Формирование зеленой экономики в рамках устойчивого экономического и экологического развития

Д Кудайназарова

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D.K. Kudaynazarova,

TSUE

independent researcher of Department

âIndustrial economyâ

THE FORMATION OF GREEN ECONOMY IN THE FRAMEWORK OF

SUSTAINABLE ECONOMIC AND ENVIRONMENTAL DEVELOPMENT

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Keywords:

institutional changes, green economy, structural changes, the

structure of industry, clusters of eco-industrial parks.

The increase of industrial consumption of raw materials and energy recourses

has high impact on degradation of nature and getting worse itâs quantitative and
qualitative features.

In order to form green economy in Uzbekistan there were submitted Framework

UNO Convention in 2006 which had claimed that Ministry of Economics of the
Republic of Uzbekistan had been the National Department on Mechanism of clean
development according to Kyoto protocol. The Ministry prepares and chooses
projects appropriate to economic, environmental, technological and social interests of
our country. Here economic, social and environmental criteria presence as national
criteria of sustainable development [1].

Economic criteria include decreasing energy and material consumption per unit

of processed product, increasing production and natural resources use efficiency via
modern technologies and developing private sector. Environmental criteria consist of
keeping safe the nature, minimization of resource use and waste, recycling. Social
criteria are growth in employment and real income of population, working personnel
treatment and widely informing population about rational use of resources.

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The problem of green industries is mainly solved by improvement of

technological processes and environmental activities, which is aimed to reduce
environmental impact and raise the efficiency of rational and complex use of raw
materials and resources. It is possible by modernization and reconstruction of
enterprises, and introduction of environmentally friendly and resource-saving
technologies.

This problem has high significance in ecologically strained regions, especially,

in Karakalpakstan, where there is a huge need in mentioned activities and the impact
of ecology on industry is observed, providing structural changes (table 1).

Table 1

Changes in structure of gross regional product, %*

â

Components

2003

2005

2007

2009

2011

2013

1

2

3

4

5

6

7

8

1 industry

7,1

7,9

8,3

8,2

10,5

12,6

2 building

9,3

7,5

8,1

8,4

11,3

11,6

3 agriculture

28,1

28

27,1

21

22,7

20,8

4 trade and catering

8

6,3

6,1

6,6

8,6

9,2

5 transport and communication

18

14,7

6,1

7

18,2

13,4

6 taxes

7,4

5,1

4,2

5,8

5,9

4,7

7 others

22,1

30,5

40,1

53

22,8

27,7

*Source: State Committee of Statistics of the Republic of Karakalpakstan.

In recent years the share of agriculture has given its place to industry and non-

manufacture branches, where flour, cereal and mixed feed industries dominate. The
last one is caused by conditions to develop livestock industry. In whole a gradual
growth is seen in branches of industry (due to adjustment of chemical and oil
industries) and construction (the same). Also close branches are being involved into
this stream increasing their shares. Here is an example of chemical products
conducted by international project on Ustyurt in North of country. Serving project
realization building, trade and catering have contributed significantly into gross
regional product resent years making 11,6 % and 9,2 % respectively. So raw
materials oriented structural changes takes place that is adapted to production base in
the region.

There is unlimited discussion about ecological and economic scarcity of the

region, still decision is incurred making difficult to sustain growth parameters.

The decisionâs qualitative and quantitative figures (features, indicators) transit in

definite arrangements which make economic and ecological relations complicated
and specific remarking institutional and technical sides of issue.

Differing from other regions in Karakalpakstan the difficulty of decision is

toward the deepness of ecological problems, solution of which is mainly possible by
economic measures and finance.

Akhmetshina in her research gives the hypothesis of linkage between sustainable

development of ecosystem and regulation economic and ecological relations. As a
consequence contrast between subjects and objects of economic and ecological

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relations regulation in sustainable development was found out, the flexibility and
mobility of regions in implementation the mechanism of economic and ecological
relations management in sustainable development management system were noted [3,
18-20].

Measures on protect the environment do not carry out materialized outcome and

in most cases is described in diminution ecosystem and housekeeping deterioration,
improvement the quality of components of ecology and society.

Data on expenditures for nature protection measures (NPM) and rational

resource consumption in the Republic of Karakalpakstan is illustrated in structural
section for 2007-2012 years (table 2).

Table 2 presents the deviation of actual expenses on measures from planned

ones (â+â-excess, â-â - shortfalls), the implementation of which has been funded with
own means of enterprises and local funds for nature protection (LFNP).

Table 2

Figures on deviation between actual and planned expenditures on NPM*

Resources

2006

2007

2008

2009

2010

2011

2012

1

2

3

4

5

6

7

8

9

1. land

0

+6,9

+0,3

-0,97

-81,7

-70,9

+217,2

2. water

0

+5,7

-35,6

-5,9

+109,6 +420,8 +119,5

3. atmosphere

-15,7

+4,2

+3,6

+21,1

+9,97

+6,3

-26,6

4. flora and fauna

-

-32,8/-6,3*

-

-22,4

-

*Source: State Committee of nature protection of the Republic of Karakalpakstan.

