The Natural Edge Project The Natural Advantage of Nations Whole System Design Factor 5 Cents and Sustainability Higher Education and Sustainable Development




"Numerous examples (are) given here (The Natural Advantage of Nations) of profitable ways to improve the environment, human well-being and the bottom line."
Hunter Lovins, Co-Author of 'Natural Capitalism: Creating the Next Industrial Revolution', President, Natural Capitalism Inc.





The Natural Advantage of Nations (Vol. I): Business Opportunities, Innovation and Governance in the 21st Century

 
 
   

Section 3: Achieving a Natural Advantage of Nations

1 The Role of Government
2 The tragedy of the commons: 35 years on
3 Government mechanisms
4 The regulatory response
4.1 Mental models of voluntary environmental initiatives Bruce Paton
5 Voluntary agreements: effectiveness analysis - tools, guidelines and checklists Roger Burritt
5.1 Allars' characteristics of effective voluntary initiatives
5.2 The generic Canadian pro forma for voluntary agreements
5.3 The United Nations Environment Programme's (UNEP's) Industry and Environment Technical Report
5.4 The Organisation for Economic Co-operation and Development's (OECD's) approach
6 Can regulation be designed to improve competitiveness?
6.1 Effective economic measures to complement either voluntary or regulatory approaches
6.2 Natural resources
6.3 Government - industry partnerships to improve innovation
7 From clusters to national systems of innovation Rob McLean with Jaya Pillia
8 Managing industry transistions through waves of innovation Phillip Sutton
9 Reference List from the Book
   
Sample of Resources to Support Chapter 11
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The Tragedy of the Commons
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Government Mechanisms

 

Leading governments around the world are already making significant changes in order to address the challenges of sustainable development, seeking to achieve progress that does not penalize future generations. In this section of the book, we will demonstrate that leadership in this area is no longer a political risk and a walk into the unknown for governments. Rather, governments can be inspired to develop a range of new mechanisms and structures to underpin a shift to sustainability, lead by the experience of other leading governments illustrated throughout this section. In Section 1 it was reported that the Netherlands Government has funded a five-year programme to address the challenges of sustainable development. This project, involving hundreds of organizations and scientists, found that a factor of 10 to 20+ improvements in resource productivity are possible over the next 50 years. Better still, they have published an extensive book on their findings that explains in detail this landmark body of work, thus assisting other nations to do the same.1 This is, however, not an isolated initiative of government. In Germany, for example, there is the Socio-Ecological Programme, in Austria, the Programme on Technologies for Sustainable Development, and in Japan there is the Zero Emissions Research Initiative (ZERI).

The Australian Government funds a significant percentage of the Commonwealth Scientific and Industrial Research Organisation (CSIRO), Australia's peak science and industry research body. CSIRO is carrying out a comprehensive Future Scenarios programme for Australia, analysing the country's material and energy flows to better understand how resource productivity improvements can be made. CSIRO's Flagship programmes have been designed partly to address the need to achieve ecological sustainability under the themes of preventive health, leading the light metals age, water for a healthy country, food futures, wealth from Australia's oceans and energy transformed. CSIRO states that, 'National teamwork, collaboration and partnership are primary ingredients for success in science, technology and innovation. Partnerships provide us with the critical mass to compete with the world's best in areas essential to our future. Every Flagship is a partnership of leading Australian scientists, research institutions and commercial companies. Intense social, economic and environmental forces are shaping Australia's destiny in the 21st Century. These place ever-growing pressures on us to be globally competitive, ecologically sustainable, socially equitable and progressive.'

 

The Tragedy of the Commons

Science Online, one of the world's most prestigious journals, dedicated a special issue to the subject of the Tragedy of the Commons in late 2003. "On 12 December 2003, Science rounded out this coverage of Earth's resources and their management with a special issue: nine review and viewpoint articles that commemorated the anniversary of the 1968 publication of the late Garrett Hardin's classic essay, 'The Tragedy of the Commons', and took a look at trends in the management of common resources in the 35 years since the essay's publication. Supplementing the special issue is a collection of online resources, including links to the original essay and some of the subsequent scientific discussion it engendered, as well as pointers to websites that provide additional context."

