II. Distinguish between Economic Growth and Environment Sustainable Development5 III. Natural Environment and the Economy 5
1. Natural Environment and the Economy5
2. Relationship between economic growth and the environment6 2.1 Environmental Kuznets Curve 6
2.2 Alternative views on the economy-environment relationship7 2.3 Case study in Cambodia 8
3. Current Cambodia’s Economy and Development10
IV. Sustaining Economic Growth in The Long-Term12
1. The Combination of Economic Growth 12
2. The critical thresholds over the environmental assets12 3. The limited resources of non-renewable environmental 13 4. The impacts of the changes to natural assets toward many generations13 5. Effective use and supplying of natural assets14
“The relationship between economic growth and the environment is controversial. Traditional economic theory posits a trade-off between economic growth and environmental quality. Since the early 1990s, however, the rapidly expanding empirical and theoretical literature on the Environmental Kuznets Curve (EKC) has suggested that the relationship between economic growth and the environment could be positive and hence growth is a prerequisite for environmental improvement.” (Lee et al. 2005)
However, in this 21st century environment is a hot issue, which international organizations have given special attention to, especially climate change. Regarding to previous research study, one of the mainly contributing factors is human activity. Particularly, industrial revolution has direct effects. Haze from factories creates greenhouse gases and air pollution. Moreover, the waste from industries is polluting drinkable water and diluting utilized soil. Thus, states need to consider the impact on environmental and social concerns caused by the rapid growth of economy.
Cambodia is a developing country that is really important to think of economic growth before environmental improvement if we do not take it into a deeper consideration and discussion. However, according to the World Bank group (2011), sustainable use of Cambodia’s natural resources is a key feature to the country’s development. Approximately three-quarters of the population are directly engaged in agriculture and depend upon the land for their daily survival. Nearly 40 percent of the country’s Gross Domestic Product (GDP) comes from agriculture and forestry (The World Bank 2011). Tourism, which is based on the country’s cultural and natural wonders, also contributes considerably to economic development. Reliance on these industries means that sustainable management of natural resources and other aspects of the environment are vital for improving rural livelihoods and economic growth.
While economic studies often distinguish between “economic growth”, and “economic development”, what will be the better choice for Cambodia to choose in order to improve her economy?
Many previous researchers have conducted research in terms of economics’ evolution toward economic growth and economic development. Actually, their study widely focused on global situations, while this term paper will be conducted to contribute to government policy, especially in Cambodia whether we should intensify our production to achieve high per capita income for every Cambodian or we should slow down to leave room for environmental protection.
This term paper aims to: (1) analyze the differences between economic growth and economic development in Cambodia; (2) identify the bad impacts of economic growth on Cambodia’s environment and sustainable development; (3) examine the importance of the economic development for Cambodia as a whole; (4) investigate the current economic situation and the possible future of governmental policy toward economic evolution.
This study does not attempt to answer the...