. • Have industrial countries take the lead in promoting sustainable consumption and • Develop cleaner, more efficient, and more production. affordable energy sources to diversify the energy supply. Phase out energy subsidies • Through common but differentiated responsi- that inhibit sustainable development. bilities, make sure that all countries benefit from the process of shifting toward sustain- • Encourage voluntary industry initiatives that able consumption and production. promote corporate environmental and social responsibility, especially among financial insti- • Make sustainable consumption and tutions. Examples include codes of conduct, production crosscutting issues and include certification, ISO standards, and Global them in sustainable development policies. Reporting Initiative Guidelines. • Focus on youth, especially in industrial coun- • Collect cost-effective examples of cleaner tries. Use consumer information tools and production and promote cleaner production advertising campaigns to communicate issues methods, especially in developing countries of sustainable consumption and production and among small and medium-sized to youth. enterprises. • Promote implementation of the polluter pays principle, which internalizes environmental SOURCE: See endnote 23.

Standards Program, an initiative involving From Johannesburg to more than 36 governments as well as several international organizations and NGOs, will Cancún and Beyond work to cut residential and commercial A year after the World Summit on Sustainable energy use by 5 percent by designing energy Development, world attention was again efficiency standards and labels and providing focused on a major international meeting, technical assistance to 35 developing coun- albeit one of a rather different complexion: tries. Many of these partnerships show con- the ministerial meeting of the World Trade siderable promise, but it will be important Organization (WTO) in Cancún, Mexico, in for NGOs and other advocates of sustainable September 2003. The WTO is predicated on development to monitor their implementa- a fundamentally different worldview than the tion efforts so that laudable commitments sustainable development philosophy that are not forgotten as the momentum gener- underpins the Rio and Johannesburg agree- ated by Johannesburg fades.25 ments, yet its provisions stand to have a large

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Ta b l e 7 –2. Selected Partnerships on Consumption and Production Connected with the World Summit on Sustainable Development

Arab Civil Union for Waste Management Leader: Children and Mothers Welfare Society (Bahrain) Others: Council of Arab Ministers Responsible for the Environment, Kuwait Environmental Protection Society, Gulf Net for Environment NGOs Societies,Ajial Youth Group Six Arab governments are working with the United Nations and regional NGOs to create a regional strat- egy that will facilitate civil society involvement in community-based solid waste management projects.They will actively involve women and youth and will initiate relevant technology transfer. Awareness Raising and Training on Sustainable Consumption and Production Leader: UNEP Division of Technology, Industry, and Economics Others: Governments of the Netherlands and Sweden, Consumers International, National Cleaner Produc- tion Centres The United Nations is working with two governments and several international NGOs to increase aware- ness of sustainable consumption and production among government and small and medium-sized enterprise officers in 30 countries.The groups are also working to increase the share of governments implementing the U.N. Guidelines for Consumer Protection from 20 to 50 percent over three years. The Cement Sustainability Initiative Leader:World Business Council for Sustainable Development Others: Government of Portugal, UN University (in Japan), 12 leading cement companies,WWF International, 25 other sponsors in 15 countries Initiated in 1999, this partnership identifies and facilitates cement companies’ efforts to implement sustain- able practices. Incorporating national governments, companies, and NGOs, it creates dialogue with cement companies on issues like climate change management, use of raw materials, employee health, and internal business processes. Companies representing one third of the global cement capacity are now involved, and three companies have already implemented a carbon dioxide protocol. Introduction to Social Standards in Production Leader: Federal Ministry of Economic Cooperation and Development (Germany) Others: German Agency for Technical Cooperation,Faber Castell, German Metalworkers’ Union, public authorities in Asia The German government is coordinating efforts to implement a “social charter” at Faber Castell’s Indian supply companies.The German Metalworkers’ Union has developed the charter, per International Labour Organization standards.An implementation workshop with various partners was convened in 2002, and company partners have undergone a first inspection. Selling of Responsible Products via Big Retail Chains in Europe: Best Practices and Dialogue Leader: Reseau de Consommateurs Responsables Asbl Others: European Commission; European Network for Responsible Consumption; CSR Europe; Oxford Cen- tre for the Environment, Ethics & Society; Die Verbraucher Initiative; consumer groups in Italy and Denmark Several European consumer NGOs, supported by the European Commission and university representatives, held a conference in June 2003 on the Distribution of Ethical Products via Large Retail Chains in the EU.They also compiled a database of 20 retail case studies in the EU and worked to involve various stakeholders in a dialogue about the best ways to make environmentally and socially responsible products more available in European supermarkets.

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Ta b l e 7 –2. (continued)

Youth Dialogue on Consumption,Lifestyles, and Sustainability Leader: Federation of German Consumer Organizations Others: Governments of Germany, Mexico, and Peru; UNEP; UNESCO; Consumers International; national consumer groups and youth groups; Massachusetts Institute of Technology; Media Ecology Technology Association With the support of three governments, various consumer NGOs are increasing awareness about consumption issues among youth through idea exchange online and in workshops.They are creating a net- work, based in Europe and Mexico, to educate young consumers about the impact of consumption on sus- tainable development. Certification for Sustainable Tourism Leader: Costa Rican Tourist Board Others: Governments of Belize, Guatemala, Honduras, El Salvador, Nicaragua, and Panama; Sustainable Tourism Accreditation Commission; Central American Integration System The Costa Rican Tourist Board is working with five Central American governments and tourism associations to transfer a successful Costa Rican sustainable tourism program to eight countries in Central America by 2006.They will promote the use of local agricultural products and handicrafts while integrating economic, environmental, and sociocultural concerns into business models.

SOURCE: See endnote 25.

impact on the ability of both consumers and protecting the environment and human governments to promote sustainable busi- health. In many cases, they had been passed ness practices worldwide. But the WTO nego- only after painstaking political battles against tiations broke down at Cancún, providing vested interests at home.27 reform-minded governments and activists The accord that created the World Trade with an opportunity to push for bringing Organization nonetheless included several future trade negotiations into better balance provisions that imposed new restrictions on with sustainable development concerns.26 the ability of governments to make laws When the WTO was created in 1995, trade designed to protect human, animal, and plant specialists argued that legislators were passing health. Trade officials maintained that the disingenuous environmental laws that lacked new restrictions were aimed at ferreting out a scientific rationale and that primarily sought disguised trade barriers, not at preventing to keep foreign products off their shelves. countries from undertaking policies legiti- Many governments shared these concerns mately motivated by environmental or health about “green protectionism,” particularly and safety concerns. But the new WTO developing-country governments worried restrictions set the stage for a series of high- that the growth of environmental regulations profile disputes between trade and environ- in the industrial world would be a signifi- mental policies, such as conflicts over U.S. cant barrier to their own products. Environ- laws that restrict imports of tuna fish caught mental analysts, in contrast, tended to view in ways that harm dolphins and of shrimp the laws at issue not as disguised trade barri- harvested by methods harmful to sea tur- ers at all but as legitimate measures aimed at tles. (See Table 7–3.) Although the legal

157 State of the World 2004 LINKING GLOBALIZATION, CONSUMPTION,AND GOVERNANCE reasoning that WTO dispute panels have might cause cancer and reproductive health used in their rulings has become more sen- problems. The measure always applied equally sitive to environmental concerns in recent to domestically raised and imported livestock, years, fundamental differences remain and it thus passed the WTO’s bedrock test of between international trade rules and emerg- nondiscrimination. But the ban posed a threat ing environmental practices that could to the hormone-hooked U.S. livestock indus- impede efforts to promote more-sustainable try, as it blocked hundreds of millions of dol- patterns of consumption and production.28 lars worth of U.S. beef exports.29 Some of these differences are well exem- The U.S. beef industry convinced the U.S. plified in a long-running dispute between government to take up its cause at the WTO, the European Union (EU) and the United where the government argued that the law States over the sale of meat produced with the was not scientifically justified and was not use of growth hormones. A European law for- based on an adequate risk assessment. The bidding this was first passed in the late 1980s European Commission, though, maintained in response to widespread concern among that the law was consistent with the precau- consumers that eating hormone-treated beef tionary principle, an emerging tenet of inter-

Ta b l e 7 –3. Key Trade Conflicts Related to Sustainable Consumption and Production

Beef Hormones (European Union and United States) The European Union banned the import of beef from the United States after growth-promoting hormones were found in the meat, because it deemed the hormones a health risk.The United States filed a dispute with the WTO Dispute Settlement Body, arguing that the ban constituted an unfair trade barrier. In 1998, the WTO Panel ruled that the EU ban was inconsistent with WTO rules.The EU refused to lift the ban. In 1999, the United States imposed $117 million per year in retaliatory trade restrictions against the EU. Fol- lowing the release of new studies showing that growth hormones pose a risk to human health, in October 2003 the EU issued a new directive that refined its bans on various growth hormones found in meat. Claiming that this new directive follows WTO recommendations, the EU hopes that the United States will lift its trade sanctions.

Tuna-Dolphin (United States and Mexico) Following the domestic Marine Mammal Protection Act, the United States imposed an embargo on Mexi- can tuna that were caught using a controversial fishing technique called “setting nets on dolphins.” Mexico argued that this embargo created an unfair trade barrier, and it lodged a complaint under General Agreement on Tariffs and Trade (GATT) law. In September 1991, the GATT panel concluded that the United States could not embargo Mexican tuna imports because the embargo addressed the way in which the tuna was produced, not the quality or content of the product.

Shrimp-Turtle (India and United States) India, with other Asian countries, filed a complaint with the WTO when the United States banned imports of specific shrimp and shrimp products. Under the Endangered Species Act, the United States required shrimp boats to use “turtle excluder devices” to prevent endangered sea turtles from being caught in shrimp nets.The United States lost the ruling because it discriminated against the Asian countries by not providing them with adequate technical assistance to protect the turtles.Though a WTO Appellate Body ruled against the United States, it made clear that a country does have the right to take trade action to protect its domestic environment.

158 State of the World 2004 LINKING GLOBALIZATION, CONSUMPTION,AND GOVERNANCE national environmental law that holds that to be lifted now that it has completed a risk “where there are threats of serious or irre- assessment that the EU says validates its law.30 versible damage, lack of full scientific cer- Meanwhile, the EU, the United States, tainty shall not be used as a reason for and other countries are now embroiled in postponing cost-effective measures to pre- another major agricultural trade controversy— vent environmental degradation.” But a WTO one that has important implications for the appeals panel ruled in February 1998 that the right of consumers to make their own choices European law did in fact violate WTO rules, about the possible health and environmental paving the way for the U.S. government in impacts of their purchasing decisions. The July 1999 to retaliate by slapping WTO- issue this time is a European Union morato- authorized 100-percent tariffs on $117 mil- rium on granting approvals for planting or lion worth of European imports, including importing many varieties of genetically mod- fruit juices, mustard, pork, truffles, and ified seeds and crops. After complaining about Roquefort cheese. Four years later, the Euro- the situation for several years, in May 2003 the pean law still stands and the sanctions remain U.S. government joined forces with Argentina in place, although the EU is calling for them and Canada to file a formal WTO case in

Ta b l e 7 –3. (continued)

Swordfish (Chile and European Union) As early as 1991 Chile, fearing that its swordfish stock was being depleted, stopped allowing Spanish ships to dock at its ports or secure new swordfishing licenses. Overexploitation and bans aimed at renewing the fishery caused Chile’s annual swordfish catch to drop in half between 1994 and 1999.The EU alleges that Chile’s ban on Spanish ships, which hinders the transport of goods from factory ships to export vessels, violates WTO agreements on the free movement of goods. Chile argues that the UN Convention on the Law of the Sea allows it to protect its marine resources. In November 2000, the EU requested a WTO panel to resolve the dispute.The panel was suspended, however, when the EU and Chile reached a settle- ment in January 2001.The settlement allowed some EU ships to dock at Chilean ports and provided for multilateral scientific monitoring of the fishery in question. Asbestos (France and Canada) Canada challenged a French ban on chrysotile asbestos, a carcinogenic mineral found in many products. Canada alleged that a complete ban violated the WTO’s requirement to use the “least trade-restrictive” means of dealing with the health issue.A WTO panel upheld France’s ban on asbestos. Reaffirming the fact that asbestos is a carcinogen, in February 2001, the panel held that safer alternatives exist. Civil society hailed this decision as “the first time in its five-year history” that the WTO had ruled for public health. Genetically Modified Organisms (United States and European Union) The European Union argues that there may be health and ecological risks associated with genetically modified organisms and has been slow to approve the use or import of products containing them.The U.S. government does not view GMOs as a health risk, and Canada has stated that there is no scientific basis for the EU regu- lations. Under GMO legislation adopted by the European Parliament in July 2003 and expected to take effect in early 2004, the EU would mandate that all food and animal feed products containing more than 0.9 percent GMOs be labeled as such and that all genetically modified foodstuffs must be traceable. In August, the United States, Canada, and Argentina asked the WTO to form a dispute panel regarding the EU ban on GMOs.

SOURCE: See endnote 28.

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protest of this EU policy. A few months later, formal WTO challenge against the provisions the European Parliament passed EU legisla- of an environmental treaty, arguments about tion that paves the way for food containing WTO consistency often arise during negoti- genetically modified organisms to be sold in ations. These tensions were much in evidence Europe, as long as it is clearly labeled as such during negotiations on the Cartagena Pro- and a system is in place to trace genetically tocol on Biosafety of 2000, an agreement modified foodstuffs from the port to the forged under the umbrella of the U.N. Con- supermarket. EU officials hope that the label- vention on Biological Diversity that endorses ing legislation will render the recent U.S. the need for governments to sometimes take trade challenge moot, but U.S. government precautionary steps to prevent the possibility officials are skeptical, arguing that the label- of irreversible environmental harm in the face ing legislation might itself pose an unfair bar- of scientific uncertainty. In the current U.S.- rier to trade.31 European dispute over GMOs, the question could arise of whether WTO rules should Trade negotiations provide opportunities trump the provisions of the biosafety proto- to push for policy reforms needed to col or vice versa. An international coalition of NGOs recently launched a campaign solicit- promote more-sustainable consumption ing signatories to a “Citizen’s Objection” and production. statement that calls for the WTO to dismiss the complaint against the EU and for the As in the beef hormone case, the U.S. dispute to be settled under the Cartagena government maintains that restrictions on Protocol instead. So far, 184 organizations GMOs violate WTO rules because hard sci- from 48 countries have signed on.33 entific evidence of adverse health and eco- Despite the many possible clashes between logical effects is lacking. The EU and most international trade law and environmental consumer and environmental groups, on goals and priorities, trade negotiations also the other hand, see the labeling initiative as provide opportunities to push for policy a reasonable solution to the impasse, in that reforms needed to promote more-sustain- it would allow some trade in products with able consumption and production. For exam- GMOs to take place while protecting the ple, WTO rules and negotiations could be right of consumers to make informed risk used to encourage countries to reduce and calculations for themselves. Labeling initia- reform governmental subsidies to environ- tives enjoy broad public support in both mentally sensitive industries, such as agri- Europe and the United States, with more culture, fossil fuels, fishing, and forestry. Or than 90 percent of consumers in favor of they could be used to provide preferable such programs.32 trade treatment to “green consumer goods” In the background of the current trade such as energy-efficient lightbulbs, recycled controversy over GMOs is a larger issue: paper, organic produce, and certified forest What should be done when international and fish products.34 trade law is on a collision course with the Both the desire to minimize clashes international environmental treaties needed to between trade and environmental rules and encourage consumers and producers to shift the possibility of promoting synergies led to more environmentally sound practices? governments to agree in Doha, , in Although no country has thus far lodged a November 2001 to initiate talks on selected

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environmental issues as part of a Doha Man- talks—is headed. In preparations for the meet- date for a new round of international trade ing, little progress was made on any of the talks. Among other commitments, trade min- specifically environmental issues on the table. isters decided to enter into negotiations on But it was disputes over issues such as invest- the trade implications of environmental label- ment and government procurement and sim- ing requirements, on the relationship between mering tensions over agricultural trade WTO rules and trade measures contained in subsidies that finally brought the talks to a halt. multilateral environmental agreements, and Reactions to the stalemate were mixed, even on the effect of environmental measures on among NGOs. Some felt that the breakdown market access. They also agreed to work on revealed a failure of political will to confront strengthening WTO restrictions on fishing pressing development concerns; others viewed subsidies and to discuss the reduction of tar- Cancún as a pivotal turning point in which iff and non-tariff barriers to trade in envi- developing-country governments joined forces ronmental goods and services.35 in a powerful new coalition, backed up by a Many other subjects slated for discussion strengthened civil society.37 under the Doha Mandate could also have In the months ahead, governments and important implications for efforts to pro- civil society organizations alike will be step- mote more-sustainable patterns of con- ping back to contemplate the larger lessons sumption and production. Efforts to reduce of recent events. The way forward is not or redirect agricultural subsidies, for instance, immediately clear, with the situation com- could be a powerful boost to more environ- plicated by the need to forge a consensus mentally and socially sound food systems. among a great diversity of interests from Negotiations on transparency in government around the world. Still, recent events suggest procurement, for instance, would have a bear- that the terms of the debate are shifting as ing on green purchasing initiatives. And pro- people worldwide come to understand that posed talks on reducing restrictions on our current unsustainable course threatens international investment and on trade in ser- both human well-being and ecological health. vices could limit the latitude that govern- Although the powerful forces of both Jihad ments have to implement and enforce and McWorld continue to sweep the globe, environmental regulations.36 hope for the future comes from the growing Yet the breakdown of negotiations at the number of people who reject each of these WTO meeting in Cancún in September 2003 paths but support the development of a raised fundamental questions about where global community based on respect for peo- the organization—and any new round of trade ple and nature.

161 BEHIND THE SCENES Cotton T-shirts

In 1913 the U.S. Navy California. And more issued an all-white cot- than 500 cotton farm- ton undershirt to all ers in India’s cotton- hands—the first re- producing state of corded appearance of Andhra Pradesh are a T-shirt. Then in 1938 believed to have died in the U.S. retail giant Sears 2001 as a result of pesticide introduced a line of T-shirts exposure. In many cases, for civilian use. But it wasn’t farmers are unaware of or until the 1950s that the fail to use proper safety proce- garment really became popu- dures when handling and dis- lar, thanks to rebel heartthrobs posing of chemicals: in one Marlon Brando, James Dean, survey in Benin, West Africa, and Elvis Presley.1 45 percent of cotton farmers said they Nowadays a T-shirt is a comparatively used pesticide containers to carry water, while cheap way for consumers around the world to 20–35 percent used them to hold milk or sport the logo of a favorite company, sports soup. People have also been harmed in facto- team, or designer. But even when they are ries and communities where cotton pesticides made of “natural” cotton, T-shirts come at a are produced: the infamous toxic gas release high cost to workers and the environment. at a Union Carbide facility in Bhopal, India, Cotton is the world’s best-selling fiber, in 1984 killed 8,000 people.3 and each year farmers from Texas to Turkey Over the past decade, ecologists have harvest more than 19 million tons of it. Yet recorded devastating harm to birds, fish, and the crop packs an environmental wallop. other wildlife from chemicals used on cotton. Farmers use nearly $2.6 billion worth of pes- Before harvest, farmers often use herbicides ticides on cotton a year worldwide—more to defoliate the cotton plants and to allow than 10 percent of the global total, according easier access to the boll, a pod containing to Pesticide Action Network North America. seeds and linty fibers—a practice that can The World Health Organization has classified destroy wildlife habitat.4 many pesticides commonly used on cotton as Cotton pesticides can pollute local water “extremely hazardous,” including organo- bodies as well, endangering human and phosphates like parathion and diazinon that ecosystem health. Aldicarb, a compound that are particularly dangerous to the nervous sys- has been found to cause immune system tems of infants and children.2 abnormalities at even low levels of consump- Cotton pesticides sicken and kill farm tion, has been detected in groundwater in workers as well. Between 1997 and 2000, seven American states, according to Cornell cotton fields were the sites of 116 reported University Cooperative Extension. And in farmworker acute pesticide poisoning cases in 1998 the U.S. Geological Survey reported

162 State of the World 2004 BEHIND THE SCENES: COTTON T-SHIRTS

surface water contamination from herbicides China is the world’s top cotton producer, and insecticides used on cotton in the South. followed by the United States and India. And Meanwhile, halfway around the world, the the United States is the leading exporter of diversion of water to irrigate cotton—a thirsty the fiber, shipping more than 10.5 million crop—has shrunk Uzbekistan’s Aral Sea to bales a year worldwide, predominantly to Asia one fifth its original size.5 and Mexico. (Other top exporters are the After a cotton field is harvested, the bolls countries of the former Soviet Union and are “ginned” to separate the fibers from the Australia.) Poorer countries seeking to sell seeds. The fibers are then packed into bales of their cotton on the world market increasingly about 500 pounds (roughly 225 kilos) each. find themselves undercut by subsidies and (U.S. textile makers use about 11 million trade barriers that aid U.S. cotton farmers.9 bales of cotton a year.) A spinning factory China is also the world’s top producer of cleans the fibers and twists them into yarn, T-shirts, supplying about 65 percent of the which is woven into cloth on mechanized total—most of which are sold to the United looms. The shipping from farm to factory States and Europe. (Americans spent $6.2 bil- requires energy, typically from fossil fuels; so lion on some 478 million T-shirts in 2002.) does the production of thread and cloth, as As in many developing countries, garment spinneries are no longer powered by mules.6 factory workers in China earn low wages and After a T-shirt is produced, it is usually work long hours. Apparel manufacturers from dyed and treated with fabric finishes. Chemi- industrial countries commonly use sweatshops cal dyes, and even some natural dyes, often in Central America and Southeast Asia, where contain copper, zinc, and other heavy metals, they can operate under laxer labor and envi- which are toxic and can pollute water ronmental regulations than at home.10 through factory runoff. Fabric finishes, such What’s a T-shirt wearer to do? The most as those to repel stains, wrinkles, and water, ecological choice, apart from buying used may contain petrochemicals such as formalde- clothing, is a T-shirt made from certified hyde, a carcinogen.7 organic cotton, grown without synthetic pes- This does not mean that concerned ticides and fertilizers. At one Egyptian farm consumers should choose synthetic fabrics project, organic cultivation has boosted cot- instead. Polyester fibers are made from petro- ton yields by more than 30 percent, and the leum, a nonrenewable resource whose extrac- fiber is processed into textiles without any tion and shipping damages the environment, synthetic chemicals. The best choice in terms most visibly in oil spills. According to one of worker welfare is garments certified by the estimate, if the oil used in production and Fair Trade Federation. In a positive trend, transport is included, a cotton T-shirt blended organic cotton and fair-trade garment makers with polyester can release approximately one are joining hands to both protect the quarter of its weight in air pollutants and 10 environment and promote social justice.11 times its weight in carbon dioxide.8 —Mindy Pennybacker, The Green Guide

163 CHAPTER 8

Rethinking the Good Life

Gary Gardner and Erik Assadourian

Bogotá, the capital of Colombia, is com- existing bus lines. The system carries 780,000 monly associated with civil war and violence. passengers daily—more than the costlier Wash- But in the late 1990s, the city’s reputation ington, D.C., subway does—and is so good began to change as Mayor Enrique Peñalosa that 15 percent of the regular riders are car led a campaign to improve the quality of life owners. Peñalosa also invested in hundreds of there. School enrollments increased by kilometers of bike paths and in pedestrian-only 200,000 students—some 34 percent—during streets. And he strengthened the city’s cultural Peñalosa’s tenure. His administration built or infrastructure by building new public libraries totally rebuilt 1,243 parks—some small, some and schools, connecting them with a network very large—which are now used by 1.5 mil- of 14,000 computers. Together with the reha- lion visitors annually. An effective rapid tran- bilitated parks, the transportation and cul- sit system, accessible to all, was planned and tural improvements advanced a strategic goal constructed. And the city’s murder rate fell for Bogotá: to orient urban life around peo- dramatically: today, there are fewer murders ple and communities.2 per capita in Bogotá than there are in Wash- Peñalosa uses an unusual yardstick to eval- ington, D.C.1 uate his development strategy. “A city is suc- By any standard, the city’s advance is a cessful not when it’s rich,” he says, “but developmental success. Yet Bogotá’s trans- when its people are happy.” That statement formation was achieved in a rather unortho- deflates decades of development thinking in dox way. When Peñalosa took office, rich and poor countries alike. After all, most consultants proposed building a $600-mil- governments make ongoing increases in gross lion elevated highway, a standard transporta- domestic product (GDP) a chief priority of tion solution in many car-bound cities. domestic policy, under the assumption that Instead, the mayor created a cheaper yet more wealth secured is well-being delivered. Yet effective rapid transit system using the city’s undue emphasis on generating wealth, espe-

164 State of the World 2004 RETHINKING THE GOOD LIFE

cially by encouraging heavy consumption, policy goal is increasingly commonplace, may be yielding diminishing returns. Overall appearing everywhere from popular maga- quality of life is suffering in some of the zines to official publications of multinational world’s richest countries as people experi- organizations, such as The Well-being of ence greater stress and time pressures and Nations by the Organisation for Economic less satisfying social relationships and as the Co-operation and Development in 2001 and natural environment shows more and more Ecosystems and Human Well-being by the Mil- signs of distress. Meanwhile, in poor countries lennium Ecosystem Assessment in 2003. Even quality of life is degraded by a failure to meet the Canadian House of Commons picked up people’s basic needs.3 the term in legislation passed in June of 2003 Rethinking what constitutes “the good entitled the Canada Well-Being Measure- life” is overdue in a world on a fast track to ment Act.5 self-inflicted ill health and planet-wide dam- Definitions of the concept vary, but tend age to forests, oceans, biodiversity, and other to coalesce around several themes: natural resources. By redefining prosperity • the basics for survival, including food, shel- to emphasize a higher quality of life rather ter, and a secure livelihood; than the mere accumulation of goods, indi- • good health, both personally and in terms viduals, communities, and governments can of a robust natural environment; focus on delivering what people most desire. • good social relations, including an experi- Indeed, a new understanding of the good ence of social cohesion and of a supportive life can be built not around wealth but around social network; well-being: having basic survival needs met, • security, both personal safety and in terms along with freedom, health, security, and sat- of personal possessions; and isfying social relations. Consumption would • freedom, which includes the capacity to still be important, to be sure, but only to achieve developmental potential.6 the extent that it boosts quality of life. Indeed, In shorthand form, the term essentially a well-being society might strive to minimize denotes a high quality of life in which daily the consumption required to support a dig- activities unfold more deliberately and with nified and satisfying life. less stress. Societies focused on well-being involve more interaction with family, friends, Wealth and Well-being and neighbors, a more direct experience of nature, and more attention to finding fulfill- Wealth and well-being are less like antagonists ment and creative expression than in accu- and more like long-lost siblings. After all, mulating goods. They emphasize lifestyles the word “wealth” is rooted in “weal”—a that avoid abusing your own health, other synonym for well-being that traditionally had people, or the natural world. In short, they a community orientation. Yet wealth is now yield a deeper sense of satisfaction with life used to mean material goods and financial than many people report experiencing today. holdings, primarily of individuals—a far more What provides for a satisfying life? In recent narrow usage than its roots would imply. years, psychologists studying measures of life Building a society of well-being essentially satisfaction have largely confirmed the old involves recapturing the original, broad-based adage that money can’t buy happiness—at understanding of the term wealth.4 least not for people who are already affluent. The idea of well-being as a personal and The disconnection between money and hap-

165 State of the World 2004 RETHINKING THE GOOD LIFE piness in wealthy Average Income Percent of People Who Are Very Happy 25,000 100 countries is perhaps (1995 dollars) most clearly illus- trated when growth 20,000 80 in income in indus- Average Income trial countries is plotted against lev- 15,000 60 els of happiness. In the United States, for example, the 10,000 Very Happy People 40 average person’s income more than doubled between 5,000 20 1957 and 2002, yet the share of people Source: Myers 0 0 reporting them- 1955 1965 1975 1985 1995 2005 selves to be “very Figure 8–1. Average Income and Happiness happy” over that in the United States, 1957–2002 period remained static. (See Figure 8–1.) 7 where people often attempt to use con- Not surprisingly, the relationship between sumption as a substitute for genuine sources wealth and life satisfaction is different in poor of happiness. Yet there are at least some indi- countries. There, income and well-being are viduals, communities, and governments that indeed coupled, probably because more of a are dissatisfied with life quality and are begin- poor person’s income is used to meet basic ning to make an effort to build lives, neigh- needs. (See Chapter 1.) Findings from the borhoods, and societies of well-being.9 World Values Survey, a set of surveys of life sat- isfaction in more than 65 countries conducted The Power of One between 1990 and 2000, indicate that income and happiness tend to track well until about During the summer of 2003, some 50 million $13,000 of annual income per person (in Americans signed up for a government-spon- 1995 purchasing power parity). After that, sored National Do Not Call Registry designed additional income appears to yield only mod- to prevent commercial telemarketers from est additions in self-reported happiness.8 phoning them. The outpouring of response to If psychologists are clear about the limits this new government program—in essence, an of wealth for delivering happiness, they are attempt by people to reclaim some of their equally clear in describing what does con- time and privacy from increasingly aggressive tribute to life satisfaction. Again and again, marketing tactics—hints at the frustration studies suggest that happy people tend to many individuals feel when economic forces have strong, supportive relationships, a sense begin to dominate rather than serve them. Yet of control over their lives, good health, and a small but growing number of consumers are fulfilling work. These factors are increasingly questioning the way they shop, the amount of under stress in fast-paced, industrial societies, “stuff” crowding and complicating their lives,

166 State of the World 2004 RETHINKING THE GOOD LIFE

and the amount of time they spend at work. ber of people identified as LOHAS consumers, These dissatisfied consumers have not yet this is probably due to the few options for built a coherent movement, because their healthy consumption available today.12 actions are mostly private ones occurring in In many countries, people are joining con- unconnected pockets in many nations. Still, sumer cooperatives to leverage their market the spontaneous and grassroots nature of power for a higher quality of life. In Japan, for these activities may signal a deeply felt desire example, the 250,000-member Seikatsu Club by many people to build a satisfying life for Consumers’ Cooperative Union stocks foods themselves and their families.10 free of agricultural chemicals and artificial Perhaps the most apparent expression of a additives and preservatives, along with house- desire for a higher quality of life is found in hold products free of toxins. The club puts its the growing numbers of people who shop goods in reusable glass jars in order to help with an eye toward well-being. In Europe, for reduce the 60 percent of household waste that example, demand for organically grown foods is packaging. In contrast to many supermar- drove sales up to $10 billion in 2002, 8 per- kets that stock tens of thousands of individ- cent above the previous year, as a public ual items, the Seikatsu Club co-ops carry just bruised by mad cow disease and other food 2,000 items, mostly basic foodstuffs. The co- scares increasingly sought assurances of the ops typically carry only one or two choices per safety of its food supply. Market analysts esti- item, but for members seeking to live a more mate that 142 million Europeans are con- satisfying life, the high quality, healthy foods, sumers of organics, although a “loyal” core and reduced waste apparently compensate of 20 million accounted for 69 percent of the for the somewhat lessened choice. And expenditures on these products in 2001. And Seikatsu members are not alone; some 50 150 million people in Europe are either veg- million people belong to local co-ops that are etarians or have reduced their consumption affiliated with Consumer Coop International, of meat.11 a global body that helps facilitate training Meanwhile, in the United States the group for local consumer co-ops.13 of consumers interested in shopping for bet- In some cases, individuals are turning to ter health and a better environment is large organizations for help in greening their con- enough to have earned recognition by market sumption. A coalition of organizations in 19 researchers as a distinct demographic group. countries known as the Global Action Plan Dubbed LOHAS consumers—people who offers training to families on reducing waste, lead Lifestyles of Health and Sustainability— lessening energy use, and switching to eco- these shoppers buy everything from compact friendly products. In the Netherlands, at least fluorescent lightbulbs and solar cells to fair- 10,000 households are working on redirect- trade coffee and chocolate (products that pay ing their consumption; after training, these a just wage to producers or that have a lighter people cut their household waste on average environmental impact than mainstream pur- by 28 percent. Six to nine months later, the chases do). This group now includes nearly figure was 39 percent. And in 2003, the one third of adult Americans and in 2000 ac- French government launched a similar ini- counted for about $230 billion in purchases— tiative, la famille durable (the sustainable some 3 percent of total U.S. consumer family), that offers practical ways for people expenditures. Although this is a relatively low to live sustainably at home, school, and work share of expenditures compared with the num- and on vacation.14

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And in the United States, the Center for papers about simplifying lifestyles grew three- a New American Dream urges people to live to fivefold between 1996 and 1998. In 1997, a life of “more fun, less stuff.” Through its the System aired a doc- Turn the Tide program, the Center encour- umentary called Affluenza, which treated ages people to follow a simple nine-step envi- consumerism as a contagious disease and ronmental conservation plan, involving such offered suggestions for inoculating yourself actions as switching to water-efficient faucets against it. The program was very popular and and eating less meat. The 14,000 members was later distributed in 17 countries.18 of this initiative report saving more than 500 Yet individual initiatives are only part of million liters of water and preventing over 4 what is needed to build a society of well- million kilograms of carbon dioxide from being. Individual efforts alone do not neces- being released into the atmosphere.15 sarily help to build strong, healthy Beyond a shift in shopping habits, many communities (although they can free up time consumers are trying to simplify their lifestyles that could lead to greater community involve- in broader ways—a process sometimes called ment), nor can they address the structural “downshifting.” Analyst Cecile Andrews obstacles to genuine consumer choice—the describes the motivation for these individuals: lack of organic produce in the supermarket, “A lot of people [are] rushed and frenzied and for instance. Some critics even argue that, stressed. They have no time for their friends; pursued in isolation, individual initiatives can they snap at their family; they’re not laughing be counterproductive. An “individualization very much.” Many, she says, “are looking for of responsibility,” as political and environ- ways to simplify their lives—to rush less, work mental scientist Michael Maniates notes, dis- less, and spend less. They are beginning to tracts attention from the role that such slow down and enjoy life again.” 16 institutions as business and government play Estimates of the numbers of downshifters in perpetuating unhealthy consumption. are imprecise, but interest in simplifying Moreover, to the extent that individuals see appears to be growing. In seven European their power residing primarily in their pock- countries, the number of people who have etbooks, they may neglect their key roles as voluntarily reduced their working hours has parents, educators, community members, and grown at 5.3 percent each year over the past citizens in building a society of well-being.19 five years, for example. And the trend toward The need for individuals to act collec- simplicity is expected to continue. The num- tively to improve their quality of life led a ber of people in these same countries who group in Norway in 2000 to launch a cam- could at least partially embrace a voluntary paign entitled 07-06-05. Campaigners are ral- simplicity lifestyle is expected to grow from lying Norwegians to count down to June about 7 million in 1997 to at least 13 million 7th, 2005, the one-hundredth anniversary of in 2007.17 Norway’s independence from Sweden, and Meanwhile, two research surveys in the to once again declare their independence— United States in the mid-1990s suggested but this time from the “time poverty” that that around a quarter of the population were has accompanied the ascendancy of the con- working to simplify their lives, although the sumer culture.20 extent of course varied greatly from person to In the United States, an alliance known as person. And the media have registered grow- the U.S. Simplicity Forum is trying to mobi- ing interest in the topic. Articles in U.S. news- lize the millions of Americans struggling with

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too much to do and too little time. They ily, friends, or neighbors. Fortunately, indi- organized Take Back Your Time Day on vidual efforts and community efforts often October 24th, 2003, urging Americans to work hand in hand. The person who works leave work early, arrive late, take longer than fewer hours each week finds more time for usual lunches, or even skip work altogether. family, friends, and community. And com- Thousands joined events at neighbors’ homes, munity ties, which are strengthened, for exam- local churches, meeting halls, and universities ple, when neighbors share tools or babysitting to discuss the time poverty facing the average responsibilities, can reduce family expenses American. The date was deliberately cho- and help people lead simpler lives.23 sen—it was nine weeks before the end of the People who are socially connected tend to year—to remind Americans that they are be healthier—often significantly so. More some of the most overworked people in the than a dozen long-term studies in Japan, industrial world, putting in 350 hours more Scandinavia, and the United States show that on the job (that is, nine workweeks) each the chances of dying in a given year, no mat- year than the average European.21 ter the cause, is two to five times greater for Organizers hope to use the energy of the people who are isolated than for socially con- American initiative to start a popular move- nected people. For example, one study found ment centered on reclaiming time for a higher that in 1,234 heart attack patients, the rate of quality of life. The campaign would seek to a recurring attack within six months was reform national vacation laws, working hours, nearly double for those living alone. And a and other measures that would free up time Harvard study of health and mistrust in the for the neglected elements of life, such as United States concluded that moving to a family, friends, and community. As Take Back state with a high level of social connections Your Time Day coordinator and Affluenza from a state where the level is low would producer John de Graaf explains, “The Time improve a person’s health almost as much as Movement is about looking beyond GDP as quitting smoking.24 the measure of a good society and under- A particularly impressive example of the standing that the real purpose of our economy relationship between social connectedness is not material growth without end, but a bal- and health comes from a study of the town of anced, fulfilling, and sustainable life for all.” 22 Roseto, Pennsylvania, which caught the atten- tion of researchers in the 1960s because its The Ties That Bind rate of heart attacks was less than half the rates in neighboring towns. The usual causes of Humans are social beings, so it is little surprise such an anomaly—diet, exercise, weight, that good relationships are one of the most smoking, genetic predisposition, and so on— important ingredients for a high quality of life. did not explain the Roseto phenomenon. In Harvard Professor of Public Policy Robert fact, people in Roseto scored worse on many Putnam notes that “the single most common of these risk factors than their neighbors. So finding from a half century’s research on the the researchers looked for other possible correlates of life satisfaction…is that happiness explanations and found that the town had a is best predicted by the breadth and depth of tight-knit social structure that had produced one’s social connections.” Thus individual community-initiated sports clubs, churches, efforts to build a satisfying life are more likely a newspaper, and a Scout troop. Extensive to be successful if some of them involve fam- informal socializing was the norm. Eventually

169 State of the World 2004 RETHINKING THE GOOD LIFE

researchers gave credit to the strong social ties development. Just as a bank account (finan- of the residents—most were from the same cial capital) yields interest, social ties tend to village in Italy and worked hard to maintain build trust, reciprocity, or information net- their sense of community in the United works, all of which can grease the wheels of States—for the higher levels of health. The sad economic activity. Trust, for example, facili- postscript to the story is that starting in the tates financial transactions by creating a cli- late 1960s, as social ties weakened in this mate of confidence in contractual relationships town and across the United States, the heart or in the safety of investments. A World Bank attack rate in Roseto rose, eventually sur- study of social contacts among agricultural passing that of a neighboring town.25 traders in Madagascar found that those who are part of an extensive network of traders and can count on colleagues for help in times of Strong social ties are especially trouble have higher incomes than traders helpful in promoting collective with fewer contacts. Indeed, the connected consumption, which often has social traders say that relationships are more impor- and environmental advantages. tant for their success than many economic fac- tors, including the price of their traded goods or access to credit or equipment.27 Researchers offer various explanations for A lack of social capital also seems to be the link between social connectedness and connected with poor economic growth at lower risk of health problems. Some are quite the national level. Stephen Knack of the World practical: connected people have someone to Bank warns that low levels of societal trust depend on if they run into health problems, may lock countries in a “poverty trap,” in thereby reducing the likelihood that sickness which the vicious circle of mistrust, low invest- will develop into a serious health condition. ment, and poverty is difficult to break. Knack Social networks may reinforce healthy behav- and his colleagues tested the relationship iors; studies show that isolated people are between trust and economic performance in more likely to smoke or drink, for example. 29 countries included in the World Values And cohesive communities may be more Survey. They found that each 12-point rise in effective at lobbying for medical care. But the survey’s measure of trust was associated the connection may run deeper. Social con- with a 1-percent increase in annual income tact may actually stimulate a person’s immune growth, and that each 7-point rise in trust cor- system to resist disease and stress. Laboratory responded to a 1-percent increase in invest- animals, for example, are more likely to ment’s share of GDP.28 develop hardening of the arteries when iso- The role of social glue in facilitating eco- lated, while animals and humans in isolation nomic transactions is especially evident in both tend to experience decreased immune microcredit initiatives such as the Grameen response and higher blood pressure.26 Bank of Bangladesh, which provides small International development professionals loans to very poor women who lack the col- also now acknowledge that strong social ties lateral to borrow from a commercial bank. are a major contributor to a country’s devel- Participating women organize themselves into opment. The World Bank, for instance, sees borrowing groups of five, and each group social connectedness as a form of capital—an applies to the Bank for loans, often of less than asset that yields a stream of benefits useful for $100. The women count on knowledge of