View website

 

Science continues: "To complement Science's 'Tragedy of the Commons?' special issue, Science magazine has put together a special set of online resources, including Garrett Hardin's original 1968 article and some of the feedback it generated, other Science publications by Hardin, articles illustrating how the "commons" metaphor has informed other areas of scientific inquiry, and links to selected other websites that provide context for some of the themes of the special issue".

View website

 

To download the original seminal paper, Hardin, G. (1968) 'Tragedy of the Commons', Science, vol. 162, Issue 3859, 13 December, pp. 1243-1248 Click here .

 

The Drama of the Commons (2002) National Academy of Sciences

Another significant recent overview of the 'Tragedy of the Commons' literature is Ostrom, E., Dietz, T., Dolsak, N., Stern, P., Stonich, S. and Weber, E. (eds) (2002) The Drama of the Commons, Committee on the Human Dimensions of Global Change, Division of Behavioural and Social Sciences and Education, National Research Council, Washington DC: National Academy Press.

Download PDF | View Web site

Key Journal Papers on Aspects of the Tragedy of the Commons

Key papers related to the issues raised by Hardin's Tragedy of the Commons:

 

Costanza, R., d'Arge, R., de Groot, R., Farber, S., Grasso, M., Hannon, B., Limburg , K., Naeem, S., O'Neill, R. V., and Paruelo, J. (1997) 'The Value of the World's Ecosystem Services and Natural Capital', Nature 387, May 15 pp. 253-260.

 

Ostrom E., Burger J., Field, C.B., Norgaard, R.B., Energy and Resources Group, Policansky, D. (2003) 'Revisiting the Commons: Local Lessons, Global Challenges', Science, April 9

 

Becker, C. and Ostrom, E. (1995) 'Human Ecology and Resource Sustainability: The Importance of Institutional Diversity', Annual Review of Ecology and Systematics, Vol. 26, pp. 113-133

 

Milton, J., Kiker, C. F. and Lee, D. (1997) 'Adaptive Ecosystem Management and the Florida Everglades: More than Trial-And-Error?', article updated from published paper in the Journal of Agriculture and Applied Economics, vol. 29, July 1997,pp. 99-107.

 

Gandy, M. (1997) 'The Making of a Regulatory Crisis: Restructuring New York's Water Supply', Transactions of the Institute of British Geographers, New Series, vol. 22, no.2, pp. 338-358.

 

Ellsworth, J. P., Hildebrand, L. P. and Glover, E. A. (1997) ' Canada Atlantic Coastal Action Program: A Community-Based Approach to Collective Governance', Oceans & Coastal Management, vol. 36, nos. 1-3, pp. 121-142.

 

Relevant Australian Treasury Department Documents

For a moving personal testimony on economics and the environment see Ken Henry, Secretary Head of the Australian Treasury Department, Speech to the 30th Anniversary of the ANU Masters Program.

View Speech

 

For a succinct introduction to the economic issues of managing environmental public goods see Department of the Treasury, Australia , (2001) Public Good Conservation and the Impact of Environmental Measures Imposed on Landholders, Economic Roundup, Centenary Edition.

View website

 

 

Government Mechanisms

 

Agenda 21

UNCED 1992, the United Nations Conference on Environment and Development - The Earth Summit, Rio di Janero, United Nations Environment Program and Commission for Sustainable Development's Agenda 21 provided a detailed overview of the range of government actions possible in partnership with industry and civil society.

Download PDF | View website

 

(Agenda 21 for the National Level of government)

 

World Development Report 2003: Sustainable Development in a Dynamic World

The World Bank's annual World Development Report (WDR) is a guide to the economic, social and environmental state of the world. Each year the WDR provides in depth analysis of a specific aspect of development. Past reports have considered such topics as the role of the state, transition economies, labour, infrastructure, health, the environment, and poverty.

Download PDF | View Website

 

National Agenda 21 Blueprint for Australia

The Natural Advantage: Blueprint For A Sustainable Australia website, developed by the Australian Conservation Foundation with over 60 contributors from numerous organizations in Australia , is a fully costed blueprint for achieving sustainability in Australia . It provides a thorough overview of the range of mechanisms available to governments to enable them to work in partnership with business and civil society to achieve sustainable development.

Download PDF | View Website

 

Western Australia State Sustainability Strategy

The Western Australia State Sustainability Strategy is currently regarded as the best working model in the world. It provides a detailed overview of what state and regional governments can do to assist the process of achieving sustainable development.

