Tracing the impacts of a northern open economy on the global environment

Abstract

The globalization of the world economy has increased resource flows around the planet, raising pressures on the environment. Historically, northern industrialized economies have been responsible for the majority of resource consumption, while developing countries have suffered the associated social and environmental impacts. This article analyzes the extra-territorial responsibility of the Basque economy (Europe), to illustrate the responsibility of northern open economies towards the global environment. To do this, we: (i) analyze the material and energy flows of the Basque economy, their source and impacts on other regions of the world, (ii) study the impact of the economic and investment activities of Basque companies abroad, and (iii) examine, together with other paradigmatic examples, three case studies from Latin-America, East Africa and Southeast Asia that represent the liabilities of northern economies in the Global South. This approach allows us to connect production and consumption processes in affluent countries with associated socio-ecological impacts in the extraction frontiers in order to better understand and potentially transform current economic patterns and their consequences. In addition, the study indicates how to bridge the gap between local and global scales, creating a useful approach to raising social awareness and informing public policies in resource intensive societies.