170 State of the World 2004 RETHINKING THE GOOD LIFE

their neighbors’ dependability when they survive to see a community established, extend invitations to join the group. This because of the steep challenges involved, information function—something commercial including gaining permits and financing as banks spend money on when they compile an well as building the community).31 applicant’s credit history—is an example of In a co-housing community, houses often how social capital can lower the costs of finan- share common walls with neighboring homes cial activity. Social ties are also meant to serve and are clustered around a courtyard or pedes- as collateral for the loans. Because women trian walkway. Cars are typically confined to are jointly responsible for repayment, and the perimeter of the community property. because a default puts all five in jeopardy of dis- The design means that these communities qualification for future loans, each woman is often use less energy and fewer materials than subject to strong social pressure to repay.29 neighborhoods full of private homes. A study The economic payoff of these types of of 18 communities in the United States in the social connectedness has made microcredit mid-1990s found that, compared with before successful in many parts of the world. The they moved into co-housing, members owned Grameen Bank claims that 98 percent of its 4 percent fewer cars, while their ownership of microcredit loans are repaid, a better record washers and dryers dropped by 25 percent and than in most commercial banks. Grameen of lawnmowers by 75 percent. The average liv- has inspired the spread of microcredit glob- ing space per household in the 18 communi- ally. An initiative known as the Microcredit ties—including each unit’s share of the Summit Campaign has set a goal of enrolling common room area—was about 1,400 square 100 million people in microcredit programs feet, two thirds as big as the average new U.S. by 2005. By the end of 2002, they were home in the mid-1990s. Shared basement more than halfway there, with 68 million space for mechanical services and common people participating.30 entryways for adjoining dwellings reduce liv- Beyond improving health and facilitating ing space with little sacrifice of livability. And economic security, strong social ties are espe- building in tight clusters allows yard space to cially helpful in promoting collective con- be shared without a major loss of privacy. As sumption, which often has social and a result of these features, the average co-hous- environmental advantages. A good example ing community in the study used only half as of this is co-housing, a modern form of vil- much land per dwelling as in a conventional lage living in which 10–40 individual house- suburban U.S. development.32 holds live in a development designed to But perhaps the greatest contribution of co- stimulate neighborly interaction. Privacy is val- housing communities to a high quality of life ued and respected, but residents share key is the social ties they create. The communities spaces, including a common dining hall, gar- are self-managed, which encourages interac- dens, and recreational space. Started in the tions and sharing. Children typically have late 1960s, more than 200 co-housing com- many adults watching as they play, as well as munities have been established in Denmark. an abundance of playmates and babysitters. The movement has spread to the Nether- Most of the communities offer two or more lands, Scandinavia, Australia, Canada, and common meals per week, with on average 58 the United States, where 50 new co-housing percent of members attending. Interestingly, interest groups are established each year in contrast to “time-saving” meals offered by (although more than half of these do not food companies, which typically feature highly

171 State of the World 2004 RETHINKING THE GOOD LIFE processed and packaged foods such as instant essentially the “infrastructure of consump- mashed potatoes or frozen pizza, the co-hous- tion.” Creating a higher quality of life ing approach to common meals saves time requires us all—individuals and communi- without sacrificing on food quality. At the ties—to help create new political, physical, Nomad Cohousing Community in Colorado, and cultural “infrastructures of well-being.”35 for instance, where there are two community Some governments are beginning to use meals a week, residents spend 2.5–3 hours their authority to help create a political envi- every five to six weeks helping with cooking ronment conducive to well-being. The most and cleanup. Compared with cooking a fam- basic of their initiatives is to properly assess ily meal each day, this occasional sharing of community or societal health, as the city of effort frees up 9 hours of labor for every fam- Santa Monica is doing through a Sustainable ily over six weeks.33 City Plan. In place since 1994, the plan aims In many developing countries, too, col- to decrease overall community consumption, lective consumption is more feasible in com- especially the use of materials and resources munities with a strong social base. (See Box that are not local, nonrenewable, not recycled, 8–1.) A World Bank study of 64 villages in and not recyclable. It also seeks to develop a Rajasthan, India, for example, found that diversity of transportation options, to mini- conservation and development of watersheds mize the use of hazardous or toxic materials, was more successful in villages that exhib- to preserve open space, and to encourage ited strong levels of trust, informal networks, participation in community decisionmaking. and solidarity than in villages that had fewer The plan uses 66 indicators to measure its of these social assets. And in Bangladesh, progress, such as solid waste generation, cost cooperative garbage collection programs of living, share of major streets with bike (where local government failed to provide lanes, percent of tree canopy coverage, vot- it) were undertaken and successful in areas ing rates, share of residents who volunteer, where certain forms of social capital—in this greenhouse gas emissions, number of home- case, norms of reciprocity and sharing—were less, and crime rates. Many of Santa Monica’s well developed.34 initial targets have been met or exceeded, according to the city, and more ambitious Creating Infrastructures goals have been set for 2010.36 of Well-being At the national level, the standard tool used to measure societal health, GDP, is much When individuals or communities seek to too narrow to serve as a yardstick of well- enhance their quality of life, they may be being because it sums all economic transac- handcuffed by the set of choices available to tions, regardless of their contribution to them. Organic produce, reusable beverage quality of life. It also ignores entire swaths of bottles, or mass transit obviously cannot be nonmarket activity that contribute to indi- bought if they are not offered for sale. The vidual and community well-being, such as rules and policies that determine the set of the child care provided by a stay-at-home choices available, such as oil subsidies that parent. Throughout the 1990s, researchers make fossil energy cheaper than wind power, worked to develop alternative measures, such zoning laws that encourage sprawling devel- as the Ecological Footprint, the Genuine opment, or building codes that frown on Progress Indicator, the Human Development the use of recycled building materials, are Index, and the Living Planet Index, to com-

172 State of the World 2004 RETHINKING THE GOOD LIFE

BOX 8–1. THE GAVIOTAS EXPERIENCE:MAKING WELL-BEING A PRIORITY

Gaviotas is a village of 200 people in rural technologies enhance the quality of life of these Colombia with a global reputation for innova- villagers, but also of other interested communi- tive development. Governing their approach is ties.As a matter of principle—and in line with a strong concern for the quality of village life their primary interest in advancing quality of and for the natural environment. For starters, life, not just in generating wealth—the villagers villagers ensure that basic needs are met: do not patent their inventions, which are made residents pay nothing for meals, medical care, widely available.Thousands of the windmills education, and housing.All adults have work, have been installed by Gaviotas technicians whether in the various village enterprises that across Colombia, and the design has been manufacture solar collectors and windmills, copied throughout Latin America. in organic and hydroponic agriculture, or in For the villagers, well-being also means forestry initiatives. treading lightly on the environment. Gaviotas is Social needs are addressed as well, through now self-sufficient in energy, making ample use the rhythm of daily activities. Members work of solar and wind power and of methane pro- together in village businesses and regularly eat duced from cattle manure. Its air-cooled and together in the large refectory, even though solar-heated former hospital (now a water each home has a kitchen. Music and other cul- purification center) was named by a Japanese tural events are a regular part of village life. architectural journal as one of the 40 most With survival and social needs met in abun- important buildings in the world. Its agricultural dance, the atmosphere is peaceful: the com- activities are organic.And it is the center of the munity has had no police force, jail, or mayor largest reforestation project in Colombia, hav- in its 33-year history. Community norms are ing converted tens of thousands of hectares of set by members and enforced through social savannah to forest, from which villagers extract pressure. and sell only resin, even though logging would Gaviotas is known worldwide for its many be more lucrative.The villagers believe that a inventions, including a water pump that village healthy forest generating modest resources is kids work as they ride their seesaw, windmills better than a depleted one that yields a tempo- designed for the gentle breezes of the Colom- rary bonanza. bian plains, a pressurized solar water heater, and a pedal-powered cassava grinder.The SOURCE: See endnote 34.

plement the perspective of GDP. (See also proved useful in creating a cleaner environ- Chapters 1 and 7.) One such effort, the Well- ment and a higher quality of life in many being Index developed by sustainability con- European countries. (See also Chapter 5.) sultant Robert Prescott-Allen, is noteworthy And many governments in Europe are for its comprehensiveness. (See Box 8–2.) 37 helping workers and families to carve out In addition to recalibrating yardsticks for extra time each week. Belgium, Denmark, societal health, governments are using their France, the Netherlands, and Norway now extensive legislative and regulatory powers to have 35- to 38-hour workweeks, which in shape the way people consume and the values addition to freeing up valuable time for work- a society internalizes regarding consumption. ers often help to create new jobs. The Nether- Eliminating perverse subsidies and adopting lands has two particularly creative approaches pollution taxes, for example, have already to paring back working hours. Employers

173 State of the World 2004 RETHINKING THE GOOD LIFE

so that more time is available to meet the BOX 8–2. MEASURING WELL-BEING heavy demands of caring for young children. In addition to reforms of the workweek, many The Wellbeing Index uses 87 indicators countries provide generous paid family leave to measure human and ecological well- to new parents. Sweden, for instance, grants being—ranging from life expectancy and 15 months of leave per child at up to 80 per- school enrolment rates to the extent of cent of salary, compared with the 12 weeks of deforestation and levels of carbon emis- sions.The 87 indicators can help countries unpaid leave that is offered in the United identify the areas in which their quality of States.38 life is suffering.Values from the array of Government interventions like these are indicators are standardized and summed likely to create a less stressful home environ- into a single score for ease of comparison ment. Finland, for example, has very strong across 180 countries. policies supporting the employment of moth- The results are revealing: some two ers, including paid parental leave, tax relief for thirds of the world’s people live in coun- tries with a bad or poor rating for human child care, publicly funded child care, and well-being. Only Norway, Denmark, and other measures. (In one study, Finland ranked Finland receive the highest of the five first among 14 nations in provision of these rating levels. Meanwhile, countries with a benefits.) A 2001 study of the psychological poor or bad environmental rating cover benefit to parents of these measures found almost half of Earth’s land area.And no that, in contrast to the United States, where country receives a good environmental parenting tended to be associated with poor rating. The Index’s separate measures of psychological well-being because of the stress human and environmental well-being help involved and lack of family support, parenting crystallize an ideal development goal: to in Finland correlated either neutrally or pos- improve people’s lives with the least possi- itively with psychological well-being. For ble environmental impact. Indeed, the fathers, the results were strongly positive, but Index reveals that meeting people’s needs for mothers somewhat less so, indicating that can be done at a range of environmental support for them could be strengthened.39 price tags.The Netherlands and Sweden have roughly the same human well-being Central to changing the legal and politi- score, for example, but the Netherlands cal infrastructure of well-being is achieving scores much lower on environmental clarity about the importance of providing health.This suggests that how a nation public services. The increased priority given meets its development goals is as impor- to private consumption in many countries in tant as whether it meets them. recent decades has often given public services

SOURCE: See endnote 37. a bad name. But societies pay a social price when private consumption is pursued at the expense of public investment. A 2003 report by the Fabian Society in the United Kingdom give the same benefits and promotion oppor- demonstrates this. Privatizing public schools, tunities to part-time and full-time workers, the report noted, can lead to the best schools making part-time work attractive for many. attracting the best students, while the worst And the government encourages parents with schools get a disproportionate share of dis- small children to work the equivalent of no ciplinary cases. Privatized bus services can more than 1.5 jobs between the two of them, leave unprofitable routes unserved and prof-

174 State of the World 2004 RETHINKING THE GOOD LIFE

itable routes overcrowded, sending more ing 72 minutes a day behind the wheel, often people into their cars, as happened when alone, community cohesion is bound to suf- U.K. local bus services were privatized.40 fer. In 2003, sprawling suburban develop- Of course, deciding which goods should ments were also criticized for their adverse be publicly provided is a knotty political effects on health. A U.S. study of more than problem, but one the public can and should 200,000 people in 448 counties found that be involved in. An inspiring example of pub- those living in low-density suburban com- lic involvement in setting priorities for gov- munities tended to spend less time walking ernment funds comes from Porto Alegre, and weighed 6 pounds more on average than Brazil. Officials there have used a “partici- those living in densely populated areas. Sub- patory budget” process since 1989 to involve urbanites were also found to be as likely as cig- citizens directly in decisions on how to allo- arette smokers to have high blood pressure.42 cate the municipal budget. The process has Meanwhile, urban design can deter—or produced greater governmental transparency attract—cyclists. Surveys in the United States and accountability, a reduction in the share indicate that a principal reason Americans of city revenues consumed by salaries, and a give for not cycling is that they regard the reduction in the share of contracts allocated practice as unsafe. And it is. Measured per on a patronage basis. It has also led to kilometer of travel, cycling in the United increases in the amount of money spent on States is more dangerous than any other form education, basic services, and urban infra- of transportation. Yet the accident rate for structure—initiatives that have improved cyclists in the Netherlands and Germany is residents’ quality of life. In addition, the only one quarter the U.S. rate, largely because process has mobilized more people each those nations invest in bike lanes, stoplights year, with 40,000 of the 1.3 million resi- that favor cyclists, and other infrastructure dents participating in the 1999 budget developments that make cycling safe. The process. Most get involved by joining neigh- Netherlands has doubled the length of its borhood meetings, so the process has helped network of bikeways in the past 20 years, to increase grassroots involvement, allowed and Germany has tripled its network.43 new local leaders to emerge, and empowered When they are well designed, cities can some of Porto Alegre’s poorer communities. become attractive places to spend time, which Participatory budgeting has now spread to encourages greater civic interaction. Both 140 communities—2.5 percent of Brazil’s factors tend to boost quality of life. By con- municipalities.41 verting streets into pedestrian thoroughfares, Attention to the design of physical infra- mixing housing and shops, creating plazas structure is also critical to improving quality and parks, and taking other steps, city centers of life. Car-centered suburban dwellings, for can be stimulating places to be. In Copen- example, have long been criticized for weak- hagen, for example, outdoor cafes, public ening community cohesion, in part because squares, and street performers attract the of the time required to commute to work. public in the summer, while skating rinks, Social scientist Robert Putnam has noted heated benches, and gaslit heaters on street that each additional 10 minutes of daily com- corners make winters enjoyable. And the city muting time is associated with a 10-percent has gone out of its way to make cycling easy, decline in involvement in community affairs. not only by providing bike lanes, but also by With the average American adult now spend- making bicycles available for a modest deposit

175 State of the World 2004 RETHINKING THE GOOD LIFE that is refunded when the bicycle is returned.44 encourages people to use the stairs. And the Such design innovations happen when a eating area in the complex is located away city is serious about making quality of life a from the offices rather than conveniently in priority. One demonstration of such serious- the middle of them, so that employees must ness comes from Austin, Texas, which used an put some energy into getting to their food. incentive program known as the Smart This innovative design reflects an under- Growth Criteria Matrix to control where and standing that advancing well-being is not how growth took place and to enhance qual- always synonymous with maximizing conve- ity of life. The city used a series of criteria to nience or comfort.46 score proposed development projects, with New political and physical infrastructures high-scoring projects qualifying to have city of consumption are being supplemented by fees waived. Analyst Guy Dauncey describes a budding new cultural framework, particu- the incentive criteria this way: larly in promoting an ethic of consumption You can win more points for a down- for well-being. In this regard, people are town location, and for a location within increasingly active in demanding a higher one block of a transit stop or two blocks ethical standard of advertisers. In Sweden, all of a light rail station. There are points advertising is forbidden in programming for…smaller setbacks, front porches, back directed at children, a particularly impres- lanes, narrow streets, and a community sionable group. And in the United States, cig- orientation. There are points for mixed arette ads have been forbidden on television residential, office and retail use, for resi- for decades. The European Union recently dential units above commercial, and for expanded its ban on ads for cigarettes on encouraging street level pedestrian uses. television to cover more media, including The Matrix also offers points for being newspapers, magazines, radio, and the Inter- bicycle friendly, for traffic calming, for net by 2005, as well as sporting events by greenways and affordable housing, for 2006. Setting boundaries for advertising is a using local contractors and architects, for sensitive topic, given concerns that such para- water and energy efficiency, for incorpo- meters might limit free speech, but these rating a neighbourhood food market and examples demonstrate that countries can other retail stores, for preserving heritage strike a healthy balance between protecting structures, and for re-using existing build- speech and public health.47 ings. There are points for landscaping, Meanwhile, advertising itself is being used streetscaping, for being consistent with as a tool to fight the high number of con- local neighbourhood plans, and for local sumption messages bombarding consumers. participation and support.45 The Canadian group Adbusters sponsors TV Some businesses are also starting to rec- “uncommercials” that encourage viewers to ognize that they can make their own physi- reduce consumption, leave their cars in their cal infrastructure more amenable to the garages, or turn off their televisions. Some well-being of employees. At the new world governments are placing ads or public ser- headquarters in Kansas for Sprint, a telecom- vice announcements on television and other munications firm, cars must park in garages media to encourage more-sustainable con- at the edge of the corporate campus, requir- sumption, as the Thai government has done ing employees to walk some distance into through humorous TV commercials urging work. Buildings feature slow elevators, which consumers to use less energy and water. The

176 State of the World 2004 RETHINKING THE GOOD LIFE

U.N. Environment Programme (UNEP) takes “consume consciously.” The organization a different approach, working with advertis- uses a variety of tools—from the Internet to ers to develop ads that encourage people to pamphlets, comic books, and games—to use sustainable products. (See Box 8–3.) 48 teach the environmental and social conse- Education is also important in reshaping quences of consumption and to tell people culture for a higher quality of life. Australia how to lobby governments to press for and Canada now mandate a media educa- changes in policy that will help promote con- tion curriculum in their schools. These pro- scious consumption.49 grams help make students aware of how the media and advertising shape their values and Getting to the Good Life culture. And students are taught how to dif- ferentiate between reality and marketing Lurking beneath growing dissatisfaction with hyperbole—whether in commercials or the consumer society is a simple question: embedded in programming. Consumption What is an economy for? The traditional education, in particular, may be a necessary responses, including prosperity, jobs, and corrective to advertising’s incessant procla- expanded opportunity, seem logical enough— mations of the desirability of consumption. In until they become dysfunctional, that is. Brazil, the nongovernmental group Instituto When prosperity makes us overweight, over- Akatu has worked with schools, businesses, work leaves us exhausted, and a “you can and Scout troops to educate participants to have it all” mindset leads us to neglect fam-

BOX 8–3. ENCOURAGING ADVERTISERS TO PROMOTE SUSTAINABILITY

Marketing is a powerful tool that is often Sell?” targeted at companies and marketing implicated in stimulating consumption—and, professionals to convince them that “far from therefore, in undermining efforts to build a sus- depressing sales, sustainable principles could tainable world. But the U.N. Environment Pro- be essential to protect both brand health and gramme is trying to turn marketers into allies future profitability.” In partnership with Sustain- by enlisting them to promote sustainability. In Ability and UNEP,the European Association of 1999, a UNEP Forum on Advertising and Com- Communications Agencies prepared a guide for munication was established to raise awareness advertising agencies that describes the growing of “sustainable consumption”—consumption international market for sustainable consump- that improves life quality while minimizing tion.And the World Association of Research social and ecological inequities—and to Professionals has ordered a survey on consu- encourage advertisers and marketers to mer attitudes toward sustainability issues. promote it. Moreover, UNEP is cooperating with Key business associations within the adver- specific industry sectors—notably, the automo- tising and marketing industry have responded tive, tourism, and retail sectors—to help them by developing pro-sustainability publications in develop innovative marketing strategies that cooperation with UNEP and by organizing spe- would further promote sustainable options. cial sessions on sustainable development at —Solange Montillaud-Joyel, their international congresses. For example, the U.N. Environment Programme advertising agency McCann-Erickson published with UNEP a leaflet called “Can Sustainability SOURCE: See endnote 48.

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ily and friends, people start to question more urbs could prevent the daily commute that deeply the direction of their lives as well as the robs many people of astonishing amounts of system that helps steer them in that direction. time: a commute of more than an hour a day, The signals emerging in some industrial coun- the norm for many American suburbanites, tries—and some developing ones as well— means a worker spends the equivalent of six suggest that many of us are looking for more workweeks in transit each year. Society’s focus from life than a bigger house and a new car. on time-saving devices, the use of which has People long for something deeper: happy, only led to more frenzied lives, needs to be dignified, and meaningful lives—in a word, replaced with simpler, time-saving lifestyles.50 well-being. And they expect their economies A well-being society would offer con- to be a tool to this end, not an obstacle to it. sumers a sufficient range of genuine choices rather than a large array of virtually identical Everyone will need to become products. Businesses would be encouraged practiced at wrestling with a key through economic incentives to deliver what consumers really seek—reliable transporta- question: How much is enough? tion, not necessarily a car; or tasty, seasonal local produce rather than fruits and vegeta- Societies with a high quality of life are bles shipped in from another country; or people-centered, with proper attention given strong neighborhood relationships in lieu of to promoting interactions among human a large house with a big yard. Choice would beings. Urban areas designed with attention be redefined to mean options for increasing to pedestrians, to leisure, and to human quality of life rather than selections among expression, for example, would bring people individual products or services. together in constructive and satisfying ways— For individuals, genuine choice would likely for public concerts, festivals, or simply the include the choice not to consume. Everyone informal interactions made possible in out- will need to become practiced at wrestling door markets. Economies would have a local with a key question: How much is enough? character, so that produce, talent, and goods Responses will vary from person to person, but unique to the region would be favored over a guideline worth considering is one from imports from distant shores. By strengthen- the Chinese philosopher Lao Tzu: “To know ing the web of relationships between farmer when you have enough is to be rich.” Con- and city dweller, artisan and client, producer sumers who embrace this ancient wisdom and consumer, local economies have a take a large step toward escaping the tyranny “human-scale” character that far-flung of social comparison and marketing that dri- economies often lack. ves so much of today’s consumption.51 Nurturing relationships requires time and People in a well-being society would also may involve corralling many of the “time develop close relationships with the natural thieves” of modern life, starting with work. environment. They would recognize the trees Experience in several European countries has in their parks and the flowers in their yards as demonstrated that the 40-hour workweek is easily as they identify corporate logos. They clearly not sacrosanct, so that people can arrive would understand the environmental foun- home earlier or have longer weekends to dations of their economic activity: where their spend with their children or friends. And water comes from, where their garbage goes, housing that is not spread out in scattered sub- and whether coal, nuclear, or renewable

178 State of the World 2004 RETHINKING THE GOOD LIFE

energy runs the power plant that generates century consumption-oriented development their electricity. They would likely enjoy devel- choices, however misguided, can be redeemed oping projects at home that help them to now by ensuring that today’s stocks of knowl- live more intimately with nature—a rain- edge and technology are invested in well- catching cistern, for example, or a compost being rather than in continued material bin or vegetable garden. In short, they would accumulation for its own sake. learn to love nature and to become advo- A second advantage is simple but power- cates for it. As the late Harvard biologist ful: for many people, a life of well-being is pre- Stephen Jay Gould once said: “We must ferred to a life of high consumption. Former develop an emotional and spiritual bond with Prime Minister Ruud Lubbers of the Nether- nature, for we will not fight to save what we lands captured this fundamental reality when do not love.”52 he noted that in their effort to build a high Finally, a society focused on well-being quality of life, the Dutch work limited hours: would ensure that everyone in it has access to “We like it that way. Needless to say, there is healthy food, clean water and sanitation, edu- more room for all those important aspects of cation, health care, and physical security. It is our lives that are not part of our jobs, for virtually impossible to imagine a society of which we are not paid, and for which there well-being that does not provide for peo- is never enough time.” The desire for a higher ple’s basic needs. And more than that, it is quality of life may be more imperfectly formed inconceivable that a well-being society would in other industrial societies, but the signals are be satisfied with its own success if others out- there: workers who want free time more than side its borders are suffering on a broad scale. a pay raise, shoppers who choose organic Indeed, those societies that rank highest in the food and other “ethical” products, people Wellbeing Index, especially in northern who seek stronger family relationships. When Europe, also have some of the world’s most the components of a well-being society are generous foreign aid programs.53 made available, the reception is often strik- Making the transition to a society of well- ingly positive.54 being will undoubtedly be a challenge, given By nurturing relationships, facilitating people’s habit of placing consumption at the healthy choices, learning to live in harmony apex of societal values. But any move in this with nature, and tending to the basic needs direction starts out with two strong advan- of all, societies can shift from an emphasis on tages. First, the human family today has a consumption to an emphasis on well-being. base of knowledge, technology, and skills far This could be as great an achievement in the surpassing anything previous generations have twenty-first century as the tremendous known. Ironically, this base is the product of advances in opportunity, convenience, and an economic system oriented toward high comfort were in the twentieth. levels of consumption. But our twentieth-

179

Notes

Preface ing Group, Climate Change and the Financial Services Industry (Nairobi: 2002); Colin Woodard, 1. Gary Cross, An All-Consuming Century: “Popularity Burdens World’s Favorite Coastline,” Why Commercialism Won in Modern America Christian Science Monitor, 10 October 2002; (New York: Columbia University Press, 2000). International Food Policy Research Institute (IFPRI) and International Water Management 2. Matthew Bentley, Sustainable Consumption: Institute, Global Water Outlook to 2025: Averting Ethics, National Indices and International Rela- an Impending Crisis (Washington, DC: IFPRI, tions (PhD dissertation, American Graduate School 2002); “Pelo Menos 300 Mil Crianças Trabal- of International Relations and Diplomacy, Paris, ham em Minas da Colômbia,” Reuters, 31 Octo- 2003). ber 2002.

3. Lebow quote from Vance Packard, The Waste November 2002. Coalition to Stop the Use of Makers (New York: David Mckay, 1960). Child Soldiers, Child Soldiers 1379 Report (Lon- don: November 2002); UNESCO, “UNESCO 4. Fresh water from Igor A. Shiklomanov, Assess- Adds 18 New Sites to World Network of Biosphere ment of Water Resources and Water Availability in Reserves,” press release (Paris: 8 November 2002); the World (St. Petersburg, Russia: State Hydro- “Galicia (Spain) Oil Spill, November 2002,” logical Institute, 1996); Janet L. Sawin, “Fossil Earthnet, 20 November 2002. Fuel Use Up,” in Worldwatch Institue, Vital Signs 2003 (New York: W.W. Norton & Company, December 2002. World Food Programme, 2003), pp. 34–35. “Hunger Crisis Set to Worsen in 2003 Despite Fresh Donations,” press release (Johannesburg: 30 5. Current number and growth calculated from December 2002); Gareth Harding, “EU Bans “Car Sales Booming in China,” All Things Con- Tobacco Ads,” UPI Wire, 2 December 2002; sidered, National Public Radio, 17 September 2003, vehicles from Chang-Ran Kim, “The Future is from “China’s Private Car Ownership Tops 10 Mil- Here—Japan Launches Fuel Cell Cars,” Reuters, lion,” People’s Daily, 14 June 2003, and from Liu 3 December 2002, and from Deena Beasley, Wei, “China’s Demand of Cars to Exceed 4.2 Mil- “Honda, Toyota Deliver Fuel Cell Cars in Cali- lion in 2003,” People’s Daily, 30 July 2003. fornia,” Reuters, 3 December 2002; “Wind Around the World,” Renew On Line, November- 6. Alan Durning, How Much Is Enough? (New December 2002, at www-tec.open.ac.uk/eeru/ York: W.W. Norton & Company, 1992). natta/renewonline/rol40/11.htm, viewed 8 Octo- ber 2003; Human Rights Commission of Pak- State of the World: A Year in Review istan, “461 Honor Killings of Women Reported in Two Provinces,” UN Wire, 12 December 2002; October 2002. U.N. Environment Programme “Warm Arctic Summer Melted Much Ice,” Science (UNEP), Finance Initiative Climate Change Work- News, 21 and 28 December 2002.

181 State of the World 2004 NOTES, A YEAR IN REVIEW

January 2003. Natural Resources Defense Coun- “WHO Framework Convention on Tobacco Con- cil, Rewriting the Rules (New York: 31 December trol,” at www.who.int/features/2003/08/en, 2002); David Karoly and James Risbey, Global viewed 8 October 2003; World Bank, “Multilat- Warming Contributes to Australia’s Worst Drought eral Initiative to Manage South America’s Largest (Sydney: World Wide Fund for Nature Australia, Groundwater Reservoir Launched,” press release 15 January 2003); Clive James, “Global Status of (Montevideo, Uruguay: 23 May 2003). Commercialized Transgenic Crops: 2002,” press release (Manila: International Service for the June 2003. “Water Starts to Fill Three Gorges Acquisition of Agri-biotech Applications, 16 Jan- Dam,” UN Wire, 2 June 2003; UNEP, “New Ini- uary 2003). tiative to Combat Growing Global Menace of Environmental Crime,” press release (Nairobi: 2 February 2003. UNEP, “Power Stations June 2003); Otto Pohl, “World Panel Will Now Threaten People and Wildlife with Mercury Poi- Act to Conserve the Whale Population,” New soning,” press release (Nairobi: 3 February 2003); York Times, 17 June 2003; McDonald’s Corpo- Clean Edge, Inc., Clean Energy Trends 2003 (San ration, “McDonald’s Calls for Phase-Out of Francisco: 20 February 2003); “UNICEF Official Growth Promoting Antibiotics in Meat Supply, Cites ‘Largest Slave Trade in History’,” UN Wire, Establishes Global Policy on Antibiotic Use,” press 20 February 2003; Department of Trade and release (Oak Brook, IL: 19 June 2003); “Defor- Industry, Our Energy Future—Creating a Low estation of Amazon is on the Rise,” UN Wire, 26 Carbon Economy, Energy White Paper (London: June 2003. February 2003); U.N. Population Division, World Population Prospects: The 2002 Revision (New York: July 2003. WHO, “SARS Outbreak Contained February 2003). Worldwide,” press release (Geneva: 5 July 2003); Roger Thurow, “AIDS Fuels Famine in Africa: March 2003. “World Bank Says Companies Paid As Swaziland Farmers Die, Their Land Goes $1 Billion in Extortion Money,” UN Wire, 7 Unplanted,” Wall Street Journal, 9 July 2003; March 2003; Sid Perkins, “Warmer Climates Accel- “Europe Adopts Climate Emissions Trading Law,” erate Life Cycles of Plants, Animals,” Science News, Environmental News Service, 22 July 2003. 8 March 2003; Global Policy Forum, “Iraq Cri- sis,” at www.globalpolicy.org/security/issues/ August 2003. UNEP and World Conservation irqindx.htm, viewed 8 October 2003; United Monitoring Centre (WCMC), “Wild Forests ‘Liv- Nations, Water for People, Water for Life: The ing Museums’ of Virtually Extinct Species,” press United Nations World Water Development Report release (Cambridge: WCMC, 4 August 2003); (Paris: UNESCO Publishing and Berghahn Books, “EU ‘Regrets’ US Action on GM Crops,” BBC 2003). World News, 8 August 2003; Nancy Gibbs, “Lights Out,” Time, 25 August 2003; International Coun- April 2003. J. Travis, “Moving On: Now The cil on Mining and Metals, “Landmark ‘No-go’ Human Genome is Really Done,” Science News, 19 Pledge from Leading Mining Companies,” press April 2003; “Sea Burial for Canada’s Cod Fish- release (London: 20 August 2003); Denis Hémon eries,” Science News, 17 May 2003; World Health and Eric Jougla, “Surmortalité liée à la Canicule Organization (WHO) and UNICEF, Africa d’Août 2003—Rapport d’étape” (Paris: National Malaria Report (Geneva: WHO, April 2003); Institute for Health and Medical Research, 25 Foreign Policy Magazine and Center for Global September 2003). Development, “New Ranking: Netherlands is Most Development-Friendly Nation,” press release September 2003. “Northern Hemisphere Tem- (Washington, DC: 28 April 2003). perature Hits 2,000 Year High,” Environmental News Service, 2 September 2003; UNEP, “World’s May 2003. Ransom Myers and Boris Worm, Protected Areas Top 100,000, Exceed Size of “Rapid Worldwide Depletion of Predatory Fish India and China—UN Report,” press release Communities,” Nature, 15 May 2003; WHO, (Nairobi: 9 September 2003); Patrick Smith, “Poor

182 State of the World 2004 NOTES,A YEAR IN REVIEW AND CHAPTER 1

Nations Keep Heat on Trade,” Christian Science oratory, Transportation Energy Data Book, Edition Monitor, 30 September 2003; World Meteoro- 22 (Oak Ridge, TN: September 2002), p. 7-1; logical Organization, “Antarctic Ozone Hole house size from Joint Center for Housing Stud- Unusually Large,” press release (Geneva: 16 Sep- ies, State of the Nation’s Housing 2003 (Cam- tember 2003); “Chile Indians End Protest Against bridge, MA: Harvard University, 2003), p. 32; Hydro-Power Dam,” Reuters, 19 September 2003. household size from U.S. Department of Agri- culture, Economic Research Service, Race and Chapter 1. Ethnicity in Rural America: Marital Status and The State of Consumption Today Household Structure, at www.ers.usda.gov/Brief ing/RaceAndEthnic/familystructure.htm, updated 1. Wayne W. J. Xing, “Shifting Gears,” The 24 December 2002; obesity industry from Jui China Business Review, November-December Chakravorty, “Catering to Obese Becoming Big 1997. Business,” Reuters, 4 October 2003.

2. “China’s Private Car Ownership Tops 10 7. Private consumption expenditures (in 1995 Million,” People’s Daily, 14 June 2003; 11,000 a dollars) are Worldwatch calculations based on day is a Worldwatch calculation based on the data World Bank, World Development Indicators Data- in Liu Wei, “China’s Demand of Cars to Exceed base, at media.worldbank.org/secure/data/ 4.2 Million in 2003,” People’s Daily, 30 July 2003; qquery.php, viewed 2 June 2003. Box 1–1 from auto sales from “Car Sales Booming in China,” All the following: United Nations, op. cit. note 5, p. Things Considered, National Public Radio, 17 Sep- 1; Americans’ projected meat consumption and all tember 2003; “150mn Chinese Families to Buy population data from United Nations Population Cars in Next 15 Years,” People’s Daily, 12 March Division, online database, at esa.un.org/unpp, 2003; U.S. auto fleet from Ward’s Communica- viewed 20 September 2003, and from U.N. Food tions, Ward’s Motor Vehicle Facts & Figures 2001 and Agriculture Organization (FAO), FAOSTAT (Southfield, MI: 2001), p. 38; attitudes of Chinese Statistical Database, at apps.fao.org, updated 30 from “Car Sales Booming,” op. cit. this note. June 2003; carbon emissions are Worldwatch cal- culations based on data in Molly O. Sheehan, 3. Julie Chao, “Pacific Currents: China Trying “Carbon Emissions and Temperature Climb,” in to Cope With Burgeoning Car Culture,” Seattle Worldwatch Institute, Vital Signs 2003 (New York: Post-Intelligencer, 8 September 2003; foreign W.W. Norton & Company, 2003), pp. 40–41; investments from Clay Chandler, “China Goes household size and energy use from Nico Keilman, Car Crazy: Suburbs, Drive-ins, Car Washes—This “The Threat of Small Households,” Nature, 30 Revolution Has Wheels,” Fortune, 11 August January 2003, p. 489. Table 1–1 contains World- 2003. watch calculations based on population and private consumption expenditures data from World Bank, 4. Matthew Bentley, Sustainable Consumption: op. cit. this note; totals add up to 98 and 99 per- Ethics, National Indices and International Rela- cent because data are unavailable for a few small tions (PhD dissertation, American Graduate School countries. of International Relations and Diplomacy, Paris, 2003). 8. Poverty numbers are World Bank estimates cited on Millennium Development Goals Web 5. Population projection from United Nations, site, at www.developmentgoals.com/Poverty.htm. World Population Prospects, The 2002 Revision (New York: 2003). 9. Table 1–2 from Bentley, op. cit. note 4. Share of global consumer class is a Worldwatch calcula- 6. U.S. Department of Transportation, Bureau tion. of Transportation Statistics, National Household Travel Survey 2001 Highlights Report (Washington, 10. Table 1–3 from Bentley, op. cit. note 4; DC: 2003); SUVs from Oak Ridge National Lab- expenditures in sub-Saharan Africa (in 1995 dol-

183 State of the World 2004 NOTES, CHAPTER 1 lars) from World Bank, op. cit. note 7. households with televisions and number with cable service from International Telecommunication 11. Bentley, op. cit. note 4. Union (ITU), World Telecommunication Devel- opment Report 2002 (Geneva: 2002); average tele- 12. U.N. Environment Programme (UNEP), vision habits from Robert Kubey and Mihaly “UNEP Urges Asia-Pacific Towards a Cleaner, Csikszentmihalyi, “Television Addiction Is No Greener Development Path,” press release Mere Metaphor,” Scientific American, February (Nairobi: 19 May 2003); U.S. auto fleet from 2002, pp. 74–80. Ward’s Communications, op. cit. note 2, p. 38; Matthew Bentley, “Forging New Paths to Sus- 18. Phones from ITU, op. cit. note 17; Internet tainable Development,” UNEP Background Paper, users from idem, “Internet Indicators: Hosts, Users Asia Pacific Expert Meeting on Promoting Sus- and Number of PCs,” at www.itu.int/ITU-D/ tainable Consumption and Production Patterns, ict/statistics/at_glance/Internet02.pdf, viewed 9 Yogyakarta, Indonesia, 21–23 May 2003. October 2003.

13. Daily calories from FAO, op. cit. note 7; 19. Table 1–6 from the following: makeup and number of undernourished from idem, The State perfumes from “Pots of Promise,” The Economist, of Food Insecurity in the World, as cited in United 24 May 2003, pp. 69–71; pet food and ice cream Nations Statistical Division, Millennium Indica- from UNDP, Human Development Report 1998 tors Database, at unstats.un.org/unsd/mi/ (New York: Oxford University Press, 1998), p. 37; mi_series_xrxx.asp?row_id=640, viewed 23 Octo- ocean cruises from Lisa Mastny, “Cruise Industry ber 2003; Table 1–4 from World Bank, World Buoyant,” in Worldwatch Institute, Vital Signs Development Indicators 2000 (Washington, DC: 2002 (New York: W.W. Norton & Company, 2000), pp. 222–24. 2002), p. 122; additional annual investments needed from Michael Renner, “Military Expen- 14. Calories from animal products from FAO, op. ditures on the Rise,” in Worldwatch Institute, op. cit. note 7; meat consumption from Danielle cit. note 7, p. 119, except for immunizing estimate Nierenberg, “Meat Production and Consump- from Erik Assadourian, “Consumption Patterns tion Grow,” in Worldwatch Institute, op. cit. note Contribute to Mortality,” in Worldwatch Insti- 7, p. 30; fast food in India from Saritha Rai, “Taste tute, op. cit. note 7, p. 108. of India in U.S. Wrappers,” New York Times, 29 April 2003, and from Seth Mydans, “Clustering in 20. Materials increases from Gary Gardner and Cities, Asians Are Becoming Obese,” New York Payal Sampat, Mind Over Matter: Recasting the Times, 13 March 2003; undernourished in India Role of Materials in Our Lives, Worldwatch Paper from U.N. Development Programme (UNDP), 144 (Washington DC: Worldwatch Institute, Human Development Report 2003 (New York: December 1998), p. 16; metals intensity from Oxford University Press, 2003), p. 199. Payal Sampat, “Metals Production Climbs,” in Worldwatch Institute, op. cit. note 19, pp. 66–67. 15. Data on clean water and sanitation from UNICEF, The State of the World’s Children 2003 21. Fossil fuel use from Janet L. Sawin, “Fossil (New York: 2003), p. 95; definitions of “safe Fuel Use Up,” in Worldwatch Institute, op. cit. drinking water” and “adequate sanitation” from note 7, pp. 34–35; metals from Payal Sampat, UNDP, op. cit. note 14, pp. 357–58. “Scrapping Mining Dependence,” in Worldwatch Institute, State of the World 2003 (New York: W.W. 16. Janet Abramovitz and Ashley Matoon, Paper Norton & Company, 2003), p. 113. Cuts: Recovering the Paper Landscape, Worldwatch Paper 149 (Washington, DC: Worldwatch Insti- 22. Abramovitz and Mattoon, op. cit. note 16, tute, December 1999), pp. 6, 11–12. p. 20.

