burden of deforestation, desertification, erosion of ... - Social Watch

burden of deforestation, desertification, erosion of ... - Social Watch burden of deforestation, desertification, erosion of ... - Social Watch

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FIGURE 1 GDP - Real growth rate (%) 16 8 0 -8 -16 -24 1999 2000 2001 2002 2003 2004 2005 2005 2005 2005 2005 2006 improperly reclassified and allocated to private individuals. In 2007, for example, the Government changed the status of the central part of the Khosrov Reserve to allow private construction and agricultural activities; it made this decision without consulting experts in the field. The Teghut mountains: a case study in unsustainable exploitation The Government is pursuing an extraction-led development model, as evidenced by its willingness to allow massive investment in mining. The Armenian Copper Program (ACP), for example, has been granted a 24-year license to extract copper and molybdenum ore from the Teghut Mountains. ACP is developing an open-pit mine with a surface area of 240 ha, all of which is forested land. 14 The village of Teghut, located in the Lori Region in the northeast has 3,600 residents, many of whom rely on subsistence agriculture. The surrounding forest is home to many rare and endangered plants and animals; species found there 14 Policy Forum Armenia, The state of Armenia’s environment, (2010), op cit. include 260 insects, 86 birds, 55 mammals and 10 reptiles. 15 ACP has already built numerous forest access roads for exploratory drilling sites, indiscriminately ravaging several areas. Ultimately, according to ACP, the project will require 670 ha, of which 510 ha are currently forested. 16 ACP has declared that it will compensate for the damage by planting trees in Yerevan, but this plan is inadequate and unrealistic. New trees cannot replace established forest habitats; mature trees may not survive a move. The mining operations will produce waste rock and tailings, which may contain silver, gold, rhenium, lead, arsenic, copper, molybdenum, zinc and sulfurous chemicals. In the inefficient extraction process that will be used, valuable metals such as renium will be lost; much worse, it will leave tailings that will pollute both local water and the air. If leakage occurs, toxic chemicals could get into the nearby Kharatanots River, already polluted by the copper tailing dump in the village of Aghtala, and 15 Ibid. 16 See: and < news. mongabay.com/2008/0129-hance_armenia.html> Social Watch 65 Armenia Source: IndexMundi.com where numerous downstream communities get their drinking water. The deleterious environmental impact of the mine will hardly be offset by economic benefits. The project’s economists estimate that it contains ore worth more than 20 billion USD, of which the country will receive only 1.2-1.7% in taxes and fees and suffer severe, long term environmental problems costing USD 6.5 million. So far, there is no independent economic analysis of the potential environmental damage. 17 As currently planned, construction of the ore processing plant and exploitation of the copper-molybdenum mine will breach 77 laws, as well as a range of international conventions signed and ratified by the Republic of Armenia, including the UN Framework Convention on Climate Change, the UN Convention on Biodiversity, the UN Convention on Combating Desertification and the European Landscape Convention. However, the Government has designated the Teghut mining operation a high priority for its contribution to “economic development,” reflecting its short-term perspective, as well as its corrupt practices. It also reveals its lack of expertise, respect for the law, care for the environment and interest in pursuing a long-term sustainable development model. Conclusions The rapid growth of some sectors of the economy, along with the lack of appropriate government management, have created serious environmental problems and challenges. To promote sustainability, the country must make environmental protection a priority. Armenia has ratified many international conventions on issues such as biodiversity, climate change and desertification. These commitments, as well as the voice of civil society, have been largely ignored. Improving environmental governance will require effective implementation and enforcement of existing environmental laws, as well as greater transparency and public participation in policymaking. This, in turn, will require a concerted effort to increase popular awareness of environmental issues. n 17 Ibid.

