What is the relationship between the environment and economic development?

The relationship between the environment and economic development can be accessible from two different aspects. One of the perspectives is that factors such as political climate, government policy and culture in the environment affect economic development. The second perspective is the way in which the economic development activities affect the environment.

The environment and economic development are associated in the sense that factors established in the environment have a huge impact on the economic development in the region. A country with a politically unstable legend will not be able to attract the necessary investors and businesses from and outside the country. A local investor with resources to establish a business may prefer to take his money elsewhere, a country with a reasonably stable government. This lack of investment of entrepreneurs is due to the fact that there is no guarantee of any security of the investment. Lack of security also means that business will not flourish as it would be in a country with a stable government.

Another way related to the environment and economic development is due to the fact that countries with unfavorable government policy will not attract so many investors or promote economic development as well as countries with favorable government policy. Such policies may be in the form of taxation, import quotas or other forms of regulation. Tax policies may be favorable or unfavorable. In some cases, the government in some countries may reduce taxes paid by organizations in some industries to attract investors and at the same time support the development of some sectors. An example is solar energy and other green energy industries that normally receive different tax concessions from different Western governments as a form of encouragement.

Some types of culture help to support the relationship between the environment and economic development. Some cultures are more receptive and open than others. Such open cultures quickly accept a newItems, new technologies and other aspects that will help in the economic and social development of countries. The negative link between the environment and economic development lies in the way in which the by -products of economic development affect the environment. Such a connection includes problems such as industrial emissions, fertilizers used on large agricultural farms, and various emissions from vehicles used to transport raw materials and finished products.