International Approaches to Global Environmental Challenges

Abstract

Protection of the environment constantly challenges traditional notions of pro-growth development, despite progress on how we look at those traditional notions and development of so-called win-win opportunities. This chapter identifies key global environmental challenges, and then provides ideas on how an international financial institution like the World Bank can help address them. Multilateral financial institutions (MFIs) and developed country policy-makers must face the fact that they are no longer as able as they were in the past to influence public policy given that private sector foreign direct investment has become larger and has greater impact. At the same time, this private capital is rarely oriented directly toward the poor and is concentrated in a few major emerging markets. This change in influence affects the ability of MFIs to address the challenges discussed in the chapter and has posed greater responsibility on the private sector to successfully embrace this responsibility. Keywords: foreign direct investment; global environmental challenges; international approaches; multilateral financial institutions (MFIs); pro-growth development; World Bank