Developing Countries, Where Are Thou?

Remember shortly before the financial crisis hit us, we were preoccupied with tackling rising oil prices and renewing our flagging commitment on alternative energy initiatives mostly led by developed countries. But right now, I think these initiatives are likely to slide into lower priority once again. The pressure is more intense for governments to prevent their countries from sliding into recession, declining oil prices will help and may pose as further incentives to delay putting more resources into alternative energy development. There is never any rosy picture in energy challenge without global involvement, and it is doomed to fail if developing countries continue to remain at the sidelines. Alternative energy development is probably the least talked about topic to them, with their insatiable appetite fixated on cheap coal and fossil fuel to catch up with the economic success of developed countries.

Indeed, developed countries did not take enough precautionary measures on environment preservation for their economic growth in the past context; but if developing countries set their irreversible destiny to become among the largest polluters in present context, I can only imagine the future will be the time to pay for the environmental cost. Without a doubt, economic growth is at the heart of this issue, in fairness developed countries should do more but not without concrete effort from developing countries as well. The central question is how can we convince developing countries to contribute more in alternative energy initiatives?

We recognize the significance of developing international agreement that bind countries on carbon reduction effort, I think likewise we need international body to administer alternative energy development at the global level. All major polluters should be part of this effort so we can not hope for an agreement that compels nothing more than ineffectual voluntary involvement. Hard as it may seem to design and implement the rules in the first place but it is still the most effective way to get all countries involved, so there should not be any excuse of not attempting at all. It will be the first step in compelling all countries especially developing countries to contribute more in alternative energy development.

Apart from establishment of international body, I think the long-term incentives themselves should drive developing countries to have an early start in alternative energy development. Because excessive dependence on non-renewable natural resources put countries at risks of unwanted volatility that will disrupt future development. Quicker pace of turning alternative energy development into commercialization of cleaner energy will move developing countries into sustainable economic growth earlier. Besides, such effort is also consistent with their intention to become major global players in future, because it is aligned with their goals of developing future multinational corporations increasingly inseparable from the adoption of green technology, and the pursuit of a growing segment of environmentally conscious consumers worldwide. But most importantly, the path toward cleaner energy will allow some developing countries to break free from the resource curse which plagues them for so long and renders them uncompetitive.

I admit it will not be easy when it comes to compelling countries to take up initiatives or reaching an agreement let alone implementation, it will require a major shift in mindset from excessive concern with respect to economic competitiveness – the core economic issue for developing countries in globalization. They will need to start evaluating for the greater good because when the environment finally fails to sustain our abuse, all countries will cease to be competitive. By then it will be too late.