Greening Industry Without Enforcement? An Assessment of the World Bank's Pollution Regulation Model for Developing Countries

Abstract

The best comparative and overview source now available for knowledge about pollution regulation in developing countries is the 2000 World Bank policy research report called Greening Industry. The World Bank finds that there is a new model for pollution regulation in lower- and middle-level income countries that is an alternative to “traditional” command and control regulation. The new model stresses flexible norms and nonstate pressures on regulated enterprises coming from communities and markets. This article presents an investigation into this new model. It finds that the prevalence of weak law enforcement may undermine the new model's potential to control pollution in developing countries. It also contends that social and market pressures only occur under certain circumstances often not found in lower- and middle-level income countries. Therefore, the article concludes that developing countries require smart mixes of various regulatory instruments appropriate in the given state and nonstate regulatory capacities, instead of contrasting state and nonstate regulation.

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