Environmental Impacts of Macroeconomic and Sectoral Policies

The papers in this volume examine in an integrated way the ecological and social impacts of structural adjustment programs and other macroeconomic policies, and attempt to incorporate this angle in the initial design of development policies. Due to the complexity of policy-environment interactions, this report takes an empirical, case-study oriented approach, including thorough reviews of current work both within and outside the World Bank. Specific case studies from Africa, Asia, and Latin America underscore the difficulties of developing a general methodology to trace the environmental impacts of policy reform, yet offer evidence that empirical work may help identify and deal with the most important potential environmental impacts. The report is organized in three broad sections: Chapters 2 to 6 deal with general links between the environment and economy-wide policies and broad development strategies. The next three papers deal with sector-specific environmental issues relating to trade, agriculture, and energy. The volume concludes with country case studies of Botswana and Costa Rica.