View Website

 

 

References from the Book

1. Weaver, P., Jansen, J., van Grootveld, G., van Spiegel, E. and Vergragt, P. (2000) Sustainable Technology Development, Greenleaf Publishing, Sheffield , UK .

 

2. Ibid.

 

3. Not all UK programmes identified in the country report as addressing sustainable development have been included in this table to allow a comparison of the programmes across the seven countries. In fact, in total there are 35 in the UK alone.

 

4. Dr Steve Dovers' research activities include theoretical and policy dimensions of sustainability, institutional arrangements for resource management, science-policy linkages, and Australian environmental history. Steve is a co-author of the upcoming publication Institutional change for sustainable development ( Cheltenham : Edward Elgar), which reviews major developments in institutions and sustainability over the last ten years.

 

5. Government of Western Australia (2003) Hope for the Future: The Western Australian State Sustainability Strategy A Vision For Quality of Life in Western Australia, Department of the Premier and Cabinet, Perth; Armstrong, R., Ruane, S. and Newman, P. (eds) (2002) Case Studies in Sustainability: Hope for the Future in Western Australia, ISTP Publications, Perth.

 

6. Newman, P. (2003) On Climbing Trees: An Australian Perspective on Sustainability and Political Risk, Sustainability Policy Unit, Department of the Premier and Cabinet, Government of Western Australia , Perth .

 

7. A subsidy = a policy that ensures that risks, rewards and costs are altered in favour of the actions of a few groups or companies' actions.

 

8. World Bank (2003) World Bank Development Report 2003: Sustainable Development in a Dynamic World, Oxford University Press, Oxford , Ch 2, p28.

 

9. Roodman, D. (1999) The Natural Wealth of Nations: Harnessing the Market and the Environment, Worldwatch Environment Alert Series, WW Norton, New York/Earthscan, London . This publication provides a detailed discussion of government subsidies and the environment.

 

10. Ibid.

 

11. As opposed to pollution that originates from a specific point (e.g., sulphur dioxide emissions from the chimney stack of a coal-fired power station), non-point source pollution cannot be traced to a single point of origin (e.g., in the case of fertilizers, they seep into rivers and streams from innumerable sections of agricultural land).

 

12. As highlighted in the 2002 Australian Prime Minister's Science, Engineering & Innovation Council report Sustaining our Natural Systems and Biodiversity.

 

13. World Bank (2003) World Bank Development Report 2003: Sustainable Development in a Dynamic World, Oxford University Press, Oxford , pp13-37.

 

14. Australian Treasury Department (2001) Public Good Conservation and the Impact of Environmental Measures Imposed on Landholders, Economic Roundup, Centenary Edition, Australian Treasury Department, Canberra, p93.

 

15. Whilst Hardin's paper (Hardin, G. (1968) 'The Tragedy of the Commons', Science, vol 162, issue 3859, 13 December, pp1243-1248) provides the catalyst for recent work in this area, for centuries philosophers have commented on it. Even Aristotle wrote that 'What is common to the greatest number has the least care bestowed upon it. Everyone thinks chiefly of their own interest'.

 

16. Hardin G. (1998) 'Extensions of "The Tragedy of the Commons"', Science, vol 280, issue 5364, 1 May, pp682-683.

 

17. Arnold, J. and Campbell, J. (1986) Collective Management of Hill Forests in Nepal : The Community Forestry Development Project, National Research Council, Proceedings in the Conference on Common Property Resource Management, National Academy Press, Washington , DC .

 

18. Becker, C. and Ostrom, E. (1995) 'Human Ecology and Resource Sustainability: The Importance of Institutional Diversity', Annual Review of Ecology and Systematics, vol 26, pp113-133; Ostrom, E. (1986) 'How Inexorable is the "Tragedy of the Commons?" Institutional Arrangements for Changing the Social Structure of Social Dilemmas', presented at a Faculty Research Lecture, Office of Research and Graduate Development, Indiana University , 3 April.

 

19. Ostrom, E., Burger, J., Field, C., Norgaard, R. and Policansky, D. (2003) 'Revisiting the Commons: Local Lessons, Global Challenges', Science, 9 April.

 

20. Milton, J., Kiker, C. and Lee, D. (1997) 'Adaptive Ecosystem Management and the Florida Everglades: More than Trial-and-Error?', Journal of Agriculture and Applied Economics, vol 29, July, pp99-107.

