Second, developing countries themselves have been experimenting with economic instruments for some time and although this experience is more relevant, it is anecdotal and largely undocumented. It is also important to note that developing countries are a very heterogeneous group, both in terms of the stage of economic and political development and in terms of ecological conditions. These differences limit the direct transfer of developing country experience (e.g., from Southeast Asia to sub-Saharan Africa). Nevertheless, the fact that a dissimilar group of developing countries has been able to adopt and adapt economic instruments for environmental management bodes well for the introduction of these instruments elsewhere in the developing world. Furthermore, traditional societies have a wealth of incentive-based instruments for resource management such as communal property rights and customary use rights that provide a cultural basis and insights for the introduction of modern economic instruments.
However, the slate for the introduction of economic instruments is far from clear. There are already in place command and control regulations dictating pollution and resource depletion standards and specific technologies. Their complete abandonment and replacement by economic instruments is out of the question for reasons that range from economic disruption to political economy. The most promising entry points for economic instruments are in answering concerns about the efficiency and flexibility of existing regulations, the need for fiscal revenues, and in the search for instruments to reconcile economic and environmental policy and to promote sustainable development. A good place to start is with the gradual introduction of selected economic instruments adapted to local conditions, to lend flexibility, financial support, and increased efficiency to the existing regulatory regimes.
The objective of this monograph is sevenfold: (a) to explore the analytical foundations as well as the scope and role of economic instruments in environmental management (Chapters 2 and 3); (b) to review the experience of developed countries and assess its relevance to developing countries (Chapter 4); (c) to document the experience of the developing countries which have applied economic instruments to the management of different resource and environment sectors (Chapter 5); (d) to explore the applicability of economic instruments to the protection of the global commons and their implications for developing countries (Chapter 6); (e) to analyze the special circumstances of developing countries and the way in which they could influence the applicability and selection of economic instruments (Chapter 7); (f) to delineate the modalities for introducing economic instruments in developing countries and transitional economies and to assess the institutional and human resource requirements and financial implications (Chapter 8); and (g) to formulate a strategy for the successful introduction of economic instruments in developing countries.
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