Environmental Sustainability and Its Potential Influence on Business in the Netherlands and China
In this paper, I will first describe the background of Dutch environmental legislation, making references to the historical reasons for its development. Then I will do the same activity for the current Chinese environmental laws, also referring to its historical issues. Next, I will compare key aspects of both policies and draw conclusions as to their effects on business and country growth.
The Netherlands
Jamison, Eyerman, Cramer, & Læssøe (1990, p. 121) indicate that the history of environmentalism in the Netherlands is very much interconnected with international developments since the 1960s. As such, the new environmentalist movement has significantly influenced the Netherlands, and the authors suggest four main factors. First, the small size of the country is a constant reminder of how scarce their natural environment is. Second, much of the landscape is the literal work of humans, under the shape of dikes utilized to reclaim land from the ocean – this has a great impact on how the Dutch people relate to Nature (Jamison, Eyerman, Cramer, & Læssøe, 1990, p. 122). The third factor is the rapid economic growth in the postwar period that was a reason for both enthusiasm and skepticism, as great societal changes ensued. Finally, the Dutch have a distinctive political culture, marked by the coexistence of three different religious groups since the XVI century (Jamison, Eyerman, Cramer, & Læssøe, 1990, p. 122).
As a result of this multicultural, diverse and open society, which has dealt with humans changing the environment since the first dam was built on the Amstel river (hence the city name – Amstel-dam, or Amsterdam), the Dutch have “gone far in attempting to obtain the commitment of individual citizens to an explicit notion of responsibility” (Pellikaan & Veen, 2002, p. 28). As a result, the Dutch developed a concept "of an environmentally self-regulating community” (Pellikaan & Veen, 2002, p. 28), in which corporation and individuals are subject to moral persuasion by the government. In other words, the Dutch adopted a ‘soft’ approach, which attempts to obtain voluntary cooperation of citizens and enterprises to reach their detailed environmental goals.
China
Stensdal (2014) tells us that Chinese climate change policy has changed extraordinarily since 1988. The government of China in the 1980s saw climate change as a foreign affairs issue, and plans were limited to scientific research. A decade later, it was seen as a matter of economic development, and in 2007, climate change was recognized as a national priority. (Stensdal, 2014). The author attributes this change to the events which took place between 1998 and 2013, applying the concepts of Advocacy Coalition Framework (ACF) to understand the intricate Chinese regulatory environment. Stensdal (2014) mentions the scientific knowledge slowly dripped into the political agenda, in a slow but steady accomplishment, starting with a Five-Year Plan in 2001, culminating with the 2007 adoption of the National Climate Change Program.
However, Stalley (2010, p. 22) indicates a critical feature to understand the Chinese relationship between companies and environmental laws: there is “a lax regulatory setting characterized by the absence of a strong enforcement presence” (Stalley, 2010, p. 22). The author describes environmental legislation in China as "admirable" (mirroring Stensdal’s opinion), but regional autonomy, a weak justice system, and a highly censored media create opportunity to violate or circumvent environmental laws (Stalley, 2010, p. 22).
Reflecting the situation before the regulatory changes, Edmonds (1994, p. 237) narrates an environment in which there was a tendency to ignore environmental impact statements. The author mentions cases in which such assessments were concocted only when large energy projects were nearly finished, meaning they were just ‘for show.' "Ultimately politicians, neither the experts nor interested citizens have the final say in what parts of environmental impact statements are implemented” (Edmonds, 1994, p. 237).
Comparing the environmental policies of both countries
The simplest way to compare Chinese and Dutch environmental policies, from the articles mentioned above, is indicating that while the European country favors transparency in its policy application, the Asian nation is ultimately opaque. While the Dutch have a ‘soft’ approach, using targets and convincing individuals and companies about compliance with environmental standards, the Chinese favor a ‘show’ policy with laws that are strict on paper, but lax on reality.
Another comparison that can be made is related to the origin of the legislative environment. The Netherlands legislation seems to have appeared as the natural consequence of new environmentalism, a cultural and social tendency of the late XX century. As a result, it was the government response to a societal demand. In China, there was apparently not much of a grassroots demand, but rather the technical decision of government officials that pushed for environmental policy. In other words, the origin of Chinese legislation was ‘top-down’, while the Netherlands’ was ‘bottom-up’. This adds to the credibility of the Dutch policy as compared to the Chinese.
Lastly, we can conclude that the Dutch practice is likely less lenient with corruption. The Chinese policy, opaque and dependent on the whims of government officials, is typical of an environment in which corruption festers. For this reason, companies will likely favor the Dutch ambiance for investments over the Chinese as corruption is a business with legal, ethical and moral consequences for the individuals mingled with it. Naturally, this reflects on the country’s overall economic development: as the Netherlands offer an environmental practice more conducive to business activity, economic growth tends to be less risky.
References
Edmonds, R. L. (1994). Patterns of China's Lost Harmony: A Survey of the Country's
Environmental Degradation and Protection. New York: Routledge. Retrieved from
Questia.
Jamison, A., Eyerman, R., Cramer, J., & Læssøe, J. (1990). The Making of the New
Environmental Consciousness: A Comparative Study of the Environmental
Movements in Sweden, Denmark, and the Netherlands. Edinburgh: Edinburgh
Pellikaan, H., & Veen, R. J. (2002). Environmental Dilemmas and Policy Design.
Cambridge, England: Cambridge University Press. Retrieved from Questia.
Stalley, P. (2010). Foreign Firms, Investment, and Environmental Regulation in the People's
Republic of China. Stanford, CA: Stanford University Press. Retrieved from Questia.
Stensdal, I. (2014). Chinese Climate-Change Policy, 1988-2013: Moving on Up. Asian
Perspective, 38(1), 111. Retrieved from Questia.
