The global economic recession which was triggered by the meltdown of financial markets is imposing unprecedented threats on our shoulders where several heavy burdens such as climate change and fuel crisis have been already laid on. The severe damages to economic growth, incomes, jobs and social equity have already been experienced in every corner of the world. The global economy is expected to shrink by 1.7 per cent in 2009. Developing economies are expected to grow only about a third as fast as they grew in 2008 according to the World Bank in its economic outlook report. It also documented that every 1 per cent fall in growth rate translates into an additional 20 million people consigned to poverty in developing countries. After four consecutive years of decreases, the global unemployment rate increased from 5.7 per cent in 2007 to 6.0 per cent in 2008, and is expected to rise to 7.1 per cent in 2009, an increase by 1.4 percentage points over 2007. This would correspond to an increase in the global number of unemployed of 51 million people in comparison with 2007 according to the ILO¡¯s 2009 Global Employment Trends Report. Climate change is another serious threat that worsened the plethora of problems that is being faced by the present humanity and global environment.
In response to the above-cited duress, it is apt for all countries to take policy responses to stem the impact from the crises and put economy system back to normality as the priority. In the light of national recovery efforts, it has been receiving rising attention that the stimulus packages need to aim at not only reviving the economic downturn along short term, but also strengthening foundation to open a new period of Low Carbon Green Growth. The argument is based on the rationale that returning to the previous economic growth pattern could make our economy more vulnerable to the similar crises that can occur again in the future. Actually, several countries in the world have launched green recovery programmes.
It is repeatedly highlighted that the multiple crises can be tackled at once and Green Growth enables us to make serious progress on both the climate and economic fronts . In this regards, it is obvious that the Green recovery plans are greatly helpful in accelerating the shift of the economic growth models into more climate-friendly ones. Possibly, those actions taken and to be taken by global leading countries will lead to the transformation of global economy system by changing the rules of games. It is anticipated that carbon intensity and resources efficiency will be increasingly significant in determining the national economic competitiveness.
On the other hand, the possible impacts of the economic downturn on sustainability of the region are also another regional urgency to be addressed with special attentions. Even before the recession, the sustainability of the Asia Pacific region was assessed to be inherently more vulnerable than other regions. This is in part because majority of the governments in this region have anchored their development strategies on achieving rapid economic growth. Indeed, the region is the most economically dynamic in the world, and Asia¡¯s share of global economic output is expected to be doubled, from 30% in 1995 to 60% in 2025. In spite of its remarkable economic growth, meeting the needs of more than 600 million people still living in poverty is still a top priority in this region. Consequently, increasing pressure has been placed on relatively limited environmental carrying capacity of the region.
In addition, the global economic recession is likely to make the sustainability in developing countries in the region more susceptible, if not adequately addressed, in that;
1. Firstly, the dichotomous point of view on development and environment like a conventional ¡°grow first, clean-up later approach¡± could be gathered weight under the excuse of the urgency for economic recovery. Simultaneously, the Green Growth approach could be in danger to be reserved.
2. Secondly, investment on environmental infrastructure for drinking water, sanitation, and pollution control and prevention is possibly curtailed or delayed because of a lack of budgetary liquidity. Given that in the Asia-Pacific region, 1.7 billion people lacked access to improved sanitation in 2006, half a billion had no access to safe water and 2 billion were without piped water, hindrance of investment on the infrastructure would cause significant negative impacts on sustainability and the quality of life for prolonged period of time.
3. Thirdly, enforcement of and compliance to the environmental regulations are apt to be hampered, and consequently basis for harmonizing the environmental conservation and economic growth will be severely weakened.
Therefore, it is of great importance to analyze the possible impacts of the multiple crises on regional sustainability and take appropriate policy measures in timely manner in order to pursue Green Growth without hindrance due to the crises.
Taking these circumstances into consideration, the SINGG policy forum will take note of the potential of nurturing Green Industry in the region, inter alia in developing countries in the light of strengthening foundation for better environmental quality as well as providing opportunities for economic growth. Fostering industry related to pollution control and prevention, renewable energy, and energy and resources efficiency will enable the environmental authorities to enforce in variety of powerful environmental policy options by improving private sector¡¯s capacity for compliance and lead to accelerate the development of the environmental technology based on dynamism of private sector.
In developed countries, the potential of Green Industry in respect to economic growth and job creation as well as long-term environmental sustainability is widely recognized and even is being utilized as a vital means for boosting their economy. Indeed, multi-million dollar markets already exist in fields of green house gases (GHGs), alternative energy, energy and resource efficiency, water pollution, wetlands, and even in endangered species. However, in many countries in the region, markets for environmental service and goods have not been matured in significant scale. The prevailing perception that the environment is a burden and extra-cost for economic growth is not fully replaced by a positive win-win solution between economy and environment yet.
This time, the 4th SINGG Policy Forum will explore avenues for the application of Green Growth policy tools to promote Green Industry in the region and ultimately to cope with threats from the global economic recession and climate change. Given that the environment and energy is the area that national policies can create powerful market incentives and stimulate investment, the role of the public sector for promoting the environmentally-friendly goods and services, green purchasing as well as green investment will be highlighted. Several countries in the region have already successfully implemented the promotion of environmental industry and their knowledge and experiences should be shared when building the capacity of other countries.
404-170, KECO, General Environmental Research Complex, Gyeongseo-Dong, Seo-Gu, Incheon, Republic of Korea Tel : 82-32-590-3172 Fax :82-32-590-3129 E-mail : peace@keco.or.kr
Copy right by the Secretiat of SINGG in KECO. 2007. All right reserved.
Policy Forum 
Tel : 82-32-590-3172 Fax :82-32-590-3129 