In 2006 actual and planned volumes of funds on land and water resourcesâ

recovery match, however it is absent in the fields of flora and fauna. And
approximately 87,5 % of funds, spent on recovery land resources, were born by
capital investments, while 11,9 % - by own funds of enterprises and only 0,5 % - at
the expense of LFNP. The measures on water resources recovery was funded from
LFNP. According to the results of 2007 year LFNP continued investing into the
improvement of land (3,21 %) in contradiction with the increase of contribution done
by enterprisesâ funds reaching 96,78 %.

As it shown in table nature protection expenditures in fact exceed planned ones.

Enormous efforts are concentrated in providing and cleaning water resources making
changes to building and technologically new branches of local economy.

Notably is the fact that in subsequent years, enterprises on their behalf finance

the measures for nature protection except measures on protection of fauna and flora,
which have been funded mainly from LFNP. Consequently transition occurs in the
process of investing from departments to economic agents.

Also from data in table it is seen that forecasting perspective volume of

investment in accordance with changes and plans for next future is difficult enough.
And it results on secondary importance of issues on ecology in enterprises. The
imperfection of existing mechanisms and methods for integrated analysis of
economic and environmental numbers (figures) of industrial production in the
enterprisesâ management system leads to under estimation of expense measure for
efficient functioning, contradicting to fact that real sector of the economy does not

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have enough finance and technical means leading to deterioration of nature
decreasing manufactured goodsâ competitiveness.

On the other hand, private and government investments into resource protection

differentiate in other countries. While in Moldova private investments are directed to
building and exploitation and irrigation, Tajikistan and Georgia spend from both
sources to biodiversity [5, 38-40].

Initiating expenses for NPM economic subject obliges financing and effect of

realization. Consequently, working in economic and ecologically strained conditions,
subjects are short in taking decision individually. Here large enterprises and state
organizations have potential opportunities.

Analyzing the environmental outcomesâ impact on the structure of industry of

Karakalpakstan along with liquidation of some industries and birth of others itâs
possible to get followed graph (picture1).

Picture 1. Changes in structure of industry of the region.*

*Source: Ministry of Economy of the Republic of Karakalpakstan.

To some extent water flow reduction influenced on disappearance of fishing and

related industries, agricultural production, and causing decline the North-Western
districtsâ activity scope. As a compensatory effect the nomenclature of produced fuel
the districts mine expanded and allocation of industries oriented on raw material
availability. Thus a chemical plant was built; a gas-chemical complex is on last stage
of completion, resulting on increase of petrochemical industryâs share in gross output.

Therefore, the principle of "boomerang" plays its role here - in order to enrich

the economic component the environmental imbalance occurs, which returns itself in
form of costs.

The decision also is ambiguous to the extent that the relationships "nature-man"

and "man-nature" are synonymous from economic point of view.

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The Declaration "The Future We Want" [6] of sustainable development strategy,

provided by United Nations Organization (UNO), puts some light into interrelated
problems with aim constituting an economically and environmentally efficient
"green" technologiesâ implementation.

Based on them a green economy contributes to growth natural capital or, at

least, reduces environmental risk. In difference with traditional economy, which
combines labor, technology and resources with products and emissions in the end, the
green economy processes waste, consequently minimizing the impact on the
resources supplier â environment. The last combines natural raw materials and
human resources.

There is scarcity in covering with natural gas in some districts especially

villages are short in gas in winter period. And as an alternative solution the usage of
solar and bio-energy needs significant investments.

Scientists from Energy and Automation Institute of the Academy of Science of

the Republic of Uzbekistan evaluated gross and technical energy potential of wind
flow in bands of districts, among which Karakalpakstan has one of the highest
positions in amount of technical potential energy letting decline energy use [2, 58-
59].

Since our economy is largely based on local raw material sources, respectively,

the role of green economy is getting important in structural change in separate
industry as well as in whole economy.

The mechanism of structural changes is based on institutional, industrial and

technological reforms in economy. In accordance with this, institutional reforms in
terms of the transition to green economy include preparation of legislative and
normative documents at state (laws, Government Programs on environment
protection measures) and industrial enterprise (pollution controlling and regulating
documents, instructions) levels.

Industrial changes are demonstrated in organization of production biologically

and ecologically pure foods, construction materials and packaging materials. For
example, dairy products production, processing agricultural products, use of natural
raw materials in manufacture of wall and decorative materials, use of wood in
production of food packages, etc.

New opportunities for processing Jerusalem artichoke, the use of information

technology in medicine, education and communication, gradual implementation of
counters and raw materials and energy resources dispensers in to material production
and final consumption belong to technological changes in industry.

The world business Councilâs activity for sustainable development and its

report-project "Vision 2050" [4, 120-141] have significant importance in the
framework of green economy institutionalization. In the latter case business has great
importance in balanced use of renewable resources and recycling. As long as private
sector makes relatively more investment in NPM than the government does,
activation of institutional levels in order to create a platform for small business and
private sector in transition to green economy is advisable: starting with infrastructure
and ending with technical designs.

