Sustainable Economic Growth - Asian Development Bank - Essay Example

Sustainable Economic Growth: Shaanxi Qinling Biodiversity Conservation and Demonstration A Business Case for Asian Development Bank Introduction Based in the Asian and Pacific countries, ADB or Asian Development Bank was established in 1966 and then on had overseen numerous projects all over the region. It is a rural development bank created in order to promote economic and social developments such as in the field of health and education, environment and preservation, culture and tradition while aiming a poverty free Asian and Pacific region. With a population of 1.9 billion who lives on $2 a day earnings, people in the Asia and Pacific Regions have long been suffering from lack of basic necessities, education and other things that are regarded as vital to the growth of society. At this, ADB envisions to create or change most war torn countries in this region into developing nations while having citizens who enjoy quality life. There are 67 members around the globe, 48 from the region while the remaining 19 are from other parts of the world. The ADB raises its funds through issuing bonds in the world’s capital markets and effectively managing its members contribution and earnings from its lending system. As such, these sources have accounted for more than two thirds of ADB’s lending power (Vision and Mission, 2). With the growing interest and attention in global warming and other environmental issues, governments around the world with the help of financial institutions have set up numerous projects that would protect and preserve the various eco systems globally. In line with ADB’s goal, it has recently shown interest in protecting and preservation of the environment and its natural inhabitants, particularly in Qinling Mountains, China (Region and Countries, 2). According to Asian Development Bank (1), Qinling Mountain is biologically rich region in which most inhabitants are threatened, endangered animals while there are endemic plant species which could only be seen in the area that also imply preventive measures in order to protect them. The Shaanxi Qingling Biodiversity conversation and demonstration focuses on preventing the area from collapsing due to natural problems posed by global warming and human intervention (Environmental Conservation Beyond Borders, 4) Reasons With its natural gift of biodiversity, Qinling Mountain and its human habitants have long traded unequally. Along with it, the land surrounding the area have also been under heavy burden due to the people living in the region. At such, the ADB’s Biodiversity Conversation and Demonstration in the Qinling Mountain would cover most of the major environmental problems as follows: 1. land and environmental degradation 2. endangered animals and plant species 3. presence of exotic species or animals and plants 4. the lack of long-term animal and plant regeneration program 5. preservation and sustainable management techniques Furthermore, the lack of jobs in the region also put an extra burden on the eco system, as the inhabitants tend to depend on the environment as their everyday source of food, water, and livelihood. Hence, the burden on Qinling mountain is added to and makes the condition of the environment much worse. The goal of ADB in building the Shaanxi Qinling Biodiversity conversation and demonstration is to preserve and protect life in the eco system while creating a space wherein there is equilibrium between the people and the other inhabitants of the region. Options This is not the first environmental project that ADB has been into, there other projects carried out all over the People’s Republic of China, mostly in integrated agriculture and rural development. The environmental projects in Sichuan and Yunnan have also been put into consideration and past experiences in putting into act biodiversity project have been (Regions and Countries, 2) integrated into the Shaanxi Qinling Biodiversity Conversation and Demonstration. Furthermore, based on the statement of Renfro (1), the project will also be supervised thoughtfully with the help of the national as well as the local government of China, this being not the first project initiated by ADB in the country. ADB also considered how risky and expensive it is to initiate biodiversity conservation. According to Sasije (5), the financial sustainability of a biodiversity conversation is precarious. Conservation programs are usually intimidating and hard to sustain, as there are other environmental projects that could have better use of the land that is allotted to the ADB project. The diversity of species in the region presents a threat from animal collector and poachers. There is also the issue of creation and management costs, wherein the project could not totally cover as there are areas in which financial resources exceed what has been outlined in the project, while the prices of materials and necessities in the project continue to rise and change, affecting the expenses planned for (Development for International Development, 2). Hence, ADB has to consider that the protected area has to produce or generate its own income in order to cover the additional expenses. As such, the target of the ADB-initiated Shaanxi Qinling Biodiversity Conservation and Demonstration, is to make an eco-tourism industry in the region which will generate necessary income not only for the local government but also for the people. Therefore, the idea of generating employment was integrated into the proposal of ADB’s Shaanxi Qinling biodiversity conservation and demonstration. Benefits There are no financial interest in the development of the Shaanxi Qinling Biodiversty Conservation and