 

21. Gandy, M. (1997) 'The Making of a Regulatory Crisis, Restructuring New York's Water Supply', Transactions of the Institute of British Geographers , New Series vol 22, no 2, pp338-358.

 

22. Ellsworth, J., Hildebrand, L. and Glover, E. (1997) 'Canada Atlantic Coastal Action Program: A Community Based Approach to Collective Governance', Oceans and Coastal Management, vol 36, nos 1-3, pp121-142.

 

23. Ostrom, E., Dietz, T., Dol_ak, N., Stern, P., Stonich, S. and Weber, E. (eds) (2002) The Drama of the Commons, Committee on the Human Dimensions of Global Change, Division of Behavioural and Social Sciences and Education, National Research Council, National Academy Press, Washington, DC.

 

24. Roodman, D. (1999) The Natural Wealth of Nations: Harnessing the Market and the Environment, Worldwatch Environment Alert Series, WW Norton, New York/Earthscan, London .

 

25. Bridgman, P. and Davis, G. (2000) The Australian Policy Handbook, McPherson's Printing Group, Australia .

 

26. World Bank (1997) World Bank Development Report 1997: The State in a Changing World, Oxford University Press, Oxford .

 

27. The ACT Schools for the 21st Century Program: Assessment by Exhibition, Student Exhibition Teachers' Kit.

 

28. Felizardo, K., Virtucio, Jr, Mayo, G., Amit, C. and Encabo, S. (2002) From Rio to Manila : Ten Years After - An Assessment of Agenda 21 Implementation in the Philippines , Philippine Council for Sustainable Development.

 

29. USA National Council for Sustainable Development, 1996-2000 chaired by Molly Harris Olsen.

 

30. Leadbeter, P., Gunningham, N. and Boer, B. (1999) Environmental Outlook No 3 Law and Policy, Federation Press, Ch 7, p84.

 

31. Murtough, G., Aretino, B. and Matysek, A. (2002) Creating Markets for Ecosystem Services, Australian Productivity Commission.

 

32. Sutton, P. (2004) 'The Race to Sustainability', Green Innovations, Melbourne (www.greeninnovations.asn.au/Race-to-Sustainability.htm). Sutton describes a proposal to mobilize communities to achieve sustainability ... fast. Concern about the environment has been growing for many decades but most communities around the world have yet to achieve a 'take-off' where commitment to sustainability is seen as an urgent priority. Sutton presents a proposal for a Race to Sustainability, a global race against time.

 

33. Joint Media Release, Minister for the Environment and Heritage, The Hon Dr David Kemp & Federal Minister for Agriculture, Fisheries and Forestry, Warren Truss, AU$360,000 for Market-based Projects Tackling Dryland Salinity, 13 June 2003 - K0133/WTJ164.

 

34. In their report 'Robust Separation: A Search for a Generic Framework to Simplify Registration and Trading of Interests in Natural Resources', Professor Mike Young and Jim McColl from CSIRO have outlined a detailed, clear national approach to the issue. This will be discussed in detail in Section 4, Chapter 20.

 

35. Government of Western Australia (2003) Hope for the Future: The Western Australian State Sustainability Strategy A Vision For Quality of Life in Western Australia, Department of the Premier and Cabinet, Perth.

 

36. Useful summaries of international developments include Emtairah, T. (2002) Corporate Environmental Reporting: Review of Policy Action in Europe, International Institute for Industrial Environmental Economics, February.

 

37. Putnam, R., Lonardi, R., Raffaella, Y. and Nanetti, R. (1994) Making Democracy Work: Civic Traditions in Modern Italy, Princeton University Press; Putnam, R. (1995) 'Bowling Alone', Journal of Democracy, vol 6, no 1, January, pp65-78; Putnam, R. (2001) Bowling Alone: The Collapse and Revival of American Community, Touchstone Books, New York.

 

38. OECD (1999b) Voluntary Approaches for Environmental Policy in OECD Countries: An Assessment, Working party on Economic and Environmental Policy Integration, Environmental Policy Committee, OECD, Paris, April.

