WILFREDO CRUZ, MOHAN MUNASINGHE, & JEREMY WARFORD
Environmental Implications of
Until recently, multilateral lending agencies and the development community at large have tended to address environmental concerns only at the relatively narrow project level. At the World Bank, for instance, the focus was on ensuring that particular development projects did not harm the environment rather than on the broader political and economic context in which environmental issues arise. The importance of that context is becoming increasingly clear, however, with the growing emphasis on sustainable development (as opposed to growth per se) and the far-reaching policy reforms that many developing countries have adopted in recent years.
The emphasis on sustainable development has encouraged a broader view of environmental concerns because it entails three closely related goals: economic efficiency, social stability, and environmental protection. At the same time, fundamental changes in economic policy have highlighted the role such policy plays in environmental outcomes. These changes include programs to address macroeconomic problems (international trade, government budgets, private investment,____________________