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At the same time it is necessary to coordinate efforts in customs, tax and credit

sectors: terms, rates, conditions and tax base â all should response flexibly, including
each district, city and areaâs features. Here the role of government as the main
reformer in Uzbek model of transition to market economy should be noted. It is
evident by the experience of Europe, particularly the UK and Germany and several
countries in Central Asia, like China and South Korea. It is observed in the creation
of special development bank institutes with attracting investment into the green
economy purpose, and inclusion of development objectives of green economy in state
national strategy program of socio-economic development.

Vision of above-mentioned and other changes in industrial sector is taking the

form of clusters of eco-industrial parks over time that will make quality structural
shift in many spheres of activity. The experience of many countries shows such
clusters suit enough to the concept, that says coordinated management of resource
flows in material and non-material production due to reduction of costs and saving
the quality of environment is available. Subsequently the structural shift will impact
on employment, technological structure, investment and environment, provide
qualitative and quantitative changes in the structure of gross production and
consumption.

Concluding ideas about creation and developing the green economy in structural

changes to take place in local industry, several measures following may be offered:

-to train specialists in the field of technical and applied science, in particular not

allow narrow specialties in ecology and prepare personnel skilled in combined
ecology and technology, ecology and economy fields, etc.;

-deep processing of vegetable and livestock products taking into account

specifics and conjuncture of markets;

-to create an infrastructure-platform for the green economy and gradually

transform to green technologies within the industry. Adaptation of imported
equipments to local conditions or import substitution due to local environmental and
social specifics;

-active diversification of production of export products according to external

marketsâ conjuncture as the "adaptation" strategy, and simultaneous organization of
production of products with high competitiveness and, at least, stable demand in
markets.

In a line with those there is a need for ecological appropriate of figures of

economic development and improvement in ecological âcompetitivenessâ against
technological decisions.

The formation of sustainable development indicators is integrated and expensive

process which needs amounts of information and efforts. There are two approaches
here: to create integrated and aggregated indicators for judging the level of social-
economic sustainability and separated indicators system for each aspect of
sustainable development.

Unfortunately there is not generally acknowledged indicator for assessment of

sustainable development transition efficiency. In connection with this to form the
system of indicators is becoming necessary. Lots of figures make taking decision on
level of sustainability difficult. It needs to range indicators by priority. The same way

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was chosen by many international organizations and countries due to forming system
of indicators.

It is preferable to cover ecological problems by economy or link them:

ecological solutions should lead to economic effects in society. Thereby ecological
and economic indicators with economic sense are advisable.

There are some wide using ecological and economic indicators: energy

efficiency, coefficient of renewed assets, atmosphere waste per gross domestic
product, hard waste from permanent (stationary) sources, water waste per gross
domestic product, amount of non-used and harmful toxic waste, square of protected
areas, greenhouse gas and so on. This list can be fulfilled via singling out âeconomic
effects and sustainable developmentâ problem. In this case on macroeconomic level
gross domestic product and real savings may be included into the system.

Along with this, the notion of sustainable development, announced at the

meeting of UNESCO which was held in Paris in 2002, considers a transition from the
problem of environment protect at the expense of economic growth to the problem of
ensuring simultaneous economic development and preservation of the natural
resources.

On the whole, there is high necessary to determine optimal economic actions in

order to diminish ecological impact in ecologically tensioned regions as well as in
bordered ones and to be able to forecast changes in the ecological system. The
resolution of these and other linked problems is possible with a complex approach to
the situation. It implies ecologically sustainable development instead of economic
development with one side decision. Taking into account long term dependence of
the green economy structural changes in branches, institutional performance and
technology of industry and close spheres of economy are suggested.

Resources

1.

Decree of the President of the Republic of Uzbekistan about âThe measures on

investment projects realization in framework of Clean Development Mechanism of
Kyotoâs protocolâ (Num.525, 06.12.2006). Gazette of Oliy Majlis chambers of the
Republic of Uzbekistan. Num.12, 2006.

2.

Abdurakhmanov Ð.H. and others. Enterprise and industryâs economy.

Tashkent, 2002.

3.

Akhmetshina A.R. Regulation economic and ecological relationship in line

with sustainable development of ecosystem. Abstract of a dissert. â¦. doctor of
sciences in economy. Kazan. 2011.

4.

Martinov Ð. Green economy: international experience and Russian practice.

Society and economy. â12, 2014.

5.

Trends in Environmental Finance in Eastern Europe, Caucasus and Central

Asia. Analytical paper of OECD, 2007.

6.

The Green Growth Action Alliance: Progress Report from the First Year of

Catalyzing Private Investment.

www.wbcsd.org/web/vision2050.htm

.

7.

The Future We Want. United Nations. N.Y., 2012.

http://www.uncsd2012.org

8.

Materials of State Committee of Statistics of the Republic of Uzbekistan.

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9.

Materials of State Committee of Statistics of the Republic of Karakalpakstan.

10.

Materials of State Committee of Nature Protection of the Republic of

Karakalpakstan.

Формирование зеленой экономики в рамках устойчивого экономического и экологического развития

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