 

39. Andrews, R. (1998) 'Environmental Regulation and Business "Self Regulation"', Policy Sciences, vol 31, p177.

 

40. King, A. and Lennox , M. (2000) 'Industry Self Regulation Without Sanctions: The Chemical Industry's Responsible Care Program', Academy of Management Journal , vol 43, no 4, pp698-716.

 

41. Maxwell, J. and Lyon, T. (1999) What Caused US Voluntary Environmental Agreements?, European Research Network on Voluntary Approaches (CAVA) Workshop, Copenhagen , Denmark .

 

42. Gunningham, N. and Rees J. (1997) 'Industry Self Regulation: An Institutional Perspective', Law and Policy, vol 19, no 4, pp363-414.

 

43. 'Private regulation' as a phrase has multiple meanings in common use. In particular, legal scholars use the phrase to refer to private enforcement of public rights, through tort law and other civil suits, as opposed to protecting them through pre-emptive public policies such as environmental statutes. This study uses the definition from Yilmaz (1998).

 

44. Yilmaz, Y. (1998) Private Regulation, A Real Alternative for Regulatory Reform, Cato Policy Analysis no 303, 20 April.

 

45. Berman, P. (2000) 'Cyberspace and the State Action Debate: The Cultural Value of Applying Constitutional Norms to "Private" Regulation', University of Colorado Law Review , vol 71, no 4, May.

 

46. Gunningham, N. and Rees J. (1997) 'Industry Self Regulation: An Institutional Perspective', Law and Policy, vol 19, no 4, pp363-414.

 

47. Gupta, A. and Lad, L. (1983) 'Industry Self Regulation: An Economic, Organizational, and Political Analysis', Academy of Management Review , vol 8, no 3, pp416-425.

 

48. Bendell, J. (2000) 'Civil Regulation: A New Form of Democratic Governance for the Global Economy?', in Bendell, J. (ed) Terms for Endearment: Business, NGOs and Sustainable Development, published in association with The New Academy of Business, July.

 

49. King, A. and Lennox , M. (2000) 'Industry Self Regulation Without Sanctions: The Chemical Industry's Responsible Care Program', Academy of Management Journal , vol 43, no 4, pp698-716.

 

50. Gunningham, N. and Rees J. (1997) 'Industry Self Regulation: An Institutional Perspective', Law and Policy, vol 19, no 4, pp363-414.

 

51. Gupta, A. and Lad, L. (1983) 'Industry Self Regulation: An Economic, Organizational, and Political Analysis', Academy of Management Review , vol 8, no 3, pp416-425.

 

52. Allars, M. (1990) Introduction to Australian Administrative Law, Butterworths, Sydney.

 

53. Industry Canada and Treasury Board (1998) Voluntary Codes: A Guide for Their Development and Use, Office of Consumer Affairs, Industry Canada and Regulatory Affairs Division at the Treasury Board, Industry Canada , Ottawa ; Industry Canada (2000) An Evaluative Framework for Voluntary Codes, Office of Consumer Affairs, Industry Canada , Ottawa .

 

54. According to Professor Kernaghan Webb (email correspondence 17 May 2000 ) the Canadian Voluntary Codes Guide was one of the products to emerge from a Voluntary Codes Project, which commenced in 1996, and consisted of a research component, a symposium and then the Guide and other products. The research component involved case studies of some 15 different voluntary codes, supplemented by studies looking at the voluntary codes experience in Australia/NZ, and the US , as well as horizontal studies looking at legal, public administration, political economy and economics aspects. Numerous experts and organizations were consulted.

 

55. Industry Canada and Treasury Board (1998) Voluntary Codes: A Guide for Their Development and Use, Office of Consumer Affairs, Industry Canada and Regulatory Affairs Division at the Treasury Board, Industry Canada , Ottawa .

 

56. UNCED (United Nations Conference on Environment and Development) (1992a) Agenda 21: United Nations Conference on the Environment and Development, UNCED, paras 30(a) and (b).

 

57. Industry Canada and Treasury Board (1998) Voluntary Codes: A Guide for Their Development and Use, Office of Consumer Affairs, Industry Canada and Regulatory Affairs Division at the Treasury Board, Industry Canada , Ottawa .

 

58. A sub-committee of the Consumer Policy Committee of the International Organization for Standardization (ISO) has made a recommendation to the main committee, the ISO's Committee on Consumer Policy Committee (COPOLCO), that they should recommend to ISO to introduce an international standard on voluntary codes. This would essentially draw on existing voluntary code guides such as the Canadian guide examined above. This recommendation is for the ISO to create a series of criteria concerning the process of code development, the actual terms of codes, and code implementation.