17. Table 1–5 from World Bank, op. cit. note 7; 23. Sampat, op. cit. note 21, p. 114; Organisa-

184 State of the World 2004 NOTES, CHAPTER 1 tion for Economic Co-operation and Develop- 30. International Labour Organization, Com- ment (OECD), OECD Environmental Data Com- mittee on Employment and Social Policy, Employ- pendium 2002 (Paris: 2003), p. 14. ment and Social Policy in Respect of Export Processing Zones (Geneva: November 2002); Jim 24. Data and FAO projections from Abramovitz Lobe, “Unions Assail WTO for Ignoring Worker and Mattoon, op. cit. note 16, pp. 20–21, 40, 52. Rights,” OneWorld US, 8 September 2003; Inter- national Confederation of Free Trade Unions, 25. Peter Lunt, “Psychological Approaches to Export Processing Zones—Symbols of Exploitation Consumption: Varieties of Research—Past, Present and a Development Dead-End (Brussels: Septem- and Future,” in Daniel Miller, ed., Acknowledging ber 2003). Consumption (London: Routledge, 1995), pp. 238–63. 31. Ransom A. Myers and Boris Worm, “Rapid Worldwide Depletion of Predatory Fish Commu- 26. Ibid.; John A. Bargh, “Losing Consciousness: nities,” Nature, 15 May 2003, pp. 280–83; min- Automatic Influences on Consumer Judgment, ing from Craig B. Andrews, Mineral Sector Behavior, and Motivation,” Journal of Consumer Technologies: Policy Implications for Developing Research, September 2002, pp. 280–85. Countries, Industry and Energy Division Note No. 19 (Washington, DC: World Bank, 1992), and 27. Tim Jackson and Nic Marks, “Consump- from Craig Andrews, discussion with Claudia tion, Sustainable Welfare and Human Needs,” Meulenberg, Worldwatch Institute, 22 September Ecological Economics, vol. 28, no. 3 (1999), pp. 2003; Dogwood Alliance, “Paper and Chipboard 421–42. Production,” at www.dogwoodalliance.org/ chipmill.asp#chipboard, viewed 22 October 2003. 28. J. R. McNeill, Something New Under the Sun: An Environmental History of the 20th Century 32. Oil prices from Organization of the Petro- World (New York: W.W. Norton & Company, leum Exporting Countries, OPEC Annual Statis- 2001), p. 315; Toyota plant from Thomas L. tics Bulletin 2001 (Vienna: 2001), p. 119; air Friedman, The Lexus and the Olive Tree (New freight rates from David Hummels, “Have Inter- York: Farrar, Strauss, Giroux, 1999), p. 26; semi- national Transportation Costs Declined?” draft conductor costs from “Cost per Megabit Trends,” (Chicago: University of Chicago, November IC Knowledge Web site, at www.icknowledge 1999), pp. 4–5; division of labor from Nathan .com/economics/productcosts2.html, viewed 2 Rosenberg, “Technology,” in Glenn Porter, ed., September 2003. Encyclopedia of American Economic History, vol. 1 (New York: Charles Scribner’s Sons, 1980), pp. 29. Australians from “Freer Trade Cuts the Cost 294–308. of Living,” at WTO website at www.wto.org/ english/thewto_e/whatis_e/10ben_e/10b04_e 33. ITU, Telecommunications Indicators in the .htm, viewed 17 October 2003; “Kingdom of World, 2000, at www.rtnda.org/resources/wired Bahrain Joins WTO’s Information Technology web/text.html; Moore’s Law from Webopedia, at Agreement,” 18 July 2003, at www.wto.org/ www.webopedia.com/TERM/M/Moores_Law english/news_e/news03_e/news_bahrain_ita_18 .html, viewed 9 October 2003. jul03_e.htm, viewed 17 October 2003; cost reduc- tions from Telecommunications Industry Associ- 34. Semiconductor costs from Joseph I. Lieber- ation, “Information Technology Agreement man, White Paper: National Security Aspects of Promises to Eliminate Tariffs on Most IT Products the Global Migration of the U.S. Semiconductor by the Year 2000,” PulseOnline Newsletter Archive, Industry (Washington, DC: Office of Senator October 1997, at www.tiaonline.org/media/ Lieberman, June 2003); fixed costs from Rosen- pulse/1997/pulse1097-3.cfm, viewed 17 October berg, op. cit. note 32. 2003. 35. Global, U.S., and Chinese advertising spend-

185 State of the World 2004 NOTES, CHAPTER 1 ing from Bob Coen, Universal McCann’s Insider’s New Export—Credit Cards—Could Bring Down Report on Advertising Expenditures, June 2003, at the World Economy,” Washington Monthly, May www.mccann.com/insight/bobcoen.html, viewed 2003, pp. 28–29. 9 October 2003; Figure 1–1 from ibid. and from Bob Coen, Estimated World Advertising Expen- 39. Economic subsidies from OECD, Towards ditures, at www.mccann.com/insight/bobcoen Sustainable Consumption: An Economic Conceptual .html, viewed 9 October 2003; newspapers and Framework (Paris: Environment Directorate, June mail from John de Graff, David Wann, and 2002), p. 41; suburban home subsidies from Thomas Naylor, Affluenza: The All-Consuming Cohen, op. cit. note 37; Scott Bernstein, Center Epidemic (San Francisco, CA: Berrett-Koehler for Neighborhood Technology, Chicago, discus- Publishers, Inc., 2001), p. 149; “Television Clut- sion with Gary Gardner, 20 August 1998. ter in Prime Time and Early Morning Reach All Time Highs,” press release (New York: American 40. Paul Hawken, Amory Lovins, and L. Hunter Association of Advertising Agencies and Associa- Lovins, Natural Capitalism: Creating the Next tion of National Advertisers, Inc., 12 April 1999). Industrial Revolution (Boston: Little, Brown, and Company, 1999), pp. 57–60. 36. Teen smoking from Madeline A. Dalton et al., “Effect of Viewing Smoking in Movies on 41. Sampat, op. cit. note 21, p. 117. Adolescent Smoking Initiation: A Cohort Study,” The Lancet, 10 June 2003, pp. 281–85; ban and 42. OECD, OECD Environmental Data 2002 increase from Stanton A. Glantz, “Smoking in (Paris: 2002), p. 11; “Norway—Household Waste Movies: A Major Problem and a Real Solution,” Increases More Than Ever,” Warmer Bulletin, 28 The Lancet, 10 June 2003, p. 258; 85 percent June 2003. and revenue from foreign sales from James D. Sargeant et al., “Brand Appearances in Contem- 43. Andrew Balmford et al., “Economic Rea- porary Cinema Films and Contribution to Global sons for Conserving Wild Nature,” Science, 9 Marketing of Cigarettes,” The Lancet, 6 January August 2002; Living Planet Index from WWF 2001, pp. 29–32; three times more prevalent from International, UNEP, and Redefining Progress, A. R. Hazan, H. L. Lipton, and S. A. Glantz, Living Planet Report 2002, at www.panda.org/ “Popular Films Do Not Reflect Current Tobacco news_facts/publications/general/livingplanet/ind Use,” American Journal of Public Health, vol. 84, ex.cfm, p. 21. Table 1–7 from various editions of no. 6 (1994), pp. 998–1000; World Health Orga- Worldwatch Institute’s Vital Signs as follows: fos- nization (WHO), ‘Bollywood’: Victim or Ally? A sil fuel use, carbon emissions, and sea level rise from WHO Study on the Portrayal of Tobacco in Indian Vital Signs 2003; forests, wood use, cropland, Cinema (Geneva: February 2003). rangelands, food production, and water deficit from Vital Signs 2002; wetlands from Vital Signs 37. Consumer credit growth from Lizabeth 2001; groundwater from Vital Signs 2000; in addi- Cohen, A Consumer’s Republic: The Politics of tion, large predator fish depletion from Myers and Mass Consumption in Postwar America (New York: Worm, op. cit. note 31. Figure 1–2 from WWF Alfred A. Knopf, 2003), pp. 123–24; 61 percent International, UNEP, and Redefining Progress, op. from Robert D. Manning, “Perpetual Debt, Preda- cit. this note, and from Angus Maddison, The tory Plastic: From the Company Store to the World Economy: A Millennial Perspective (Paris: World of Late Fees and Overlimit Penalties,” OECD, 2001), pp. 272–321, with updates from Southern Exposure, summer 2003, p. 51; per capita International Monetary Fund, World Economic income from World Bank, World Development Outlook Database (Washington, DC: December Indicators 2003 (Washington, DC: 2003), pp. 2002). 14–16. 44. WWF International, UNEP, and Redefining 38. Credit growth and quote from Joshua Progress, op. cit. note 43; Mathis Wackernagel et Kurlantzick, “Charging Ahead: America’s Biggest al., “Tracking the Ecological Overshoot of the

186 State of the World 2004 NOTES, CHAPTER 1 AND PLASTIC BAGS

Human Economy,” Proceedings of the National tics and Polymers, Chemical Market Associates Academy of Sciences, 9 July 2002, p. 9268. International, discussion with author, 2 Septem- ber 2003; National Economic Development and 45. Deaths from Majid Ezzati and Alan D. Labour Council (Nedlac), Socio-Economic Impact Lopez, “Estimates of Global Mortality Attribut- of the Proposed Plastic Bag Regulations, FRIDGE able to Smoking in 2000,” The Lancet, 13 Sep- Study No. 29 (Cape Town, South Africa: October tember 2003, pp. 847–52; $150 billion from 2001). “Annual Smoking-Attributable Mortality, Years of Potential Life Lost, and Economic Costs— 3. Total production, 80 percent of use in North United States, 1995–1999,” Morbidity and Mor- America and Western Europe, and one quarter tality Weekly Report, 12 April 2002, p. 303; from Asia estimates from Rappaport, op. cit. note revenue from Judith Mackay and Michael Eriksen, 2; 100 billion from L. J. Williamson, “It’s Not My The Tobacco Atlas (Geneva: WHO, 2002), p. 50; Bag, Baby!” OnEarth, summer 2003, and from overweight and obesity from WHO and FAO, Chaz Miller, “Plastic Film,” Waste Age, Novem- Joint WHO/FAO Expert Consultation on Diet, ber 2002. Nutrition and the Prevention of Chronic Diseases (Geneva: 2002); National Center for Health Sta- 4. Franklin Associates Inc., Resource and Envi- tistics, Health, United States, 2003 (Hyattsville, ronmental Profile Analysis of Polyethylene and MD: 2003); U.S. Department of Health and Unbleached Paper Grocery Sacks (Prairie Village, Human Services, The Surgeon General’s Call to KS: 1990); Nedlac, op. cit. note 2; Fehily Timo- Action to Prevent and Decrease Overweight and ney & Company, “Consultancy Study on Plastic Obesity, 2001 (Washington, DC: 2001). Bags,” at www.fehilytimoney.com.

46. The Fordham Institute for Innovation in 5. Jeremia Njeru, “Managing the Problem of Social Policy, The Social Report 2003 (New York: Plastic Bag Waste in Nairobi, Kenya: Demand- 2003); UNDP, op. cit. note 14, pp. 248–49. side and Supply-side Considerations,” presentation at Association of American Geographers, 99th 47. OECD, The Well Being of Nations: The Role Annual Meeting, New Orleans, 5–8 March 2003; of Human and Social Capital (Paris: 2001), pp. Beijing from Xu Zhengfeng, “Putting an End to 99–103. a Plastic Plague,” Inter Press Service, 17 August 1999; “national flag” from Shawn Pogatchnik, 48. Robert Putnam, Bowling Alone: The Collapse “Ireland, Pioneer of the Plastic-bag Tax, Plans and Revival of American Community (New York: Fees on Three Other Litter Sources,” Associated Simon & Schuster, 2000), pp. 189–246. Press, 16 July 2003; “national flower” from “South Africa Bans Plastic Bags,” BBC News, 9 May 2003. 49. Michael Bond, “The Pursuit of Happiness,” New Scientist, 4 October 2003, pp. 40–47. 6. Biodegradable Products Institute, at www.bpiworld.org; Steve Mojo, Executive Direc- 50. Anders Hayden, “Europe’s Work-Time Alter- tor, Biodegradable Products Institute, discussion natives,” in John de Graaf, ed., Take Back Your with author, 15 September 2003. Time (San Francisco: Berrett Koehler, 2003), p. 204. 7. Ladakh from Tsewang Rigzin, “Leh’s Suc- cessful Plastic Ban,” Ladags Melong, 17 June 2002; Plastic Bags Moazzem Hossain, “Bangladesh Bans Polythene,” BBC News, 1 January 2002. 1. Film and Bag Federation, “Great Moments in Plastic Bag History,” at www.plasticbag.com/ 8. South Africa from Toby Reynolds, “South environmental/history.html. Africa Moves to Curb Flimsy Plastic Bag Scourge,” Reuters, 1 October 2002; Ireland from Sean Fed- 2. Howard Rappaport, Director of Global Plas- erico-O’Murchu, “Irish Take Lead with Plastic

187 State of the World 2004 NOTES, PLASTIC BAGS AND CHAPTER 2

Bag Levy,” MSNBC, 4 August 2003; other ington, DC: Island Press, 2003), p. 133; Amory national policies from Pogatchnik, op. cit. note 5, B. Lovins, “U.S. Energy Security Facts (For a and from John Roach, “Are Plastic Grocery Bags Typical Year, 2000),” fact sheet (Snowmass, CO: Sacking the Environment?” National Geographic, Rocky Mountain Institute (RMI), 18 April 2003). 2 September 2003. 6. U.S. losses for 2000 from DOE, EIA, “Pro- 9. James Watts, manager, Weaver Street Market, duction and End-Use Data,” in Annual Energy discussion with author, 8 September 2003. Review 1999 (Washington, DC: 2000) (note that DOE acknowledges using generous efficiency Chapter 2. assumptions); Amory Lovins, “Twenty Hydro- Making Better Energy Choices gen Myths,” fact sheet (Snowmass, CO: RMI, 2003), p. 11. 1. “Mountaintop Mining,” Morning Edition, National Public Radio, 25 June 2003; Environ- 7. Eastern Europe, former Soviet states, indus- mental Media Services, “Mountaintop Removal trial countries, and share of oil use from BP, op. Strip Mining,” 7 May 2002, in Mining the Moun- cit. note 3; U.S. increase from DOE, EIA, Annual tains Series, The Charleston Gazette Online, at Energy Review 2001 (Washington, DC: 2002), www.wvgazette.com/static/series/mining; Penny with updates from International Petroleum Loeb, “The Coalfield Communities of Southern Monthly, July 2002; U.S. share of reserves from West Virginia: Mining’s Impact on Communi- Stacy C. Davis and Susan W. Diegel, Transporta- ties,” March 2003, at www.wvcoalfield.com. tion Energy Data Book: Edition 22 (Oak Ridge, TN: Oak Ridge National Laboratory, September 2002), 2.Efficiency of coal plants from U.S. Depart- pp. 1–6. ment of Energy (DOE), Office of Fossil Energy, “DOE Launches Project to Improve Materials for 8. Energy use ratio and lack of access from Supercritical Coal Plants,” press release (Pitts- United Nations, WEHAB Working Group, A burgh, PA: 16 October 2001). Framework for Action on Energy, prepared for the World Summit on Sustainable Development (New 3. Oil use calculated by Worldwatch with data York: 2002), p. 7; 2.5 billion from “Facts About from BP, Statistical Review of World Energy 2003 Energy,” Johannesburg Summit, 26 August–4 (London: June 2003), p. 38. September 2002; average American calculated by Worldwatch using energy data from BP, op. cit. 4. Increases 1850–1970 from John Holdren, note 3, and from International Energy Agency “The Transition to Costlier Energy,” in Lee Schip- (IEA), “Renewables in Global Energy Supply,” fact per et al., Energy Efficiency and Human Activity: sheet (Paris: November 2002). Energy data include Past Trends, Future Prospects (Cambridge, U.K.: traditional biomass use. Table 2–1 from the fol- Cambridge University Press, 1992), p. 7; popu- lowing: total energy (excluding noncommercial lation from Molly O. Sheehan, “Population biomass) and electricity are 2000 data, and carbon

Growth Slows,” in Worldwatch Institute, Vital dioxide (CO2) emissions are 1999 data, from Signs 2003 (New York: W.W. Norton & Com- World Bank, World Development Indicators 2003 pany), p. 67; increase in fossil fuels by 2002 cal- (Washington, DC: 2003), pp. 144–46, 148–50, culated by Worldwatch with data from Janet L. 294–96; oil data are for 2002 from BP, op. cit. note Sawin, “Fossil Fuel Use Up,” in ibid, p. 35, and 3, and from www.nationmaster.com, except for from BP, op. cit. note 3, p. 38; 28 percent from Ethiopia, which was calculated by Worldwatch DOE, Energy Information Administration (EIA), with 2001 estimated data from the U.S. Central Energy in Africa (Washington, DC: Office and Intelligence Agency, The World Factbook: Ethiopia Energy Markets and End Use, 1999), p. 8. (Washington, DC: 2003).

5. Energy savings from Howard Geller, Energy 9. Petroleum use quadrupling from BP, op. cit. Revolution: Policies for a Sustainable Future (Wash- note 3; growth in Indian consumer class from

188 State of the World 2004 NOTES, CHAPTER 2

National Council of Applied Economic Research 2003), Table 1.2; “Analysts Claim Early Peak in (NCAER), cited in Sunil Jain and Nandini Lak- World Oil Demand,” Oil & Gas Journal Online, shman, “The Return of the Consumer,” rediff.com 12 August 2002. (India), 7 June 2003; homeless families from Office of the Registrar General, India, “Tables on 12. Transportation share from IEA, World Energy Houses, Household Amenities and Assets: India,” Outlook 2000 (Paris: OECD, 2000), p. 25; share Census of India 2001, April 2003, and from idem, of oil use from European Union (EU), “The EU “India at a Glance: Number of Households and and the World Summit on Sustainable Develop- Household Types,” Census of India 1991. ment: Partnerships for Sustainable Energy,” Euro- pean Union Online, at europa.eu.int/comm/ 10. Consumption and rising incomes from Manoj environment/wssd/energy_en.html; U.S. share Kumar, “Tryst with Developing World Consumers: of world transport energy from U.N. Environ- A Case Study of India,” The ICFAI Journal of ment Programme (UNEP), North America’s Envi- Marketing Management, November 2002; oil use ronment: Thirty-Year State of the Environment rankings from DOE, EIA statistics, at www.nation and Policy Retrospective (Washington, DC: 2002), master.com. Box 2–1 from the following: DOE, p. xv; rapid increase from Intergovernmental Panel EIA, World Primary Energy Consumption, on Climate Change (IPCC), Climate Change 1992–2001 (Washington, DC: 2003); IEA, World 2001: Mitigation (Cambridge, U.K.: Cambridge Energy Outlook 2002 (Paris: Organisation for Eco- University Press, 2001), p. 368. nomic Co-operation and Development (OECD), 2002), p. 27; DOE, EIA, China Country Brief 13. Shift to more-intensive modes from EU, (Washington, DC: 2003); Lester R. Brown, Plan “Transport Overview—Market Overview and B (New York: W.W. Norton & Company, 2003), Trends: Past and Current Trends,” ATLAS p. 11; NCAER, op. cit. note 9; Sylvester Research Project, European Commission Online, at Ltd., World Wave, cited in Kumar, op. cit. this note; europa.eu.int/comm/energy_transport/atlas/ Neha Kaushik, “Durables Ownership Set to httmlu/, viewed 16 May 2003, and from Molly Rise–NCAER Says Mid-Income Households Will O’Meara Sheehan, “Making Better Transportation Grow Rapidly,” The Hindu Business Line, 27 Feb- Choices,” in Worldwatch Institute, State of the ruary 2003; Lee Schipper, “Energy and Life: Indi- World 2001 (New York: W.W. Norton & Com- cators of the Link Between Energy, the Economy, pany, 2001), p. 107; passengers from ibid., p. and Lifestyles,” p. 6, e-mail to author, 5 August 106; freight and air travel from Jean-Paul 2003; Oleg Dzioubinski and Ralph Chipman, Rodrigue, “Transportation and Energy,” Hofstra Trends in Consumption and Production: House- University, at people.hofstra.edu/geotrans/eng/ hold Energy Consumption, Department of Eco- ch8en/conc8en/ch8c2en.html, viewed 9 May nomic & Social Affairs Discussion Paper No. 6 2003; trucks from Joseph Romm with Arthur (New York: United Nations, 1999), pp. 9–10; Rosenfeld and Susan Herrmann, The Internet growth in car sales in 2002 from “Car Sales Boom- Economy and Global Warming (Washington, DC: ing in China,” All Things Considered, National Center for Energy and Climate Solutions, 1999), Public Radio, 17 September 2003; 2000–05 Chapter V, p. 9. growth in fleet calculated with data from ibid., from “China’s Private Car Ownership Tops 10 14. Lee Schipper, Indicators of Energy Use and Million,” People’s Daily, 14 June 2003, and from Efficiency: Understanding the Link Between Energy Liu Wei, “China’s Demand of Cars to Exceed 4.2 and Human Activity (Paris: OECD/IEA, 1997), Million in 2003,” People’s Daily, 30 July 2003. p. 18; passenger vehicle statistics from Michael Renner, “Vehicle Production Inches Up,” in 11. China calculated with world oil production Worldwatch Institute, op. cit. note 4, p. 56; annual and population data from DOE, EIA, Interna- additions from Lester Brown, “Paving the Planet: tional Energy Outlook 2003 (Washington, DC: Cars and Crops Competing for Land,” Alert 12 2003), Tables D2 and A15, and from idem, Inter- (Washington, DC: Earth Policy Institute, Febru- national Energy Annual 2001 (Washington, DC: ary 2001).

189 State of the World 2004 NOTES, CHAPTER 2

15. U.S. share of cars and warming contribu- pany, “Model ‘T’ Facts,” press release (Dearborn, tion from Renner, op. cit. note 14; share of oil use MI: 22 May 2003); half of U.S. sales from Hell- from Karl H. Hellman and Robert M. Heavenrich, man and Heavenrich, op. cit. note 15, p. 3; trends Light-Duty Automotive Technology and Fuel Econ- elsewhere from EU, op. cit. note 13, from Ander- omy Trends: 1975 Through 2003 (Washington, DC: son, op. cit. note 15, and from Neha Kaushik, U.S. Environmental Protection Agency (EPA), “More Car Per Car Maker,” The Hindu Business April 2003), Executive Summary, p. 1; distance Line, 10 April 2003; David Healy, “The Number traveled from Dean Anderson, Progress Towards of Motor Vehicles in Use Worldwide Will Grow Energy Sustainability in OECD Countries, Rio+5 from 625 Million Today to 1 Billion,” Purchasing Report (Paris: Helio International, 1997); Amer- Magazine Online, 15 January 1998. icans opting to drive from Schipper, op. cit. note 14, p. 103; quote from Alan Pisarski, cited in Lisa 18. U.K. data from Anderson, op. cit. note 15; Rein and Robin Shulman, “The Rise of the Multi- EU, “Performance by Mode of Transport, EU15: Car Family,” Washington Post, 19 July 2003; 1970–2000,” ATLAS Project, EU Energy and licenses from Jane Holtz Kay, Asphalt Nation Transport in Figures, European Commission Online, (New York: Crown Publishers, 1997), p. 271; at europa.eu.int/comm/energy_transport/atlas/ cars per household from Patricia S. Hu and Jen- httmlu/; U.S. calculated with data from Davis nifer R. Young, Summary of Travel Trends: 1995 and Diegel, op. cit. note 7, p. 11-8. Nationwide Personal Transportation Survey (Wash- ington, DC: U.S. Department of Transportation, 19. Deaths from Sheehan, op. cit. note 13, p. Federal Highway Administration, 1999), pp. 9, 28. 110, and from “Study: Greenhouse Gas Cuts Could Aid Health,” USA Today, 22 July 2002; 16. Comparisons to U.S. ownership from Ren- external costs of road transport from Sheehan, ner, op. cit. note 14; causes from EU, op. cit. “Sprawling Cities Have Global Effects,” in Vital note 13; Japan from Anderson, op. cit. note 15; Signs 2002 (New York: W.W. Norton & Com- Poland from Environment Policy Committee pany, 2002), pp. 152–53; and social inequities (EPC), Working Party on National Environmen- and one third of U.S. population from Kay, op. cit. tal Policy, Sustainable Consumption: Sector Case note 15, p. 33. Study Series—Household Food Consumption: Trends, Environmental Impacts and Policy Responses (Paris: 20. United States led in public transit from Trans- OECD, December 2001), p. 6; Asia and Pacific portation Research Board (TRB), National (includes two- and three-wheeled two-stroke vehi- Research Council, Making Transit Work: Insight cles) from “Making Polluters Pay,” ADB Review, from Western Europe, Canada, and the United May-June 2002. Table 2–2 from the following: States, Special Report 257 (Washington, DC: 1950–90 from American Automobile Manufac- National Academy Press, 2001), p. 2; rail from Kay, turers Association, cited in Lynn Price et al., “Sec- op. cit. note 15, pp. 166, 192; postwar trends toral Trends and Driving Forces of Global Energy from ibid., pp. 224–33, and from TRB, op. cit. this Use and Greenhouse Gas Emissions,” in Mitiga- note, p. 4; commuter subsidies from Matthew tion and Adaptation Strategies for Global Change, Daly, “Congressman Considers Tax Breaks for vol. 3, no. 2/4 (1998), pp. 263–319; 1999 from Cyclists,” Anchorage Daily News, 22 March 2003; Ward’s Communications, Ward’s Motor Vehicle drop in U.S. ridership from Sheehan, op. cit. note Facts & Figures 2001 (Southfield, MI: 2001), pp. 13, p. 117; Michael Powell, “Licensed to Drive? 50–53. Fuhgeddaboutit! Most New Yorkers Do Without Wheels,” Washington Post, 19 August 2003; Den- 17. U.S. trends from Hellman and Heavenrich, ver from Surface Transportation Policy Project, op. cit. note 15, p. 1, and from Danny Hakim, “Transit Grows Faster than Driving for Fifth Year “Fuel Economy Hits 22-Year Low,” New York in a Row,” press release (Washington, DC: 17 Times, 3 May 2003; Model T from “Sierra Club April 2002). Challenges Ford’s Fuel Economy at 100,” Reuters, 5 June 2003; top speed from Ford Motor Com- 21. Traffic policies and user fees from TRB, op.

190 State of the World 2004 NOTES, CHAPTER 2 cit. note 20; postwar trends from “Reducing the 24. Rosa Moreno, Greenpeace Chile, discussion City’s Footprint,” in UN HABITAT, The State of with author, 27 June 2003. the World Cities Report 2001 (Nairobi: 2001), and from Kay, op. cit. note 15, pp. 233, 318–19; 25. “Bogota Car Free Day Creates New Model Tokyo from UN HABITAT, op. cit. this note; for Organising Transportation in World Cities,” at Japanese from Lee Schipper, Scott Murtishaw, www.challenge.stockholm.se/feature_right.asp?Id and Fridtjof Unander, “International Compar- Nr=5; Tooker Gomberg, “How Bogotá Beat isons of Sectoral Carbon Dioxide Emissions Using Cars,” Greenspriation!Articles (undated); Bogotá a Cross-Country Decomposition Technique,” today from “Car Free City,” Habitat Newsletter, Energy Journal , vol. 22, no. 2 (2001), pp. 35–75; June 2001; other cities from UN HABITAT, U.S. and West European share from TRB, op. Cities in a Globalizing World: Global Report on cit. note 20, p. 1; Canada share and fuel use ratio Human Settlements 2001 (Sterling, VA: Earthscan from Robert J. Shapiro, Kevin A. Hassett, and Publications, 2001), p. 142. Frank S. Arnold, The Benefits of Public Trans- portation: Conserving Energy and Preserving the 26. London drivers’ speed and other cities from Air We Breathe, at www.publictransporta Transport for London (TFL), at www.tfl.gov.uk/ tion.org/pdf/preserving_air.pdf. tfl/cc_intro.shtml; 25 percent from TFL Press Centre, press releases (London: 17 February 2003 22. Most rapid growth from IEA, Energy Effi- through 1 April 2003), and from TFL, Central ciency Initiative Volume I (Paris: OECD, 1998), London Congestion Charging Scheme: Three Months p. 17, and from EU, “Transport Overview—Over- On (London: Congestion Charging Division, June all Market Drivers,” ATLAS Project, European 2003). Commission Online, at europa.eu.int/comm/ energy_transport/atlas/htmlu/tomarpast.html, 27. “ACCESS—EUROCITIES for a New viewed 16 May 2003; tax credits from Lee Dou- Mobility Culture: Introduction,” at www.access- glas, “Oregon Moves to Claw Back Bush’s Big EUROCITIES.org; “Zermatt—General Infor- SUV Tax Break,” Reuters, 27 June 2003 (techni- mation: Zermatt—The Village without Cars,” cally, this is a subsidy for agriculture that contains Tourism Office of Zermatt, at www.zermatt.ch/ a loophole for SUVs). e/in_general; Freiberg and choosing car-free from Sam Tracy and Mark Peterson, “How & Why To 23. Today’s engine efficiency from National Be Auto-Free,” The Twin Cities Green Guide, at Clean Bus Project, “Fact Sheet on Clean Buses: www.thegreenguide.org; German communi- Protecting Public Health, the Environment and ties from “Bremen: A Car Free City,” at Providing Greater Energy Security,” distributed at www.epe.be/workbooks/tcui/example7.html. Environmental and Energy Study Institute brief- ing, Washington, DC, 13 May 2003, p. 5; Danny 28. IPCC, op. cit. note 12, p. 91; fastest growth Hakim, “Hybrid Cars Are Catching On,” New in homes from United States Energy Association, York Times, 28 January 2003; U.S. sales from USEA Climate Change Mitigation Option Hand- “Toyota, Nissan Join Hands for Hybrid Cars,” book, Version 1.0 (Washington, DC: June 1999), IndiaCar.net, 3 September 2002. Box 2—2 from Chapter 7. the following: near-term fuel economy potential from Chris Baltimore, “US Must Cut Auto Green- 29. Consumption from IEA, Cool Appliances: house Gases-Research Group,” Reuters, 2 June Policy Strategies for Energy Efficient Homes (Paris: 2003; triple fuel economy from Robert U. Ayres, OECD, April 2003), p. 11; different shares from “The Energy We Overlook,” World Watch, Dzioubinski and Chipman, op. cit. note 10, pp. November/December 2001, p. 35; efficiency 1–3, 5, 9–10. increasing consumption from EU, op. cit. note 22, and from Horace Herring, “Does Energy Effi- 30. One fourth from “Housing,” in UN HABI- ciency Save Energy? The Debate and Its Conse- TAT, op. cit. note 21; U.S. housing growth and quences,” Applied Energy, July 1999, pp. 209–26. size according to National Association of Home

191 State of the World 2004 NOTES, CHAPTER 2

Builders, cited in Elizabeth Chang, “And How Do sumer Acceptance, Environmental and Econom- We Heat those Starter Castles?” Washington Post, ical Analysis,” IZT-Discussion Paper No. 44 16 February 2003; European house size from (Berlin: Innovation Center for Telecommunication ENERDATA/Odyssee, cited in European Envi- Technology, 2000); Dawn Anfuso, “Readers Pre- ronment Agency, “Indicator Fact Sheet Signals fer Paper to Online,” iMediaConnection.com, 25 2001—Chapter Households” (Copenhagen: April 2002; E. Heiskanen et al, Dematerialization: 2001); Japan Information Network, “Social Envi- The Potential of ICT and Services (Helsinki: Finnish ronment: Housing,” at www.jinjapan.org/ Ministry of the Environment, 2001); D. Taka- today/society; Japan Lumber Journal, cited in hashi, “Power Integrations’ Chip Cuts Appliance U.S. Department of Agriculture, Foreign Agri- Power Waste,” Dow Jones Newswires, 25 Septem- cultural Service, Forest Products Trade Policy High- ber 1998; DOE, Office of Energy Efficiency and lights—June 2000 (Washington, DC: 2000); Renewable Energy, Technology Snapshots Featuring Africans based on an average floor space of 8 the Toyota Prius (Washington, DC: 2001); Patrick square meters per person in cities, found in “Hous- Mazza, The Smart Energy Network: Electricity’s ing,” op. cit. this note. Third Great Revolution (Olympia, WA: Climate Solutions, 2003). 31. Increased energy due to shrinking house- holds from Schipper, op. cit. note 10, p. 11. 33. Projections and standby share from IEA, op. cit. note 29, p. 12; additional capacity calculated 32. IEA, “IEA Study Shows How to Save Energy by Worldwatch assuming 75 percent capacity fac- and Reduce Harmful Emissions by Using More tor, 7 percent transmission and distribution losses, Efficient Domestic Appliances,” press release (Paris: using 2020 electricity demand (final end-use) pro- 16 April 2003); saturation from World Energy jections for OECD from IEA, op. cit. note 10, p. Council (WEC), “Labeling and Efficiency Stan- 414, and assuming that one ton of oil equivalent dards,” in Energy Efficiency Policies and Indicators equals approximately 12 megawatt-hours of elec-

(London: 2001); refrigerator size from idem, tricity as noted in BP, op. cit. note 3; CO2 emis- “Annex 1—Case Studies on Energy Efficiency sions calculated by Worldwatch with data from Policy Measures: United States of America,” in IEA, op. cit. note 10, p. 417. ibid.; cooling systems from DOE, EIA, “Changes in Energy Usage in Residential Housing Units,” 34. Developing-country building needs from in The 1997 Residential Energy Consumption Sur- Dzioubinski and Chipman, op. cit. note 10, pp. 5, vey—Two Decades (Washington, DC: 1997). Box 9–10, and from Sujay Basu, Report on India 2–3 from the following: “Cold Water Poured on Energy Scene, Rio+5 Report (Paris: Helio Inter- IT’s Environmental Pluses,” Environment Daily, national, 1997); three fourths of Indians from 11 June 2003; N. Cohen, “The Environmental Office of the Registrar General, “Tables on Houses, Impacts of E-Commerce,” in L. M. Hilty and P. Household Amenities and Assets: India,” op. cit. W. Gilgen, eds., Sustainability in the Information note 9, and from idem, “India at a Glance,” op. Society, 15th International Symposium on Infor- cit. note 9. Table 2–3 from the following: Schip- matics for Environmental Protection (Marburg, per, op. cit. note 14, p. 144; Scott Murtishaw Germany: Metropolis Verlag, 2001); Klaus Fichter, and Lee Schipper, “Disaggregated Analysis of U.S. “E-Commerce: Sorting Out the Environmental Energy Consumption in the 1990s: Evidence of Consequences,” Journal of Industrial Ecology, vol. the Effects of the Internet and Rapid Economic 6, no. 2 (2003); John A. Laitner, “Information Growth,” Energy Policy 29 (2001), p. 1347; IEA, Technology and U.S. Energy Consumption: cited in EPC, op. cit. note 16, p. 28; National Energy Hog, Productivity Tool, or Both?” Jour- Bureau of Statistics, China Statistical Yearbook nal of Industrial Ecology, vol. 6, no. 2 (2003); (Beijing: National Statistical Press, various years); “Computer Related Electricity Use Overesti- IEA, op. cit. note 28, p. 35. mated,” Environment News Service, 5 February 2001; I. Greusing and S. Zangl, “Comparing 35. Demand growth since 1990 calculated by Print- and Online-Mail Order Catalogues, Con- Worldwatch with data from IEA, op. cit. note 10,

192 State of the World 2004 NOTES, CHAPTER 2 pp. 410–11, 458–59; energy consumption relative port/atlas/htmlu/bomarover.html, viewed 16 to income from Dzioubinski and Chipman, op. cit. May 2003; U.S. new homes from U.S. Census note 10, p. 4; tripling of energy use from Mark Bureau, “New Residential Construction in April Levine et al., Energy Efficiency Improvement Util- 2003,” fact sheet (Suitland, MD: 16 May 2003). ising High Technology: An Assessment of Energy Use in Industry and Buildings (London: WEC, 39. Potential savings from Ayres, op. cit. note 23, 1995); televisions from Matthew Bentley, “Forg- p. 35; California from David Goldstein, Natural ing New Paths to Sustainable Development,” Resources Defense Council, San Francisco, CA, Background Paper, Asia Pacific Expert Meeting on discussion with author, 26 September 2003. Promoting Sustainable Consumption and Pro- duction Patterns, Yogyakarta, Indonesia, 21–23 40. Ken Gewertz, “Pushing the Envelope: The May 2003, p. 3; Indian refrigerators from Jain Skin’s the Thing for Conserving a Building’s and Lakshman, op. cit. note 9; projections from Energy,” Harvard Gazette, 19 July 2001. IEA, op. cit. note 10, p. 29. 41. Lee S. Windheim et al., “Case Study: Lock- 36. U.S. energy savings from American Council heed Building 157—An Innovative Deep Day- for an Energy-Efficient Economy (ACEEE), lighting Design for Reducing Energy “Energy Efficiency Progress and Potential,” fact Consumption,” cited in Aitkin, op. cit. note 38, sheet (Washington, DC: undated); financial savings p. 8; 34 percent lighting and RMI from Ellen from Stephen Meyers et al., Realized and Prospec- Pfeifer, “Light: The Future is Green,” Winslow tive Impacts of U.S. Energy Efficiency Standards for Environmental News, July 2000, p. 1; money and Residential Appliances (Berkeley, CA: Lawrence health savings from ibid., p. 5, and from Windheim Berkeley National Laboratory, June 2002), pp. et al., op. cit. this note, p. 8. 21–41; Europe from WEC, op. cit. note 32; poten- tial improvements over next decade from IEA, 42. “First ‘Green’ High-Rise Residential Build- op. cit. note 32; improvements by 2030 from ing in the World,” Real Estate Weekly, 2 October IEA, op. cit. note 29, p. 17. 2002; “Governor Pataki Unveils the Solaire, First ‘Green’ Residential Tower in U.S.,” Silicon Val- 37. Potential savings and barriers from Dzioubin- ley Biz Ink, 5 September 2003; “Powerlight/Toy- ski and Chipman, op. cit. note 10, p. 3; Thai sav- ota Achieve Gold Building Standard,” ings from Jas Singh and Carol Mulholland, “DSM SolarAccess.com, 23 April 2003. in Thailand: A Case Study,” Joint U.N. Develop- ment Programme (UNDP)/World Bank Energy 43. Japan’s PV installations from Paul Maycock, Sector Management Assistance Programme, Wash- PV News, May 2003, p. 5; losses from World ington, DC, October 2002, pp. 1, 8; share of Bank, World Development Report 1997 (New York: efficient refrigerators from Government of Indone- Oxford University Press, 1997), and from Indian sia and UNEP, op. cit. note 35, p. 17; Brazil from Planning Commission, Annual Report on the Steven Nadel, Appliance Energy Efficiency: Oppor- World of State Electricity Boards and Electricity tunities, Barriers, and Policy Solutions (Washing- Departments, cited in M. S. Bhalla, “Transmission ton, DC: ACEEE, October 1997), pp. 10–11. In and Distribution Losses (Power),” in Proceedings Brazil, if targets are not met the standards become of the National Conference on Regulation in Infra- mandatory. structure Services: Progress and Way Forward (New Delhi: The Energy and Resources Institute, 38. Donald W. Aitkin, Putting it Together: Whole November 2000). Buildings and a Whole Buildings Policy, Research Report No. 5 (Washington, DC: Renewable 44. Energy savings from Alexis Karolides, “An Energy Policy Project, September 1998), p. 6; Introduction to Green Building. Part 3: Other EU, “Buildings Overview—Market Overview and Green Building Considerations,” RMI Solutions Trends,” ATLAS Project, European Commission Newsletter, summer 2003, p. 13; Thor Magnusson, Online, at europa.eu.int/comm/energy_trans A Showcase of Icelandic Treasures (Reykjavik: Ice-

193 State of the World 2004 NOTES, CHAPTER 2 landic Review, 1987), cited in “Exploring the emissions from Policy Commission on the Future Ecology of Organic Greenroof Architecture: His- of Farming and Food, Food & Farming: A Sus- tory,” at www.greenroofs.com/history.htm; Ger- tainable Future (London: January 2002), p. 92. many from ibid.; Chicago and Amsterdam from “North American Case Studies,” at www.green 51. Use by global food system calculated by roofs.com/north_american_cases.htm; Ford Worldwatch with data from David Pimentel, Cor- Motor Company, “Ford Installs World’s Largest nell University, e-mail to author, 23 July 2003, and Living Roof on New Truck Plant,” press release from BP, op. cit. note 3; Pimentel, op. cit. this (Dearborn, MI: 3 June 2003). note.

45. Largest share of global consumption from 52. William Moomaw, Director, International IEA, op. cit. note 10, p. 28; growth in sectors and Environment and Resource Policy Program, energy use from Lee Schipper et al., “Energy Use Fletcher School of Law and Diplomacy, Tufts Uni- in Manufacturing in Thirteen OECD Countries: versity, discussion with author, 5 August 2003. Long Term Trends Through 1995,” Lawrence Berkeley National Laboratory, working draft, 13 53. Differences in energy prices from Baird, op. August 1998, p. 3. cit. note 46; efficiencies of manufacturing sectors and leapfrogging from IPCC, op. cit. note 12, p. 46. Increasing intensity from Stuart Baird, 112. “Heavy Industry,” at www.iclei.org/EFACTS/ HEAVY.HTM, and from Ted Trainer, “The ‘De- 54. Aluminum from Baird, op. cit. note 46. materialisation’ Myth,” Technology in Society, vol. 23 (2001), pp. 505–14; Australia from Ted 55. Prices as fundamental factor from WEC, Trainer, A Critical Discussion of Future Dilem- “Efficiency of Energy Supply and Use,” in Energy mas (Victoria, Australia: Commonwealth Scientific for Tomorrow’s World—Acting Now! (London: & Industrial Research Organisation, May 2002). 2000), p. 3; impact of prices on energy intensity from Schipper et al., op. cit. note 45, p. 12, and 47. Tracy Mumma, “Reducing the Embodied from Anderson, op. cit. note 15. Energy of Buildings,” Home Energy Magazine Online, January/February 1995. 56. Role of price from Schipper et al., op. cit. note 4, pp. 205–06. 48. Energy used to manufacture vehicle from “Household Greenhouse Gas Emissions Ques- 57. Impact of taxes from Lee Schipper, “Lifestyles tionnaire,” Alternatives Journal, spring 2000; and the Environment: The Case of Energy,” in total energy associated with cars from R. A. Heren- Technological Trajectories and the Human Envi- deen, Ecological Numeracy (New York: John Wiley ronment (Washington, DC: National Academy & Sons, 1998), and from M. Wackernagel and W. Press, 1997), p. 100; Denmark from Eurostat, Rees, Our Ecological Footprint (Gabriola Island, cited in Consultores em Transportes Inovação e BC, Canada: New Society Publishers, 1996); Sistemas et al., “Study on Vehicle Taxation in the Redefining Progress, Ecological Footprint Accounts Member States of the European Union,” Final (Oakland, CA: undated). Report, prepared for the European Commission, DG Taxation and Customs Union, January 2002, 49. DOE, op. cit. note 7, p. 49. p. 11.