aZerBaiJan The demise of the extractive economic model Public Finance Monitoring Centre Kenan Aslanli 1 Environmental Law Centre “Ecolex” Samir Isayev 2 The country faces a number of hurdles in moving towards more sustainable development, none of which are likely to be jumped soon. The country’s reliance on oil and petrochemical industries continues to cause grave environmental damage, ranging from soil contamination to water and air pollution. While the Government has taken some positive steps to address these problems, it is not clear how long these will last in the absence of serious regulatory measures. Other aspects of sustainability, primarily related to human rights, are more challenging since the ruling party controls both the Parliament and the courts, civil society is heavily controlled and political dissent and protest continue to face strong sanctions. Serious environmental challenges Azerbaijan also faces diverse and very serious environmental challenges. In some regions, the soil is heavily contaminated by pesticides such as DDT and defoliants used in cotton crops. Water pollution is very high; only one quarter of polluted water is being treated. Nearly half of the population has no access to sewer facilities. 3 The cities of Sumgayit and the capital, Baku, are listed among the world’s most polluted. 4 Baku, particularly, ranks at the world’s lowest levels for health and sanitation. 5 An extractive economy is not alien to this state of affairs. Being one of the birthplaces of the oil industry, Azerbaijan has a long history of economic dependency on petroleum extraction. There 1 Senior economist. 2 Senior research fellow 3 Instituto del Tercer Mundo, Guia del mundo 2011-2012, (Madrid: 2010). 4 Super Green Me, Sumgayit, Azerbaijan: The Most Polluted City in 2007, ; Nationmaster, Environment Azerbaijan, . 5 T. Luck, “The world dirtiest cities”, Forbes, (New York: 2008), . One of the world’s most industrially polluted territories, the country needs to change its old resource-dependent extraction economy into a sustainable one, and also a better dialogue between Government and civil society is needed. Also, abuses against freedom of speech are frequent, as the Government systematically tries to silence political dissidents and protesters. Elections do not fully meet international standards; the Parliament is under the control of the ruling party and the courts are not independent. NGOs have been closed or denied registration. Basic Capabilities Index (BCI) BCI = 93 100 0 Children reaching 5th grade Gender Equity Index (GEI) Empowerment 100 100 100 100 89 97 98 Births attended Surviving under-5 Education Economic activity is evidence that petroleum was used for trade in the 3 rd and 4 th centuries AD, and refining activities in Baku are mentioned in the writings of 17th century Turkish scientist and traveller, Evilya Celebi. A proper oil industry was established in the late 19th century with the emergence of the so-called “oil barons,” who mastered the extraction processes and contributed to the modernization and industrialization of Baku. Currently the petrochemical industry remains the country’s most prominent although in 2010 it had already reached its historical production peak of 1.12 million barrels per day. Some predictions show there will be a massive drop in production levels from 2015 to 2025 (see Figure 1). Oil production, however, has proven not only unsustainable itself but also for the environment. Azerbaijan’s long history as an oil producer has led to high levels of pollution. During the Soviet era, residential districts of Baku, for example, were built among oil fields and industrial operations located inside the city limits with minimal or no environmental concern. In many cases the Soviet era oil industry created huge petroleum lakes which literally destroyed all of the surrounding biomass. In the last 150 years, the shores of the Caspian Sea, especially on the Abershon peninsula, have been turned into an ecological disaster with an ever-increasing amount of chemical and biological toxic waste from the Volga River. Switching models This murky scenario has made apparent an urgent need to protect the environment. Thus, in 2009, the World Bank issued a report pointing out the importance of diversifying the Azerbaijani economy 92 National reports 66 Social Watch GEI = 64 100 0 in order to reduce dependency on oil and gas revenues and to develop long-term sustainability. 6 This conclusion was echoed by the Asian Development Bank in its 2010 annual survey of member states 7 and also by the Executive Board of the International Monetary Fund (IMF). According to the IMF, “given that oil production will no longer be the main source of growth, there is an urgent need to accelerate economic diversification.” However up to 2010 non-oil sectors have not demonstrated significant growth. The growth rate in non-energy related sectors decreased from 16% in 2008 to 13% in 2010, and non-oil exports make up only 5% of the country’s overall exports. To counter this trend, the IMF exhorted President Ilham Aliyev’s administration to support the private sector through trade facilitation, tax and customs modernization and the reduction of State monopolies. 8 The Government’s answer was to invest in a new shipbuilding plant and telecommunications projects. It also issued a decree reducing the number of inspections of private business. In July 2010, while addressing the Cabinet of Ministers, Aliyev declared that apart from the need to maintain oil production rates, the economy was developing in a 6 World Bank, Country Brief 2009 Azerbaijan, (Baku: November 2009), . 7 News.az, Asian Bank Urges Azerbaijan to Develop the Non-oil Sector, (23 April 2010), . 8 S. Abbasov, “IMF: The Party’s Over for Azerbaijan’s Oil Sector,” Eurasianet, (24 May 2010), . 32 64

FIGURE 1<br />

GDP - Real growth rate (%)<br />

16<br />

8<br />

0<br />

-8<br />

-16<br />

-24<br />

1999 2000 2001 2002 2003 2004 2005 2005 2005 2005 2005 2006<br />

improperly reclassified and allocated to private<br />

individuals. In 2007, for example, the Government<br />

changed the status <strong>of</strong> the central part <strong>of</strong> the<br />

