Public Investment in a Developing Country Facing Natural Resource Depletion

AbstractTwo of the greatest challenges facing humanity are environmental degradation and the persistence of poverty. Both can be met by instituting a Global Resources Dividend (GRD) that would slow pollution and natural-resource depletion while collecting funds to avert poverty worldwide. Unlike Hillel Steiner's Global Fund, which is presented as a fully just regime governing the use of planetary resources, the GRD is meant as merely a modest but widely acceptable and therefore realistic step toward justice. Paula Casal has set forth various ways in which this step might be improved upon. Solid counter-arguments can be given to her criticisms and suggestions. But to specify the best (effective and realizable) design of an appropriate global institutional mechanism with some confidence, economists, political scientists, jurists, environmental scientists, and activists would need to be drawn in to help think through the immense empirical and political complexities posed by this urgent task.

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Disappearing natural resources: what flowers tell us about new value chains

Journal of Business Strategy ◽

10.1108/jbs-07-2020-0168 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Guillaume Carton ◽

Julia Parigot

Keyword(s):

Natural Resources ◽

Natural Resource ◽

Resource Depletion ◽

Global Value Chains ◽

Value Chains ◽

Cut Flower ◽

Resource Exploitation ◽

Content Type ◽

Natural Resource Exploitation ◽

Natural Resource Depletion

Purpose This paper aims to question the capacity of firms embedded in global value chains to manage their natural resources in a sustainable way. Thus, it offers guidelines for more sustainable value chains. Design/methodology/approach While business strategies have focused on optimizing natural resource exploitation and on constructing global value chains to face sustainability issues, this study first explains why these strategies are not effective in preventing natural resource depletion. Second, it offers a model for anticipating resource depletion. The cut flower industry constitutes a central case to explain the model. Two other industry cases complement the demonstration. Findings To anticipate natural resource depletion and thus improve industry sustainability, firms must shift from the exploitation of endangered natural resources to the use of alternative local ones. This shift, however, encourages firms to reconstruct value chains and rethink how they create value within these new value chains. It also has an impact on firms’ growth strategy: they must replicate value chains on a local scale instead of taking part in global value chains. Research limitations/implications The findings rely on illustrations from the cut flower, fishing and textile fiber industries. Generalization to other industries may strengthen the argument. Originality/value This study offers a model of sustainable growth for firms willing to anticipate natural resource depletion by offering a shift in value chains. It consists of exploiting alternative natural resources and of rethinking the value offered to consumers. Thus, it goes against current models that merely focus on optimizing natural resource exploitation within global value chains.

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