59 OECD (1999b) Voluntary Approaches for Environmental Policy in OECD Countries: An Assessment, Working party on Economic and Environmental Policy Integration, Environmental Policy Committee, OECD, Paris , April, p113.

 

60. Ibid, p99.

 

61. Ibid, p113.

 

62. European Environment Agency (1997) Environmental Agreements: Environmental Effectiveness, Environmental Issues Series No 3, vols 1 & 2, European Environment Agency, Copenhagen .

 

63. Porter, M. and van der Linde, C. (1995a) 'Green and Competitive: Ending the Stalemate', Harvard Business Review, September-October, pp121-134.

 

64. Gunningham, N., Kagan, R. and Thornton, D. (2003) Shades of Green: Business, Regulation and Environment, Stanford University Press, USA; Gunningham, N. and Sinclair D. (2002) Leaders and Laggards: Next Generation Environmental Regulation, Greenleaf Publishing, Sheffield, UK; Gunningham, N. and Grabosky, P. (1998) Smart Regulation: Designing Environmental Regulation, Oxford University Press, Oxford.

 

65. Bleishwitz, R. (2002) 'Governance of Eco-Efficiency in Japan , An Institutional Approach', Wuppertal Institute, International Asienforum/International Quarterly for Asian Studies, November.

 

66. Porter, M. (1991) 'Green Competitiveness', Scientific American, 5 April.

 

67. Porter, M. and van der Linde, C. (1995a) 'Green and Competitive: Ending the Stalemate', Harvard Business Review, September-October, pp121-134; Porter, M. and van der Linde, C. (1995b) 'Toward a New Conception of the Environment-Competitiveness Relationship', Journal of Economic Perspectives, vol IX-4, Fall, p97.

 

68. Stocker, L. and Burke, G. (2000) A View from the Bridge (Video), Production Function, Perth . (video)

 

69. Milton, J., Kiker, C. and Lee, D. (1997) 'Adaptive Ecosystem Management and the Florida Everglades: More than Trial-and-Error?', Journal of Agriculture and Applied Economics, vol 29, July, pp99-107.

 

70. Gandy, M. (1997) 'The Making of a Regulatory Crisis, Restructuring New York's Water Supply', Transactions of the Institute of British Geographers , New Series vol 22, no 2, pp338-358.

 

71. Ellsworth, J., Hildebrand, L. and Glover, E. (1997) 'Canada Atlantic Coastal Action Program: A Community Based Approach to Collective Governance', Oceans and Coastal Management, vol 36, nos 1-3, pp121-142.

 

72. Porter, M. and van der Linde, C. (1995a) 'Green and Competitive: Ending the Stalemate', Harvard Business Review, September-October, pp121-134.

 

73. Typical tax rates come from Jarass, L. and Obermair, G. (1997) More Jobs, Less Tax Evasion, Cleaner Environment Options for Compensating Reductions in the Taxation of Labour, Taxation of Other Factors of Production, European Commission, College of Weisbaden , Germany , August.

 

74. OECD (Organisation for Economic Co-operation and Development) (1994) Environment and Taxation: The cases of Netherlands , Sweden and the United States , OECD, Paris ; Tindale, S. and Holtham, G. (1996) Green Tax Reform: Pollution Payments and Labor Tax Cuts,

Institute for Public Policy Research, London ; OECD (1997a) Environmental Taxes and Green Tax Reform, OECD, Paris ; OECD (1997b) Evaluating Economic Instruments for Environmental Protection, OECD, Paris .

 

75. Famed British economist, Arthur Cecil Pigou, in his classic, The Economics of Welfare, in 1920 was the first to point out the hidden costs of externalities.

 

76. Roodman, D. (1999) The Natural Wealth of Nations: Harnessing the Market and the Environment, Worldwatch Environment Alert Series, WW Norton, New York/Earthscan, London .

 

77. In addition to requiring companies to disclose their revenues, Global Witness believes it is important to increase the transparency of government revenue streams from production sharing agreements and state-owned companies. The organization stresses that the EITI reporting principles must be reinforced by the imposition of appropriate conditionality on relevant bilateral and multilateral development assistance, resourcebacked loans from banks, and export credit agency funding.