50. Energy to collect foods from EPC, op. cit. 58. U.S. tax deduction from W. Gentry, “Resi- note 16, pp. 30, 37; energy needs for long-distance dential Energy Demand and the Taxation of Hous- travel from Brian Halweil, Home Grown: The Case ing,” cited in Schipper, Murtishaw, and Unander, for Local Food in a Global Market, Worldwatch op. cit. note 21; Sweden from Schipper, op. cit. Paper 163 (Washington, DC: Worldwatch Insti- note 57, pp. 100–01; “Annex I—Case Studies on tute, November 2002), p. 15; growing source of Energy Efficiency Policy Measures: Japan,” in

194 State of the World 2004 NOTES, CHAPTER 2

WEC, op. cit. note 32. .pdf; Dutch municipalities from “Groningen, The Car-Free City for Bikes,” at www.globalideas 59. Eric Lombardi, Take It Back! (Boulder, CO: bank.org/socinv/SIC-100.HTML; bicycle park- Eco-cycle, 2000). ing from “Bicycles and Transit: Europe and Japan,” in Charles Komanoff, ed., Bicycle Blueprint (New 60. Mid-1990s subsidies from UNDP, World York: Transportation Alternatives, 1999); Ger- Energy Assessment, 2000, cited in Group of Eight mans and Swiss from “Reduction of Air Pollution,” (G8) Renewable Energy Task Force, G8 Renew- CarSharing Co-op of Edmonton, at www.web.net; able Energy Task Force Final Report 2001 (London: communities and members from “More Car Shar- 2001), p. 34; reductions in 1990s from Geller, op. ing in Europe,” Passenger Transport (American cit. note 5, p. 2; infrastructure and manufacturing Public Transportation Association), 22 July 2002; from Alan Durning, How Much Is Enough? (New North America from David Steinhart, “Car Shar- York: W.W. Norton & Company, 1992), p. 110. ing: An Idea Whose Time Has Come?” Financial Post, 4 May 2002; U.S. cities and counties from 61. Energy use in South Korea from Dzioubin- CarSharing Network at www.carsharing.net/ ski and Chipman, op. cit. note 10, pp. 7–8; sub- where.html. sidies to those who do not need them from UN HABITAT, op. cit. note 25, pp. 138, 142; Mark 66. Ecovillages from gen.ecovillage.org; Cali- Ashurst, “Nigeria Tackles Fuel Subsidies,” BBC fornia from Charles A. Goldman, Joseph H. Eto, News, 18 July 2003. and Galen L. Barbose, California Customer Load Reductions During the Electricity Crisis: Did They 62. Daphne Wysham, Sustainable Development Help to Keep the Lights On? (Berkeley, CA: South and North: Climate Change Policy Coherence Lawrence Berkeley National Laboratory, 2002), in Global Trade and Financial Flows (Washington, pp. 23–25; Zero Emissions Development and DC: Institute for Policy Studies, March 2003), pp. quote from Greg Rasmussen, “The Kyoto Proto- 3–4. col: The British Approach,” CBC Radio, July 2002. 63. The target is to reduce emissions 25 percent below 1990 levels by 2005; German Embassy, 67. Empirical relationship from Amulya Reddy, Germany’s Ecological Tax Reform, Background “Energy Technologies and Policies for Rural Devel- Paper (Washington, DC: undated). opment,” in Thomas B. Johansson and José Goldemberg, eds., Energy for Sustainable Devel- 64. Germany and Denmark from Janet L. Sawin, opment: A Policy Agenda (New York: UNEP, “Charting a New Energy Future,” in Worldwatch 2002), pp. 117–19; Carlos Suárez, “Energy Needs Institute, State of the World 2003 (New York: W.W. for Sustainable Human Development,” in José Norton & Company, 2003), p. 104; green power Goldemberg and Thomas B. Johansson, eds., demand by end of 2002 from Lori Bird and Blair Energy as an Instrument for Socio-Economic Devel- Swezey, Estimates of Renewable Energy Developed opment (New York: UNDP, 1995) (using UNDP to Serve Green Power Markets in the United States 1991–92 data for 100 industrial and developing (Golden, CO: National Renewable Energy Labo- nations); national consumption levels from World ratory, February 2003); California from “Stu- Bank, op. cit. note 8, pp. 144–46. dents, Activists Win Clean Energy Campaign,” SolarAccess.com, 21 July 2003, and from “Berke- 68. Robert Prescott-Allen, The Wellbeing of ley, CA, USA: University of California Approves Nations: A Country-by-Country Index of Quality Clean-Energy and Green-Building Policy,” Solar- of Life and the Environment (Washington, DC: Buzz.com, 18 July 2003. Island Press/IDRC, 2001), pp. 267–68. Table 2–5 from the following: well-being rankings from 65. Energie-Cités, “Brussels Declaration for a ibid., pp. 267–68; energy use ranking and share of Sustainable Energy Policy in Cities,” at Sweden calculated by Worldwatch with 1999 data www.energie-cites.org/PDF/avis_bruxelles_en from IEA, cited in World Resources Institute et al.,

195 State of the World 2004 NOTES, CHAPTERS 2 AND 3 AND COMPUTERS

World Resources 2002–2004 (Washington, DC: fund sites, see Hwang, op. cit. this note. 2003), pp. 262–63. 3. Data for 1988 from International Telecom- 69. Degrading quality of life from Centre for munication Union (ITU) in World Bank, World Ecological Sciences, Energy Efficiency and Sus- Development Indicators Database, at media.world tainability: New Paradigms (New Delhi: Indian bank.org/secure/data/qquery.php, viewed 12 Institute of Science, undated); Shanghai registra- August 2003; 2002 data from idem, Internet tions from “Car Sales Booming in China,” op. cit. Indicators: Hosts, Users, and Numbers of PCs, at note 10. www.itu.int/ITU-D/ict/statistics, viewed 15 July 2003; Silicon Valley Toxics Coalition (SVTC), 70. Share of population in developing countries “Toxics in a Computer,” fact sheet, at from DOE, EIA, International Energy Outlook www.svtc.org/cleancc/pubs/computertoxics.pdf, 2002 (Washington, DC: 2002), pp. x–xi. viewed 3 July 2003; Ian Fried, “Recycling Not Easy for PC Makers,” CNET News.com, 22 April 71. Population from U.S. Bureau of the Census, 2003; SVTC et al., Poison PCs and Toxic TVs: International Data Base, electronic database (Suit- California’s Biggest Environmental Crisis That land, MD: updated 10 October 2003), and from You’ve Never Heard Of (San Jose, CA: June 2001), United Nations, World Population Prospects: The p. 13. 2002 Revision (New York: 2003), p. 1; consump- tion in 2050 calculated by Worldwatch with data 4. Basel Action Network (BAN) and SVTC, from DOE, op. cit. note 70, pp. x-xi; IEA, cited Exporting Harm: The High-Tech Trashing of Asia in World Bank, op. cit. note 8, p. 146. This (Seattle, WA, and San Jose, CA: February 2002), assumes the developing world’s share of global pp. 5–6; SVTC et al., op. cit. note 3, p. 6; National population remains constant. Safety Council, Electronic Product Recovery and Recycling Baseline Report: Recycling of Selected 72. Donald J. Johnston, Secretary-General, Electronic Products in the United States (Wash- OECD, speech given at Informal Ministerial Sem- ington, DC: May 1999), p. 13. inar on Energy, Pamplona, Spain, 26–28 April 2002. 5. BAN and SVTC, op. cit. note 4, pp. 6–7, 9, 18; SVTC et al., op. cit. note 3, p. 15. Computers 6. BAN and SVTC, op. cit. note 4, pp. 2–3, 1. Eric D. Williams, Robert U. Ayres, and 7–8, 12–13, 28. Miriam Heller, “The 1.7 Kilogram Microchip: Energy and Material Use in the Production of 7. Ibid., pp. 16, 18–19. Semiconductor Devices,” Environmental Science and Technology, 15 December 2002, pp. 5504–10; 8. Ibid., pp. 17–21, 30–32. Curtis Runyan, “Microchips Are Tiny, But Their Environmental Footprint Is Heavy,” World Watch, 9. Ibid., pp. 8, 42. March/April 2003, p. 8. Chapter 3. Boosting Water Productivity 2. Ann Hwang, “Semiconductors Have Hidden Costs,” in Worldwatch Institute, Vital Signs 2002 1. For a review of the status of freshwater ecosys- (New York: W.W. Norton & Company, 2002), pp. tems and biodiversity, see Sandra Postel and Brian 110–11; Silicon Valley Toxics Coalition, “Four Richter, Rivers for Life: Managing Water for Peo- Case Studies of High-Tech Water Exploitation ple and Nature (Washington, DC: Island Press, and Corporate Welfare in the Southwest,” at 2003). svtc.igc.org/resource/pubs/execsum.htm, viewed 11 September 2003; “toxic waste sites” refers to 2. Igor A. Shiklomanov, Assessment of Water U.S. Environmental Protection Agency Super- Resources and Water Availability in the World (St.

196 State of the World 2004 NOTES, CHAPTER 3

Petersburg, Russia: State Hydrological Institute, tor from Bureau of Economic Analysis, op. cit. 1996); World Commission on Dams (WCD), note 8; the 2000 figure is an extrapolation based Dams and Development (London: Earthscan, on 1995 withdrawals and the same rate of change 2000). in withdrawals as occurred from 1990 to 1995, combined with actual GDP. 3. Sectoral shares from World Bank, World Development Indicators (Washington, DC: 2001). 10. FAO, Review of World Water Resources by Country (Rome: 2003). To avoid double-count- 4. Robert Costanza et al., “The Value of the ing, we use the measure of internal renewable World’s Ecosystem Services and Natural Capital,” water resources, which excludes water flowing in Nature, 15 May 1997, pp. 254–60. from neighboring countries.

5. U.N. Environment Programme, Afghani- 11. National renewable water supply figures from stan: Post-Conflict Environmental Assessment FAO, op. cit. note 10; North China Plain figures (Nairobi: 2003), p. 62. and quote from Jeremy Berkoff, “China: The South-North Water Transfer Project—Is It Justi- 6. Postel and Richter, op. cit. note 1. fied?” Water Policy, February 2003, pp. 1–28; Yellow River flow and groundwater trends from 7. Murray-Darling from “Drying Out,” The Sandra Postel, Pillar of Sand (New York: W.W. Economist, 12 July 2003, p. 38; Australia, South Norton & Company, 1999), pp. 67–69, 76. Africa, and Hawaii examples from Postel and Richter, op. cit. note 1. 12. Water withdrawals are estimates, not mea- sured quantities, and their accuracy can vary greatly 8. Water productivity defined as real gross from one country to another. Table 3–1 from the domestic product (GDP) in 2000, expressed in following: per capita water withdrawals for all 2000 U.S. dollars, divided by estimated total water countries except the United States from FAO, withdrawals in 2000. Figure 3–1 from the fol- op. cit. note 8; U.S. per capita water withdrawals lowing: water withdrawal data for all countries extrapolated from time-series data in USGS, op. except the United States from U.N. Food and cit. note 8, and from population estimate in FAO, Agriculture Organization (FAO), AQUASTAT op. cit. note 8; share of cropland that is irrigated database, at www.fao.org/ag/agl/aglw/aqua from Postel, op. cit. note 11, p. 42. stat/dbase/index2.jsp; U.S. water withdrawals extrapolated from time-series data in U.S. Geo- 13. Phoenix precipitation from National Cli- logical Survey (USGS), Estimated Use of Water in matic Data Center, National Oceanic and Atmos- the United States in 1995 (Reston, VA: 1997); pheric Administration, U.S. Climate at a Glance real GDP from Angus Maddison, The World Econ- database, at www.ncdc.noaa.gov/oa/climate/ omy: A Millennial Perspective (Paris: Organisation research/cag3/cag3.html, viewed 14 August for Economic Co-operation and Development, 2003; “The Ethiopian Famine,” New York Times, 2001), converted to 2000 dollars using U.S. GDP 28 July 2003. implicit price deflator from Bureau of Economic Analysis, at www.bea.doc.gov/bea/dn/nipaweb/ 14. United Nations, Water for People, Water for NIPATableIndex.htm. Life: The United Nations World Water Develop- ment Report (Paris: UNESCO Publishing and 9. Water productivity defined as real GDP, Berghahn Books, 2003), p. 113; Indonesia’s nat- expressed in 2000 dollars, divided by estimated ural water supply from FAO, op. cit. note 10, p. 80. total water withdrawals for each year. Figure 3–2 from the following: water withdrawal data for 15. United Nations, op. cit. note 14, pp. 110–12; 1950–95 from USGS, op. cit. note 8; real GDP Table 3–2 from World Health Organization from Maddison, op. cit. note 8, converted to (WHO)/UNICEF Joint Monitoring Programme, 2000 dollars using U.S. GDP implicit price defla- Global Water Supply and Sanitation Assessment

197 State of the World 2004 NOTES, CHAPTER 3

2000 Report, available at www.who.int/water_san index_e.html, viewed 30 June 2003, except for itation_health/Globassessment/GlobalTOC.htm. Cyprus, Brazil, Chile, and Mexico, with circa 2000 figures from FAO, op. cit. note 8, for Israel, with 16. WHO and UNICEF, op. cit. note 15; D. 2000 estimates from the Israeli Ministry of Agri- Kirk Nordstrom, “Worldwide Occurrences of culture, according to Saul Arlosoroff, Director, Arsenic in Ground Water,” Science, 21 June 2002, National Water Corporation-Mekorot, Tel Aviv, pp. 2143–45. Israel, e-mail to authors, 6 August 2003, and for the United States, with a 1998 estimate from U.S. 17. “Water Affairs and Forestry,” South Africa Department of Agriculture, 1998 Farm & Ranch Yearbook 2002/3, at www.gcis.gov.za/docs/pub Irrigation Survey, Census of Agriculture, at lications/yearbook/ch23.pdf, viewed 11 June www.nass.usda.gov/census/census97/fris/tbl04 2003; 6 million figure from “South Africa: A .txt>http://www.nass.usda.gov/census/census97/ Water Success Story,” at www-dwaf.pwv.gov fris/tbl04.txt. .za/Communications/Articles/Minister/2003/ South%20Africa%20a%20water%20success%20story 24. L. C. Guerra et al., Producing More Rice .doc, viewed 9 June 2003. with Less Water from Irrigated Systems (Colombo, Sri Lanka: International Water Management Insti- 18. Two-tier pricing from John Peet, “Priceless: tute (IWMI), 1998), p. 11; R. Barker, Y. H. Li, A Survey of Water,” The Economist, 19 July 2003, and T. P. Tuong, eds., Water-Saving Irrigation for pp. 3–16; Johannesburg example from Ginger Rice, Proceedings of an International Workshop in Thompson, “Water Tap Often Shut to South Wuhan, China, 23–25 March 2001 (Colombo, Sri Africa Poor,” New York Times, 29 May 2003. Lanka: IWMI, 2001).

19. Agriculture’s share from World Bank, op. 25. Plusquellec and Ochs, op. cit. note 23, p. 22. cit. note 3; projections from Mark W. Rosegrant, Ximing Cai, and Sarah A. Cline, World Water and 26. FAO, The State of Food Insecurity in the World Food to 2025 (Washington, DC: International (Rome: 1999); Sandra Postel et al., “Drip Irriga- Food Policy Research Institute, 2002). tion for Small Farmers: A New Initiative to Alle- viate Hunger and Poverty,” Water International, 20. “Irrigation Options,” WCD Thematic March 2001, pp. 3–13. Review IV.2, as reported in WCD, op. cit. note 2, p. 46. 27. P. Polak, B. Nanes, and J. Sample, “Opening Access to Affordable Micro-Plot Irrigation for 21. Stuart Styles, Irrigation Training and Small Farmers,” presented at the Irrigation Asso- Research Center, California Polytechnic State Uni- ciation Symposium on Small-holder Irrigation, versity, San Luis Obispo, CA, e-mail to authors, 30 Orlando, FL, 1999; International Development June 2003. Enterprises (IDE), discussion with Sandra Pos- tel, June 2003; see also IDE web site at www 22. Postel, op. cit. note 11, pp. 172, 174. .ide-international.org.

23. Figure of 3.2 million hectares from Hervé 28. Alwar district from Himanshu Thakkar, Plusquellec and Walter Ochs, Water Conserva- “Assessment of Irrigation in India,” 8 November tion: Irrigation, Water Resources and Environ- 1999, Contributing Paper for “Irrigation ment Technical Note F.2 (Washington, DC: World Options,” WCD Thematic Review IV.2, at Bank, 2003), p. 20. Table 3–3 from the following: www.dams.org/docs/kbase; see also Anil Agarwal 1991 areas from Sandra Postel, Last Oasis (New and Sunita Narain, eds., Dying Wisdom (New York: W.W. Norton & Company, 1992), p. 105, Delhi, India: Centre for Science and Environ- which were compiled from a variety of sources; ment, 1997), and the Centre for Science and circa 2000 areas from International Commission Environment at www.cseindia.org. on Irrigation and Drainage, at www.icid.org/

198 State of the World 2004 NOTES, CHAPTER 3

29. Table 3–4 based on data in D. Renault and Action to Better Manage the Globe’s Ground- W. W. Wallender, “Nutritional Water Productivity waters,” press release (Nairobi: 5 June 2003); and Diets,” Agricultural Water Management, “Taiwan Leaky Pipes Losing 1.97 Million Cubic August 2000, pp. 275–96. Meters of Water Per Day,” 15 April 2002, at fpeng.peopledaily.com.cn/200204/15/eng20020 30. Dietary water requirements from ibid.; the 415_94050.shtml. medium variant U.S. population projection for 2025 is 358 million, according to United Nations, 35. Table 3–5 from the following: Albania from Population Division, World Population Prospects: European Environment Agency (EEA), “EEA The 2002 Revision and World Urbanization Report Highlights Measures to Promote Sustain- Prospects: The 2001 Revision (New York: 2003 and able Water Use,” press release (Copenhagen: 5 2002). April 2001); Canada from Bill Hutchins, “One- third of City’s Water Supply Disappears, But 31. United Nations, World Population Prospects, Where?” Kingston This Week, 10 June 2003; Czech op. cit. note 30. Republic, France, and Spain from EEA, Sustain- able Water Use in Europe, Part 2: Demand Man- 32. United Nations, op. cit. note 14, pp. 160–61; agement (Environmental Issue Report No. 19) cities claiming less than 10 percent from World (Copenhagen: 2001), p. 22; Denmark from Bank, op. cit. note 3. Box 3–1 from the following: “WATERSAVE at Loughborough,” Demand desalination capacity and growth rate from Aqua Management Bulletin (National Water Demand Resources International, Desalination Market Management Centre, Environment Agency, Birm- Analysis 2003 (Evergreen, CO: August 2003); ingham, U.K.), February 2003, p. 3; Japan from Israel’s plans from “Eshkol, Nizzana and Ashkelon United Nations, Best Practices and Local Leader- Desalination Plants, Israel,” Web site for the Water ship Programme, “Water Conservation Conscious Industry, at www.water-technology.net/projects/ Fukuoka, Japan,” at bestpractices.org/bpbriefs/ israel/, viewed 8 September 2003; drop in energy Environment.html, viewed September 2003; Jor- and cost requirements from Allerd Stikker, “Desal dan from “Seminar Addresses Water Losses Plagu- Technology Can Help Quench the World’s ing the Country’s Scarce Resource,” Jordan Times, Thirst,” Water Policy, February 2002, pp. 47–55; 6 March 2003; Kenya from Anna Peltola, “Sim- 10–25 percent figures from Amy Vickers, presen- ple Fixes Could Bring Water to Millions–Experts,” tation at 2003 Community Water Leadership Pro- Reuters, 13 August 2002; Singapore from Ng gram, Florida Institute of Government, St. Han Tong, Public Utilities Board, Singapore, e- Petersburg, FL, 14 March 2003. mail to authors, 10 September 2003; South Africa from “Growing Concern over Cities’ Water 33. United Nations, op. cit. note 14, pp. 160–61. Losses,” South African Broadcasting Corporation, 19 May 2003; Taiwan from “Water Price Hike 34. Kofi Annan, U.N. Secretary-General, Necessary to Fix Old Pipes, Says Minister,” Tai- “Towards A Sustainable Future,” presented at the wan News, 11 March 2003; United States from Jon American Museum of Natural History’s Annual Maker and Nathalie Chagnon, “Inspecting Systems Environmental Lecture, New York, 14 May 2002; for Leaks, Pits, and Corrosion,” Journal of the “Water and the Fight Against Poverty,” U.N. American Water Works Association, July 1999, p. Environment Programme (UNEP) Executive 40, and from Steve Wyatt, “The Economics of Director’s address on Water and the Fight Against Water Loss: What is Unaccounted for Water?” Poverty—World Environment Day seminar, Beirut, On Tap (National Drinking Water Clearinghouse, Lebanon, 5 June 2003; “Leakage Control and West Virginia University, Morgantown, WV), fall the Reduction of Unaccounted-for Water (UFW),” 2002, pp. 32–35. Box 3–2 from “Office of Water Proceedings of the International Symposium on Services (OFWAT): Leakage And Water Effi- Efficient Water Use in Urban Areas—Innovative ciency,” Eighth Report, Select Committee on Ways of Finding Water for Cities, 8–10 June 1999; Public Accounts, House of Commons, London, 4 Arabian Gulf city from UNEP, “UNEP Urges January 2002, from OFWAT, “Ofwat Sets Leak-

199 State of the World 2004 NOTES, CHAPTER 3 age Targets For London,” press release (Birm- 39. “Save Water to Save Energy,” Environmen- ingham, U.K.: 26 March 2003), and from “Total tal Building News, October 2002, pp. 3–4. Leakage Increases in Severn Trent Water and is Still Rising in Thames Water,” Office of Water Services, 40. Figure 3–3 from the following: Kenya, 29 July 2003. Uganda, and Tanzania from John Thompson et al., Drawers of Water II: Thirty Years of Change in 36. Janice A. Beecher, “Survey of State Water Domestic Water Use and Environmental Health in Loss Reporting Practices,” Beecher Policy East Africa (London: International Institute for Research, Inc., Final Report to the American Environment and Development, 2001); Denmark Water Works Association, Denver, CO, January from “WATERSAVE at Loughborough,” op. cit. 2002, p. 13; Wyatt, op. cit. note 35; The Kansas note 35; United Kingdom from “Water Indicators Water Office, “Assessment of Unaccounted for 2001/02,” Demand Management Bulletin Water, Kansas 1992–2010,” 2001, at www.kwo (National Water Demand Management Centre, .org/Reports/2010%20Assessments/UFW%20ass Environment Agency, Birmingham, U.K.), June essment/ks_ufw_text.htm; idem, “The Kansas 2003, p. 7; Singapore from Ng, op. cit. note 37; Water Plan, Fiscal Year 2003,” Water Conservation, Manila from Manila Water Company, www.manila July 2001, p. 1. wateronline.com/faq.htm, viewed 11 August 2003; Waterloo from Steve Gombos, Regional 37. Copenhagen from “WATERSAVE at Lough- Municipality of Waterloo, e-mail to authors, 7 borough,” op. cit. note 35; Lis Napstjert, Copen- August 2003; Melbourne and Sydney from Water hagen Energy, e-mail to authors, 17 September, Services Association of Australia, WSAAfacts 2001 2003. Box 3–3 from the following: Ng, op. cit. (Melbourne: 2001); U.S. examples from Peter note 35; Singapore usage in 1995 from Alliance to W. Mayer et al., Residential End Uses of Water Save Energy, Watergy: Taking Advantage of (Denver, CO: AWWA Research Foundation and Untapped Energy and Water Efficiency Opportu- American Water Works Association, 1999), pp. nities in Municipal Water Systems (Washington, 91, 114. Other data from Amy Vickers, Handbook DC: 2002), pp. 80–82; usage in 2003 from Ng of Water Use and Conservation: Homes, Land- Han Tong, Public Utilities Board, Singapore, e- scapes, Businesses, Industries, Farms (Amherst, MA: mail to authors, 16 August 2003; Teruyoshi Shin- WaterPlow Press, 2001), pp. 17–19, 20. oda, “Integrated Approaches for Efficient Water Use in Fukuoka,” Proceedings of the Interna- 41. U.S. General Accounting Office, Water tional Symposium on Efficient Water Use in Urban Infrastructure: Water-Efficient Plumbing Fixtures Areas—Innovative Ways of Finding Water for Reduce Water Consumption and Wastewater Flows Cities, 8–10 June 1999; United Nations, op. cit. (Washington, DC: August 2000), p. 4; Amy Vick- note 35; “Final Report: Water Conservation Plan- ers, “Technical Issues and Recommendations on ning USA Case Studies Project,” Environment the Implementation of the U.S. Energy Policy Agency, Demand Management Centre, Birming- Act,” report prepared by Amy Vickers & Associ- ham, U.K., prepared by Amy Vickers & Associates, ates, Inc. for the American Water Works Associa- Inc., Amherst, MA, June 1996. tion, Washington, DC, 25 October 1995, p. 4.

38. Robert Wilkinson, Methodology for Analysis 42. United Nations, op. cit. note 14, p. 341. of the Energy Intensity of California’s Water Systems, and an Assessment of Multiple Potential Benefits 43. Figure of 30 billion liters from Vickers, op. Through Integrated Water-Energy Efficiency Mea- cit. note 40, p. 140; Debbie Salamone, “Florida’s sures (Berkeley, CA: Ernest Orlando Lawrence Water Crisis: Chapter 2, The Human Thirst,” Berkeley Laboratory, California Institute for Orlando Sentinel, 7 April 2002. Energy Efficiency, January 2000), p. 6; QEI, Inc., Electricity Efficiency Through Water Efficiency, 44. Charles Fenyvesi, “His Whole World Is Grass: Report for the Southern California Edison Com- Lawn Guru Reed Funk Speaks to the Tough Lit- pany (Springfield, NJ: 1992), pp. 23–24. tle Cultivar Inside Us All,” U.S. News & World

200 State of the World 2004 NOTES, CHAPTER 3

Report, 28 October 1996, pp. 61–62; Thomas Far- .unesco.org/water/ihp/publications/waterway/ ragher, “For Some Neighbors, It’s a Turf War,” webpc/pag18.html, viewed August 2003. Boston Globe, 5 April 1998. 50. Vickers, op. cit. note 40, p. 239; Unilever 45. F. Herbert Bormann et al., Redesigning the Co., Environmental Performance Report 2003, p. American Lawn: A Search for Environmental Har- 10, at www.unilever.com/environmentsociety/ mony (New Haven, CT: Yale University Press, environmentalreporting/environmentalreport, 1993), pp. 56, 77; U.S. Senate, The Use and Reg- viewed August 2003. Table 3–6 from the follow- ulation of Lawn Care Chemicals: Hearing Before ing: dairy, home construction, and produce from the Subcommittee on Toxic Substances, Environ- Environment Agency, 2003 Water Efficiency mental Oversight, Research and Development of Awards: Inspirational Case Studies Demonstrating the Committee on Environment and Public Works, Good Practice Across All Sectors (Birmingham, U.S. Senate, March 28, 1990, Senate Hearing 101- U.K.: 2003), pp. 8, 15, 21; computers from 685 (Washington, DC: U.S. Government Printing “Companies Who Show How It’s Done,” Office, 1990), p. 1. Box 3–4 from the following: Demand Management Bulletin (National Water Christian G. Daughton, “Environmental Stew- Demand Management Centre, Environment ardship and Drugs As Pollutants,” The Lancet, 5 Agency, Birmingham, U.K.), August 2002, p. 3; October 2002, pp. 1035–36; USGS from Dana steel from “Columbia Steel Casting: Using Water W. Kolpin et al., “Pharmaceuticals, Hormones, Wisely,” Office of Sustainable Development, Port- and Other Organic Wastewater Contaminants in land, OR, at www.sustainableportland.org/energy U.S. Streams, 1999–2000: A National Recon- _com_best.html, viewed August 2003; pharma- naissance,” Environmental Science and Technology, ceuticals from Steve Dark, Process Waste Water 15 March 2002, pp. 1202–11; D. Donaldson, T. Recycling (Jaffrey, NH: Millipore Corporation, Kiely, and A Grube, Pesticide Industry Sales and November 2002); chocolate from EBMUD Usage: 1998 and 1999 Market Estimates (Wash- Reports: East Bay Water Issues, March 2001, p. 2; ington, DC: U.S. Environmental Protection beer from Global Environment Management Ini- Agency (EPA), August 2002); National Associa- tiative, Connecting the Drops Toward Creative tion of Chain Drug Stores, Industry Facts and Water Strategies (Washington, DC: June 2002), Resources, Industry Statistics, “Total Retail Sales p. 36. 2002—Traditional Drug Stores,” at www.nacds .org/wmspage.cfm?parm1=507, viewed Septem- 51. Public Utilities Board, Water Authority of ber 2003; studies outside the United States from Singapore, at www.pub.gov.sg/water_reclamation Kenneth Green, “When Pharmaceuticals Arrive at .htm, viewed September 2003. the Tap,” Environmental Science & Engineering, March 2003; EPA, “PPCPs as Environmental Pol- 52. United Nations, op. cit. note 14, pp. 227–33. lutants,” at www.epa.gov/nerlesd1/chemistry/ pharma/teaching.htm, viewed August 2003; Colin 53. Patrick Smith, “The Great Water Divide,” Nickerson, “A Grass Roots Drive for Purity,” The Irish Times, 22 March 2003; Aly Shady, Cana- Boston Globe, 3 September 2001. dian International Development Agency, Jan- uary 2002, at www.expressnews.ualberta.ca/ 46. Vickers, op. cit. note 40, pp. 147–49, 180. expressnews/articles/news.cfm?p_ID=1829&s=a.

47. F. Herbert Bormann, Diana Balmori, and 54. Jennifer Gitlitz, Trashed Cans: The Global Gordon T. Geballe, Redesigning the American Environmental Impacts of Aluminum Can Wast- Lawn, 2nd ed. (New Haven, CT: Yale University ing in America (Arlington VA: Container Recy- Press, 2001), p. 129. cling Institute, 2002).

48. United Nations, op. cit. note 14, p. 228. 55. Postel and Richter, op. cit. note 1.

49. Major water-using industries from webworld 56. Tushaar Shah et al., “Sustaining Asia’s

201 State of the World 2004 NOTES, CHAPTERS 3 AND 4 AND ANTIBACTERIAL SOAP

Groundwater Boom: An Overview of Issues and Guide, January/February 2003. Evidence,” Natural Resources Forum, May 2003, pp. 130–41. 5. International Network for Environmental Management, “Pollution Prevention in a Tunisian 57. High Plains Underground Water Conserva- Oil Extraction and Soap Manufacturing Facility,” tion District, The Cross Section, various issues, Case Studies in Environmental Management in Lubbock, TX; Shah et al., op. cit. note 56. Small and Medium-Sized Enterprises (Hamburg: March 1999). 58. Study and Bangalore example reported in Dale Whittington, “Municipal Water Pricing and 6. U.S. Geological Survey, U.S. Department Tariff Design: A Reform Agenda for South Asia,” of the Interior, “What’s in That Water?” press Water Policy, February 2003, pp. 61–76; com- release (Reston, VA: 13 March 2002). parison to U.S. use is authors’ calculation. 7. J. Menoutis et al., “Triclosan and Its Impu- 59. Effect of groundwater pumping on Ipswich rities,” Quantex Laboratories Technology Review flows from USGS, Concepts for National Assessment (Edison, NJ: Quantex Laboratories, Inc., of Water Availability and Use, Circular 1223 1998–2001); Kristin Ebbert, “Anti-bacterial (Reston, VA: 2002); American Rivers, America’s Soaps,” The Green Guide, March 1997. Most Endangered Rivers 2003 (Washington, DC: 2003); Massachusetts Department of Environ- 8. “Keeping Medicines Effective: Resisting mental Protection, State Strikes Balance with Water Resistance,” American Medical News (American Withdrawal Permits for Ipswich River Basin Com- Medical Association), 15 October 2001; Helen munities (Boston: 20 May 2003). Phillips, “Too Much Triclosan?” Nature, 13 August 1998. Antibacterial Soap 9. Ed Susman, “Too Clean for Comfort,” Envi- 1. Infectious Diseases Society of America ronmental Health Perspectives, January 2001. (IDSA), “Antibacterial Soap No Better Than Reg- ular Soap, NIH-Funded Study Shows,” press 10. P. Ernst and Y. Cormier, “Relative Scarcity of release (Alexandria, VA: 24 October 2002). Asthma and Atopy Among Rural Adolescents Raised on a Farm,” American Journal of Respi- 2. Philip M. Parker, The 2003–2008 World ratory and Critical Care Medicine, May 2000, Outlook for Bar Soap (Paris: ICON Group Ltd., pp. 1563–66. 2003), pp. 18–19; Euromonitor International, “Asia-Pacific Bath and Shower Products: Small 11. Susman, op. cit. note 9; Alliance for Pru- Growth, Big Potential,” 25 October 2002, at dent Use of Antibiotics, at www.tufts.edu/ www.euromonitor.com/asiabath. med/apua; “CDC’s Advice to Doctors: Clean Your Hands,” American Medical News (American 3. Karen C. Timberlake, Chemistry: An Intro- Medical Association), 25 November 2002. duction to General, Organic, and Biological Chem- istry (New York: Harper Collins, 1996), pp. Chapter 4.Watching What We Eat 524–26. 1. Rita Oppenhuizen, Public Relations, Max 4. History and ingredients from Dru Wilson, Havelaar Foundation, discussion with Brian Hal- “Antibacterial Products May Be Case of Overkill,” weil, 11 August 2003; Max Havelaar Founda- The Gaston Gazette (Freedom News Service), 21 tion, “Max Havelaar—A Fair Trade Label,” August 2002, and from Soap and Detergent Asso- background history (Amsterdam: October 1998). ciation, “Cleaning Products Overview: History,” at www.sdahq.org/cleaning/history/; Diane di 2. Max Havelaar Foundation, op. cit. note 1. Costanzo, “Taking Personal Care,” The Green

202 State of the World 2004 NOTES, CHAPTER 4

3. International Federation for Alternative Food Policy, fall/winter 1998, pp. 288–89. This Trade, “A Brief History of the Alternative Trad- does not mean, however, that vegetarian food is ing Movement,” at www.ifat.org/dwr/resource3 always less polluting than animal food. A vegetar- .html, viewed 3 August 2003; A. M. Gutiérrez, ian meal made with ingredients shipped from “NGOs and Fairtrade, the Perspectives of Some around the world or raised in heated greenhouses Fairtrade Organisations,” submitted to the School may be much more polluting than meals with of Economic and Social Studies of the University meat that is sourced locally or raised in a way to of East Anglia, International Relations and Devel- minimize greenhouse gas emissions. opment Studies, Norfolk, U.K., 2 September 1996. 8. Box 4–1 from the following: Ransom Myers and Boris Worm, “Rapid Worldwide Depletion 4. Oppenhuizen, op. cit. note 1; Max Havelaar of Predatory Fish Communities,” Nature, 15 May Foundation, op. cit. note 1. 2003, pp. 280–83; Andrew Revkin, “Commercial Fleets Reduced Big Fish by 90 Percent, Study 5. Jim Hightower, “As American as Apple Pie: Says,” New York Times, 15 May 2003; Seaweb, Ethical Consumerism,” The Nation, 30 Septem- “Cover Study of Nature Provides Startling New ber 2002; United Farm Workers, “Union to Evidence that Only 10 Percent of All Large Fish Launch ‘Fair Trade Apple’ Campaign,” press are Left in the Ocean,” press release (Washington, release, 8 August 2001; Helen Taylor, Soil Asso- DC: 14 May 2003); for marine conservation ciation, Technical Services & Business Develop- organizations, see, for instance, the Audubon Soci- ment Director (SA Cert), discussion with Brian ety (magazine.audubon.org/seafood), the Mon- Halweil, 7 June 2003. terey Bay Aquarium (www.mbayaq.org), and the Marine Stewardship Council (www.msc.org); 6. For a discussion of the rise of long-distance Seafood Choices Alliance, at www.seafood food shipping, see Brian Halweil, Home Grown: choices.com. Box 4–2 from the following: Com- The Case for Local Food in a Global Market, World- passion in World Farming, Foie Gras Campaign watch Paper 163 (Washington, DC: November fact sheet, at www.ciwf.co.uk/Camp/Main/Foie/ 2002). foie_gras_campaign.htm, viewed 23 September 2003; World Society for the Protection of Animals, 7. Surface area from U.N. Food and Agriculture “Forced Feeding—The Facts Behind Foie Gras Organization (FAO), FAOSTAT Statistical Data- Production,” at www.wspa.org.uk/index.php base, at apps.fao.org, updated 22 August 2003; ?page=179, viewed 23 September 2003; caviar Michael Brower and Warren Leon, The Consumer’s trends from Douglas F. Williamson, Caviar and Guide to Effective Environmental Choices: Practi- Conservation Status, Management, and Trade of cal Advice from the Union of Concerned Scientists North American Sturgeon and Paddlefish (Cam- (New York: Three Rivers Press, 1999), p. 58; bridge, U.K.: World Wildlife Fund, May 2003), p. Organisation for Economic Co-operation and 148; TRAFFIC, Sturgeons of the Caspian Sea and Development (OECD), Working Party on the International Trade in Caviar (Cambridge, National Environmental Policy, Sustainable Con- U.K.: November 1996); International Trade sumption: Sector Case Study Series, Household Food Agency reports that the United States imported 39, Consumption: Trends, Environmental Impacts and 289 kilos (84,411 pounds) of caviar for con- Policy Response (Paris: December 2001), p. 44; sumption in 2002, at www.ita.doc.gov/ Niels Jungbluth and Rolf Frischknecht, “Indica- td/industry/otea/Trade-Detail/Latest-Decem tors for Monitoring Environmental Relevant ber/Imports/16/160430.html; “Shark! Danger Trends of Food Consumption,” ESU-services, Exaggerated, Says US Experts,” Reuters, 17 June Switzerland, at www.esu-services.ch/download/ 2002; Brian Handwerk, “Asian Shark-Fin Trade SETAC-food consumption-indicator.pdf; Annika May be Larger than Expected,” National Geo- Carlsson-Kanyama, “Climate Change and Dietary graphic News, 28 April 2003; Patricia Brown, Choices: How Can Emissions of Greenhouse “Foie Gras Fracas: Haute Cuisine Meets the Duck Gases from Food Consumption Be Reduced,” Liberators,” New York Times, 24 September 2003;

203 State of the World 2004 NOTES, CHAPTER 4

Caviar Emptor Campaign, Roe to Ruin: Executive site, at www.nimanranch.com, viewed 15 June Summary (Washington, DC: Natural Resources 2003. Defense Council, December 2002). 16. Cees de Haan et al., “Livestock and the Envi- 9. Peter Pringle, Food, Inc.: Mendel to Mon- ronment: Finding a Balance,” report of a study santo—The Promises and Perils of the Biotech Har- coordinated by FAO, U.S. Agency for Interna- vest (New York: Simon & Schuster, 2003). tional Development, and World Bank (Brussels: 1997), p. 53; FAO “Meat and Meat Products,” 10. Marion Nestle, Food Politics: How the Food FAO Food Outlook No. 4, October 2002, p. 11. Industry Influences Nutrition and Health (Berke- Figure 4–1 from the following: feed from Vaclav ley, CA: University of California Press, 2002). Smil, Department of Geography, University of Manitoba, discussion with Brian Halweil, October 11. Germany, the United States, and the United 2002, and from Erik Millstone and Tim Lang, The Kingdom from J. N. Pretty et al., “An Assess- Penguin Atlas of Food: Who Eats What, Where, ment of the Total External Costs of UK Agricul- and Why (London: Penguin Books, 2003), p. 34; ture,” Agricultural Systems, August 2000, pp. water from ibid., p. 35; additives from Margaret 113–36, and from Jules Pretty et al., “Policy Chal- Mellon, Charles Benbrook, and Karen Lutz Ben- lenges and Priorities for Internalising the Exter- brook, Hogging It! Estimates of Antimicrobial nalities of Modern Agriculture,” Journal of Abuse in Livestock (Washington, DC: Union of Environmental Planning and Management, March Concerned Scientists, 2001); fossil fuels from 2001, pp. 263–83. Millstone and Lang, op. cit. this note, pp. 35, 62; methane from de Haan et al., op. cit. this note; dis- 12. Southwest England from Foundation for eases from Neil Barnard, Andrew Nicholson, and Local Food Initiatives, Shopping Basket Survey for Jo Lil Howard, “The Medical Costs Attributed to South West Local Food Partnership (London: 2002). Meat Consumption,” Preventive Medicine, Novem- ber 1995. 13. McDonald’s from David Barboza with Sherri Day, “McDonald’s Seeking Cut in Antibiotics in 17. Christopher Delgado, Claude Courbois, and Its Meat,” New York Times, 20 June 2003; Kraft Mark Rosegrant, Global Food Demand and the from David Barboza, “Kraft Plans to Rethink Contribution of Livestock As We Enter the New Some Products to Fight Obesity,” New York Times, Millennium, MSSD Discussion Paper No. 21 2 July 2003; Bill Vorley and Julio Berdegué, “The (Washington, DC: International Food Policy Chains of Agriculture,” World Summit on Sus- Research Institute, 1998), p. 6. tainable Development Opinion (London: Inter- national Institute for Environment and 18. Jo Robinson, Why Grassfed is Best! The Sur- Development (IIED), May 2001); William Vorley, prising Benefits of Grassfed Meat, Eggs, and Dairy Agribusiness and Power Relations in the Agri-Food Products (Vashon, WA: Vashon Island Press, 2000), Chain, background paper for Policies That Work p. 8; “Hay! What a Way to Fight E. coli,” Science for Sustainable Agriculture and Regenerating Rural News Online, 19 September 1998, at www.science Economies (London: IIED, June 2000), p. 21; news.org/sn_arc98/9_19_98/Food.htm. Race to the Top project, see www.racetothetop.org. 19. World Health Organization (WHO) and 14. Iowa Agricultural Statistics Service, Decem- FAO, Antimicrobial Resistance, Fact Sheet No. ber Hogs and Pigs—Iowa (Washington, DC: U.S. 194 (Geneva: WHO, January 2003); Mellon, Department of Agriculture (USDA), 30 Decem- Benbrook, and Benbrook, op. cit. note 16. ber 2002); Paul Willis, Manager, Niman Ranch Pork Company, discussion with Danielle Nieren- 20. Ian Langford cited in Nick Tattersall, berg, 12 June 2003. “Stressed Farm Animals Contribute to Food Poi- soning: U.K. Study,” Manitoba Co-operator’s, 15 15. Willis, op. cit. note 14; Niman Ranch Web March 2001.

