Governance and Sustainable Development

The United States Government has given considerable thought to questions related to sustainable development in light of the United Nations Conference on Environment and Development in Rio de Janeiro and the work of the Commission on Sustainable Development. Our goal is for the World Summit in Johannesburg to both take stock of developments since the Rio Conference and provide leadership for domestic efforts and multilateral cooperation in the years to come. To provide that leadership, the Summit in our view should focus on those key issues that are most critical to formulating and implementing policies to promote and facilitate true sustainable development.

In our view, one of those key issues is governance, which is the focus of this paper. By governance we refer to a broad range of issues that support the ability of governments and the public to make sound decisions about and act in the interest of promoting sustainable development.¹ Anti-corruption measures and the creation or enhancement of a legal framework of transparent, democratic, non-discriminatory, and accountable institutions are prerequisites for sustainable development.

Domestic good governance is an essential element of sustainable development for all countries, developed and developing, wherever located. It acknowledges the rights of current and future generations to have access to natural resources, and provides a framework for conservation and sustainable management of natural resources, including protection of biological diversity. While the forms of governance will naturally depend on each country's circumstances, there are certain aspects of governance that appear to be applicable universally.

We have identified six areas in particular that deserve special consideration under the heading of governance. All of these factors contribute to economic growth, higher living standards, and social equality. They are as follows:

Capacity Building. All states recognize that adequate resources must be available for sustainable development. The largest potential source of capital for capacity building comes from the private and non-governmental sectors, including capital from domestic and foreign private investment. Thus, a government's resolve to create a favorable, enabling climate for investment, through promotion of the key elements of governance, including creating positive incentives, will have a major impact on a country's capacity for sustainable development. Capacity building should continue to be a major focus of the Rio Process.

Capacity building involves many disparate but interrelated elements. It focuses on the need to have adequate capability for environmental protection and natural resources conservation, including monitoring, technical assistance, investigation, and enforcement. It includes the need for adequate scientific capability, including appropriate technical research and development. Capacity building involves the availability and diffusion of technology, as well as public awareness, training, and education programs. It also requires the capability to establish the domestic infrastructure needed for promotion of international trade and sound domestic financial management, a major avenue for increasing financial flows.

Institution Building. A critical aspect of sustainable development is the building and strengthening of governmental institutions that establish and oversee the manner in which countries meet their social, economic, and environmental goals. Such institutions include a public administration that implements laws, delivers public programs, and makes policy, a judiciary that decides disputes over rights and imposes sanctions for violations of law in accordance with a fair and efficient processes, and a system of laws and policies that ensure the protection of individual rights, including workers rights, social and economic development, and the protection of the environment. These components must be well developed and integrated in order to promote sustainable natural resource use and ensure environmental protection as well as economic and social development. Most importantly, effective, fully functional institutions have a critical impact on the ability of countries to attract and retain private capital investment.

An effective system of laws is a prerequisite for any form of sustainable development. Necessary laws include those that govern individual freedom, real property, intellectual property, government revenue generation and expenditures, access to government program benefits, banking, and corporations -- along with laws that protect the environment. Laws that counter corruption are particularly important, as are those that promote an open trading system, both internal and external, all of which are essential to the formation of wealth. Effective governance includes the adoption of measures to promote and protect human rights, fundamental freedoms, and gender equality. Laws are only effective if they are developed in a transparent manner and are implemented fully, fairly, and effectively, and implementation requires the existence of governmental institutions with sufficient resources to accomplish their mandates. Political will and commitment to enforce laws are essential to ensuring sustainable development.

Public access to environmental and other information in support of sustainable development. Access to information is an essential element of sustainable development, and promoting that access is something all governments can and must do. Access to environmental information helps educate the public; it prepares citizens to be informed environmental decision makers, provides the raw material for stimulating creative solutions to environmental problems, and provides a foundation for building consensus on critical priorities. Citizens who are well-informed can better understand the environmental impacts of their own activities, the positive impacts of environmental stewardship, the relative severity of environmental risks to themselves and to their communities, the opportunities for preventing pollution and conservation of natural resources, and the uncertainties and complex trade-offs that underlie many environmental decisions.

Governments can provide legal, programmatic, and regulatory frameworks that promote availability of information, including laws that require dissemination of information and those requiring release of information to the public upon request. In the context of sustainable development, many types of basic information should be made available, either through the public sector or through the government. Examples include data, inventories, assessments, and technical documents on environmental conditions, including releases of hazardous pollutants, condition of natural resources, census-related data, and information concerning programs and regulatory procedures.

Informed and science-based decision-making. It is important that the Rio Process give sufficient attention to the critical role science plays in sustainable development. Science and the scientific method provide the solid foundation needed for societies to undertake sustainable development in all fields. Science-based decisions reflect a careful and objective evaluation of available data and a rigorous integrated review of policy options. Science plays an essential role in informing the best and soundest long-term governmental policies. While this fact has been acknowledged at times in the international discussions concerning the precaution and risk analysis, the Summit need to underscore the need for science-based decision-making in support of sustainable development.

It is necessary that the economic, social, and environmental impacts of policies and regulations be considered before promulgation of such policies and regulations, and that such considerations be integrated into decision-making generally. This can be assisted through laws that mandate or encourage a science-based peer review of relevant issues prior to undertaking or financing major projects, such as those that may have a significant environmental impact.

Public Participation, Coordination and Partnerships. Government can help with sustainable development, but individual citizens are the true engines of change. Meaningful public participation in policy and program development and implementation is a fundamental objective, and this can be promoted by laws and regulations that facilitate interaction among governments, including local governments, and regional organizations, indigenous groups, non-governmental organizations, and other stakeholders. Such laws can include rulemaking processes that provide opportunities for public review and comment before regulations become effective, and requirements that environmental impact assessment and long-term and strategic planning documents be made available, and subject to, public review and comment.

There needs to be an increased emphasis on non-adversarial methods of achieving basic policy objectives in the context of broader policy and regulatory frameworks. Quite important in that respect are partnerships between government entities and the public, including business and non-governmental organizations. Such partnerships often permit the development of voluntary standards and guidelines that promote innovative solutions to environmental and other concerns. Involving communities in environmental issues also has numerous other advantages. Governments can also play a positive role in providing incentives and support for decision making within the private sector concerning natural resources.

Access to justice in environmental matters and enforcement of environmental laws and regulations. The establishment and effective enforcement of laws, regulations, and standards to protect the environment is a necessary component of any effort to achieve sustainable development. Laws and regulations to protect the environment will differ considerably across nations, but effective environmental laws, regulations, and enforcement share certain common attributes. These include clear objectives and standards specified in relevant laws, appropriate regulatory tools and mechanisms to accomplish stated objectives, and consequences for noncompliance. Such consequences can include, inter alia, administrative or judicial fines and penalties, injunctive relief, restoration, and financial compensation.

Both the government and concerned individuals must have access to independent judicial and regulatory bodies to enforce environmental laws. Moreover, governments must establish and implement effective enforcement programs, which requires necessary legal authorities, resources and political will. Effective enforcement also requires monitoring and detection programs, as well as a commitment to enforcement that is conducted in a fair and even-handed manner.

Given these many important themes, and their relevance to all countries, we believe that the World Summit on Sustainable Development will benefit from giving primary attention to domestic governance issues as they relate to the three pillars of sustainable development. Governance can thus provide a good point of departure for discussion of a wide variety of issues identified in Agenda 21 and developed over the past decade within the Commission on Sustainable Development.  

1 This paper does not address international environmental governance, which will be the focus of separate discussions at the Summit.