Khosrov Reserve to allow private construction and<br />

agricultural activities; it made this decision without<br />

consulting experts in the field.<br />

The Teghut mountains: a case study<br />

in unsustainable exploitation<br />

The Government is pursuing an extraction-led development<br />

model, as evidenced by its willingness<br />

to allow massive investment in mining. The Armenian<br />

Copper Program (ACP), for example, has been<br />

granted a 24-year license to extract copper and<br />

molybdenum ore from the Teghut Mountains. ACP<br />

is developing an open-pit mine with a surface area<br />

<strong>of</strong> 240 ha, all <strong>of</strong> which is forested land. 14<br />

The village <strong>of</strong> Teghut, located in the Lori Region<br />

in the northeast has 3,600 residents, many<br />

<strong>of</strong> whom rely on subsistence agriculture. The<br />

surrounding forest is home to many rare and endangered<br />

plants and animals; species found there<br />

14 Policy Forum Armenia, The state <strong>of</strong> Armenia’s environment,<br />

(2010), op cit.<br />

include 260 insects, 86 birds, 55 mammals and<br />

10 reptiles. 15<br />

ACP has already built numerous forest access<br />

roads for exploratory drilling sites, indiscriminately<br />

ravaging several areas. Ultimately, according to<br />

ACP, the project will require 670 ha, <strong>of</strong> which 510<br />

ha are currently forested. 16<br />

ACP has declared that it will compensate for<br />

the damage by planting trees in Yerevan, but this<br />

plan is inadequate and unrealistic. New trees cannot<br />

replace established forest habitats; mature trees<br />

may not survive a move.<br />

The mining operations will produce waste rock<br />

and tailings, which may contain silver, gold, rhenium,<br />

lead, arsenic, copper, molybdenum, zinc and<br />

sulfurous chemicals. In the inefficient extraction<br />

process that will be used, valuable metals such<br />

as renium will be lost; much worse, it will leave<br />

tailings that will pollute both local water and the air.<br />

If leakage occurs, toxic chemicals could get into the<br />

nearby Kharatanots River, already polluted by the<br />

copper tailing dump in the village <strong>of</strong> Aghtala, and<br />

15 Ibid.<br />

16 See: and < news.<br />

mongabay.com/2008/0129-hance_armenia.html><br />

<strong>Social</strong> <strong>Watch</strong> 65 Armenia<br />

Source: IndexMundi.com<br />

where numerous downstream communities get<br />

their drinking water.<br />

The deleterious environmental impact <strong>of</strong> the<br />

mine will hardly be <strong>of</strong>fset by economic benefits.<br />

The project’s economists estimate that it contains<br />

ore worth more than 20 billion USD, <strong>of</strong> which the<br />

country will receive only 1.2-1.7% in taxes and<br />

fees and suffer severe, long term environmental<br />

problems costing USD 6.5 million. So far, there is<br />

no independent economic analysis <strong>of</strong> the potential<br />

environmental damage. 17<br />

As currently planned, construction <strong>of</strong> the ore<br />

processing plant and exploitation <strong>of</strong> the copper-molybdenum<br />

mine will breach 77 laws, as well as a range<br />

<strong>of</strong> international conventions signed and ratified by the<br />

Republic <strong>of</strong> Armenia, including the UN Framework<br />

Convention on Climate Change, the UN Convention on<br />

Biodiversity, the UN Convention on Combating Desertification<br />

and the European Landscape Convention.<br />

However, the Government has designated the Teghut<br />

mining operation a high priority for its contribution to<br />

“economic development,” reflecting its short-term<br />

perspective, as well as its corrupt practices. It also reveals<br />

its lack <strong>of</strong> expertise, respect for the law, care for<br />

the environment and interest in pursuing a long-term<br />

sustainable development model.<br />

Conclusions<br />

The rapid growth <strong>of</strong> some sectors <strong>of</strong> the economy,<br />

along with the lack <strong>of</strong> appropriate government management,<br />

have created serious environmental problems<br />

and challenges. To promote sustainability,<br />

the country must make environmental protection<br />

a priority.<br />

Armenia has ratified many international conventions<br />

on issues such as biodiversity, climate<br />

change and <strong>desertification</strong>. These commitments, as<br />

well as the voice <strong>of</strong> civil society, have been largely<br />

ignored. Improving environmental governance will<br />

require effective implementation and enforcement<br />

<strong>of</strong> existing environmental laws, as well as greater<br />

transparency and public participation in policymaking.<br />

This, in turn, will require a concerted effort<br />

to increase popular awareness <strong>of</strong> environmental<br />

issues. n<br />

17 Ibid.

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