204 State of the World 2004 NOTES, CHAPTER 4

21. U.S. Department of Health and Human Ser- DC), fall/winter 1999–2000, p. 7. vices, Food and Drug Administration, Center for Food Safety and Applied Nutrition, Consumer 29. Eggs and laying hens from Elizabeth Becker, Questions and Answers about BSE (Washington, “Advocates for Animals Turn Attention to Chick- DC: May 2003). ens,” New York Times, 4 December 2002, and from “McDonald’s USA Animal Welfare Laying 22. Dr. Gary Smith, University of Pennsylvania Hens Guidelines,” at www.mcdonalds.com/ Veterinary School, discussion with Danielle Nieren- countries/usa/community/welfare/laying_hen/ berg, February 2003; “Transporting Animals in index.html; antibiotics from David Barboza with Europe,” in Millstone and Lang, op. cit. note 16, Sherri Day, “McDonald’s Seeking Cut in Antibi- p. 64. otics in Its Meat,” New York Times, 20 June 2003, from “Fast Food, Not Fast Antibiotics,” New 23. I. Koizumi et al., “Studies on the Fatty Acid York Times, 22 June 2003, and from David Bar- Composition of Intramuscular Lipids of Cattle, boza, “Animal Welfare’s Unexpected Allies,” New Pigs, and Birds,” Journal of Nutritional Science York Times, 25 June 2003. Vitaminol (Tokyo), vol. 37, no. 6 (1991), pp. 545–54; Robinson, op. cit. note 18, pp. 12–15; see 30. “Fast Food, Not Fast Antibiotics,” op. cit. also Eat Wild Web site at www.eatwild.com. note 29; Barboza, op. cit. note 29; Cornelius de Haan et al, Livestock Development: Implications 24. Smil, op. cit. note 16. for Rural Poverty, the Environment, and Global Food Security (Washington, DC: World Bank, 25. Robinson, op. cit. note 18, p. 7; demand 2001), pp. xii–xiii. for meat from FAO, op. cit. note 7, updated 9 Jan- uary 2003; idem, op. cit. note 17, p. 11; David 31. Nadia El-Hage Scialabba and Caroline Hat- Brubaker, former CEO, PennAg Industries, dis- tam, eds., Organic Agriculture, Environment and cussion with Danielle Nierenberg, September Food Security, Environment and Natural Resources 2002. Series, No. 4 (Rome: FAO, 2002), p. 29.

26. Payal Sampat, “Groundwater Shock: The 32. Ibid.; AGRIPO Agriculture and Pollution, Polluting of the World’s Major Freshwater Stores,” “Policy Options for Pollution Control—Sustain- World Watch, January/February 2000, p. 14; able Farming Systems,” course modules prepared idem, “Uncovering Groundwater Pollution,” in by Lithuanian University of Agriculture, 2001, p. Worldwatch Institute, State of the World 2001 20, at distance.ktu.lt/agripo/8-sust-farming.pdf. (New York: W.W. Norton & Company, 2001), p. 27; Michael Mallin et al., “Impacts and Recovery 33. Internationale Fachmesse für Abwassertech- from Multiple Hurricanes in a Piedmont-Coastal nik, “Farmers as Water Managers? Cooperation Ini- Plain River System,” Bioscience, November 2002, tiatives between Water Supply Companies and p. 999. Agriculture: One of the Themes at IFAT 2002,” brief produced for the International Trade Fair for 27. Bobby Inocencio, Teresa Farms, Philippines, Waste Water Technology No. 7, September 2001, discussion with Danielle Nierenberg, August 2002; Munich, Germany. Teresa Farms, Management Guide SASSO Free- Range Colored Chickens (Rizal, Philippines: 34. University of Essex from Pretty et al., “An undated). Assessment of the Total External Costs,” op. cit. note 11; Philippines from P. L. Pingali et al., “The 28. Steve Tarter, “Megahog Opponent Tours Impact of Pesticides on Farmer Health: A Medical Poland,” Peoria Star Journal, 12 June 2001; Tom and Economic Analysis in the Philippines,” in P. Garrett, “Polish Delegation Investigates American L. Pingali and P. A. Roger, eds., Impact of Pesti- Agribusiness, Repudiates Factory Farming,” AWI cides on Farmer Health and the Rice Environment Quarterly (Animal Welfare Institute, Washington, (Norwell, MA: Kluwer Academic Publishers,

205 State of the World 2004 NOTES, CHAPTER 4

1995), pp. 343–60. 42. Brian P. Baker et al., “Pesticide Residues in Conventional, IPM-grown and Organic Foods: 35. Organic farms and biodiversity from El-Hage Insights from Three U.S. Data Sets,” Food Addi- Scialabba and Hattam, op. cit. note 31, pp. 38–53. tives and Contaminants, May 2002, pp. 427–46; Cynthia L. Curl et al., “Organophosphorus Pes- 36. “The Global Market for Organic Food & ticide Exposure of Urban and Suburban Preschool Drink,” Organic Monitor (London), July 2003. A Children with Organic and Conventional Diets,” similar estimate of $23–25 billion in 2003 comes Environmental Health Perspectives, March 2003, from Minou Yussefi and Helga Willer, eds., The pp. 377–82. World of Organic Agriculture 2003—Statistics and Future Prospects (Tholey-Theley, Germany: Inter- 43. Edward Groth, Senior Scientist, Consumers national Federation of Organic Agriculture Move- Union, discussion with Brian Halweil, 22 Sep- ments (IFOAM), 2003), p. 24; 23 million hectares tember 2003; National Research Council, Pesti- and Figures 4–2 and 4–3 from ibid., p. 13. cides in the Diets of Infants and Children (Washington, DC: National Academy Press, 1993); 37. Nicholas Parrott and Terry Marsden, The Baker et al., op. cit. note 42; Misa Kishi and Real Green Revolution (London: Greenpeace Envi- Joseph Ladou, “International Pesticide Use,” ronmental Trust, 2002), p. 61; Rick Welsh, The International Journal of Occupational and Envi- Economics of Organic Grain and Soybean Produc- ronmental Health, October/December 2001; tion in the Midwestern United States, Henry A. Wal- Dina M. Schreinmachers et al., “Cancer Mortal- lace Institute for Alternative Agriculture, Policy ity in Agricultural Regions of Minnesota,” Envi- Studies Report No. 13 (Greenbelt, MD: May ronmental Health Perspectives, March 1999; S. H. 1999); P. Mader et al., “Soil Fertility and Biodi- Swan et al., “Semen Quality in Relation to Bio- versity in Organic Farming,” Science, 31 May markers of Pesticide Exposure,” Environmental 2002. Health Perspectives, September 2003, pp. 1478–84; M. F. Cavieres et al., “Developmental Toxicity of 38. Bill Liebhardt, Get the Facts Straight: Organic a Commercial Herbicide Mixture in Mice: I. Agriculture Yields are Good, Information Bulletin Effects on Embryo Implantation and Litter Size,” No. 10 (Santa Cruz, CA: Organic Farming Environmental Health Perspectives, November Research Foundation, summer 2001). 2002, pp. 1081–85.

39. Peter Tschannen, Project Director, Remei 44. Danny K. Asami et al., “Comparison of the AG Biore, Lettenstrasse, Switzerland, discussion Total Phenolic and Ascorbic Acid Content of with Brian Halweil, 4 May 2003; Tadeu Caldas, “A Freeze-Dried and Air-Dried Marionberry, Straw- Glimpse into the Largest Organic Project in Asia,” berry, and Corn Grown Using Conventional, Ecology and Farming (IFOAM), March 2000. Organic, and Sustainable Agricultural Practices,” Journal of Agricultural and Food Chemistry, Feb- 40. Jean-Marie Diop et al., On-Farm Agro-Eco- ruary 2003, pp. 1237–41. nomic Comparison of Organic and Conventional Techniques in High and Medium Potential Areas of 45. “Stranglehold, Pesticides: What’s the Way Kenya, joint publication of ETC (Educational Out?” Down to Earth, 15 June 2003. Training Consultants) Netherlands and Kenya Institute of Organic Farming (Leusden and 46. Asami et al., op. cit. note 44. Nairobi: March 1998). 47. Slow Food membership from Ilaria Morra, 41. El-Hage Scialabba and Hattam, op. cit. note press office, Slow Food, e-mail to Brian Halweil, 31, pp. 8–10; Parrott and Marsden, op. cit. note 14 July 2003; Carlo Petrini, President, Slow Food, 37, p. 62; Nicholas Parrott, School of City and e-mail to Brian Halweil, 17 July 2002. Regional Planning, Cardiff University, U.K., dis- cussion with Brian Halweil, 12 September 2003. 48. Alejandro Argumedo, ANDES, Cuzco, Peru,

206 State of the World 2004 NOTES, CHAPTER 4 AND BOTTLED WATER e-mail to Brian Halweil, 15 March 2002. sumer Deskilling and the Transformation of Food Systems,” in M. D. Mehta, ed., The Sociology of 49. Trade and volume from FAO, op. cit. note Biotechnology (Toronto: University of Toronto 7, updated 24 December 2002; U.S. surveys from Press, forthcoming). Matthew Hora and Jody Tick, From Farm to Table: Making the Connection in the Mid-Atlantic 55. Summaries of consolidation trends are avail- Food System (Washington, DC: Capital Area Food able in William Heffernan et al., Consolidation in Bank, 2001), and from Rich Pirog et al., Food, the Food and Agriculture System (Washington, Fuel, and Freeways: An Iowa Perspective on How DC: National Farmers Union, February 1999), in Far Food Travels, Fuel Usage, and Greenhouse Gas Mary Hendrickson et al., Consolidation in Food Emissions (Ames, IA: Leopold Center for Sus- Retailing and Dairy: Implications for Farmers tainable Agriculture, Iowa State University, 2001), and Consumers in a Global Food System (Wash- pp. 1, 2; U.K. data and Figure 4–4 from Andy ington, DC: January 2001) (available at www.food Jones, Eating Oil: Food Supply in a Changing Cli- circles.missouri.edu), and in Halweil, op. cit. note mate (London: Sustain, 2001). 6; Lappé and Lappé, op. cit. note 51, pp. 138–64.

50. New Economics Foundation, “Local Food 56. More than 26 million lunches from USDA, Better for Rural Economy than Supermarket Shop- National School Lunch Program, “FAQs,” at ping,” press release (London: 7 August 2001); www.fns.usda.gov/cnd/Lunch/AboutLunch/faqs Christopher Delgado et al., Agricultural Growth .htm, updated August 2003; Swedish Food Linkages in Sub-Saharan Africa, Research Report Authority from OECD, op. cit. note 7, p. 53. In 107 (Washington, DC: International Food Policy Box 4–3, over $300 billion in subsidies from Research Institute, December 1998). OECD, Agricultural Policies in OECD Countries: Monitoring and Evaluation 2002 (Paris: 2002). 51. Vandana Shiva, Research Foundation for Sci- ence, Technology and Ecology, e-mail to Brian 57. Historical changes in food policy from Nes- Halweil, 18 July 2003; for Navdanya movement, tle, op. cit. note 10; Stuart Laidlaw, Secret Ingre- see ; Francis Moore Lappé dients: The Brave New World of Industrial and Anna Lappé, Hope’s Edge: The Next Diet for Farming (Toronto: McClelland & Stewart Ltd., a Small Planet (New York: Tarcher/Putnam, 2003). p. 254. 2002), pp. 145–50. Bottled Water 52. “The Old Ones are the Best,” New Agricul- turalist on-line, 1 September 2003, at www 1. Catherine Ferrier, Bottled Water: Under- .new-agri.co.uk/03-5/focuson/focuson5.html. standing a Social Phenomenon (Washington, DC: World Wildlife Fund, April 2001), p. 13; con- 53. Norman E. Borlaug, “The Next Green Rev- sumption growth rate from International Year of olution,” New York Times, 11 July 2003; Sustain: Freshwater, “Facts and Figures: Bottled Water,” at The Alliance for Better Food and Farming, “Study www.wateryear2003.org; Rajesh Mahapatra, “Pes- Visit to Italy: The Italian School Meals System,” ticide Findings Spur Indian Government Crack- at www.sustainweb.org/chain_italy_study.asp, down on Bottled Water Companies,” Associated viewed 1 September 2002; Anne Dolamore et al., Press, 21 February 2003; global expenditure from Good Food on the Public Plate: A Manual for Sus- Brian Howard, “The World’s Water Crisis,” E tainability in Public Sector Food and Catering Magazine, September/October 2003, p. 28. (London: Sustain and East Anglia Food Link, 2003). 2. Description of water and Perrier recall from Ferrier, op. cit. note 1, pp. 3, 6, 17. 54. JoAnn Jaffe, University of Regina, e-mail to Brian Halweil, 26 April 2002, based on JoAnn Jaffe 3. Anne Christiansen Bullers. “Bottled Water: and Michael Gertler, “Victual Vicissitudes: Con- Better Than the Tap?” FDA Consumer Magazine

207 State of the World 2004 NOTES, BOTTLED WATER AND CHICKEN

(U.S. Food and Drug Administration), July- Chicken August 2002. 1. World Society for the Protection of Animals 4. Asia and the Pacific from Ferrier, op. cit. (WSPA), World Farmwatch, “The Facts About note 1, p. 13; poor access from Howard, op. cit. Our Food, Eggs,” pamphlet, at www.wspa.org.uk; note 1, p. 3; Natural Resources Defense Council Paul Shapiro, Compassion Over Killing, and Bruce (NRDC), Bottled Water: Pure Drink or Pure Hype? Freidrich, People for the Ethical Treatment of (New York: March 1999); France from Ferrier, op. Animals, e-mails to author, 15 September 2003. cit. note 1, p. 16. 2. WSPA, op. cit. note 1; Shapiro, op. cit. note 5. Maude Barlow, Blue Gold: The Global Water 1; Freidrich, op. cit. note 1; Stuart Laidlaw, Secret Crisis and the Commodification of the World’s Ingredients: The Brave New World of Industrial Water Supply, rev. ed. (Ottawa, ON, Canada: Farming (Toronto: McClelland & Stewart Ltd., Council of Canadians, spring 2001), pp. 46–47; 2003), pp. 31, 52. Anthony DePalma, “Free Trade in Fresh Water? Canada Says No and Halts Exports,” New York 3. WSPA, op. cit. note 1; Laidlaw, op cit note Times, 8 March 1999. 2, p. 33; Shapiro, op. cit. note 1; Compassion in World Farming, Laying Hen Factsheet, at 6. Container Recycling Institute (CRI), “Plas- www.ciwf.co.uk/Camp/Main/Battery/battery tic Soda Bottle Recycling Rate Down Again…Vir- _hen_campaign.htm, viewed 23 September 2003. gin Resin Production Outpaces Recycling,” at www.container-recycling.org/plasrate/ratedown 4. WSPA, op. cit. note 1; Compassion in World .htm; PET lifecycle data from Association of Plas- Farming, op. cit. note 3; National Animal Health tic Manufacturers in Europe, cited in Baxter CVG, Monitoring System, Part II: Reference of 1999 The Economic and Ecological Implications of a Table Egg Layer Management in the U.S. (Wash- Solid Waste Reduction Program, at www.waste ington, DC: U.S. Department of Agriculture reduction.org/Baxter/Bax5.htm. (USDA), 2000); Michael Appleby, Vice Presi- dent, Farm Animals and Sustainable Agriculture, 7. Ferrier, op. cit. note 1, p. 23. of the United States, e-mail to author, 26 September 2003. 8. Water bottles in United States from Patricia Franklin, “Letter from the Executive Director,” 5. Anthony Browne, “Ten Weeks to Live,” The Container and Packaging Recycling Update (CRI, Observer, 10 March 2002; Shapiro, op. cit. note 1. Arlington, VA), summer/fall 2003, p. 2; Kalyan Moitra, “Recycle Onus on PET Producers, Says 6. Feed amount from Richard Reynnells, PCB,” Economic Times of India, 27 June 2003; National Program Leader, Animal Production Sys- CRI, Bottle Bill Resource Guide, at www.bot- tems, USDA, e-mail to author, 26 September tlebill.org. 2003, and from Mack O. North, Commercial Chicken Production Manual, 3rd ed. (Westport, 9. Reason to drink bottled water from Ferrier, CT: AVI Publishing Company, Inc., no date), p. op. cit. note 1, p. 16; NRDC, op. cit. note 4; Cen- 374; Consumers Union, “Presence of Anti-micro- tre for Science and Environment, “Pure Water or bial Resistant Pathogens in Retail Poultry Products: Pure Peril?” press release (New Delhi: 4 February A Report by CI Members in Australia and the 2003); Hansika Pal, “Debate Over Pesticide United States,” presented by Consumers Inter- Residue Clouds Bottled Water,” Economic Times national to the Codex Committee on Residues of of India, 6 February 2003. Veterinary Drugs in Foods, 4–7 March 2003; European Commission, “The Welfare of Chickens 10. U.N. International Year of Freshwater, at Kept for Meat Production (Broilers),” Report of www.un.org/events/water; Millennium Devel- the Scientific Committee on Animal Health and opment Goals at www.un.org/millenniumgoals. Animal Welfare, 21 March 2000, pp. 31–36,

208 State of the World 2004 NOTES, CHICKEN AND CHOCOLATE

42–43; Browne, op. cit. note 5. Ambio, May 2000, pp. 167–73.

7. Browne, op. cit. note 5; Erik Millstone and 5. Global deforestation and Côte d’Ivoire from Tim Lang, The Penguin Atlas of Food: Who Eats Rice and Greenberg, op. cit. note 4, p. 169; B. What, Where, and Why (London: Penguin Books, Duguma, J. Gockowski, and J. Bakala, “Small- 2003), p. 38. holder Cacao (Theobroma cacao Linn.) Cultivation in Agroforestry Systems of West and Central Africa: 8. “In Praise of Family Poultry,” Agriculture 21 Challenges and Opportunities,” Agroforestry Sys- (U.N. Food and Agriculture Organization), March tems, vol. 51, no. 3 (2001), pp. 177–79; forest loss 2002. in Indonesia from François Ruf and Yoddang, “Cocoa Migrants from Boom to Bust,” in François 9. Kimberlie Cole, Westwind Farms, e-mail to Gérard and François Ruf, eds., Agriculture in Clayton Adams, Worldwatch Institute, 14 August Crisis: People, Commodities and Natural Resources 2003; West Wind Farms Web site, at www.grass in Indonesia, 1996–2001 (Richmond, Surrey, U.K.: organic.com, viewed 12 June 2003. Curzon Press, 2001), pp. 106, 131–32; Brazil from Johns, op cit. note 4, pp. 31–47; Cameroon Chocolate from Jim Gockowski, International Institute of Tropical Agriculture, e-mail to author, 13 Decem- 1. Allen M. Young, The Chocolate Tree: A Nat- ber 2001. ural History of Cacao (Washington, DC: Smith- sonian Institution Press, 1994), pp. 2–8; J. C. 6. Rice and Greenberg, op. cit. note 4, pp. Motamayor and C. Lanaud, “Molecular Analysis 169–70 and Table 2. of the Origin and Domestication of Theobroma cacao L.,” in Johannes M. M. Engels et al., eds., 7. Global worth of cocoa retail from Trevor Managing Plant Genetic Diversity (Wallingford, Datson, “Chocoholism Reached Almost Epidemic U.K.: CABI Publishing, 2002), pp. 77–87. Proportions,” Reuters, 12 February 2003, and from U.N. Conference on Trade and Develop- 2. U.N. Food and Agriculture Organization ment, “UN Cocoa Conference Ends 10-Day Ses- (FAO), FAOSTAT Statistical Database, at sion; Will Resume Work in February 2001,” press apps.fao.org, viewed 3 September 2003. release (Geneva: 28 November 2000). High-end estimates of farm income assume an 80-percent 3. Overview of cocoa-growing requirements farmgate share of annual bean export revenues; for available on the International Cocoa Organization 2002, those revenues were estimated at $4.4 bil- Web site, at www.icco.org/questions/tree.htm, lion by multiplying global production (available in viewed 3 September 2003; spread of cocoa FAO, op. cit. note 2) by the average 2002 trad- throughout the tropics from Young, op. cit. note ing price (available in the International Cocoa 1, pp. 14–47; Russell A. Mittermeier, Norman Organization’s Quarterly Bulletin of Cocoa Sta- Myers, and Cristina Goettsch Mittermeier, tistics). Labor abuse from “New Foundation Hotspots: Earth’s Biologically Richest and Most Launched to Fight Problem in Cocoa Industry,” Endangered Terrestrial Ecoregions (Mexico City: U.N. Wire, 2 July 2002, from Sumana Chatterjee, CEMEX/Conservation International, 1999). “Chocolate Industry to Fight Child Slavery,” San Jose Mercury News, 2 July 2002, and from Brooke 4. Commercial production under 60 percent Shelby Biggs, “Slavery Free Chocolate?” at canopy from Norman D. Johns, “Conservation in www.alternet.org, 7 February 2002. Brazil’s Chocolate Forest: The Unlikely Persis- tence of the Traditional Cocoa Agroecosystem,” 8. For a full account of the fair trade system, see Environmental Management, January 1999, p. Fairtrade Labelling Organizations International, at 35; for an overview of cocoa cultivation, see Robert www.fairtrade.net; lindane from René Philippe et A. Rice and Russell Greenberg, “Cacao Cultivation al., “Rational Chemical Pest Control,” in and the Conservation of Biological Diversity,” Dominique Mariau, ed., Integrated Pest Manage-

209 State of the World 2004 NOTES, CHOCOLATE, SHRIMP,AND SODA ment of Tropical Perennial Crops (Enfield, NH: Sci- Around the World (London: 2003), p. 2. ence Publishers, 1997), pp. 25–35. 7. Denise Johnston, Chris Soderquist, and Shrimp Donella H. Meadows, The Shrimp Commodity Sys- tem: A Sustainability Institute Report (Hartland, 1. Egypt from Don Brothwell and Patricia VT: The Sustainability Institute, 2000) p. 3. Brothwell, Food in Antiquity—A Survey of the Diet of Early Peoples (Baltimore, MD: John Hop- 8. Isabel de la Torre, “The Unpalatable Prawn,” kins University Press, 1998), pp. 55–66; “A Brief Earth Island Journal, spring 2000. History of Shrimp Farming,” Shrimp News Inter- national, at www.shrimpnews.com/History.html, 9. David Barnhizer, “The Trade, Environment updated 1 October 2003. and Human Rights: The Paradigm Case of Indus- trial Aquaculture and the Exploitation of Tradi- 2. Globefish, cited in Foodmarket Exchange tional Communities,” Mangrove Action Project .com, “Shrimp Production,” at www.foodmarket Web site, at www.earthisland.org/map/trd-hmn exchange.com/datacenter/product/seafood/ .htm; Environmental Justice Foundation, Smash shrimp/detail/dc_pi_sf_shrimp0301_01.htm, & Grab: Conflict, Corruption and Human Rights viewed 28 August 2003. Abuses in the Shrimp Farming Industry (London: 2003). 3. Chinese production from ibid.; top exporter from Foodmarket Exchange.com, “Shrimp Trade,” 10. Vandana Shiva, presentation at the Peoples at www.foodmarketexchange.com/datacenter/ Summit, St. Mary’s University, Halifax, NS, product/seafood/shrimp/dc_pi_sf_shrimp04.htm, Canada, 17 June 1995; quote cited in Environ- viewed 28 August 2003. mental Justice Foundation, op. cit. note 6, p. 1.

4. U.S. imports from Helga Josupeit, “An 11. Consortium from Network of Aquaculture Overview on the World Shrimp Market,” Sep- Centres in Asia-Pacific, Shrimp Farming and the tember 2001, at www.globefish.org/presenta Environment Web site, at www.enaca.org/ tions, viewed 28 August 2003; U.S. National Shrimp/ShrimpAquacultureCertification.htm; Oceanic and Atmospheric Administration, “Shrimp Todd Steiner, Sea Turtle Restoration Project, Overtakes Canned Tuna as Top U.S. Seafood,” Earth Island Institute, “Sea Turtles, Shrimp Fish- press release (Washington, DC: 28 August 2002); eries, and the Turtle Excluder Device,” presenta- Japan from Globefish, “Shrimp,” Monthly Market tion prepared for the Shrimp Tribunal at the Report, April 2003, at www.globefish.org/market United Nations, 29 April 1996, at www.earth reports/Shrimp/Shrimp4.htm, and from John summitwatch.org/shrimp/positions/pov2.html; M. Saulnier, “European Ban on Asian Shrimp World Rainforest Movement, “Local Fisherfolk Imports Puts Even More Pressure on Prices,” Protect the Mangroves in Sri Lanka,” WRM Bul- Global Seafood Magazine (Quick Frozen Foods letin No. 20, 10 February 1999. International), April 2002. Soda 5. Three quarters and $7 billion from Globefish, “Shrimp,” Commodity Update, June 2002, at 1. Beverage Marketing Corporation, Global www.globefish.org/publications/commodityup Carbonated Soft Drinks: A Worldview, 2003 Edi- date/200206/200206.htm; Elliot Norse and Les tion (New York: 2003), according to John Rod- Watling, “Clearcutting the Ocean Floor,” Earth wan, e-mail to author, 29 September 2003. In Island Journal, summer 1999. 2002, 22.3 percent of the U.S. volume of soda was packaged for fountain drink dispensers and thus did 6. Environmental Justice Foundation, Squan- not include water or carbon dioxide (ibid.); for sim- dering the Seas: How Shrimp Trawling is Threat- plicity, the focus here is on the majority of soda, ening Ecological Integrity and Food Security packaged directly for consumers.

210 State of the World 2004 NOTES, SODA AND CHAPTER 5

2. Paul Vallely, Jon Clarke, and Liz Stuart, 5. Beverage Marketing Corporation, Global “Coke Adds Life? In India, Impoverished Farm- Beverage Packaging, 2002 Edition (New York: ers Are Fighting to Stop Drinks Giant ‘Destroy- 2002), according to Rodwan, op. cit. note 1; Lau- ing Livelihoods’,” (London) The Independent, 25 rel Wentz, “Global Marketers Spend $71 Billion,” July 2003; Surendranath C., “Coca-Cola: Con- Advertising Age, 11 November 2002, at tinuing the Battle in Kerala,” CorpWatch, 10 July www.adage.com/images/random/GlobalMarke 2003; Edward Luce, “Pepsi and Coca-Cola Deny ters2002.pdf, viewed 28 September 2003; Steven Pesticide Claims,” Financial Times, 5 August Manning, “How Corporations Are Buying Their 2003; Centre for Science and the Environment, Way Into America’s Classrooms,” The Nation, 27 “Government Confirms Pesticides in Soft Drinks,” September 1999, pp. 11–18. press release (Delhi, India: 21 August 2003). 6. Jennifer Gitlitz, Trashed Cans: The Global 3. About 25 percent of the U.S. volume consists Environmental Impacts of Aluminum Can Wast- of diet sodas (according to U.S. Department of ing in America (Arlington, VA: Container Recy- Agriculture (USDA), Economic Research Service, cling Institute, June 2002); number of cans from Per Capita Food Consumption Data System: Bev- Beverage Marketing Corporation, Beverage Pack- erages, at www.ers.usda.gov/Data/FoodCon aging in the U.S., 2003 Edition (New York: 2003), sumption/Spreadsheets/beverage.xls, viewed 1 according to Rodwan, op. cit. note 1, with calcu- August 2003), which substitute high-intensity lations based on Gitlitz, op. cit. this note; “Sum- sweeteners for sugars. While these sweeteners are mary of the National Beverage Producer essentially non-caloric, and thus do not contribute Responsibility Act of 2002: Senate Bill 2220,” directly to obesity, there is continuing debate on factsheet (Athens, GA: Grassroots Recycling Net- how safe they are. U.S. consumption data from work, undated); Sweden and Michigan from USDA, op. cit. this note; calcium intake from Gitlitz, op. cit. this note, pp. 27, 28. Claude Cavadini et al., “U.S. Adolescent Food Intake Trends from 1965 to 1996,” Archives of 7. Erika Hayasaki, “Schools to End Soda Sales,” Disease in Childhood, vol. 83, no. 1 (2000), p. 19; Los Angeles Times, 28 August 2002; junk-food U.S. Department of Health and Human Services, tax from Michael F. Jacobson and Kelly D. The Surgeon General’s Call to Action to Prevent Brownell, “Small Taxes on Soft Drinks and Snack and Decrease Overweight and Obesity, 2001 (Wash- Foods to Promote Health,” American Journal ington, DC: 2001); David S. Ludwig et al., of Public Health, June 2000, pp. 854–57 (cur- “Relationship Between Consumption of Sugar- rently taxes just go into general funds); Sweden and Sweetened Drinks and Childhood Obesity: A Poland from Euromonitor International, Mar- Prospective, Observational Analysis,” The Lancet, keting to Children: A World Survey, 2001 Edition, 17 February 2001, p. 507. from Trudi Griggs, Euromonitor, e-mail to author, 25 January 2002, and from Ingrid Jacobsson, 4. Caffeine component from Euromonitor “Advertising Ban and Children: Children Have the International, Soft Drinks: The International Mar- Right to Safe Zones,” Current Sweden, June 2002; ket, 2001 Edition, according to Trudy Griggs, e- sales and projections from Beverage Marketing mail to author, 19 December 2001; Roland R. Corporation, op. cit. note 1. Griffiths and Ellen M. Vernotica, “Is Caffeine a Fla- voring Agent in Cola Soft Drinks?” Archives of Chapter 5. Moving Toward a Less Family Medicine, August 2000, p. 732; Ronald R. Consumptive Economy Watson, “Caffeine: Is it Dangerous to Health?” American Journal of Health Promotion, spring 1. Richard B. Brightwell, “A Short Biography 1988; Roland Griffiths, Johns Hopkins University of King Camp Gillette,” at www.creekstone.net/ School of Medicine, e-mail to author, 22 January razors/kingcampgillette.htm, viewed 18 Septem- 2002; caffeine in Pepsi from “Caffeinated Kids,” ber 2003; “King C. Gillette Disposable-Blade Consumer Reports, July 2003, p. 28. Safety Razor,” Inventor of the Week Archive, June 2000, Lemelson-MIT Program, at web.mit.edu/

211 State of the World 2004 NOTES, CHAPTER 5 invent/iow/gillette.html. ciliate U.S. on Trade and Jobs,” New York Times, 2 September 2003; China-Mexico wage compe- 2. Eric A. Taub, “DVD’s Meant for Buying tition from Juan Forero, “As China Gallops, Mex- but Not for Keeping,” New York Times, 21 July ico Sees Factory Jobs Slip Away,” New York Times, 2003. 3 September 2003.

3. Edward Rothstein, “A World of Buy, Buy, 9. Organisation for Economic Co-operation Buy, from A to Z,” New York Times, 19 July 2003. and Development (OECD), Towards Sustainable Consumption: An Economic Conceptual Frame- 4. Lebow quote from Vance Packard, The Waste work (Paris: Environment Directorate, June 2002), Makers (New York: David Mckay, 1960). p. 41.

5. Alan Durning, in How Much Is Enough? 10. Table 5–1 adapted from Norman Myers and (New York: W.W. Norton & Company, 1992), Jennifer Kent, Perverse Subsidies. How Tax Dollars argued that from a consumption and ecological Can Undercut the Environment and the Economy impact perspective humanity is divided into three (Washington, DC: Island Press, 2001), pp. broad classes: the consumers, the middle, and the 187–88. poor. Although the specific numbers of people in these categories and the category thresholds are 11. Herman E. Daly, “Five Policy Recommen- constantly in flux, the distinction remains useful for dations for a Sustainable Economy,” in Juliet B. conceptual purposes. Schor and Betsy Taylor, eds., Sustainable Planet: Solutions for the 21st Century (Boston: Beacon 6. Juliet Schor, “The Triple Imperative: Global Press, 2002); OECD, Policies to Promote Sustain- Ecology, Poverty and Worktime Reduction” able Consumption: An Overview (Paris: Environ- (Boston, MA: Boston College, May 2001, unpub- ment Directorate, July 2002), p. 17; Lorenz Jarass, lished); 90 percent cut from Gary Gardner and “More Jobs, Less Tax Evasion, Better Environ- Payal Sampat, Mind Over Matter: Recasting the ment—Towards a Rational European Tax Pol- Role of Materials in Our Lives, Worldwatch Paper icy,” Contribution to the Hearing at the European 144 (Washington, DC: Worldwatch Institute, Parliament, Brussels, 17 October 1996. December 1998), p. 25. 12. OECD, op. cit. note 9, p. 17; tax revenue 7. Raw material trade trends from World Bank, trends and Table 5–2 from Ulf Johansson and “Change in Commodity Production and Trade,” Claudius Schmidt-Faber, “Environmental Taxes in Global Commodities Markets Online, at www.world the European Union 1980–2001,” Eurostat Sta- bank.org/prospects/gmconline/index.htm, April tistics in Focus, 9/2003, pp. 1, 3, 6. 2000, p. 10; commodity prices from International Monetary Fund, International Financial Statistics 13. OECD, Making Work Pay: Taxation, Bene- Yearbook (Washington, DC: annual), and from fits, Employment and Unemployment, The OECD Michael Renner, “Commodity Prices Weak,” in Jobs Strategy Series (Paris: 1997); idem, “Envi- Worldwatch Institute, Vital Signs 2001 (New York: ronmentally Related Taxes Database,” at W.W. Norton & Company, 2001), p. 122; Michael www.oecd.org/document/29/0,2340,en_2649_3 Renner, The Anatomy of Resource Wars, World- 7465_1894685_1_1_1_1_1,00.html, viewed 29 watch Paper 162 (Washington, DC: Worldwatch August 2003; Johansson and Schmidt-Faber, op. Institute, October 2002). cit. note 12, pp. 3-4.

8. Robert Brenner, “The Economics of Global 14. Carbon dioxide emissions avoided by 2002 Turbulence: A Special Report on the World Econ- and jobs gained from Umweltbundesamt (German omy, 1950–1998,” New Left Review, No. 229 Federal Environment Agency), “Höhere Miner- (1998), pp. 258–61; China-U.S. trade surplus alölsteuer Entlastet die Umwelt und den Arbeits- from Joseph Kahn, “China Seen Ready to Con- markt,” press release (Berlin: 3 January 2002);

212 State of the World 2004 NOTES, CHAPTER 5 revenue growth from BUND, “Wie Hoch Sind die watch Institute, July 2003); Anne Berlin Blackman, Ökosteuern?” at www.oeko-steuer.de/pages/ Jack Luskin, and Robert Guillemin, Programs for fakt_oekosteuer.phtml, viewed 13 August 2003; Promoting Sustainable Consumption in the United job projection to 2010 from Deutsches Institut für States (Lowell, MA: Toxics Use Reduction Insti- Wirtschaftsforschung (DIW), “Wirkungen der tute, University of Massachusetts, December Ökologischen Steuerreform in Deutschland,” 1999). DIW-Wochenbericht, No. 14/2001. 19. Michael Scholand, “Appliance Efficiency 15. European harmonization efforts from Green Takes Off,” in Worldwatch Institute, Vital Signs Budget Germany, Green Budget News—European 2002 (New York: W.W. Norton & Company, Newsletter on Environmental Fiscal Reform, 2002), p. 132. 2–4/2003, at www.eco-tax.info/2newsmit/ newseng/GBN2.html, and from European Envi- 20. Ibid. ronment Bureau (Brussels), Environmental Fiscal Reform Campaign Newsletter, April 2003 and 21. Lisa Mastny, “Ecolabeling Gains Ground,” in September 2003. Worldwatch Institute, op. cit. note 19, p. 124; Blue Angel from “25 Jahre Blauer Engel: Von Höhen- 16. German provisions from Stefan Bach and flügen und Turbulenzen,” Umweltbundesamt Michael Kohlhaas, “Nur zaghafter Einstieg in die (German Federal Environment Agency), 2 April ökologische Steuerreform,” DIW-Wochenbericht, 2003, at www.umweltdaten.de/uba-info-presse/ No. 36/1999; Reinhard Loske and Kristin Heyne, hintergrund/blauer-engel-historie.pdf, and from “Ökologische Steuerreform: Die Stufen 2–5,” www.blauer-engel.de. press release (Berlin: German Green Party parlia- mentary group, 29 June 1999); Umwelt- und 22. Mastny, op. cit. note 21, pp. 124–25; OECD, Prognose-Institut, “Stellungnahme des UPI-Insti- op. cit. note 9, pp. 31–32. tuts vom 23. Januar, incl. Nachträge vom 8.2. und 25.2.99,” at www.upi-institut.de/oes199.htm; 23. Stephan Moll, Stefan Bringezu, and Helmut rise to 60 percent from Michael Kohlhaas, Energy Schütz, Resource Use in European Countries Taxation and Competitiveness—Special Provisions (Copenhagen: European Topic Centre on Waste for Business in Germany’s Environmental Tax and Material Flows, in cooperation with the Direc- Reform, DIW Discussion Papers, No. 349 (Berlin: torate General Environment of the European DIW, May 2003); recent warning from “Trittin Union, March 2003), p. 36; Emily Matthews et al., Droht Industrie mit Höherer Ökosteuer,” Der Weight of Nations: Material Outflows from Indus- Spiegel, 13 August 2003. trial Economies (Washington, DC: World Resources Institute, 2000), pp. 84–85, 112–13. 17. BUND, “Eckpunkte zur Weiterentwicklung der ökologischen Steuerreform,” at www 24. Moll, Bringezu, and Schütz, op. cit. note .oeko-steuer.de/downloads/bund-oekosteuer.eck 23; Peter Bartelmus, “Dematerialization and Cap- punkte.pdf, 12 May 2003; Reinhard Loske and ital Maintenance: Two Sides of the Sustainability Frank Steffe, “Ökonomische Anreize in der Coin,” Ecological Economics, No. 46 (2003), p. 74; Umweltpolitik,” Blätter für Deutsche und Inter- Figure 5–1 from Matthews et al., op. cit. note 23, national Politik, No. 9 (2001), pp. 1082–83; pp. 84–85, 112–13. Umwelt- und Prognose-Institut, “Kampagne der CDU/CSU gegen die Ökosteuer,” updated 25. Paul Hawken, Amory Lovins, and L. Hunter 23 February 2003, at www.upi-institut.de/ Lovins, Natural Capitalism (Boston: Little, Brown cdu-kamp.htm. and Company, 1999); Ernst von Weizsäcker, Amory B. Lovins, and L. Hunter Lovins, Factor 18. Lisa Mastny, Purchasing Power: Harnessing Four: Doubling Wealth, Halving Resource Use Institutional Procurement for People and the Planet, (London: Earthscan, 1997); Gardner and Sampat, Worldwatch Paper 166 (Washington, DC: World- op. cit. note 6, p. 26.