 

78. In 1958 Edward Banfield published The Moral Basis of a Backward Society, a study of underdevelopment in a village at the southern tip of Italy, 'the extreme poverty and backwardness of which', he wrote, 'is to be explained largely (but not entirely) by the inability of the villagers to act together for their common good'.

 

79. In the 1970s Putnam began a collaboration with Robert Lonardi and Raffaella Y. Nanetti that nearly 20 years later resulted in the seminal work Making Democracy Work Civic Traditions in Modern Italy (1993). Based on a study of Italian politics and, in particular, the experience of the move to regional government post-1970, this book displays a number of the classic Robert Putnam hallmarks. These include: sustained and detailed attention to empirical data; a commitment to producing material that could help with the task of enhancing the quality of social and political discourse; and grounded and accessible writing. The book's concern with civic community and social capital was a direct precursor to 'Bowling Alone' (1995, 2001) - Putnam's very influential study of the decline in civic engagement in the US .

 

80. OECD (1999a) Managing National Systems of Innovation, OECD, Paris .

 

81. Patel, P. and Pavitt, K. (1998) National Systems of Innovation Under Strain: The Internationalisation of Corporate R&D, Science Policy Research Unit, SPRU Electronic Working Paper Series 22, p4.

 

82. Ibid.

 

83. Interestingly, after 106 years, in 1991 the World Bank would echo these ideas concluding that investment in knowledge accumulation on the part of the state was a more decisive factor in driving growth than physical capital investment. This very much-echoed List's thinking such as 'The present state of the nations is the result of the accumulation of all discoveries, inventions, improvements, perfections and exertions of all generations which have lived before us: they form the intellectual capital of the present human race, and every separate nation is productive only in the proportion in which it has known how to appropriate those attainments of former generations and to increase them by its own acquirements' (List, F. (1885) The National System of Political Economy, translated from German by Sampson S. Lloyd, Longmans, Green and Co, London, p140).

 

84. Lundvall, B. (2000) 'Introduction', in Edquist, C. and McKelvey, M. (eds) Systems of Innovation: Growth, Competitiveness and Employment, An Elgar Reference Collection, Edward Elgar, Cheltenham , UK , p8).

 

85. Mytelka, L. (2001) 'Promoting Scientific and Technological Knowledge for Sustainable Development', paper for the Third UN Conference on Least Developed Countries, Round Table: Education for All and Sustainable Development in LDCs, May.

 

86. Lundvall, B. (2000) 'Introduction', in Edquist, C. and McKelvey, M. (eds) Systems of Innovation: Growth, Competitiveness and Employment, An Elgar Reference Collection, Edward Elgar, Cheltenham , UK , p2.

 

87. Ibid, p24.

 

88. Niosi, J. (2002) 'National Systems of Innovations are "X-Efficient" (and X-Effective): Why Some are Slow Learners', Econpapers Research Policy, vol 31, issue 2, p31.

 

89. Rothwell, R. (1993) 'The Fifth Generation Innovation Process', in Oppenländer, K. and Popp W. (eds) Privates und Staatliches Innovationsmanagement, Ifo-Institut für Wirtschaftsforschung, Munich, pp25-42.

 

90. National Hydrogen Study, a report prepared by ACIL Tasman and Parsons Brinckerhoff for the Department of Industry, Tourism and Resources.

 

91. Environment Agency, Japan, The challenge to establish the Recycling-based Society (2000); Environment Agency, Japan, Basic Law for Establishing the Recycling-based Society 2001 (Japan); Law for Promotion of Effective Utilization of Resources 2000 (Japan); Law Concerning the Promotion of Procurement of Eco-friendly Goods and Services by the State and Other Entities (the Green Purchasing Law) 2000 (Japan); Law for Recycling of Specified Kinds of Home Appliances 2001 (Japan).

 

92. World Bank (1997) World Bank Development Report 1997: The State in a Changing World, Oxford University Press, Oxford .

 

93. A feebate package involves the imposition of charges (fees) on old technology (e.g., low efficiency cars) and the use of the fee revenue to fund subsidies for adopters of new highly efficient technology. It is anticipated, for example, that the introduction of a feebate package would dramatically speed up the transition to hybrid vehicles.