Demonstration. The protection of eco system situated in the Qinling Mountain is the number one priority and hence, most of its outcomes are related to preserving the biological life in the area. ADB also intends to balance out the populated area with its, surrounding, preserving the environment while helping the populated area in their everyday lives. At such according to Renfro (1), the projected outcomes or benefits that would come out of the Shaanxi Qinling Biodiversity Conservation and Demonstration would be the following: a. Participatory biodiversity management in the mountainous area will result in a sustainable biodiversity restoration which will target 7000 hectare of habitable land for indigenous wildlife and endemic plant species. b. By enhancing the biodiversity project, a public-enterprise, QNBG, will be supported and generation of employment in the area is possible. c. The project will also strengthen important institutions in the are such as education and health which is crucial in the development of the region. It will also bolster the conservation programs that have been launched by other organization such those of the WWF and GEF. According to Renfro (1), there are also numerous other factors that could be brought in by the development of this project. Threatened and endangered animals in the area could also be protected from poachers and other dangerous activities by the community living near these species. Furthermore, the project will also bring knowledge on how to take care of the region, hence, the people will determine which would activity will be harmful or not. ADB intends to preserve and further enrich the natural eco system of the region in order to ensure that life in the Qinling Mountain will continue. Risks There are numerous risks in initiating in the Qinling Biodiversity conservation and demonstration. First and foremost is the risk presented by the people living in the area near the region. According to Renfro (1), a conservation program that is near populated areas such as in the Qinling Biodiversity Conservation and Demonstration have always been influence by the people surrounding it. Management programs will always be affected, as the natural settings of the place will always be influenced by the human activities that are happening during the course of the program. Furthermore, in places such as the Qinling Mountain, most people are not knowledgeable in taking care of the eco system and the various species that are living in it. Hence, the project might fail to implement its conservation program due to the people practices and possible reluctance to help in preserving the biodiversity in the region (Projects, 3). Additionally, it is not an assurance that through proper education or seminars about safe practices and protection management strategies that people could eventually protect their environment. According to Renfro (3), there are instances wherein old practices post hindrances to development such as conservation programs. The idea is that old practices are integrated in the mind and lifestyle of the people, existing generations after generations. Hence, despite the issue of environmental protection, some communities find it hard to abandon its practices since it has been a part of their long ancestry and culture. Another compelling argument presented by Kenmore (3), is that specific conservation programs that are close in a populated area such as the Shaanxi Qinling biodiversity conservation and demonstration, tend to find balance between protecting the interest of the eco system while making sure that the nearby inhabitants are equally or compensated fairly. Renfro (1) argued that key concept here should be to satisfy the needs of the people, as it would allow the management to adjust the conservation plan. Furthermore more, it would guarantee that the conservation program would yield support and commitment from the people. However, there is a still chance that failure may be encountered by the management team. There is also the issue of misallocation of financial resources during the course of the program and the infamous “corruption” prevailing in some countries in Asia. Despite being strict and having a protocol that deals with corruption (ADB”S anticorruption policy), ADB could still not vouch that the whole project will remain as corruption proof or free (Policies and Strategies, 1). According to Vermuelen (3), corruption stand in the same stage as poverty, it is nearly impossible to remove in all known systems, thus making the project vulnerable to possible failure. Furthermore, the place is situated in a provincial area, far away from keen eyes of government officials hence it is possible that management could also be influenced during the coarse of the program. Costs As of the moment, the Shaanxi Qinling biodiversity conservation and demonstration project of the ADB has yet to enter its peak stage and it is still under its preliminary stage, being handled closely by the East Asia Department of ADB. However, the project has also achieved considerable progress as it started to make significant impact in the Qinling region. The Shaanxi Qingling Biodiversity conservation and demonstration project have been allotted by the ADB board of $40 million dollars and to be used extensively in achieving the goals of the project. The following have been the expenditures of the project since it was carried out. The breakdown is as follows : 1. $1 million dollar for contract goods - such as the material, equipment used been in the Shaanxi Qinling biodiversity conservation and demonstration. It also cover sgoods that are being used in teaching materials and generating employment for people. 