213 State of the World 2004 NOTES, CHAPTER 5

26. Moll, Bringezu, and Schütz, op. cit. note 37–38. 23, pp. 9, 30, 53; Matthews et al., op. cit. note 23, p. XI. 33. Clean Production Action, “What Are the Key Elements of an Extended Producer Respon- 27. Christer Sanne, “Willing Consumers—or sibility Plan?” at www.cleanproduction.org, viewed Locked in? Policies for a Sustainable Consump- 11 September 2003. tion,” Ecological Economics, No. 42 (2002), p. 275; Schor, op. cit. note 6; Gardner and Sampat, 34. Blackman, Luskin, and Guillemin, op. cit. op. cit. note 6; automobile fuel efficiency and dri- note 18; Pat Franklin, Extended Producer Respon- ving trends from Michael Renner, “Vehicle Pro- sibility: A Primer (Arlington, VA: Container Recy- duction Declines Slightly,” in Worldwatch Institute, cling Institute, November 1997). op. cit. note 19, pp. 74–75, and from Michael Ren- ner, “Vehicle Production Inches Up,” in World- 35. BASF and Rohner from McDonough and watch Institute, Vital Signs 2003 (New York: W.W. Braungart, op. cit. note 30, pp. 19–20. Norton & Company, 2003), pp. 56–57; materi- als use from Ward’s Communications, Ward’s 36. Germany from “Extended Producer Respon- Motor Vehicle Facts & Figures 2002 (Southfield, MI: sibility,” Environmental Manager, August 1998; 2002). “Extended Product Responsibility: Designing for the Future,” Business for Social Responsibility 28. Blackman, Luskin, and Guillemin, op. cit. Education Fund, January 2000, at www note 18; Clean Production Action, at www .where-its-at.com/epr.html. Table 5–3 from the .cleanproduction.org. following: “Extended Product Responsibility: Designing for the Future,” op. cit. this note; Car- 29. Marquita Hill, Thomas Saviello, and Stephen ola Hanisch, “Is Extended Producer Responsibil- Groves, “The Greening of a Pulp and Paper Mill: ity Effective?” Environmental Science and International Paper’s Androscoggin Mill, Jay, Technology, April 2000, pp. 170A–75A; “Extended Maine,” Journal of Industrial Ecology, vol. 6, no. Producer Responsibility,” op. cit. this note; Clean 1 (2002), pp. 107–20. Production Action, “Extended Producer Respon- sibility,” at www.cleanproduction.org/epr/ 30. William McDonough and Michael Braun- EPR.htm; Sam Cole, “Zero Waste on the Move gart, “The Extravagant Gesture: Nature, Design, Around the World,” Eco-Cycle: Boulder County’s and the Transformation of Human Industry,” in Recycling Professionals, at www.ecocycle.org/ Schor and Taylor, op. cit. note 11, pp. 16–18; Hill, ZeroWaste/ZeroWasteonTheMove.cfm, viewed Saviello, and Groves, op. cit. note 29. Box 5–1 28 August 2003; Michele Raymond, Extended from work undertaken by McDonough Braun- Producer Responsibility Laws: A Global Policy gart Design Chemistry and from William McDo- Analysis (College Park, MD: Raymond Commu- nough and Michael Braungart, Cradle to Cradle: nications, Inc., undated); Raymond Communica- Remaking the Way We Make Things (New York: tions, Inc., “Recycling & Solid Waste in Latin North Point Press, 2002). America: Trends and Policies,” at www.ray mond.com/promo_raymond-library/lacsum.html, 31. John Ehrenfeld and Marian Chertow, “Indus- viewed 9 September 2003; Total Environment trial Symbiosis: The Legacy of Kalundborg,” in Center (Sydney, Australia), “Toxic Product Fact Robert Ayres and Leslie Ayres, eds., Handbook of Sheet, 2 July 2003, at www.tec.nccnsw.org.au/ Industrial Ecology (Cheltenham, U.K.: Edward member/tec/projects/Waste/tpf.html; Beverley Elgar, 2002). Thorpe and Iza Kruszewska, “Strategies to Pro- mote Clean Production–Extended Producer 32. Ibid.; John Ehrenfeld, Director Emeritus, Responsibility,” January 1999, updated 2 April MIT Technology, Business, and Environment Pro- 2003, at www.grrn.org/resources/BevEPR.html; gram, e-mail to author, 3 September 2003; Fiji U.S. Environmental Protection Agency, “Product from Gardner and Sampat, op. cit. note 6, pp. Stewardship,” at www.epa.gov/epaoswer/non

214 State of the World 2004 NOTES, CHAPTER 5

-hw/reduce/epr/products/index.html, viewed 9 note 36; Bette K. Fishbein, “Carpet Take-Back: September 2003; Mitsutune Yamaguchi, EPR American Style,” Environmental Quality “Extended Producer Responsibility in Japan,” Management, autumn 2000, pp. 25–36; Kodak ECP Newsletter, February 2002, at www.jemai.or from Cole, op. cit. note 36; Nike from “Extended .jp/english/e-ecp/ecp_no19/19a.pdf. Product Responsibility,” op. cit. note 36.

37. “Extended Product Responsibility: Design- 44. Hanisch, op. cit. note 36; German difficul- ing for the Future,” op. cit. note 36; Eric Lom- ties from Michael Kröger, “Die Selbstüberlistung bardi, “Take It Back!” Eco-Cycle: Boulder des Jürgen Trittin,” Spiegel Online, 1 October County’s Recycling Professionals, at www.ecocy 2003, at www.spiegel.de/wirtschaft/0,1518,26 cle.org/ZeroWaste/TakeItBack.cfm, viewed 28 7986,00.html. August 2003. 45. Xerox Corporation, Environment, Health, 38. INFORM, Inc., The WEEE and RoHS Direc- and Safety Progress Report 2002 (Webster, NY: tives: Highlights and Analysis (New York: July 2002), p. 12; Nortel from Blackman, Luskin, and 2003), and idem, European Union (EU) Electri- Guillemin, op. cit. note 18. cal and Electronic Products Directives (New York: July 2003); Michele Raymond, “U.S. Feels the 46. Tonnage, annual turnover, and Table 5–4 Effects of European Recycling Debate,” Waste from Bureau of International Recycling, “About Age, 1 March 2001; Hanisch, op. cit. note 36. The Recycling,” at www.bir.org/aboutrecycling/ Directive covers large and small household appli- index.asp, viewed 7 August 2003. ances, information and telecommunications equip- ment (such as computers and peripherals, cell 47. Global and U.S. statistics from Remanufac- phones), consumer items (such as televisions, turing Institute, “Frequently Asked Questions,” at radios, stereos), lighting, electrical and electronic www.remanufacturing.org/frfaqust.htm, viewed tools, toys, leisure and sports equipment, medical 28 October 1999; Walter Stahel, From Manufac- devices, monitoring instruments, and automatic turing Industry to Service Economy, from Selling dispensers. Products to Selling the Performance of Products, Executive Summary (Geneva: Product-Life Insti- 39. INFORM, Inc., EU Electrical and Electronic tute, April 2000). Products Directives, op. cit. note 38; idem, The WEEE and RoHS Directives, op. cit. note 38; Sil- 48. Xerox, op. cit. note 45, pp. 12, 14; Blackman, icon Valley Toxics Coalition and Clean Computer Luskin, and Guillemin, op. cit. note 18; Clean Campaign, “European Laws on Electronic Waste Production Action, “Companies Who Have Finan- and Toxics Enacted,” press release (San Jose, CA: cially Benefited from EPR Programs,” at 19 February 2003). www.cleanproduction.org/epr/ExistingPrograms .htm, viewed 11 September 2003. 40. INFORM, Inc., The WEEE and RoHS Direc- tives, op. cit. note 38; Lombardi, op. cit. note 37; 49. Hawken, Lovins, and Lovins, op. cit. note 25; IBM from “Extended Product Responsibility: Allen L. White, Mark Stoughton, and Linda Feng, Designing for the Future,” op. cit. note 36. Servicizing: The Quiet Transition to Extended Product Responsibility, report prepared for U.S. 41. Hanisch, op. cit. note 36; state and local Environmental Protection Agency, Office of Solid interest and battery initiative from “Extended Waste (Boston: Tellus Institute, May 1999). Producer Responsibility,” op. cit. note 36. 50. Xerox leasing from Clean Production Action, 42. Pressure on computer manufacturers from op. cit. note 48; other examples from Hawken, Clean Production Action, op. cit. note 33. Lovins, and Lovins, op. cit. note 25.

43. “Extended Product Responsibility,” op. cit. 51. Hawken, Lovins, and Lovins, op. cit. note 25.

215 State of the World 2004 NOTES, CHAPTER 5

52. Ibid.; Amory B. Lovins, L. Hunter Lovins, Predatory Plastic,” Southern Exposure, summer and Paul Hawken, “A Road Map for Natural Cap- 2003, p. 51; U.K. trend from Office for National italism,” Harvard Business Review, May/June Statistics, Annual Abstract of Statistics, Table 1999; Caspar Henderson, “Carpeting Takes on a 22.16: Consumer Credit, at www.statistics.gov.uk/ ‘Green’ Pattern,” Financial Times, 8 February STATBASE/Expodata/Spreadsheets/D4925.xls; 2000; Laurent Belsie, “Seeing Green from Being Germany from Gundi Knies and C. Katharina Green,” Christian Science Monitor, 7 February Spieß, “Fast ein Viertel der Privathaushalte in 2000; reduced consumption from Interface, Deutchland mit Konsumentenkreditverpflichtun- “Global Metrics,” at www.interfacesustainabil gen,” DIW-Wochenbericht, No. 17/2003; Nether- ity.com/metrics_mn.html, viewed 5 September lands from Noam Neusner, “Credit Addiction 2003. Goes Global,” U.S. News and World Report, 25 March 2002, pp. 35–36. 53. Hawken, Lovins, and Lovins, op. cit. note 25. 60. Joshua Kurlantzick, “Charging Ahead,” 54. Rogelio Olivia and James Quinn, “Inter- Washington Monthly, May 2003, pp. 27–29; South face’s Evergreen Services Agreement,” Harvard Korean credit card charges from Neusner, op. cit. Business School, Case Study N9-603-112 (Cam- note 59, pp. 35–36. birdge, MA: 12 February 2003); Fishbein, op. cit. note 43, pp. 25–36; Evergreen lease dropped 61. Gilbert Le Gras, “Canada Earmarks C$1 Bil- from Ehrenfeld, op. cit. note 32. lion in Climate Change Funds,” Reuters, 13 August 2003. 55. Herman E. Daly, Steady-State Economics (San Francisco: W.H. Freeman and Co., 1977), p. 20. 62. “Feebate,” Energy Dictionary, at www.energy vortex.com/energydictionary/feebate.html, viewed 56. Gary Gardner, “Why Share?” World Watch, 16 September 2003; “‘Feebates’–Price Instru- July/August 1999, pp. 10–20. ment Promoting Efficiency,” European Partners for the Environment, at www.epe.be/workbooks/ 57. The term “infrastructure of consumption” is sourcebook/2.11.html, viewed 16 September from OECD, op. cit. note 9, p. 30. 2003.

58. Sanne, op. cit. note 27, pp. 275, 279; OECD 63. U.S. productivity trend, measuring the man- household debt trend from OECD, op. cit. note ufacturing and service sectors, from Eric Rauch, 9, p. 14; savings rate trend from World Bank, “Productivity and the Workweek,” Massachusetts World Development Indicators 2002 (Washington, Institute of Technology, at www.swiss.ai.mit DC: 2002); German data from Roman Pletter, .edu/~rauch/misc/worktime/, viewed 9 August “Dank Bankberater in die Schuldenfalle,” Spiegel 2003; Schor, op. cit. note 6. Online, 25 August 2003, at www.spiegel.de/ wirtschaft/0,1518,262857,00.html. 64. Sanne, op. cit. note 27, p. 285.

59. Growth of U.S. consumer indebtedness from 65. Figure 5–3 from Anders Hayden, “Interna- “Flying on One Engine,” A Survey of the World tional Work-Time Trends: The Emerging Gap in Economy, The Economist, 20 September 2003, p. Hours,” Just Labour (Canada), spring 2003, p. 24; 4; total outstanding consumer credit and Figure Schor, op. cit. note 6. 5–2 from Federal Reserve Board, “Consumer Credit Historical Data,” at www.federalreserve 66. Sanne, op. cit. note 27, p. 280; Juliet B. .gov/releases/g19/hist/cc_hist_sa.txt, viewed 17 Schor, “Sustainable Consumption and Worktime September 2003; credit card debts from U.S. Reduction,” presented at the University of Linz on Department of Commerce, Statistical Abstract of the occasion of the Annual Kurt W. Rothschild the United States 2002 (Washington, DC: 2002), Lecture, 7 November 2002; Table 5–5 based on and from Robert D. Manning, “Perpetual Debt, Hayden, op. cit. note 65, pp. 27–28.

216 State of the World 2004 NOTES, CHAPTER 5

67. European preferences from Hayden, op. cit. (Princeton, NJ: Princeton University Press, 1993), note 65, p. 25; U.S. surveys and downshifting p. 91, with share in 2001 from Consumer Expen- from Schor, op. cit. note 6, and from Juliet B. diture Survey, Bureau of Labor Statistics, at Schor, The Overspent American (New York: Harper www.bls.gov/cex/2001/share/age.pdf; for low Perennial, 1998). share of revenue going to labor, see Nick Robins and Liz Humphrey, Sustaining the Rag Trade: A 68. U.S. wage trends from Economic Policy Review of the Social and Environmental Trends in Institute, “Growth of Average Hourly Wages, the UK Clothing Retail Sector and the Implications Benefits, and Compensation, 1948–2000 (2001 for Developing Country Producers (London: Inter- Dollars),” at www.epinet.org/datazone/02/ national Institute for Environment and Develop- nipa_comp_2_2.pdf, and from idem, “Wages for ment, 2000), p. 19; for more on sweatshops, see all Workers by Wage Percentile, 1973–2001 (2001 Ellen Rosen, Making Sweatshops: The Globalization Dollars),” at www.epinet.org/datazone/02/ of the U.S. Apparel Industry (Berkeley: University deciles_2_6r.pdf. of California Press, 2002); calculation of Bangladesh as the fourth largest apparel-exporting 69. Wages lagging behind productivity growth country by Juliet Schor based on www.otexa from Brenner, op. cit. note 8, p. 235; need for wage .ita.doc.gov/msr/cat1.html; wages and working increases from Schor, op. cit. note 6, and from Ken- conditions in Bangladeshi factories from National neth Lux, “The Failure of the Profit Motive,” Eco- Labor Committee, Ending the Race to the Bot- logical Economics, no. 44 (2003), p. 7. tom, Report on Bangladesh (New York: 2001), p. iii; data on wages paid in China and child labor 70. Lux, op. cit. note 68; Sanne, op. cit. note 27, from National Labor Committee Report, Made in p. 282; Schor, op. cit. note 67, pp. 169–71. China: Behind the Label (New York: 1998); for a current example of Disney withdrawing after work- 71. William Greider, “Deflation: It Threatens ers made modest requests, see www.nlcnet.org; the U.S.—and the World,” The Nation, 30 June apparel prices in last decade from detailed Con- 2003, p. 12; auto industry from Pricewater- sumer Price Index data available at www.bls.gov; houseCoopers, “Light Vehicle Assembly by rate of increase in garment purchase from U.S. Region, Country, Category,” 2001 Q4 Vehicle Census Bureau, Current Industry Reports 1997, Outlook Reports, at www.autofacts.com, viewed Summary (Washington, DC); 48 new pieces a 16 December 2001; expected doubling of China’s year based on idem, Current Industry Reports, production capacities from Keith Bradsher, “A Apparel, 2001, Tables 1 and 5; Goodwill donations Heated Chinese Economy Piles up Debt,” New from Christina Bergali, Media Relations Depart- York Times, 4 September 2003. ment, Goodwill International, discussion with Juliet Schor, February 2002; toys from China and 72. U.S. domestic demand growth from “Flying wages and working conditions in their toy facto- on One Engine,” op. cit. note 59, p. 3; Global Pol- ries from National Labor Committee, Toys of Mis- icy Forum, “Balance on US Current Account ery (New York: 2002), with 60 percent and 69 toys 1960–2002,” at www.globalpolicy.org/socecon/ from Schor’s calculations; other price data are cal- crisis/2003/curracctable.htm, viewed 23 May culated from Consumer Price Index, at 2003; Larry Elliott, “American Deficit Depen- www.bls.gov; World Bank and International Mon- dency: Kill or Cure, the Fallout’s Global,” The etary Fund from Joseph E. Stiglitz, Globalization Independent, 20 July 2003; EPI and Roach from and Its Discontents (New York: W.W. Norton & Joshua Kurlantzick, “Charging Ahead,” Wash- Company, 2002). ington Monthly, May 2003, p. 31. Box 5–2 from the following: For a more detailed discussion on 73. Sudden versus gradual change from Schor, clothing, see Juliet Schor, “Cleaning the Closet: op. cit. note 67, pp. 169–71. Toward a New Ethic of Fashion,” in Schor and Taylor, op. cit. note 10; apparel share of expendi- 74. Hawken, Lovins, and Lovins, op. cit. note 25, ture from Stanley Lebergott, Pursuing Happiness p. 10.

217 State of the World 2004 NOTES, CELL PHONES

Cell Phones Dorado,” New York Times, 28 February 2002.

1. International Telecommunication Union 8. Fishbein, op. cit. note 4, pp. 57–58; Blue (ITU), World Telecommunication Development Angel, at www.blauer-engel.de/englisch/naviga Report (Geneva: 2002), p. 13; idem, “Cellular tion/body_blauer_engel.htm, viewed 6 August Subscribers,” 24 April 2003 on Free Statistics 2003; TCO Development, at www.tcodevelop Home Page, at www.itu.int/ITU-D/ict/statis ment.com, viewed 6 August 2003. tics, viewed 23 June 2003. 9. “European Electroscrap Laws Enter into 2. “The Fight for Digital Dominance,” The Econ- Force,” Environmental News Service, 17 February omist, 23 November 2002; ITU, World Telecom- 2003; U.K. Environment Agency, “NetRegs: munication Development Report, op. cit. note 1, p. Waste Electrical and Electronic Equipment 10; Michael Bociurkiw, “Revolution by Phone: (WEEE) Directive,” at environment-agency Text Messaging Thrives in the Philippines,” Forbes, .gov.uk, viewed 20 September 2003; European 10 September 2001; Nick Wachira, “Wireless in Commission, “Commission Tackles Growing Kenya Takes a Village,” Wired News, 2 January Poblem of Electrical and Electronic Waste,” press 2003; ITU, “Cellular Subscribers,” op. cit. note 1. release (Brussels: 13 June 2000); U.K. Environ- ment Agency, “NetRegs: The Restriction of 3. World Health Organization, “Electromag- Hazardous Substances in Electronical and Elec- netic Fields and Public Health: Mobile Telephones tronic Equipment (RoHS) Directive,” at envi and Their Base Stations,” fact sheet (Geneva: June ronment-agency.gov.uk, viewed 20 September 2000); George Carlo and Martin Schram, Cell 2003; Jeff Chappell, “Recycling Europa,” Elec- Phones: Invisible Hazards in the Wireless Age (New tronic News, 18 March 2002, pp. 1–2. York: Carroll and Graf Publishers, 2001), pp. 250–55; Independent Expert Group on Mobile 10. Nokia, “Environmental Report of Nokia Phones, Mobile Phones and Health (Oxon, U.K.: Corporation 2002,” at www.nokia.com, viewed 23 National Radiological Protection Board, 2000); September 2003. Gautam Malkani, “Mobile Phone Safety Probed by 15 Studies,” Financial Times, 26 January 2002. 11. Ted Smith and Chad Raphael, “High Tech Goes Green,” YES! A Journal of Positive Futures, 4. Bette K. Fishbein, Waste in the Wireless World: spring 2003, pp. 28–30; Alice P. Jacobson, “Delet- The Challenge of Cell Phones (New York: INFORM, ing E-Waste,” Waste Age, 1 June 2003, p. 6; Lynn 2002), pp. 15–17; Charles W. Schmidt, “E-Junk Schenkman, “New York Law Will Require Cell Explosion,” Environmental Health Perspectives, Phone Dealers to Recycle Their Products,” Waste April 2002; size of market from ITU, “Cellular Age, 9 July 2003; Beverly Burmeier, “Happy End- Subscribers,” op. cit. note 1; other numbers from ings for Cast-Off PCs,” Christian Science Moni- Fishbein, op. cit. this note, p. 1. tor, 21 April 2003, p. 20; listing of state initiatives from Silicon Valley Toxics Coalition, at www.svtc 5. See, for example, Collective Good Interna- .org, viewed 20 September 2003. tional, at www.collectivegood.com, and Wireless Foundation’s Call to Protect program, at 12. Fishbein, op. cit. note 6; Timo Poropoudas, www.wirelessfoundation.org, viewed 19 Septem- “Mobile Giants Sign Up in Recycling Initiative,” ber 2003; ReCellular, at www.recellular.net, viewed on Mobile CommerceNet, 14 December 2002, at 19 September 2003. www.mobile.commerce.net, viewed 15 October 2003; Jim Puckett and Ted Smith, eds., Export- 6. Bette Fishbein, INFORM, New York, dis- ing Harm: The High-Tech Trashing of Asia (Seat- cussion with author, 15 October 2003. tle, WA, and San Jose, CA: Basel Action Network and Silicon Valley Toxics Coalition, with Toxics 7. Fishbein, op. cit. note 4, pp. 58–59; Ken Link India, Greenpeace China and SCOPE, Feb- Belson, “Mining Cellphones, Japan Finds El ruary 2002).

218 State of the World 2004 NOTES, CHAPTER 6

Chapter 6. Purchasing for People with Clayton Adams, Worldwatch Institute, 7 and the Planet April 2003.

1. Connecticut Energy Co-op, “Connecticut 5. Sawin, op. cit. note 2. College Is 1st College to Buy Green Power from the Co-op,” press release (Hartford, CT: 11 May 6. Alan Durning, How Much Is Enough? (New 2001); Connecticut College, “Connecticut Col- York: W.W. Norton & Company, 1992). lege Sets National ‘Green Energy’ Record; Pur- chases Wind Energy Certificates for 22 Percent of 7. Up to three quarters of this spending goes for Electricity Use,” press release (New London, CT: purchases of consumable goods and services, while 27 January 2003). the remainder goes to capital goods and investment spending. Figure 6–1 based on 1991 prices and 2. A distinction is sometimes made between purchasing power parities, from Organisation for purchasing (buying products and materials for Economic Co-Operation and Development operational use) and procurement (buying parts (OECD), Greener Public Purchasing: Issues and and materials as inputs into manufactured prod- Practical Solutions (Paris: 2000), p. 36; Commis- ucts). In this chapter, however, the terms are used sion of the European Communities, Commission interchangeably. Michael Scholand, “Compact Interpretative Communication on the Community Fluorescents Set Record,” in Worldwatch Institute, Law Applicable to Public Procurement and the Pos- Vital Signs 2002 (New York: W.W. Norton & sibilities for Integrating Environmental Consider- Company, 2002), pp. 46–47; Janet Sawin, “Chart- ations Into Public Procurement (Brussels: 4 July ing a New Energy Future,” in Worldwatch Insti- 2001), p. 5; estimate of 18 percent is based on a tute, State of the World 2003 (New York: W.W. combined continental GDP of $11.7 trillion, per Norton & Company, 2003), pp. 85–109; Minou Chantal Line Carpentier, North American Com- Yussefi and Helga Willer, eds., The World of mission for Environmental Cooperation, presen- Organic Agriculture 2003—Statistics and Future tation at North American Green Purchasing Prospects (Tholey-Theley, Germany: International Conference, Philadelphia, PA, 22–24 April 2002; Federation of Organic Agriculture Movements, U.S. government from Scot Case, Director of Pro- 2003), p. 24; U.S. Department of Energy, Office curement Strategies, Center for a New American of Transportation Technologies, “Hybrid Elec- Dream, e-mail to author, 11 April 2003. tric Vehicles in the United States,” Fact of the Week #230, 19 August 2002, at 8. K. Green, B. Morton, and S. New, Con- www.ott.doe.gov/facts/archives/fotw230.shtml. sumption, Environment, and the Social Sciences, cited in Adam C. Faruk et al., “Analyzing, Map- 3. Estimates are conservative, per Natural Mar- ping, and Managing Environmental Impacts Along keting Institute, “Understanding the LOHAS Supply Chains,” Journal of Industrial Ecology, Market Report: LOHAS Market Size,” at spring 2001, p. 15. www.naturalbusiness.com/market.html, viewed 12 December 2002; gross domestic product 9. Figure of $250 billion includes the amount (GDP) data from David Malin Roodman, “Eco- spent by students on books and school supplies. nomic Growth Falters,” in Worldwatch Institute, Kevin Lyons, Rutgers University (instructor), Vital Signs 2002, op. cit. note 2, pp. 58–59. “Driving Sustainable Markets ‘Teach-In,’” on- line course sponsored by the National Wildlife 4. Christoph Erdmenger et al., The World Buys Federation’s Campus Ecology Program and the Green (Freiburg, Germany: International Council National Association of Educational Buyers, 2002; for Local Environmental Initiatives (ICLEI), 3 percent from U.S. Department of Commerce, 2001), p. 13; Dunkerque from ICLEI, Green Bureau of Economic Analysis, “Current Dollar Purchasing Good Practice Guide (Freiburg, Ger- and ‘Real’ Dollar Gross Domestic Product,” at many: 2000), p. 21; Gerard Gleason, Associate www.bea.doc.gov/bea/dn/gdplev.xls, viewed 7 Director, Conservatree, San Francisco, discussion May 2003; 18 economies from World Bank, World

219 State of the World 2004 NOTES, CHAPTER 6

Development Indicators 2001 (Washington, DC: 11 15. Table 6–1 from the following: Bank of April 2001); Gary Gardner, Invoking the Spirit: America, Environmental Commitment 2001 Activ- Religion and Spirituality in the Quest for a Sus- ity Highlights, at www.bankofamerica.com/ tainable World, Worldwatch Paper 164 (Wash- environment/index.cfm, viewed 29 April 2003; ington, DC: Worldwatch Institute, December Boeing ,“EPA Names Boeing Partner of the Year,” 2002); United Nations Inter-Agency Procure- press release (St. Louis, MO: 14 April 1999); ment Services Office (IAPSO), Annual Statistical 16,000 homes from “Sustainability and Green Report 2000 (New York: July 2001). Procurement,” Pollution Prevention Northwest, Pacific Northwest Pollution Prevention Resource 10. Case, op. cit. note 7. Center, fall 1999, at www.pprc.org/pprc/pubs/ newslets/news1199.html; Canon, Canon Envi- 11. With some purchases, competitive bidding is ronmental Report 2002, at www.canon.com/ not possible because only one supplier is techni- environment/eco2002e/p22.html, viewed 8 April cally qualified to do the job, as is the case with 2003; Federal Express, “FedEx and the Environ- many aerospace and defense contracts. Box 6–1 ment,” at www.fedex .com/us/about/news/ from the following: Kevin Lyons, Buying for the ontherecord/environment.html, viewed 29 April Future: Contract Management and the Environ- 2003; Hewlett-Packard, “Supply Chain Social mental Challenge (London: Pluto Press, 2000); and Environmental Responsibility,” at www.hp U.S. Environmental Protection Agency (EPA), .com/hpinfo/globalcitizenship/environment/ The City of Santa Monica’s Environmental Pur- supplychain/index.html, viewed 29 April 2003; chasing: A Case Study (Washington, DC: March IKEA International A/S, IKEA: Environmental 1998), p. 7; White House Task Force on Recy- and Social Issues 2001 (Delft, Netherlands: Novem- cling, Greening the Government: A Report to the ber 2001), p. 13; John Zurcher, IKEA U.S., dis- President on Federal Leadership and Progress (Wash- cussion with Clayton Adams, Worldwatch Institute, ington, DC: 22 April 2000), p. 25; Switzerland 8 April 2003; McDonald’s from EPA, Private Sec- from OECD, op. cit. note 7, p. 67; Anne-Françoise tor Pioneers: How Companies Are Incorporating Gailly, “Green Procurement and the Belgian Pres- Environmentally Preferable Purchasing (Washing- idency,” Eco-Procura (ICLEI), September 2001, ton, DC: June 1999), pp. 20–22 and from p. 9. “McDonald’s Approves Earthshell Container for Big Mac,” Environment News Service, 2 April 12. TerraChoice Environmental Services, Inc., 2001; William Hall, “Migros Commits to Buying Products and Services: The Climate Change Con- Green Palm Oil,” Financial Times, 24 January nection (Ottawa: March 2002); U.S. Office of the 2002; Riu Hotels from International Hotels Envi- Federal Environmental Executive, “Web Based ronment Initiative, “Case Studies,” at Paper Calculator,” at www.ofee.gov/recycled/ www.ihei.org/HOTELIER/hotelier.nsf/content/ calculat.htm; Environmental Defense, “Catalog c1b2.html, viewed 9 May 2003; Staples, Inc., Companies Are Selling Nature Short This Holi- “How Staples Recycles,” at www.staples.com/ day Season,” press release (New York: 13 Novem- products/centers/recycle/hsr.asp, viewed 16 April ber 2002). 2003; Staples, Inc., “Staples Environmental Paper Procurement Policy” (Framingham, MA: Novem- 13. Janitorial Products Pollution Prevention Pro- ber 2002); Staples, Inc., “Staples Joins Green ject, “What Injuries Happen to Your Janitors?” at Power Market Development Group,” press release www.westp2net.org/Janitorial/jp4.htm, viewed (Framingham, MA: 13 March 2003); Starbucks, 20 February 2003. “Coffee, Tea, & Paper Sourcing,” at www.star bucks.com/aboutus/sourcing.asp, viewed 29 April 14. Compact fluorescent lamps from TerraChoice 2003; Toyota, “Procurement/Production/ Environmental Services, Inc., op. cit. note 12, p. Logistics,” at www.toyota.co.jp/IRweb/corp 20; cleaners from Alicia Culver et al., Cleaning for _info/eco/pro.html, viewed 14 April 2003. Health: Products and Practices for a Safer Indoor Stephan Schmidheiny with the Business Council Environment (New York: INFORM, Inc., 2002). for Sustainable Development, Changing Course

220 State of the World 2004 NOTES, CHAPTER 6

(Cambridge, MA: The MIT Press, 1992), pp. the Greening of Public Purchasing (Paris: 16 March 9–10; L’Oreal from Amanda Griscom, “In Good 1999), pp. 4–5, 28; Canada from Natural Company,” Grist Magazine, 31 July 2002; Resources Canada, Government of Canada Action Anheuser-Busch and IBM from EPA, op. cit. this Plan 2000 on Climate Change, at www.climate note, p. 22. change.gc.ca/english/whats_new/pdf/gofcda plan_eng2.pdf, and from Department of Justice, 16. Craig R. Carter and Marianne M. Jennings, Alternative Fuels Act 1995, at laws.justice.gc.ca/ Purchasing’s Contribution to the Socially Responsible en/A-10.7/text.html; Germany from www.beschaf Management of the Supply Chain (Tempe, AZ: fung-info.de; Center for a New American Dream, CAPS Research, 2000), p. 11. “Environmental Purchasing Factoids,” at www .newdream.org/procure/factoids.html, viewed 3 17. Steven A. Melnyk et al., ISO 14000: Assessing March 2003; Hiroyuki Sato, Green Purchasing Its Impact on Corporate Effectiveness and Effi- in Japan: Progress, Current Status, and Future ciency (Tempe, AZ: CAPS Research, 1999), p. Prospects (Tokyo: Green Purchasing Network, 20; Heidi McCloskey, Nike Apparel, discussion 2003); Scot Case, “Moving Beyond ‘Buy Recy- with Brian Halweil, Worldwatch Institute, 18 Feb- cled,’” ECOS, spring 2001, p. 1; U.S. General ruary 2003; 3 percent from Nike, Inc., “Team Accounting Office (GAO), Federal Procurement: Players,” at www.nike.com/nikebiz/nikebiz, Better Guidance and Monitoring Needed to Assess viewed 28 February 2003. Purchases of Environmentally Friendly Products (Washington, DC: June 2001), p. 4; Christoph 18. Nike, Inc., op. cit. note 17; Recycled Paper Erdmenger, Director of the European Eco-Pro- Coalition, “About Us,” at www.papercoalition.org/ curement Programme and Eco-efficient Econ- aboutus.html, viewed 11 March 2003. omy, ICLEI, “Overview and Recent Developments of Sustainable Procurement,” presentation at Inter- 19. Jeffrey Hollender, “Changing the Nature of national Aid and Trade 2002 Conference on Trade Commerce,” in Juliet B. Schor and Betsy Taylor, and Development: Building Capacity for Sustain- eds. Sustainable Planet: Solutions for the Twenty-first able Markets, New York, 19–20 June 2002. Century (Boston: Beacon Press, 2002), p. 76. 22. Erdmenger, “Overview and Recent Devel- 20. See, for example, United Nations, Agenda 21 opments of Sustainable Procurement,” op. cit. (New York: April 1993), p. 33; OECD Council, note 21; “The Hannover Call of European Munic- “Recommendation of the Council on Improving ipal Leaders at the Turn of the 21st Century,” at the Environmental Performance of Government” www.iclei.org/ecoprocura/info/Hann_call.pdf, (Paris: 1996); ICLEI, “Lyon Declaration: Enhanc- viewed 24 March 2004; Bente Møller Jensen and ing the Framework, Enforcing the Action for Anders Schmidt, Green Purchasing Status Report: Greening Government Operations,” text adopted Municipality of Kolding (Freiburg, Germany: at the EcoProcura Lyon Conference, Lyon, ICLEI, February 2002). France, 17–18 October 2000; United Nations, Report of the World Summit on Sustainable Devel- 23. Dean Kubani, City of Santa Monica, CA, opment (New York: 2002), p. 21; OECD, op. cit. discussion with Clayton Adams, Worldwatch Insti- note 7, pp. 19, 20. tute, 11 April 2003; Mike Liles, Minnesota Office of Environmental Assistance, e-mail to Clayton 21. Table 6–2 from the following: OECD, op. Adams, Worldwatch Institute, 9 April 2003; EPA, cit. note 7, pp. 50–60; ICLEI, op. cit. note 4; Erd- State and Local Government Pioneers (Washington, menger et al., op. cit. note 4; Christoph Erd- DC: November 2000). menger, “Sustainable Purchasing—A Concept Emerging from the Local Level,” International 24. Taiwan from Public Construction Commis- Aid & Trade Review, Conference & Exhibition sion Executive Yuan, “Article 96,” Government 2002 Special Edition, 19–20 June 2002, pp. Procurement Law, at www.pcc.gov.tw/c2/c2b/ 124–25; OECD Trade Directorate, Trade Issues in c2b_3/2_b_3_10.htm, viewed 9 May 2003; U.N.

221 State of the World 2004 NOTES, CHAPTER 6

Environment Programme (UNEP) and Con- holds in November 2001, per LOHAS Consumer sumers International, Tracking Progress: Imple- Research, “Nearly One-Third of Americans Iden- menting Sustainable Consumption Policies (Nairobi: tified as Values-Based, Highly-Principled Con- May 2002), p. 26, 54–55; UNEP, “DRAFT Map- sumers, New Research Shows,” press release ping of Major Procurement Initiatives World- (Broomfield, CO: 19 June 2002); Deborah Doane, wide,” document prepared for the Interagency Taking Flight: The Rapid Growth of Ethical Con- Group on Sustainable Procurement (Paris: 2003); sumerism, report for the Co-operative Bank (Lon- Thailand from Burton Hamner, Hamner and Asso- don: New Economics Foundation, October 2001), ciates LLC, e-mail to author, 3 February 2003. p. 2. Doane points out that an ethical purchase is defined as a personal purchasing decision that is 25. ICLEI from Erdmenger et al., op. cit. note aligned to human rights, animal welfare, or the 4, p. 13; White House Task Force on Recycling, environment and that gives consumers a choice op. cit. note 11, p. 25; Jim Motavalli and Josh between a product and an ethical alternative. Harkinson, “Buying Green,” E Magazine, Sep- tember/October 2002, p. 29. 30. See Robin Broad, ed., Global Backlash: Cit- izen Initiatives for a Just World Economy (Lan- 26. The challenge, however, is ensuring that con- ham, MD: Rowman & Littlefield, 2002); EPA, op. sumers activate the energy-saving features once cit. note 15, p. 7; Environics International, Ltd., they have purchased this equipment. Luke Bran- The Millennium Poll on Corporate Social Respon- der and Xander Olsthoorn, Three Scenarios for sibility: Executive Briefing (Toronto, ON, Canada: Green Public Procurement (Amsterdam: Vrije Uni- September 1999). versiteit Institute for Environmental Studies, December 2002), p. 16; more than 1 million from 31. ICLEI, op. cit. note 4, pp. 23–24. Erdmenger et al., op. cit. note 4, p. 59; 7 percent from Scot Case, Director of Procurement Strate- 32. Box 6–2 from the following: Home Depot, gies, Center for a New American Dream, Takoma “The Journey to Sustainable Forestry,” informa- Park, MD, discussion with author, 2 December tion sheet (Atlanta, GA: January 2003); sales, 2002; William J. Clinton, Executive Order 12845: stores, products, and certification numbers from Requiring Agencies to Purchase Energy Efficient Dan Morse, “Home Depot Is Expected to Deliver Computer Equipment (Washington, DC: 21 April Report on Timber,” Wall Street Journal, 2 Janu- 1993); Maria Vargas, Climate Protection Part- ary 2003; 20 percent from “Home Depot Deci- nerships Division, EPA, discussion with Clayton sion Cheered,” Environmental News Network, 30 Adams, Worldwatch Institute, 25 April 2003; August 1999; competitors from Jim Carlton, Japan from Erdmenger et al., op. cit. note 4, p. 47. “Against the Grain: How Home Depot and Activists Joined to Cut Logging Abuse,” Wall 27. For vehicle incentives, see the Clean Cities Street Journal, 26 September 2000; Jim Carlton, International Program, at www.ccities.doe.gov; “Home Builders Centex and Kaufman Agree Not “Los Angeles Cathedral to Use Solar Power,” to Buy Endangered Wood,” Wall Street Journal, Reuters, 19 August 2002. 31 March 2000; scrambling for certification from Barrie McKenna, “U.S. Home Builders To Ban 28. European Commission, “Directive 2000/ Old-Growth Wood,” Globe and Mail, 31 March 53/EC of the European Parliament and of the 2000; Michael Marx, ForestEthics, presentation at Council of 18 September 2000 on End-of-Life North American Green Purchasing Conference, Vehicles,” Official Journal of the European Com- Philadelphia, PA, 22–24 April 2002; criticism munities, 21 October 2000; Chrysler Group, “The from Rainforest Action Network, “Rainforest Chrysler Group Demonstrates Its ‘CARE’ for the Action Network Statement on Home Depot’s Environment by Turning Garbage Into Car Parts,” Wood Purchasing Policy,” press release (San Fran- press release (Auburn Hills, MI: 20 March 2002). cisco: 2 January 2003); price increases from June Preston, “Home Depot Says It Aims to Save 29. U.S. data based on a survey of 2,267 house- Ancient Forests,” Environmental News Network,

222 State of the World 2004 NOTES, CHAPTER 6

30 August 1999. note 23, p. 13; cost of ownership from Case, op. cit. note 26. 33. Alliance for Environmental Innovation, at www.environmentaldefense.org/alliance, viewed 41. Brander and Olsthoorn, op. cit. note 26, pp. 12 May 2003; World Wide Fund for Nature, 11–12; Peter Bühle et al., Stuttgart Green Pur- “WWF Climate Change Programme: Business chasing Status Report (Freiburg, Germany: ICLEI, Partners,” at www.panda.org/about_wwf/what January 2002), pp. 45–46. _we_do/climate_change/what_we_do/business _industry/climate_savers.cfm, viewed 7 March 42. Santa Monica has since found replacements 2003; World Resources Institute, Green Power in all 17 categories, per Kubani, op. cit. note 23; Market Development Group, at www.thegreen EPA, op. cit. note 11, pp. 1, 8; 1.5 tons from EPA, powergroup.org. op. cit. note 23, p. 24; Hiroyuki Sato, Green Pur- chasing Network, Tokyo, e-mail to Clayton Adams, 34. Julia Schreiner Alves, Compañia Estatal de Worldwatch Institute, 21 April 2003. Saneamiento Básico y Tecnologia, São Paulo, Brazil, e-mail to author, 7 April 2003. 43. ICLEI, op. cit. note 4, p. 42.

35. National Pollution Prevention Roundtable, 44. U.K. Department of the Environment, Trans- Environmentally Preferable Purchasing Discus- port and the Regions, “Action To Halt Illegal sion Group, “Environmentally Preferable Timber Imports—Meacher,” press release (Lon- Purchasing,” PowerPoint presentation, at don: 28 July 2000); Greenpeace U.K., “Green- www.newdream.org/procure/resources.html#ppt. peace Catches Blair Trashing Ancient Forests to Furnish the Cabinet Office,” press release (Lon- 36. Developing-world problems from Asian don: 10 April 2002); House of Commons Envi- Development Bank, To Serve and To Preserve: ronmental Audit Committee, “Buying Time for Improving Public Administration In a Competitive Forests: Timber Trade and Public Procurement,” World (Manila: 2000), p. 334; Erdmenger, “Sus- Sixth Report of Session 2001–02 (London: 24 July tainable Purchasing,” op. cit. note 21, p. 124. 2002), p. 4.

37. Commission of the European Communities, 45. “Executive Order 13101—Greening the op. cit. note 7. Government Through Waste Prevention, Recy- cling, and Federal Acquisition,” Federal Register, 38. As of April 2003, some progress had been 16 September 1998; EPA, Qualitative Measure- made in efforts to get specifications for “bio- ment of Environmentally Preferable Purchasing based” fertilizer products into the U.S. Depart- (EPP) Among Federal Employees in 2000 (Wash- ment of Agriculture farm bill. Tom Ferguson, ington, DC: February 2001); GAO, op. cit. note Perdue AgriRecycle, LLC, discussion with author, 21. 22 April 2002, and discussion with Clayton Adams, Worldwatch Institute, 2 April 2003. 46. Julian Keniry, Director of Campus Ecology Program, National Wildlife Federation, Washing- 39. Luz Aída Martínez Meléndez, Programa de ton, DC, discussion with author, 28 March 2002. Administracion Sustenable, Ministry of Environ- ment and Natural Resources, Mexico, e-mail to 47. EPA, op. cit. note 45; Vorarlburg from Clayton Adams, Worldwatch Institute, 7 April ICLEI, op. cit. note 4, p. 39; Marcia Deegler, 2003. Operational Services Division, Commonwealth of Massachusetts, e-mail to Clayton Adams, World- 40. Office of the Mayor, “City Selects ComEd to watch Institute, 10 April 2003. Provide Clean Power, Leads Nation in Building ‘Green’ Electricity Market,” press release (Chicago, 48. GAO, op. cit. note 21; decentralization prob- IL: 6 July 2001); Missouri from EPA, op. cit. lems from Tapio Pento, “Implementation of Pub-

223 State of the World 2004 NOTES, CHAPTER 6 lic Green Procurement Programmes,” in Trevor Common Vision for Transforming the Paper Russel, ed., Greener Purchasing: Opportunities Industry: Striving for Environmental and Social and Innovations (Sheffield: Greenleaf Publishing, Sustainability,” ratified at the Environmental Paper 1998), pp. 23–30 and from OECD, op. cit. note Summit, Sonoma County, CA, 20 November 7, pp. 46, 82; Berny Letreille, Environment 2002, at www.conservatree.com/paper/choose/ Canada, discussion with Clayton Adams, World- commonvision.shtml, viewed 11 March 2003; watch Institute, 14 April 2003; Tom Snyder, Office of the Federal Environmental Executive, Argonne National Laboratory, U.S. Department “Governments Agree on National Criteria for of Energy, discussion with Clayton Adams, World- ‘Green’ Cleaning Products,” press release, at watch Institute, 9 April 2003. www.ofee.gov/gp/greencleancriteria.htm, viewed 4 March 2003. 49. Møller Jensen and Schmidt, op. cit. note 22, p. 12; Holly Elwood, EPP Program, EPA, Wash- 54. See, for example, Forest Stewardship Coun- ington, DC, discussion with Clayton Adams, cil, “Forests Certified by FSC-Accredited Certifi- Worldwatch Institute, 9 April 2003; Matthew cation Bodies,” at www.fscoax.org/html/ DeLuca, Green Mountain Energy Company, 5-3-3.html, viewed 6 January 2003, and Green- Burlington, VT, discussion with Clayton Adams, e, at www.green-e.org. Worldwatch Institute, 4 April 2003. 55. Michele Ferrari, “Ferrara, on Its Way Toward 50. Paul Brown, Steven Morris, and John Green Procurement,” Eco-Procura (ICLEI), Sep- Aglionby, “Rainforests Hit By Paper Trail to U.K.,” tember 2001, p. 19; Pennsylvania from EPA, op. (London) Guardian, 26 June 2001; EPA, op. cit. cit. note 23, p. 17, and from Arthur Weissman, note 45, p. 8. Green Seal, Washington, DC, discussion with Clayton Adams, Worldwatch Institute, 1 April 51. Jacqueline Ottman, Green Marketing: Oppor- 2003; trade issues from World Trade Organization, tunity for Innovation (New York: NTC-McGraw- “Government Procurement: The Plurilateral Hill, 1998); Recycled Paper Coalition, “RPC Agreement,” at www.wto.org/english/tratop_e/ Listening Study on Environmental Printing and gproc_e/gp_gpa_e.htm, viewed 22 April 2003 Office Papers,” at www.papercoalition.org/ and from OECD Trade Directorate, op. cit. note survey.html, viewed 11 March 2003; lack of stan- 21. dards from OECD Trade Directorate, op. cit. note 21, p. 18; innovative products from Envi- 56. Motavalli and Harkinson, op. cit. note 25, p. ronment Canada, Towards Greener Government 29; Arthur Weissman, Green Seal, Washington, DC, Procurement (Hull, QC, Canada: updated May discussion with author, 8 April 2003. 2000). 57. Case, op. cit. note 7. 52. Rita Schenck, “Life Cycle Assessment: the Envi- ronmental Performance Yardstick,” paper prepared for 58. An additional 11 products were proposed Earthwise Design, Life Cycle Assessment Realities and for EPA recommendations in 2001 but have yet Solutions for Sustainable Buildings conference, Anti- to be approved, including cement and concrete och University, Seattle, WA, 19 January 2002; Box products, nylon carpet and carpet backing, roof- 6–3 from Guido Sonnemann, Division of Tech- ing materials, office furniture, tires, and bike racks; nology, Industry, and Economics, UNEP, e-mail EPA, Comprehensive Procurement Guidelines, at to author, 29 July 2003; Volvo from EPA, op. cit. www.epa.gov/cpg; ICLEI, op. cit. note 4, p. 36. note 15, p. 9; U.S. Department of Commerce, National Institute of Standards and Technology, 59. ICLEI, “BIG-Net: Buy-It-Green Network,” Office of Applied Economics, “BEES 3.0,” at at www.iclei.org/europe/ecoprocura/network/ www.bfrl.nist.gov/oae/software/bees.html. index.htm, viewed 4 April 2003; ICLEI, “RELIEF-European Research Project on Green 53. Center for a New American Dream et al., “A Purchasing,” at www.iclei.org/europe/eco

224 State of the World 2004 NOTES, CHAPTER 6 AND PAPER procura/relief/index.htm, viewed 4 April 2003; Bank Chief Says Corporate Responsibility Is Key ICLEI, “Eco-Procurement: The Path to a Greener to Sustainable Development—and Good Busi- Marketplace” (Freiburg, Germany: 2002). ness,” press release (Washington, DC: 21 June 2001); Dominique Brief, Environmentally and 60. EPA, Environmentally Preferable Purchas- Socially Responsible Procurement Initiative, World ing (EPP), at www.epa.gov/opptintr/epp/ Bank, discussion with Clayton Adams, World- index.htm; White House, “Executive Order watch Institute, 8 April 2003; Bernard Ross, #12873: Federal Acquisition, Recycling and Waste “World Bank Structural Adjustment and Invest- Prevention,” press release (Washington, DC: 20 ment Loans: Approaches to Environmental Con- October 1993); EPA, EPP Database, at ditionality in Procurement” (Washington, DC: www.epa.gov/oppt/epp/database.htm, viewed 19 May 2000); UNEP, “Environmentally & Socially February 2003. Responsible Procurement,” at www.sustain- ableprocurement.net, viewed 17 March 2003. 61. Center for a New American Dream, at www.newdream.org; EPA, “Conference Helps 69. ICLEI, op. cit. note 4, p. 31; SWAP (Surplus Further Green Purchasing,” EPP Update, August With a Purpose), at www.bussvc.wisc.edu/swap. 2002, pp. 2, 3. Paper 62. Sato, op. cit. note 21. 1. Sixfold and 40 percent from Janet N. 63. University Leaders for a Sustainable Future, Abramovitz and Ashley T. Mattoon, Paper Cuts: “Programs (Talloires Declaration),” at Recovering the Paper Landscape, Worldwatch Paper www.ulsf.org/programs_talloires.html, viewed 4 149 (Washington, DC: Worldwatch Institute, March 2003; International Hotels Environment December 1999), pp. 33, 7; Japan from U.N. Initiative, at www.ihei.org; Benchmark Hotel, at Food and Agriculture Organization (FAO), FAO- www.benchmarkhotel.com. STAT Statistical Database, at apps.fao.org; about half from International Institute for Environment 64. Erdmenger et al., op. cit. note 4, p. 33; and Development, Towards a Sustainable Paper Green Purchasing Network, at eco.goo.ne.jp/ Cycle (London: 1996), p. 20. gpn/index.html, viewed 9 April 2003; King County Environmental Purchasing, at www.metro 2. Paper Trading International, Inc., “The His- kc.gov/procure/green/index.htm. tory of Paper,” at www.papertrading.com/ prod01.htm; hemp printings from ReThink Paper, 65. Erdmenger, “Sustainable Purchasing,” op. “Hemp,” at www.rethinkpaper.org/content/ cit. note 21, pp. 122–24. hemp.cfm.

66. Robert Goodland, Ecolabeling: Opportunities 3. Abramovitz and Mattoon, op. cit. note 1, p. 21. for Progress Toward Sustainability (Washington, DC: Consumer’s Choice Council, April 2002), pp. 4. Estimate of 30 percent from FAO, op. cit. 7–8; Miriam Jordan, “From the Amazon to Your note 1; developing countries, 54 percent, 30 per- Armrest,” Wall Street Journal, 1 May 2001; Daim- cent, and 16 percent from Abramovitz and Mat- lerChrysler, Environmental Report 2001 (Auburn toon, op. cit. note 1, pp. 21–22; one quarter from Hills, MI: 30 July 2001). ForestEthics, “Nov. 12, 2002—Office Supply Superstore Staples Inc. Agrees to Historic Endan- 67. IAPSO, op. cit. note 9, p. 5; UNICEF, Sup- gered Forest and Recycling Policy,” press release ply Division Annual Report 2001 (New York: (San Francisco: 12 November 2002). 2002), p. 5; Goodland, op. cit. note 66, pp. 9–10. 5. Energy consumption from Abramovitz and 68. World Bank, “Putting Social and ‘Green’ Mattoon, op. cit. note 1, pp. 26–27. Responsibility on the Corporate Agenda. World

225 State of the World 2004 NOTES, PAPER AND CHAPTER 7

6. California Integrated Waste Management “International Connections,” at www.tata.com, Board, “Why Use Recycled Materials?” at viewed 23 September 2003, with turnover con- www.ciwmb.ca.gov/RMDZ/WhyUse.htm. verted to dollars from rupees on 23 September 2003; Altria Group from “Fact Book,” at 7. Recycled Paper Coalition, “About Us,” at www.altria.com/investors, and from “Our Com- www.papercoalition.org/aboutus.html. panies’ Global Presence,” at www.altria.com/ about_altria/, viewed 24 September 2003; Siemens 8. Germany from World Resources Institute et from “At a Glance,” at w4.siemens.de/annual al., 1998-99 World Resources (New York: Oxford report_2002/, and from “About Us,” at University Press, 1998), p. 164; “EU Parliament www.siemens.com, viewed 24 September 2003, Passes Tough New Recycling Law,” Recycling with net sales converted to dollars from euros on Today, 2 July 2003. 24 September 2003; Yum! Brands from “Yum! Brands Annual Report 2002,” at www.yum.com, Chapter 7. Linking Globalization, and from “Business Performance,” at Consumption, and Governance www.yrigfp.com, viewed 27 August 2003; McDonald’s from “May 2003 Investor Fact 1. Indigenous leaders’ visit to Worldwatch Insti- Sheet,” at www.mcdonalds.com/corporate/ tute; Kevin Koenig, Amazon Watch, discussion investor/, and from “The McDonald’s History,” with Zoë Chafe, Worldwatch Institute, 17 July at www.mcdonalds.com/corporate/info/history, 2003; hectares from Earthrights International, viewed 24 September 2003; Domino’s from “Pizza “BURLINGTON: What Part of NO Don’t You Particulars,” at www.dominos.com, viewed 27 Understand?” press release (Washington, DC: 14 August 2003; Coca-Cola from “Coca-Cola Annual May 2003). Report 2002,” at www2.coca-cola.com/ ourcompany, and from “Coca-Cola Africa,” at 2. Amazon Watch, “Indigenous Leaders from africa.coca-cola.com, viewed 2 September 2003. Ecuador and Peru Present ‘Eviction Notice’ to Burlington Resources of Houston, Call on Oil 6. Figure 7–1 from David Malin Roodman, Company to Leave Amazonian Territories,” press “Trade Slows,” in Worldwatch Institute, Vital release (Houston, TX: 14 May 2003). Signs 2002 (New York: W.W. Norton & Com- pany, 2002), p. 61, updated with data from Inter- 3. U.S. Environmental Protection Agency, Light national Monetary Fund, World Economic Outlook Duty Automotive Technology and Fuel Economy (Washington, DC: 2003); sectoral breakdown Trends: 1975 Through 2003 (Washington, DC: from World Bank, World Development Indicators September 2001), p. 32. 2003 (Washington, DC: 2003), deflated to 2002 dollars using the U.S. Commerce Department’s 4. Benjamin R. Barber, JIHAD vs. McWorld: implicit GNP price deflator; foreign direct invest- How Globalism and Tribalism are Reshaping the ment from UNCTAD, Foreign Direct Investment, World (New York: Times Books, 1995), p. 4. electronic database, at stats.unctad.org/fdi, viewed 30 September 2003; corporate merger trend from 5. Tobacco and liquor advertisements and Coca- idem, World Investment Report 1998: Trends and Cola kiosks in developing world from author’s Determinants (New York: United Nations, 1998), observations. Table 7–1 from the following: pp. xviii–xix; “Freer Trade Cuts the Cost of Liv- Hennes & Mauritz from “The World of H&M” ing,” at www.wto.org. and “Short Facts,” at www.hm.com, viewed 23 September 2003, with turnover converted to dol- 7. Figure 7–2 from U.N. Food and Agriculture lars from Swedish krona on 23 September 2003; Organization (FAO), FAOSTAT Statistical Data- Levi Strauss from “About LS&Co./Worldwide” base, at apps.fao.org; forest product export data and “2002 Annual Report/Financial Highlights,” from ibid., deflated to 2002 dollars using U.S. at www.levistrauss.com, p. 19, viewed 4 Septem- Commerce Department’s implicit GNP price defla- ber 2003; Tata Group from “Business Sectors” and tor; forest extent from idem, State of the World’s

226 State of the World 2004 NOTES, CHAPTER 7

Forests 2003 (Rome: 2003), p. 1; fish export data 2003), pp. 2–4. from idem, Fisheries Commodities Production and Trade 1976–2000, electronic database, at 13. “Chapter 4: Changing Consumption Pat- www.fao.org/fi/statist/fisoft/FISHPLUS.asp; terns,” in United Nations, Agenda 21, available at sustainable fisheries data from idem, World Ag- www.un.org/esa/sustdev/documents/agenda21; riculture: Towards 2015/2030 (Rome: 2003), U.S. way of life from Mark Valentine, “Twelve p. 197. Days of UNCED,” Follow-up Report on the Earth Summit, U.S. Citizens Network on the 8. Mathis Wackernagel et al., Ecological Foot- United Nations Conference on Environment and print of Nations: November 2002 Update (Oakland, Development, 2 July 1992, p. 5, and from Philip CA: Redefining Progress, 2002), p. 6; Figure 7–3 Shabecoff, A New Name for Peace (Hanover, NH: from ibid., pp. 9–11. University Press of New England, 1996), p. 153.

9. Kenny Bruno, “Philly Waste Go Home,” 14. Barber, op. cit. note 12. Multinational Monitor, February 1998; electronic waste from Basel Action Network and Silicon Val- 15. U.N. Guidelines on Consumer Protection ley Toxics Coalition, Exporting Harm: The High available at www.uneptie.org/pc/sustain/guide Tech Trashing of Asia (Seattle, WA, and San Jose, lines/un-guidelines.htm; Consumers International CA: 2002), p. 15. Box 7–1 from the following: and UNEP, Tracking Progress: Implementing Sus- Wendell Berry, “Back to the Land,” Amicus Jour- tainable Consumption Policies (Nairobi and Lon- nal, winter 1999, p. 37; Basel Action Network and don: May 2002), pp. 11, 19–20. Silicon Valley Toxics Coalition, op. cit. this note; Banana Production, a film by Scott Braman, Katie 16. Organisation for Economic Co-operation Milligan, and the Center for a New American and Development, Working Party on National Dream, 2002, available at www.newdream.org/ Environmental Policy, Policies to Promote Sus- consumer/bananas.html; coffee examples and data tainable Consumption: An Overview, Policy Case from Oxfam International, Mugged: Poverty in Studies Series (Paris: July 2002). Your Coffee Cup (Oxford: 2002). 17. UNEP, “Promoting Sustainable Consump- 10. Global consumer class from Matthew Bent- tion and Production Patterns,” discussion paper ley, Sustainable Consumption: Ethics, National presented by the Executive Director, Twenty- Indices and International Relations (PhD disser- second session of the Governing Council/Global tation, American Graduate School of International Ministerial Environment Forum, Nairobi, 5–7 Relations and Diplomacy, Paris, 2003). February 2003, p. 4; idem, “New ‘Life-Cycle Initiative’ Launched to Help Combat Environ- 11. China, including Council for International mental Impact of Rising Consumption Patterns,” Cooperation on Environment and Development press release (Nairobi: 29 April 2002); idem, statement, from Matthew Bentley, “Forging New “UNEP-DTIE and Sustainable Procurement,” Paths to Sustainable Development,” Background at www.uneptie.org/pc/sustain/procurement/ Paper, Asia Pacific Expert Meeting on Promoting green-proc.htm; idem, “Shopping for a Better Sustainable Consumption and Production Pat- World,” press release (Nairobi: 2 June 2003). Box terns, Yogyakarta, Indonesia, 21–23 May 2003, p. 7–2 from the following: youth population from 4; leapfrogging from U.N. Environment Pro- United Nations, World Population Prospects: The gramme (UNEP), “United Nations Environment 2002 Revision (New York: 2002); labor force from Programme Opens China Office,” press release International Labour Organization, “Facts on (Nairobi: 19 September 2003). Youth Employment,” fact sheet (Geneva: 21 August 2002); survey results from UNEP, Is the 12. Jeffrey Barber, Production, Consumption and Future Yours? (Paris: 2001), pp. 8, 10–11, 44–47; the World Summit for Sustainable Development youth activism examples from Isabella Marras’s (Rockville, MD: Integrative Strategies Forum, discussions with youth, with U.S. example from

227 State of the World 2004 NOTES, CHAPTER 7 www.sustainus.org/giftguide.pdf. For more infor- cil (FSC), “Forests Certified by FSC-Accredited mation on the UNEP Project, see www.uneptie Certification Bodies,” updated 6 October 2003; .org/pc/sustain/youth/youthxchange.htm. historical data from World Resources Institute, Earthtrends, database, compilation of Forest Stew- 18. United Nations, Agreement for the Imple- ardship Council data, 1998–2002; share of forests mentation of the Provisions of the United Nations certified based on FSC, op. cit. this note, and on Convention of the Law of the Sea of 10 December FAO, Global Forest Resources Assessment 2000: 1982 Relating to the Conservation and Manage- Main Report, Forestry Paper No. 140 (Rome: ment of Straddling Fish Stocks and Highly Migra- 2001), p. 390. tory Fish Stocks (New York: 1995), pp. 5–7; Secretariat of the Convention on Biological Diver- 21. Caroline Woffenden, Marine Stewardship sity, Cartagena Protocol on Biosafety to the Con- Council (MSC), e-mail to Zoë Chafe, 10 October vention on Biological Diversity: Text and Annexes 2003; Fish 4 Thought (MSC newsletter), April (Montreal: 2000), pp. 6–17; United Nations, 2003; products certified from MSC, “Sustainable Stockholm Convention on Persistant Organic Pol- Seafood at Anuga Exhibition,” press release (Lon- lutants (Stockholm: 2001), pp. 3–8; Stockholm don: 9 October 2003). Convention on Persistant Organic Pollutants, “Implementation,” at www.pops.int/documents/ 22. U.N. Global Compact from “The Nine Prin- implementation; United Nations, Kyoto Protocol ciples,” at www.unglobalcompact.org, and from to the United Nations Framework Convention on “Global Compact Participants by Country,” at Climate Change (Kyoto, Japan: 1997), pp. 3–6, www.unglobalcompact.org/content/Companies/ 19; United Nations Framework Convention on list_pc_040903.pdf, updated 2 September 2003; Climate Change, Caring for Climate (Bonn, Ger- “Standard Chartered Adopts the Equator Princi- many: 2003), p. 25. ples,” press release (London: 8 October 2003); number of countries from Lynn Swarz, Equator 19. United Nations Convention on the Law of Principles Secretariat, e-mail to Zoë Chafe, 14 the Sea, “Status of the United Nations Convention October 2003. on the Law of the Sea, of the Agreement Relating to the Implementation of Part XI of the Conven- 23. Box 7–3 and other information from United tion and of the Agreement for the implementation Nations, Plan of Implementation of the World of the provisions of the Convention Relating to the Summit on Sustainable Development (New York: Conservation and Management of Straddling Fish 2003), pp. 7–14. Stocks and Highly Migratory Fish Stocks,” at www.un.org/Depts/los/reference_files/ 24. Ibid., pp. 18–19; U.N. Commission on Sus- status2003.pdf, modified 19 August 2003; tainable Development, “Marrakech Meeting Takes UNEP/Convention on Biological Diversity, Forward Johannesburg Summit Commitments to “Cartagena Protocol on Biosafety Takes Effect,” Sustainable Production and Consumption,” press press release (Nairobi: 9 September 2003); Stock- release (New York: 12 June 2003). holm Convention on Persistent Organic Pollu- tants, “List of Signatories and Parties to the 25. U.N. Division for Sustainable Development, Stockholm Convention,” at www.pops.int/docu “Consolidated List of Partnerships for Sustain- ments/signature/signstatus.htm, viewed 14 Octo- able Development as of 3 June 2003,” at ber 2003; U.N. Framework Convention on Cli- www.un.org/esa/sustdev/partnerships/partner mate Change, “Status of Ratification,” at ships.htm, viewed 14 October 2003; “Bicycle unfccc.int/resource/conv/ratlist.pdf, modified Refurbishing Initiative” from www.velomondial.net on 17 February 2003. and from Pascal J. W. van den Noort, Velo Mon- dial, e-mails to Zoë Chafe, Worldwatch Institute, 20. Rory Van Loo, “Coming to the Grocery 5 September and 6 October 2003; Collaborative Shelf: Fair-trade Food,” Christian Science Moni- Labeling and Appliance Standards Program from tor, 29 September 2003; Forest Stewardship Coun- www.clasponline.org. Table 7–2 from the follow-

228 State of the World 2004 NOTES, CHAPTER 7 ing, with all e-mails to Zoë Chafe, Worldwatch 2003), pp. v–vi. Table 7–3 from the following: beef Institute, on dates noted: U.N. Division for Sus- hormone from ICTSD, “Dispute Settlement tainable Development, op. cit. this note; Arab Update,” Bridges Weekly Trade News Digest, 26 Civil Union for Waste Management at February 2002, and from European Commission, www.keps74.com (text in ); Awareness Rais- “EU Complies with WTO Ruling on Hormone ing and Training on Sustainable Consumption Beef and Calls on USA and Canada to Lift Trade and Production update from Bas de Leeuw, UNEP, Sanctions,” press release (Brussels: 15 October e-mail 2 September 2003; Cement Sustainability 2003); tuna-dolphin from WTO, “Mexico etc Initiative, at www.holcim.com and at www Versus U.S.: ‘Tuna-Dolphin,’” at www.wto.org/ .wbcsdcement.org; Introduction to Social Stan- english/tratop_e/envir_e/edis04_e.htm; shrimp- dards in Production at www.bmz.de/en; Selling of turtle from idem, “India etc Versus U.S.: ‘Shrimp- Responsible Products update from Vincent Com- Turtle,’”at www.wto.org/english/tratop_e/envir menne, Reseau de Consommateurs Responsables _e/edis08_e.htm; swordfish from Mark Mulligan, Asbl, e-mails 14 August 2003 and 6 October “Chile at Loggerheads with EU over Swordfish- 2003; Youth Dialogue on Consumption from ing,” Financial Times, 21 July 2000, and from www.yomag.net and www.youthxchange.net and ICTSD, “Dispute Settlement Update,” Bridges from Elke Salzmann, Federation of German Con- Weekly Trade News Digest, 30 January 2001; sumer Organisations, e-mail 16 October 2003; asbestos from Laurie Kazan-Allen, “A Breath of Certification for Sustainable Tourism at www.tur Fresh Air,” Multinational Monitor, September ismo-sostenible.co.cr. 2000, pp. 17–19, and from WTO, “European Communities—Measures Affecting Asbestos and 26. Cancún collapse from International Centre Asbestos-Containing Products: Report of the for Trade and Sustainable Development (ICTSD), Appellate Body,” Geneva, 12 March 2001; genet- “Where There’s No Will, There’s No Way,” ically modified organisms from ICTSD, “WTO Bridges Daily Update, Fifth World Trade Organi- Committees Scrutinize GMO Regulations and zation (WTO) Ministerial Conference, 15 Sep- EU Wine Labeling,” Bridges Weekly Trade News tember 2003, and from National Wildlife Digest, 2 July 2002, from “EU ‘Regrets’ U.S. Federation, “U.S. Administration’s Weak Showing Action on GM Crops,” BBC News, 8 August at WTO Reflects Neglect of Sustainable Devel- 2003, and from ICTSD, “Coalition Seeks WTO opment,” press release (Washington, DC: 14 Sep- Dismissal of GMO Dispute,” Bridges Weekly Trade tember 2003). News Digest, 25 September 2003.

27. For background on the debate, see Duncan 29. For the historical backdrop to the beef hor- Brack, ed., Trade and Environment: Conflict or mone case, see U.S. Office of Technology Assess- Compatability? (London: Earthscan, 1998), pp. ment, Trade and Environment: Conflicts and 78–79; on environmentalists’ concerns, see Lori Opportunities (Washington, DC: U.S. Govern- Wallach and Michelle Sforza, Whose Trade Orga- ment Printing Office, May 1992). nization? (Washington, DC: Public Citizen, 1999). 30. Paul Jacobs, “U.S., Europe Lock Horns in 28. WTO provisions from Jeffery S. Thomas and Beef Hormone Debate,” Los Angeles Times, 9 Michael A. Meyer, The New Rules of Global Trade: April 1999; WTO, “EC Measures Concerning A Guide to the World Trade Organization (Scar- Meat and Meat Products (Hormones),” Report of borough, ON, Canada: Carswell Thomson Pro- the Appellate Body, Geneva, 16 January 1998; fessional Publishing, 1997), pp. 88–91, 185–96, precautionary principle from the Rio Declaration and from Wallach and Sforza, op. cit. note 27, pp. on the Environment and Development, available 53–79; evolution of legal reasoning from Howard at www.un.org/documents/ga/conf151/aconf Mann and Stephen Porter, The State of Trade and 15126-1annex1.htm; “U.S. Imposes Sanctions in Environmental Law 2003: Implications for Doha Beef Fight,” New York Times, 19 July 1999; sanc- and Beyond (Winnipeg, MN, Canada: Interna- tions from European Commission, op. cit. note 28. tional Institute for Sustainable Development,

229 State of the World 2004 NOTES, CHAPTER 7 AND COTTON T-SHIRTS

31. U.S. Trade Representative (USTR), “U.S. 37. “Cancun Trade Summit to Sideline Green and Cooperating Countries File WTO Case Issues,” Environmental News Service, 5 September Against EU Moratorium on Biotech Foods and 2003; Elizabeth Becker, “Poorer Countries Pull Crops,” press release (Washington, DC: 13 May Out of Talks Over World Trade,” New York Times, 2003); Lizette Alvarez, “Europe Acts to Require 15 September 2003; Oxfam International, “Time Labeling of Genetically Altered Food,” New York for the WTO to Get Back on Track,” press release Times, 3 July 2003. (Oxford, U.K.: 17 October 2003); Walden Bello, “There is Life After Cancun,” Bangkok Post, 21 32. U.S. Government perspective from USTR, September 2003. op. cit. note 31; European and consumer views from Neil King, Jr., “U.S., EU Battle Rages Over Cotton T-shirts Modified Crops,” Wall Street Journal Online, 15 July 2003, and from “EU Moves to Ease Transat- 1. Scott Fresener et al., The T-Shirt Book (Lay- lantic Row over Biotech Foods,” Agence France- ton, UT: Gibbs Smith Publisher, 1995); Nancy Presse, 2 July 2003; U.S. polling data from Gary Clark, “A Brief History of the T-shirt,” Wear- Langer, “Behind the Label: Many Skeptical of ables Business, 1 May 1998. Bio-Engineered Food,” ABC News, 19 June 2003; European polling data from George Gaskell, Nick 2. Best-selling fiber from Cotton Board, “Cot- Allum, and Sally Stares, “Europeans and Biotech- ton’s Rise Through the Years,” at www.cotton nology in 2002: Eurobarometer 58.0,” a report to board.org; production from U.N. Food and Agri- EC Directorate General for Research (London: culture Organization (FAO), “Cotton Commod- Methodology Institute, London School of Eco- ity Notes,” June 2003, at www.fao.org/es/ nomics, March 2003). ESC/en/20953/22215/index.html, and from idem, FAOSTAT Statistics Database, at apps 33. Fred Pearce, “GMO Import Ban Caught in .fao.org, updated 10 June 2003; pesticides from Crossfire,” New Scientist, 10 September 2003; Pesticide Action Network North America Lissa Harris, “Better Biosafe than Sorry,” Grist (PANNA), “Problems with Conventional Cotton Magazine, 11 September 2003; ICTSD, “Coali- Production,” in Organic Cotton Briefing Kit, tion Seeks WTO Dismissal,” op. cit. note 28; 1998, at www.panna.org/resources/cotton.html, 181 organizations and 48 countries from www and from Rob Bryant, Agranova, e-mail to Brian .bite-back.org/index.htm, viewed 17 October Halweil, Wordwatch Institute, 17 July 2001; World 2003. Health Organization from Pesticide Action Net- work United Kingdom (PAN-UK), Organic Cot- 34. Chairman’s Statement from the High-Level ton Production in Sub-Saharan Africa: The Need Roundtable on Trade and the Environment, for Scaling-Up (London: August 2002). Cozumel, Mexico, 9 September 2003; trade pref- erences for “green consumer goods” from Scott 3. Margaret Reeves et al., Fields of Poison 2002: Vaughan, Trade Preferences and Environmental California Farmworkers and Pesticides (San Fran- Goods, Trade, Equity, and Development Series, cisco: Californians for Pesticide Reform, 2002), p. Issue No. 5 (Washington, DC: Carnegie Endow- 5; Ayanjit Sen, “Pesticide Kills ‘500’ Indian Farm- ment for International Peace, February 2003). ers,” BBC News, 31 July 2002; Benin survey cited in PAN-UK, Pesticide Action Network UK Review 35. Doha WTO Ministerial 2001, Ministerial 2002 (London: 2003), p. 12; Debora MacKenzie, Declaration, adopted on 14 November 2001. “Fresh Evidence on Bhopal Disaster,” New Sci- entist, 7 December 2002. 36. Ibid.; Brian Halweil, “Why No One Wins in the Global Food Fight,” Washington Post, 21 Sep- 4. Wildlife harm from PANNA, op. cit. note 2; tember 2003; American Lands Alliance et al., Col- Philipp Thalmann and Valentin Küng, Transgenic lective Comments re: Doha Ministerial Declaration Cotton: Are There Benefits for Conservation? (Washington, DC: 25 October 2002), pp. 4–5, 13. prepared for WWF International (Gland, Switzer-

230 State of the World 2004 NOTES, COTTON T-SHIRTS AND CHAPTER 8 land: March 2000). the Egyptian Cotton Sector,” Success Stories— 2000: Integrated Planning and Management of 5. Aldicarb from Nancy M. Trautmann et al., Land Resources, Agriculture, and Forests, at “Pesticides and Groundwater: A Guide for the www.un.org/esa/sustdev/mgroups/success/SA Pesticide User,” fact sheet (Ithaca, NY: Cornell RD-27.htm; Fair Trade Federation, at www.fair Cooperative Extension, 8 May 1998); immuno- tradefederation.org; for a list of companies, see logical effects from PAN-UK, “Aldicarb,” at International Organic Cotton Directory Web site, www.pan-uk.org/pestnews/actives/aldicarb.htm; at www.organiccottondirectory.net. E. Michael Thurman et al., “Occurrence of Cot- ton Pesticides in Surface Water of the Mississippi Chapter 8. Rethinking the Good Life Embayment,” fact sheet (Reston, VA: U.S. Geo- logical Survey, May 1998); Aral Sea from U.N. 1. Schools from Woodrow Wilson School of Environment Programme, Afghanistan: Post-Con- Public and International Affairs, “Former Mayor flict Environmental Assessment (Nairobi: 2003), p. of Bogotá to Speak on Improvement Models for 62. Third World Cities,” press release (Princeton, NJ: 26 November 2001), and from Enrique Peñalosa, 6. U.S. use of 11 million bales from Cotton e-mail to Gary Gardner, 8 October 2003; parks Board, “How U.S. Cotton Finds Its Way into the from ibid.; murders from Curtis Runyan, “Bogotá U.S. Consumer Market,” at www.cottonboard.org. Designs Transportation for People, Not Cars,” WRI Features (Washington, DC: World Resources 7. Chemicals and finishes from John C. Ryan Institute, February 2003). and Alan Thein Durning, Stuff: The Secret Lives of Everyday Things (Seattle, WA: Northwest Envi- 2. Highway from Susan Ives, “The Politics of ronment Watch, 1997), pp. 23–24, and from Happiness,” YES! A Journal of Positive Futures, Mindy Pennybacker, “The Hidden Life of T- summer 2003, pp. 36–37; passengers and car Shirts,” Sierra Magazine, January 1999. owners from Peñalosa, op. cit. note 1; Washing- ton subway from Washington Metropolitan Tran- 8. Ryan and Durning, op. cit. note 7, p. 21. sit Authority, “Metrorail Peak Ridership Continues to Grow in March,” press release (Washington, 9. Production and exports from FAO, “Cotton DC: 25 April 2002); libraries and schools from Commodity Notes,” op. cit. note 2, and from Woodrow Wilson School, op. cit. note 1. idem, FAOSTAT Statistics Database, op. cit. note 2; “The Fabric of Lubbock’s Life,” New York 3.Peñalosa quoted in Ives, op. cit. note 2, p. 37. Times, 19 October 2003; Amadou Toumani Touré and Blaise Compaoré, “Your Farm Subsidies Are 4. Merriam Webster’s Collegiate Dictionary, Strangling Us,” New York Times, 11 July 2003. Eleventh Edition (Springfield, MA: Merriam-Web- ster, 2003), p. 1416. We are indebted to Mark 10. China from Global Sources.com, “World’s Anielski for calling this etymology to our attention. Hub of T-shirt Production,” 29 July 2003, at www.globalsources.com/am/article_id/9000000 5. Organisation for Economic Co-operation 043332/page/showarticle?action=GetArticle; U.S. and Development (OECD), The Well-being of consumers from Robin Merlo, Marketing Com- Nations: The Role of Human and Social Capital munications Director, Cotton Incorporated, e- (Paris: 2001); Millennium Ecosystem Assessment, mail to Brian Halweil, Worldwatch Institute, 16 Ecosystems and Human Well-being: A Framework October 2003; Ellen Israel Rosen, Making Sweat- for Assessment (Washington, DC: Island Press, shops: The Globalization of the U.S. Apparel Indus- 2003); Canada from Mike Nickerson, “Green try (Berkeley: University of California Press, 2002). Party Policy Is Passed in the House of Com- mons,” Vancouver Greens Newswire, at vangreens 11. U.N. Division for Sustainable Develop- .bc.ca/news/2003/06/79.php, viewed 20 Octo- ment, “Application of Biodynamic Methods in ber 2003.

231 State of the World 2004 NOTES, CHAPTER 8

6.Definition adapted from Millennium Ecosys- Plan 2002–2003,” at www.coop.org/cci/activi tem Assessment, op. cit. note 5, p. 74. ties/action_plan.htm, viewed 21 October 2003.

7. David G. Myers and Ed Diener, The Science 14. Global Action Plan at www.globalaction of Happiness (Bethesda, MD: World Future Soci- plan.com/index.html, viewed 11 October 2003; ety, 1997); Figure 8–1 from David G. Myers, The Global Action Plan UK, Annual Report and American Paradox: Spiritual Hunger in an Age of Accounts 2001–2002 (London: December 2002); Plenty (New Haven, CT: Yale University Press, Global Action Plan, “The Sustainable Lifestyle 2000), with updates from David G. Myers, hope Campaign,” at www.globalactionplan.org/Files/ College, e-mail to Erik Assadourian, 20 October SLC.htm, viewed 20 October 2003; Minister of the 2003. Environment and Sustainable Development, “Week of Sustainable Consumption,” press release (Paris: 8. Ronald Inglehart and Hans-Dieter Klinge- 25 March 2003); la famille durable at www.famille mann, “Genes, Culture, Democracy, and Happi- durable.com, viewed 10 October 2003. ness,” in E. Diener and E. M. Suh, eds., Culture and Subjective Well-Being (Cambridge, MA: The 15. Center for a New American Dream, “Turn MIT Press, 2000), p. 171. the Tide: Nine Actions for the Planet,” at www.newdream.org/TurntheTide/default.asp, 9. Michael Bond, “The Pursuit of Happiness,” viewed 10 October 2003. New Scientist, 4 October 2003, pp. 40–47; Ed Diener, “Frequently Asked Questions,” at 16. Cecile Andrews cited in Michael Maniates, www.psych.uiuc.edu/~ediener/faq.html, viewed “In Search of Consumptive Resistance,” in Thomas 23 October 2003; Ed Diener, University of Illinois, Princen, Michael Maniates, and Ken Conca, eds., discussion with authors, 8 July 2003. Confronting Consumption (Cambridge, MA: The MIT Press, 2002), p. 200. 10. Caroline E. Mayer, “Trade Group to Abide by No-Calls List,” Washington Post, 29 September 17. Datamonitor, “Simplicity,” report brochure 2003. (New York: May 2003).