2. $10 million dollars for contract works - such as the on-going projects that include buildings specially design for conservation projects and sustaining endemic plants and indigenous animals through artificially created habitat and laboratory used to take care of animal health as well as the people around the Qingling area. It also covers the building use for seminars and institutions that are used to promote new hobs in order to generate income for the community near the area. It also covers the fee use to pay the professional and local employees in the conservation program. 3. $100, 000 dollars use to pay working operations - documents pertaining to working operations cover permits, contracts and other official documents. It was also used to cover the bidding procedure to procure necessary material needed for the Shaanxi Qinling Biodiversity Conservation and demonstration program. 4. Lastly, another set of $100, 000 - which was used for basic necessities such as food, water, clothing and the like. Mainly it was used for shopping expenses. Apparently, the program still has more than $20 million dollars in reserve as it moves forward in its first year of being in operation. According to Renfro (1), the remaining financial resources will be used to greatly expand the program such as trying to procure additional animals and plants in its conservation roster. A portion of the financial allotment is also intended to be used for extensive employment or creating jobs for the people in the area. Time Scale As of this moment, the ADB’s Shaanxi Qinling Biodiversity Conservation and Demonstration has been put into operation for almost a year. However, there have been considerable achievements that have been attained since the environmental project was started. According to Renfro (1), the milestone in the less than a year history of ADB’s conservation program are divided into two aspects, these are social and environmental aspects. They are: 1. Increase of employment due to the additional jobs created since the conservation has started. 2. Increase access to water and energy supply for the people surrounding the area, brought by constructing energy and water station. 3. Establishment of forest rights or laws that will aid the conservation program 4. Improved welfare of the animals as the protection has already saved indigenous species from poachers 5. Improved environmental quality through the provision of improved sanitation, wastewater, and management systems 6. Advancement of science related to endangered species recovery SARC as more species are being discovered and studies during the course of the conservation program 7. Improved ecological functions in the mountainous area as the conservation has also established laws that correspond to illegal logging and similar activities. Although most of these achievements are still working under 50% efficiency, it has established considerable amount of presence in the area. According to Kenmore (3), the program tries to initiate many activities in order to help in preserving the Qinling eco system. Furthermore, they want to maximize the potential of the area to become one tourism spot in china in order to raise awareness about the beauty of in the Qinling region while raising the standards of the community living with it. Conclusion ADB’s environmental project has targeted sustainable economic growth while having an inclusive social development program is planned for in the region of Shaanxi, Qinling. The objective is to provide not only development for the people but also to its nearby surroundings, balancing the interest between two different paradigms. It was conceived by ADB in order to promote the safety and health not only of the people but also the welfare of the Qinling eco system which has been put into great danger due to various activities, both human and of natural origins. Moreover, it was also intended to raise awareness, touch the consciences of people around the globe to protect and cherish the eco system that is constantly being destroyed by rapid development and improvement. It was also initiated due to the fear of possible destruction of eco systems, which would cause greater repercussions for generations to come. Lastly, ADB wants to promote that economic growth could be sustained up to the point that development could be controlled and monitored, ensuring that the path being taken is for the good interest of the many. References Environmental Conservation Beyond Borders. 10 June, 2006. Asan Development Bank. 1 May, 2009. http://www.adb.org/Documents/Brochures/adb-gef/adb-gef-oct2005.pdf Development for International Development. 1999. Sustainable Livelihood Guidance Sheet. U.K, January, 1999 Kenmore, P. Biodiversity better understood now.2004 The Hindu. 1 May, 2009 http://www.hinduonet.com/2004/storied/2004092202991300 Policy and Strategies. May, 2009. Asian Development Bank. 1 May, 2009. http://www.adb.org/Development/policies.asp Projects. May, 2009. Asian Development bank. 1 May, 2009. http://www.adb.org/Projects/ Regions and Countries . May, 2009. Asian development Bank. 1, May 2009. http://www.adb.org/Countries/ Renfro, Raymond. Shaanxi Qinling Biodiversity Conservation and Demonstration :  China,PeoplesRep.of. 10 June, 2008. Asian Development Bank. 1 May, 2009. http://pid.adb.org/pid/LoanView.htm?projNo=39321&seqNo=01&typeCd=3#addbo Sajise, Percy. Biodiversity research for Sustainable Development: Can it be Achieved? Asian Jouranl of Agriculture and Development 2.1(2005) 1-14. Vermuelen, S. Biodiversity planning: Why and how should local opinion matter? Gatekeeper 115 (2004) 22. Vision and MIssion of Asian Development Bank. 3 May, 2009. Asian Devlopment Bank. 1 May, 2009. http://www.adb.org/About/default.asp Read More