11. Organic market from “The Global Market for 18. Surveys from Michael Maniates, “In Search Organic Food & Drink,” Organic Monitor, July of Consumptive Resistance,” in Princen, Maniates, 2003; consumers from Datamonitor, “Organic, and Conca, op. cit. note 16, pp. 200–01, from Natural, Ethical, & Vegetarian Consumers,” report Juliet Schor, The Overspent American: Why We brochure (New York: February 2002). Want What We Don’t Need (New York: Harper- Perennial, 1998), pp. 113–15, and from The Har- 12. Natural Marketing Institute, “Nearly One- wood Group, Yearning for Balance: Views of third of Americans Identified as Values-based, Americans on Consumption, Materialism, and the Highly Principled Consumers, New Research Environment (Takoma Park, MD: Merck Family Shows,” press release (Harleysville, PA: 14 May Fund, 1995); media and Affluenza from Maniates, 2002); Amy Cortese, “They Care About the World op. cit. this note, p. 201. (and They Shop, Too),” New York Times, 20 July 2003; share of expenditures from World Bank, 19. Michael Maniates, “Individualization: Plant World Development Indicators Database, at a Tree, Buy a Bike, Save the World?” in Princen, media.worldbank.org/secure/data/qquery.php, Maniates, and Conca, op. cit. note 16, p. 45. viewed 10 October 2003. 20. Information on 07-06-05 at www.07-06 13. Seikatsu Club, “Outline of the Seikatsu Club -05.com/765/381.htm, viewed 11 October 2003. Consumers’ Cooperative Union,” at www.seikat suclub.coop/english/top.html, viewed 21 Octo- 21. John de Graaf, Take Back Your Time Day, ber 2003; Consumer Coop International, “Action discussion with Erik Assadourian, 24 October

232 State of the World 2004 NOTES, CHAPTER 8

2003; Take Back Your Time Day, “Take Back Facilitate the Poor’s Access to Credit? A Review of Your Time Day Campaign Launch,” press release the Microeconomic Literature, Social Capital Ini- (Seattle, WA: 25 March 2003). tiative Working Paper No. 8 (Washington, DC: World Bank, February 2000), pp. 8–15. 22. De Graff, op. cit. note 21. 30. “Grameen at a Glance,” at www.grameen 23. Robert D. Putnam, Bowling Alone: The Col- -info.org/bank/GBGlance.html, viewed 13 Octo- lapse and Revival of American Community (New ber 2003; Microcredit Summit from Sam Daley- York: Simon & Schuster, 2000), p. 332. Harris, “State of the Microcredit Summit Campaign Report 2003,” from Mya Florence, 24. Putnam, op. cit. note 23, pp. 327–28; David Microcredit Summit Campaign, e-mail to Gary G. Myers, “Close Relationships and Quality of Gardner, 27 October 2003. Life,” in D. Kahneman, E. Diener, and N. Schwarz, eds., Well-Being: The Foundations of 31. New U.S. interest groups from Rob Sandelin, Hedonic Psychology (New York: Russell Sage Foun- “Clearly Something Is Happening Here,” Com- dation, 1999), p. 377. munities: Journal of Cooperative Living, spring 2000.

25. B. Egolf et al., “The Roseto Effect: A 50-Year 32. Nancy Hurrelbrinck, “Energy Conservation Comparison of Mortality Rates,” American Jour- in Cohousing Communities,” Home Energy, nal of Public Health, August 1992, pp. 1089–92; July/August 1997, pp. 37–41; private ownership Putnam. op. cit. note 23, p. 329. from Graham Meltzer, “Cohousing and Sus- tainability: Findings and Observations,” at 26 Putnam, op. cit. note 23, p. 327. www.bee.qut.edu.au/people/meltzer/articles/ Cohousing%20Journal/cohojourn.htm. 27. World Bank from Christian Grootaert and Thierry van Bastelaer, Understanding and Mea- 33. Average attendance from Graham Meltzer, suring Social Capital: A Synthesis of Findings and “Cohousing: Verifying the Importance of Com- Recommendations from the Social Capital Initia- munity in the Application of Environmentalism,” tive, Social Capital Initiative Working Paper 24 unpublished paper, circa 1998; cooking time from (Washington, DC: World Bank, April 2001), p. iii; Zev Paiss, discussion with Gary Gardner, March benefits from OECD, op. cit. note 5, pp. 52–61; 1999. trust from Paul J. Zak and Stephen Knack, “Trust and Growth,” 10 September 1998 draft, at 34. Watersheds from Anirudh Krishna and Nor- papers.ssrn.com/sol3/papers.cfm?abstract_id=136 man Uphoff, Mapping and Measuring Social Cap- 961; Madagascar from Marcel Fafchamps and Bart ital, Social Capital Initiative Working Paper No. 13 Minten, Social Capital and the Firm: Evidence (Washington, DC: World Bank, June 1999), p. 1; from Agricultural Trade, Social Capital Initiative garbage collection from Sheoli Pargal, Mainul Working Paper 17 (Washington, DC: World Bank, Huq, and Daniel Gilligan, Social Capital in Solid September 1999), p. 23, and from Grootaert and Waste Management: Evidence from Dhaka, van Bastelaer, op. cit. this note, p. 11. Bangladesh, Social Capital Initiative Working Paper No. 16 (Washington, DC: World Bank, Septem- 28. Quote from Ken Grimes, “To Trust Is ber 1999), p. 1. Box 8–1 from the following: Human,” New Scientist, 10 May 2003, p. 37; “Gaviotas,” Social Design Notes, 9 August 2003; trust and growth from Stephen Knack, Social windmills from “Utopia Rises Out of the Colom- Capital, Growth and Poverty: A Survey of Cross- bian Plains,” All Things Considered, National Pub- Country Evidence, Social Capital Initiative Work- lic Radio, 29 August 1994; self-sufficiency from ing Paper No. 7 (Washington, DC: World Bank, “Gaviotas,” op. cit. this note; hospital from May 1999), p. 17. “Colombia’s Model City,” In Context, fall 1995; organic agriculture and reforestation from “Gavio- 29. Thierry van Bastelaer, Does Social Capital tas,” op. cit. this note.

233 State of the World 2004 NOTES, CHAPTER 8

35. OECD, Towards Sustainable Consump- Workplace,” New York Times, 12 October 2003. tion:An Economic Conceptual Framework (Paris: Environment Directorate, June 2002), p. 29. 47. Sweden from Ingrid Jacobsson, “Advertising Ban and Children: Children Have the Right to Safe 36. “Santa Monica Sustainable City Plan,” 2003 Zones,” Current Sweden, June 2002; U.S. Depart- update (Santa Monica, CA: 11 February 2003). ment of Agriculture, “Import Restrictions and Requirements,” Tobacco Circular, 1998, at 37. Box 8–2 from Robert Prescott-Allen, The www.fas.usda.gov/tobacco/circular/1998/impre Wellbeing of Nations: A Country-by-Country Index qmts/us.pdf, viewed 23 October 2003; “EU of Quality of Life and the Environment (Washing- Health Ministers Ban Tobacco Ads,” U.N. Wire, ton: Island Press, 2001). 3 December 2002.

38. Anders Hayden, “Europe’s Work-Time Alter- 48. “Smoke Free Movies” at www.smoke natives,” in John de Graaf, ed., Take Back Your freemovies.ucsf.edu/, viewed 13 October 2003; Time (San Francisco, CA: Berrett Koehler, 2003), Adbusters, “Reclaim the TV Airwaves,” at pp. 202–10. adbusters.org/campaigns/mediacarta/toolbox/ resources/tvjam, viewed 15 October 2003; Thai- 39. Jukka Savolainen et al., “Parenthood and land from U.N. Environment Programme Psychological Well-being in Finland: Does Public (UNEP), Division of Technology, Industry, and Policy Make a Difference?” Journal of Compara- Economics, Report from UNEP International tive Family Studies, winter 2001, pp. 61–74. Expert Meeting: Advertising and Sustainable Con- sumption (Paris: January 1999); Box 8–3 from 40. Roger Levett et al., A Better Choice of Choice Solange Montillaud-Joyel, UNEP, Nairobi. (London: Fabian Society, August 2003). 49. Australia and Canada from New Jersey Media 41. World Bank, “Participatory Budgeting in Literacy Project, “Plugging in to Media Educa- Brazil,” project commissioned by the World Bank tion,” Center for Media Studies, at www.media Poverty Reduction Group, at poverty.world studies.rutgers.edu/cmsyme.html, viewed 21 bank.org/files/14657_Partic-Budg-Brazil-web.pdf. October 2003; Instituto Akatu, “Akatu Institute for Conscious Consumption,” at www.akatu.net/ 42. Commuting time from Putnam, op. cit. note english.asp, viewed 21 October 2003. 23, p. 212–13; Rob Stein, “Suburbia USA: Fat of the Land? Report Links Sprawl, Weight Gain,” 50. Benjamin Hunnicutt, “When We Had , 29 August 2003. Time,” in de Graaf, op. cit. note 38, pp. 118–21; Jerome Segal, “A Policy Agenda for Taking Back 43. John Pucher and Lewis Dijkstra, “Making Time,” in de Graaf, op. cit. note 38, p. 214. Walking and Cycling Safer: Lessons from Europe,” Transportation Quarterly, summer 2000, pp. 51. Lao-Tzu, Te Tao Ching (New York: Ballan- 25–50. tine Books, 1989), p. 85.

44. “Walking in the City,” EcoNews Newsletter, 52. Gould quoted in David Orr, “For the Love of October 2002. Life,” Conservation Biology, December 1992, p. 486.

45. City of Austin, Matrix Program Web site, at 53. Prescott-Allen, op. cit. note 37; OECD, www.ci.austin.tx.us/smartgrowth/incentives.htm, “DAC Tables from 2000 Development Co-oper- viewed 12 October 2003; Dauncey quote from ation Report,” at www1.oecd.org/dac/images/ “Smart Planning, Smart Growth,” EcoNews ODA99per.jpg. Newsletter, December 2000. 54. Ruub Lubbers cited in Hayden, op. cit. note 46. Kate Zernike, “Fight Against Fat Shifts to the 38, p. 202.

234 Index

Adbusters, 176 Animex, 76 advertising Annan, Kofi, 55 to children, 72, 95, 155, 176 antibacterial soap, lifecycle analysis, 66–67 and consumer demand, 12, 14, 19, 112–13 antibiotics, 67, 73–77, 80, 88–89 consumption education, 176–77 appliances, 5, 25–28, 32–40, 101, 121 food ads, 72, 86, 95 aquaculture, 92–93 global expenditures, 14–15 aquifer depletion, 17, 46, 49–52, 56, 64 globalization, 9, 153 Arab Civil Union for Waste Management, 156 regulation, 176 Argentina, 159 tobacco ads, 14–15, 17 Argumedo, Alejandro, 82 Africa, see specific countries asbestos dispute, 159 Agenda 21, 151 Asia, see specific countries agriculture Association for Nature Conservation and aquaculture, 92–93 Sustainable Development, 82, 84 biotechnology, 70, 79, 152 Australia cocoa production, 90–91 automobile tariffs, 12 cropland loss, 17 biodegradable products, 23 Food and Agriculture Organization (U.N.), green purchasing, 129 8, 11, 73, 89, 93, 147 social health, 18 grain production, 52–53 water productivity, 47–48 irrigation, 47–54, 59–60, 62, 64 water use, 65 livestock, 8, 73–77, 158 Austria, 135 organic farming, 69, 77–85, 122, 126, 131, automobiles 167–68 in China, 3–4, 27 subsidies, 72, 85, 99 embodied energy, 36–37 see also food energy consumption, 28–31 Aitken, Donald, 35 hybrid-electric vehicles, 30–31, 33, 127, 138–39 Alders, Robyn, 89 production, 12, 27 Alliance for Environmental Innovation, 131 size increase, 29 Alliance for Prudent Use of Antibiotics, 67 tariffs, 12 Altria Group, Inc., 146 taxes, 38 aluminum, 11, 38, 63, 95 world fleet, 7, 28–29 American Medical Association, 67 American Rivers, 64 Anderson, Ray, 110 Bangladesh, 23, 51, 53 Andrews, Cecile, 168 Bank of America, 127 Anheuser-Busch, 62, 126 Basel Action Network, 45 Animal Welfare Institute, 76 Basel Convention, 45, 121

235 State of the World 2004 INDEX

BASF, 106 Well-Being Measurement Act, 165 basic needs, 6, 8, 10, 19–21, 41, 165–66 Canon, 127 beef hormone dispute, 158 carbon dioxide, 17 Belgium, 115 carbon emissions, 27, 40, 58 Bentley, Matthew, 6 see also climate change; fossil fuels Berkoff, Jeremy, 49 Carlsson-Kanyama, Annika, 69 Berry, Wendell, 149 Carrier Corp., 110 bicycles, 3, 30–31, 38, 40, 154, 175–76 Carter, Craig, 126 biodegradable products, 23, 104, 121 Case, Scot, 124, 138 Biodegradable Products Institute, 23 Cathode ray tube monitors, 44–45 biodiversity, 90 cell phones, lifecycle analysis, 120–21 biomass, 25–26, 33 Cement Sustainability Initiative, 156 biosafety, 152, 160 Center for a New American Dream, 124, biotechnology, 70, 79, 152 138–39, 168 Blue Angel, 34, 101, 121 Center for Advanced Purchasing Studies, 126 Boeing, 127 Center for Energy and Climate Solutions, 131 Boise Cascade, 136 Center for Neighborhood Technology, 15 Borlaug, Norman, 83 Chemical Market Associates, 22 bottled water, lifecycle analysis, 86–87 chicken, 73–76, 88–89 bovine spongiform encephalopathy, 75 children Brazil advertising aimed at, 72, 95, 155, 176 cocoa production, 90–91 caffeine consumption, 95 deforestation, 90–91, 140 chemical exposure, 67, 80–81, 85, 162 energy consumption, 26, 34–35 as consumers, 118, 120 green purchasing, 132–33, 140 as laborers, 91 meat consumption, 8 obesity, 94–95 oil production, 144 welfare policy, 141, 156, 171, 174, 178 well-being, 175 young people’s movement, 153 Bristol-Myers Squibb, 131 Chile, 31, 159 Brubaker, David, 75 China Brussels Declaration for a Sustainable Energy automobile use, 3–4, 27 Policy in Cities, 40 bicycles, 3 building codes, 35, 39 cheap labor, 117–18 Building for Environmental and Economic Sus- coal use, 27 tainability software, 136 consumer class, xviii, 6–7, 27 Burger King, 77 cotton production, 163 Burlington Resources, 144 cradle-to-cradle strategies, 105 Bush, George W., xvii credit lending, 15 Business Council for Sustainable Development, ecological footprint, 148 126 energy consumption, 26–27 Buy-It-Green Network, 139 household energy consumption, 32 irrigation, 53 jobs, 3, 97 Caffeine, 94–95 meat consumption, 8 Campus Ecology program, 135 shrimp production, 92–93 Canada trade surplus, 97 bottled water, 86–87 water use, 48–49 green purchasing, 129, 135–36 China Council for International Cooperation on household energy consumption, 32 Environment and Development, 148 pesticide use, 61 Chiquita, 149 water use, 49 chocolate, lifecycle analysis, 62, 69, 90–91

236 State of the World 2004 INDEX chronic disease food, 8, 54, 68–95, 167–68 obesity, 15, 18, 72, 75, 94–95 luxury items, 10, 70–71, 92 smoking effects, 14–15, 17, 146 paper, 9, 11, 142–43 CIGNA Corporation, 60 present conditions, 3–21 Citigroup, 131 water, 49–63 climate change, 17, 152 Container Recycling Institute, 87 see also carbon emissions Convention on International Trade in Climate Savers Program, 131 Endangered Species of Wild Fauna and Climatex Lifecycle, 104 Flora, 71 Clinton, Bill, 130 copper, 11, 16, 45 co-housing communities, 171–72 Côte d’Ivoire, 90–91 coal cotton T-shirts, lifecycle analysis, 162–63 consumption rates, 11, 17, 26–27 cradle-to-cradle design, 103–05 energy conversion, 24, 26 credit lending, 15, 20, 111–13, 116, 136 jobs, 24 cropland loss, 17 mining, 24, 100 Cross, Gary, xvii pollution emissions, 17, 24, 103 transport, 24 Coca-Cola Company, 87, 94–95, 145–46 DaimlerChrysler, 130, 140 coffee production, 68–69, 127, 150 Daley, Richard, 105 Cole, Ralph, 89 Daly, Herman, 111 Collaborative Labeling and Appliance Standards dams, 25, 46–47, 52, 58 Program, 155 Daughton, Christian, 61 Colombia, 31, 164, 173 Dauncey, Guy, 176 Columbia Steel Casting Co., Inc., 62 de Graaf, John, 169 compact fluorescent lamps, 122, 125, 167 deforestation, 90–91 computers Dell, 108 consumption patterns, 9, 14, 44, 148 Denmark costs, 12, 118 automobile tax, 38 energy use, 32–33 co-housing communities, 171 green purchasing, 123, 127–28, 130, 139 green purchasing, 128–29, 135–36 Internet, 10, 13–14, 33, 140 Kalundborg, 103 lifecycle analysis, 44–45 water use, 57 recycling, 45, 106, 108, 121 wind energy, 40 Conference on Environment and Development work time, 115 (Rio), 150–51, 155 DesignTex, 106 conservation, 61–63, 82, 84, 135 developing countries see also biodiversity; recycling; renewable appliance use, 33–34 energy; sustainable development consumer class, 4, 6–7, 20, 26–27, 71, 148 consumer class consumption patterns, 4 consumption patterns, 6–7, 10, 19–20 energy consumption, 26 growth in developing countries, 4, 6, 20, food expenditures, 8 26–27, 71, 148 green purchasing, 128–29, 133, 140 sustainable consumption, 97–98, 101–03 household energy consumption, 32–33 Consumer Co-op International, 167 infectious disease, 67 consumerism, xvii, 12, 96–98, 111, 114–16, 168 meat consumption, 75–76 Consumers International, 151 paper consumption, 9 Consumers Union, 80 population growth, 5 consumption education, 176–77 sustainable development, 148 consumption patterns, 3–21 see also specific countries energy, 24–45 Disney, 117

237 State of the World 2004 INDEX

Doha Mandate, 160–61 consumption patterns, 24–45 Dole, 149 costs, 25 Domino’s Pizza, 146 efficient use, 26, 33–34 Dow Chemical, 110 embodied energy, 36–39, 110 downshifting, 114, 168 Energy Policy Act (U.S.), 59 Dunster, Bill, 41 global trends, 25–28 Durning, Alan, xviii green power, 40, 127, 132, 134 in manufacturing, 36–38 policy, 38–43 E-waste, 44–45, 149 quality-of-life improvements, 41 Earth Summit, see Conference on Environment well-being relationship, 41–42 and Development (Rio) wind energy, 40, 105, 122, 173 Eco-Responsible Purchasing in Developing Energy Star program, 130 Countries and Nearly Industrialized Environmental Defense, 124, 131 Economies, 140 environmental taxes, 99–101 ecolabeling, 72, 101, 113, 129, 137–38 Equator Principles, 154 ecological footprint, 16–17, 104, 147–48, 172 Erdmenger, Christoph, 128 Ecological Landscapers, 60 Estrada, Joseph, 120 Economic Policy Institute, 116 Ethiopia, 150 economy, 96–119 European Association of Communications Building for Environmental and Economic Agencies, 177 Sustainability software, 136 European Commission, 31, 121, 133, 156, 158 credit lending, 15, 20, 111–13, 116, 136 European Union export processing zones, 13 automobile use, 29 fair trade, 68–69, 84, 91, 149–50, 163 beef ban, 158 fisheries value, 145, 147 cell phone use, 120–21 foreign aid, 68, 179 energy policy, 40 foreign direct investment, 145 environmental taxes, 99–100 General Agreement on Tariffs and Trade, 158 EUROCITIES, 31 globalization, 12–13, 97, 114, 144–61 extended producer responsibility laws, mass consumption economics, 20 106–07 microcredit, 170–71 green purchasing, 123–24, 130, 133, 139 paperless economy, 33 organic foods, 167 sustainable development, 115–19 public transit, 30 tariffs, 12, 85, 158–61 Evian, 86 taxes, 23, 38–39, 99–101 export processing zones, 13 trade conflicts, 157–60 extended producer responsibility laws, 45, world exports, 147 106–07, 109, 113, 121 see also agriculture; jobs; recycling; subsidies extinctions, 46, 70 ecosystems, 16–18, 24–25, 165 ecovillages, 40 Ecuador, 144 Fabian Society, 174 Egypt, 49 fair trade, 68–69, 84, 91, 149–50, 163 Ellen Tracy, 117 Federal Express, 127, 131 energy, 24–43 Ferguson, Tom, 133 appliance use, 32–34 fertilizer, 17, 60, 76–77, 80, 133 biomass, 25–26, 33 Fertilizer Institute, 133–34 Brussels Declaration for a Sustainable Energy Finland, 42, 141 Policy in Cities, 40 fisheries building-related use, 32–36 bycatch, 70, 92–93 Center for Energy and Climate Solutions, 131 catch, 13, 17, 92

238 State of the World 2004 INDEX

decline, 13, 16, 70–71 genetically modified organisms, 70, 79, 152, 159 economic value, 145, 147 Genuine Progress Indicator, 172 luxury foods, 71, 92 Germany overfishing, 70 appliance use, 34 regulation, 157–59 bicycle use, 175 shrimp, 92–93, 158 Blue Angel program, 34, 101, 121 subsidies, 99, 161 credit debt, 112 sustainable management, 70, 152–53 energy consumption, 33, 37 trade conflicts, 158–59 energy policy, 40, 100 food, 68–85 extended producer responsibility laws, 106–07 coffee production, 68–69, 127, 150 green purchasing, 129, 134 daily calorie intake, 8, 54, 94 manufacturing efficiency, 37 distribution, 82–83 material flow, 101–05 embodied energy, 37 organic farming, 77 fair trade label, 68–69, 84, 91, 149–50, 163 recycling, 143 globalization, 13, 69, 71, 75 work time, 114 livestock, 8, 73–77, 158 Ghirardelli Chocolate Company, 62 luxury foods, 70–71, 92 Gillette, King Camp, 96 malnutrition, 8, 10 Global Action Plan, 167 nutritional water productivity, 54–55 Global Compact, 154 obesity, 15, 18, 72, 75, 94–95 Global Environment Facility, 140 organic, 69, 77–85, 122, 126, 131, 167–68 globalization, 12–13, 97, 114, 144–61 per capita expenditures, 8 Gould, Stephen Jay, 179 policy, 84–85 grain production, 52–53 traceability, 81–84 Grameen Bank, 170–71 Ford Motor Company, 29, 36, 126 Green Mountain Energy, 136 foreign aid programs, 68, 179 green purchasing, 122–41 foreign direct investment, 145 buildings, 35 Forest Stewardship Council, 131, 152 consumer action, 40, 101, 138–41 ForestEthics, 131–32 contracts, 125 forests institutional procurement, 123–30 cocoa, 90–91 lifecycle assessment, 136–37 deforestation, 90–91 policy pressures, 130–36 green products, 131–32, 135 power, 40, 127, 132, 134 logging, 90, 132, 135, 142 product identification, 136–38 paper production, 11, 13, 17, 142–43 Green Seal, 138 sustainable management, 20 Greenpeace, 31, 45, 135 fossil fuels Groth, Edward, 80 consumption, 11, 17, 25, 37, 42 Gusto Homes, 62 for food production, 74, 87, 163 oil consumption, 27, 37, 144 subsidies, 39, 99 Hawken, Paul, 15, 102, 116 see also carbon emissions Hennes & Mauritz, 146 Framework Convention on Climate Change, Hewlett Packard, 108, 127 152 HIV/AIDS, 67 France, 114, 167 Hollender, Jeffrey, 126, 128 Home Depot, 131–32 Honeywell, 104–05 Gaviotas, 173 household size, 4–5, 32 General Agreement on Tariffs and Trade, 158 Human Development Index, 41, 172 General Motors, 3, 15 Human Poverty Index, 18

239 State of the World 2004 INDEX human rights violations, 13, 93 Israel, 148 hunger, 8, 10 Italy, 83, 131, 137–38 hybrid-electric vehicles, 30–31, 33, 127, 138–39 Jaffe, JoAnn, 83 Jani, Maya, 84 IBM, 62, 107–08, 126, 132 Janitorial Products Pollution Prevention Project, Icon Group, 66 125 IKEA, 127 Japan Independent Federation of Shuar Peoples, 144 automobile use, 29 Index of Gross World Product, 18 consumer co-ops, 167 Index of Social Health, 18 ecological footprint, 147 India energy consumption, 37 automobile use, 27 food expenditures, 8 bottled water, 87 green purchasing, 129, 134–35, 138–40 carbon emissions, 27 manufacturing efficiency, 37 coal use, 27 material flow, 101–05 consumer class, 6, 26, 27 paper consumption, 142 consumerism, xviii public transit, 30 energy consumption, 26–27 shrimp production, 92–93 food expenditures, 8 work time, 114 household energy consumption, 32 Jennings, Marianne, 126 irrigation, 53 Jihad, 148, 150, 161 organic farming, 78, 81–83 jobs paper consumption, 9 cheap labor, 13, 97, 117 pesticide use, 162 created, 3, 100, 113, 131 population growth, 5 lost, 24, 93, 125, 150 water use, 53, 64 second jobs, 115 industrial countries, see specific countries well-being, 174, 177, 179 infectious diseases, 67, 75 work time, 113–15 INFORM, 120 Johannesburg Summit, see World Summit on information technology, 12, 32–33 Sustainable Development Information Technology Agreement, 12 (Johannesburg) Inocencio, Bobby, 76 Johnson & Johnson, 132 Institute for Marine Sciences, 70 Jordan, 49 Interface, 110–11 International Council for Local Environmental Initiatives, 128, 130, 139–40 K eniry, Julian, 135 International Development Enterprises, 53 Kent, Jennifer, 98 International Energy Agency, 27, 34 Kentucky Fried Chicken, 77 International Hotels Environment Initiative, 140 Kenya, 79 International Institute for Environment and Knack, Stephen, 170 Development, 72 Kodak, 108 International Life Cycle Panel, 137 Kraft, 72 International Monetary Fund, 117–18 Kyoto Protocol, 152 International Paper, 103 International Telecommunication Union, 121 International Water Management Institute, 64 Ladakh Women’s Alliance, 23 Internet, 10, 13–14, 33, 140 Laidlaw, Stuart, 85 Ireland, 23 Langford, Ian, 74 irrigation, 47–54, 59–60, 62, 64 Larson, Elaine, 67

240 State of the World 2004 INDEX

Leadership in Energy and Environmental McDonald’s, 72, 76–77, 127, 145–46, 146 Design, 35 McWorld, 145–50 lease programs, 109–10 Meléndez, Luz Aída Martínez, 134 Lebow, Victor, xviii, 96 metals Lepper, Andrzej, 76 aluminum, 11, 38, 63, 95, 109 Levi Strauss, 126, 146 consumption patterns, 10–11, 16 Levy, Stuart, 67 heavy metals, 17, 44–45, 125, 160 lifecycle analysis mining, 13, 16, 102 antibacterial soap, 66–67 recycling, 11, 130 bottled water, 86–87 Mexico cell phones, 120–21 coffee production, 68 chicken, 73–76, 88–89 export trade, 97 chocolate, 62, 69, 90–91 green purchasing, 134 computers, 44–45 Microcredit Summit Campaign, 171 cotton T-shirts, 162–63 Microsoft, 44 green purchasing assessment, 136–37 Migros, 127 paper, 142–43 Millennium Development Goals, 50, 87 plastic bags, 22–23 Millennium Ecosystem Assessment, 165 shrimp, 92–93 Millennium Poll on Corporate Social soda, 94–95 Responsibility, 131 Lithuania, 77 Millipore Corp., 62 livestock, 8, 73–77, 158 mineral water, 86–87 Living Planet Index, 16, 18, 172 mining, 13, 16, 102 Liz Claiborne, 117 Miraflor Cooperative, 150 LOHAS consumers, 131, 167 mobile phones, lifecycle analysis, 120–21 L’Oreal, 126 Moore’s Law, 13–14 Lovins, Amory, 15, 26, 102, 116 Morgan Stanley, 116 Lovins, Hunter, 15, 102, 116 Murtaugh, Philip, 15 Lowe’s, 132 Myers, Norman, 98 Lubbers, Ruud, 179 Myers, Ransom, 70 luxury items, 10, 70–71, 92 Nan, Deng, 105 Mad cow disease, 75 National Wildlife Federation, 135 malaria, 67 Natural Marketing Institute, 122 malnutrition, 8, 10 Natural Resources Defense Council, 87 Mangrove Action Project, 93 Navdanya, 82–84 Maniates, Michael, 168 Netherlands manufacturing animal welfare, 71 cheap labor, 13, 97, 117 bicycle use, 40, 175 cradle-to-cradle system, 103–05 consumer co-ops, 167 energy use, 36–38 ecological footprint, 147 extended producer responsibility laws, 45, foreign aid programs, 68, 179 106–07, 109, 113, 121 green purchasing, 140 Marine Stewardship Council, 152 producer responsibility laws, 107, 121 Marx, Michael, 131–32 work time, 115, 173–74 Massachusetts Water Resources Authority, 58 New Economics Foundation, 82 material flow, 101–05 Nicaragua, 150 Max Havelaar Foundation, 68–69 Nigeria, 39, 90 McCann-Erickson, 177 Nike, 108, 117, 126, 132 McCloskey, Heidi, 126 Niman Ranch, 73

241 State of the World 2004 INDEX

Nokia, 121 policy Nomad Cohousing Community, 172 children’s welfare, 141, 156, 171, 174, 178 Nordic Swan, 138 green policy, 95, 99, 107, 121, 138, 153 Nortel, 108 transportation, 38–43 North American Green Purchasing Initiative, water, 63–65 137, 139 pollution Norway, 16, 168 e-waste, 44–45, 149 hazardous waste, 45, 103–04, 107, 121, 172 heavy metals, 17, 45, 125, 160 Obesity, 15, 18, 72, 75, 94–95 polyvinyl chloride, 44–45, 104, 135 oil consumption, 27, 37, 144 population growth, 5, 25 Oppenhuizen, Rita, 68 poverty, 6, 18–19, 50, 77, 170 Organic Exchange, 126 Prescott-Allen, Robert, 41, 173 organic farming, 69, 77–85, 122, 126, 131, Procter & Gamble, 64, 138 167–68 Product-Life Institute, 109 Organic Monitor, 78 production efficiency, 12–13 Organisation for Economic Co-operation and Public Broadcasting System, 168 Development, 11, 16, 18, 43, 98–101, purchasing, see green purchasing 112, 151, 165 Pure Foods, 76 Oromiya Cooperative, 150 Putnam, Robert, 18, 169, 175 Oxfam, 68 R ainforest Action Network, 131–32 Pacific Northwest National Laboratory, 33 Rainforest Alliance, 149 Panama, 149 Ralph Lauren, 117 paper ReCellular, 120 consumption patterns, 9, 11, 142–43 Recycled Paper Coalition, 126, 143 lifecycle analysis, 142–43 recycling paperless economy, 33 cell phones, 120–21 pollution generation, 103 Container Recycling Institute, 87 production, 13, 17, 63, 142–43 cradle-to-cradle design, 103–05 recycling, 11, 63, 106, 109, 123–37, 143 extended producer responsibility laws, 45, sacks, 22 106–07, 109, 113, 121 wood consumption, 11, 13, 17 metals, 11, 130 Parrott, Nick, 79 municipal waste, 11, 16 Peñalosa, Enrique, 31, 164 paper, 11, 63, 106, 109, 123–37, 143 PennAg Industries, 75 remanufacturing, 108–11 PepsiCo, 87, 95, 146 take back laws, 20, 39, 106–08, 121, 125, 151 Perdue AgriRecycle, 133 Waste Electrical and Electronic Equipment Perdue Chicken, 88 directive, 121 Perrier, 86 Redefining Progress, 16, 148 Peru, 144 Renault, Daniel, 54 Pesticide Action Network North America, 162 renewable energy, 40, 105, 122, 173 pesticides, 60–62, 77–81, 149–50, 162 Research Foundation for Science, Technology Petrini, Carlo, 81 and Ecology, 82 Philippines, 76, 120 responsible product sales, 156 photovoltaics, 35–36, 40 rice production, 52–53 Pimentel, David, 37 Riu Hotels, 127 plastic bags, lifecycle analysis, 22–23 river systems Poland, 29, 76 dams, 25, 46–47, 52, 58 Polaroid, 132 Nile River, 49–50, 92

242 State of the World 2004 INDEX

pollution, 45 South Africa Roach, Stephen, 116 plastic bag legislation, 23 Rocky Mountain Institute, 35, 102 water use, 48, 50–51, 56 Rohner, 106 South Korea, 37, 39, 107, 112, 148 Rothstein, Edward, 96 Spain, 52–53, 56 Russian Federation, 49 Stahel, Walter, 109 Staples, 127 Starbucks, 127, 131 Safety-Kleen, 110 Stichting Ideele Import, 68 Schor, Juliet, 114 Stockholm Convention on Persistent Organic Schreiner Alves, Julia, 132–33 Pollutants, 152 Sea Turtle Restoration Project, 93 Suárez, Carlos, 41 Seafood Choices Alliance, 70 subsidies Sears, Roebuck & Company, 60, 162 agriculture, 72, 85, 99 Seikatsu Club Consumers’ Cooperative Union, 167 consumption stimulation, 15, 39, 98–101 Seventh Generation, 126, 128 conventional energy, 39, 99 sewage treatment, 8–9 fisheries, 99 Shaw Industries, 105 forestry, 64, 99 Shell Oil Company, 153 transportation, 99 Shimano, 154 water, 64, 99 Shiva, Vandana, 82, 93 Suez, 51 shrimp, 92–93, 158 Surplus With a Purpose project, 141 Siemens, 146 Sustain-Ability, 177 Silicon Valley Toxics Coalition, 121 sustainable tourism, 157 Singapore, 58, 61 Sweden Slow Food movement, 81 advertising ban, 95, 176 Small Fishers Federation of Sri Lanka, 93 food policy, 85 Smallholder Irrigation Market Initiative, 53 global commerce, 146 Smart Growth Criteria Matrix, 176 green policy, 95, 99, 107, 121, 138, 153 Smil, Vaclav, 75 housing tax, 39 Smith, Adam, 11 recycling, 121 Smith, Gary, 75 well-being, 18, 41, 168, 174 Smithfield, 76 swordfish dispute, 159 smoking, 14–15, 17, 146 social health, 18–19, 29–30, 173, 177 social interaction, 69, 81, 165, 169–72 Taiwan, 107, 128 social justice, 124, 126, 131, 141, 150, 163 take back laws, 20, 39, 106–08, 121, 125, 151 social motivation, 3, 10–14, 20–21, 117 Talloires Declaration, 140 social responsibility, 141, 150, 154–56 Tanzania, 8 social security, 99–100 tariffs, 12, 85, 158–61 social services, 31–32, 100, 112, 173 Tata Group, 146 Society of Environmental Toxicology and Chem- tax credits, 30, 38–39 istry, 137 taxes, 23, 38–39, 99–101 soda, lifecycle analysis, 94–95 TCO Development, 121 solar energy technology growth rate, 122 biotechnology, 70, 79, 152 in home construction, 62, 112, 130 cellular phones, 120–21 in institutions, 130 e-waste, 44–45, 149 photovoltaics, 35–36, 40 green roof technology, 36 in rural communities, 153, 173 growth, 13–14 Solidaridad, 68 information, 12, 32–33

243 State of the World 2004 INDEX technology (continued) Commission on Sustainable Development, 151 Information Technology Agreement, 12 Development Programme, 18 Internet, 10, 13–14, 33, 140 Environment Programme, 6–7, 9, 137, 151, Research Foundation for Science, Technology 153, 177 and Ecology, 82 Food and Agriculture Organization, 8, 11, telephones, 9–10, 120–21 73, 89, 93, 147 television, 9, 13–14, 18–19, 33, 176 Framework Convention on Climate Change, see also computers 152 telephones, 9–10, 120–21 General Assembly, 50 television, 9, 13–14, 18–19, 33, 176 Global Compact, 154 Ten Thousand Villages, 68 green purchasing, 140–41 terrorist attacks of 2001, 148, 150 Guidelines for Consumer Protection, 151 Texas Instruments, 126 Human Development Index, 41, 172 Thailand, 34–35, 92 institutional procurement, 124 Thames Water Utilities, 57 Life-Cycle Initiative, 151–52 tobacco, 14–15, 17, 146 Population Division, 5 Töpfer, Klaus, 137 Population Fund, 153 tourism, 157 UNICEF, 141 Toyota, 12, 31, 33, 35, 127 United States trade conflicts, 157–60 advertising expenditures, 14–15 transportation appliance use, 32–34 air travel, 28 automobile use, 4, 28–29 bicycles, 3, 30–31, 38, 40, 154, 175–76 building codes, 35, 39 in industrial countries, 28–31 Centers for Disease Control and Prevention, 67 policy, 38–43 consumption patterns, 4–9, 111–13, 116–17 public transit, 30, 38 cotton production, 163 subsidies, 99 credit debt, 15, 20, 111–13, 116, 136 see also automobiles Department of Agriculture, 80 triclosan, 66–67 Department of Commerce, 136 tuna-dolphin dispute, 158 Department of Defense, 139 Tyson Foods, 88 ecological footprint, 17, 147 energy consumption, 26, 32–35, 40 energy policy, 30–31, 59 Unigro, 62 Environmental Protection Agency, 45, 61, Union Carbide, 162 135, 138–39 Union of Concerned Scientists, 69 extended producer responsibility laws, 107–08 United Arab Emirates, 41, 147 General Accounting Office, 135 United Fruit Workers, 69 Geological Survey, 61, 67, 162–63 United Kingdom green power, 40 automobile use, 29 green purchasing, 125, 128–30, 133–40 credit debt, 112 household energy consumption, 32 food policy, 72–73 household size, 32 green purchasing, 129, 131, 135 material flow, 101–05 public transit, 31 National Park Service, 139 water use, 57 nutritional water productivity, 54–55 well-being, 174–75 obesity, 18 work time, 114 oil consumption, 25–26, 28 United Milk, 62 paper consumption, 142 United Nations plastic bag use, 22–23 basic needs assessment, 6 population growth, 5 Cartagena Protocol on Biosafety, 152, 160 public transit, 30–31, 38, 111, 116

244 State of the World 2004 INDEX

recycling, 95, 121, 123 jobs, 174, 177, 179 Resource Conservation and Recovery Act, 135 measurement, 172–74 shrimp production, 92–93 redefinition, 164–65 social health, 18–19 wealth relationship, 165–66 waste, 16 Wellbeing Index, 41, 173–74, 179 water use, 49, 50, 56–60 Wendy’s, 77 well-being, 174–76 West Wind Farms, 89 wind energy, 122 wetlands, 17, 46–49, 63 work time, 114 Wickes, Inc., 132 U.S. Simplicity Forum, 168–69 Wild Ones, 60 wind energy, 40, 105, 122, 173 work time, 113–15, 168, 173–74 Velo Mondial, 154 World Association of Research Professionals, 177 Volkswagen, 3 World Bank Volvo, 136 aquaculture certification, 93 von Weizsäcker, Ernst Ulrich, 102 basic needs assessment, 6 Vorley, William, 72 carbon-intensive fuel projects, 39 environmental standards, 154 green purchasing, 124, 140–41, 152 Wal-Mart, 117, 118 livestock projects, 77 Wallender, Wes, 54 social interaction study, 170, 172 waste, 15–16 U.S. interests, 118 waste management, 8–9 World Business Council for Sustainable Develop- Waste Stock Exchange Management System, 63 ment, 156 water, 46–65 World Health Organization, 67, 74, 120, 162 aquifer depletion, 17, 46, 49–52, 56, 64 World Resources Institute, 101, 132 bottled water, 86–87 World Summit on Sustainable Development conservation, 63 (Johannesburg), 50–51, 128, 137, 150, dams, 25, 46–47, 52, 58 154–56 demand, 46–47 World Trade Organization, 12, 138, 155, desalination, 55 157–58 global distribution, 49–51 World Values Survey, 166, 170 industrial use, 60–63 World Wildlife Fund, 87 irrigation, 47–54, 59–60, 62, 64 Worm, Boris, 70 management, 47–49, 55–56, 64 WWF International, 16, 18, 93, 131, 156 nonrevenue water, 56–58 policy priorities, 63–65 pollution, 8–9, 17, 60–63, 77 Xerox, 45, 108–10 productivity, 46–67 reasonable access, 50–51 scarcity, 49–51, 56 Young people’s movement, 153 sewage treatment, 8–9 Youth Dialogue on Consumption, Lifestyles, and system leakage, 55–59 Sustainability, 157 urban demand, 55–60 YouthXchange Project, 153 Watts, James, 23 Yum! Brands, 146 wealth, 6–8, 10, 16–21, 165–66 Weaver Street Market, 23 Weissman, Arthur, 138 Zeftron Savant, 104–05 well-being Zero Emissions Development, 40–41 energy use relationship, 41–42 Zimbabwe, 83 infrastructure creation, 172–77

245 Knowing the issues is just the first step in moving toward a more sustainable world.

For more than 20 years, State of the World has guided a global audience in identifying and understanding the pivotal environmental and social issues of our time. This year, we invite you to do more than just read the book— please join us online, where you will find a wealth of additional material about our special State of the World focus:The Consumer Society.

Visit our Consumption Web portal at http://www.worldwatch.org/topics/consumption/ throughout the year and you will constantly find new resources to review, including: • Our first online-only publication, Good Stuff? A Behind the Scenes Guide to the Things We Buy, which traces the environmental and social impact of more than 25 everyday consumer items—from food and cars to cleaning supplies and electronics. • Video and audio interviews with State of the World 2004 chapter authors. • A series of online discussions with authors and partners from State of the World 2004 and Good Stuff.

Reading State of the World 2004 is a great first step. Looking at what you can do next seals the deal. No matter where on Earth you live, and no matter where your true interests lie, take that extra step with us online and help build a sustainable world.