This global conference, held on the occasion of the 20th anniversary of the f irst Human Environment Conference in Stockholm, Sweden, in , brought together political leaders, diplomats, scientists, representatives of the media and non-governmental organizations NGOs from countries for a massive effort to focus on the impact of human socio-economic activities on the environment.
A 'Global Forum' of NGOs was also held in Rio de Janeiro at the same time, bringing together an unprecedented number of NGO representatives, who presented their own vision of the world's future in relation to the environment and socio-economic development. The Rio de Janeiro conference highlighted how different social, economic and environmental factors are interdependent and evolve together, and how success in one sector requires action in other sectors to be sustained over time.
It is a composite index comprising eight pillars of competitiveness. An adjusted CIP index was formulated in which higher carbon dioxide emitting countries descended to lower positions. It has a total of three publications in , and The index measures countries' capabilities in driving the structural changes in the manufacturing sector to anticipate the global economy.
The survey done from the executives was directly used to build GMCI, where the manufacturing attractiveness of each country was ranked. This composite index ranks about 40 countries of the world while comprising twelve drivers of competitiveness for global manufacturing. They argue that the environment and industrial competitiveness can both progress if based on innovative solutions to the problems of industry-relevant to the environment.
However, they do not give any consideration to the agricultural sector while discussing the environment-competitiveness relationship. Moreover, among most of the studies discussing climate change and competitiveness, the main emphasis has been on climate change-related policies and regulations affecting the competitiveness of different markets.
However, they declare competitiveness as a valid concern only for a limited number of sectors, which are more exposed to international trade and are also more dependent on energy use.
However, this report does not mention the agricultural sector, or the impacts coming upon its competitiveness due to climate change. Further, making use of this definition they find the effects of energy prices on the carbon pricing policy. The foundations for the definition of competitiveness are provided by Krugman and others, who argue that the concept of competitiveness has a similar interpretation as that of productivity when studied at the national level. They further argue that for the past half-century, national productivity and not the business terms of trade, has been the only concept used for quantifying the living standards of the masses.
However, a more practical and genuine application of the competitiveness concept is to study it at the firm and sector level. Thus, with such backgrounds, competitiveness can easily be stated as an occupation of the market share, a position that is maintained in a dynamic contest among firms.
Further, authors also discuss that measuring the competitiveness impact should be considered as only a single part of the greater effort of seeing the social welfare costs and benefits of action on climate change. The impacts on agricultural farm revenues, wheat production, and other major crops resulting from climate change were studied in the above studies by using different climate variables like rainfall, temperature, etc.
Most of these studies concluded that climate change had a measurable impact on farm productivity, costs, and revenue. However, researches finding climate change impacts agricultural market competitiveness was scarce. Thus, the impact of changing climate on the market competitiveness of the agricultural sector seems to be a grey area that needs to be explored to find the existent relationship.
The estimations in the study of Janjua et al. While Raza , discovered a significant impact on cotton production due to the temperature and precipitation changes. Further, Zhu et al. Girardin et al. The major approaches used in determining the climate impacts on agriculture include a Ricardian Approach, a crop modeling approach, and a panel data approach.
The Ricardian model was greatly promoted by the works of Robert Mendelsohn and his fellow workers Mendelsohn et al. Further, the same model was used by Shakoor et al ; and Kumar and Parikh ; in their studies. While several scholars stress that national productivity is the sole representative phenomenon for competitiveness measurement Porter Just like the firms, the farm agricultural productivity serves as an eminent determinant of the agriculture sector market competitiveness.
Furthermore, agricultural costs are also an important determinant of agricultural market competitiveness. The studies of Gallagher et al. Some studies like Sharples , included the marketing costs along with the production costs for finding agricultural market competitiveness.
The indirect effect of such hazards might include the occurrence of mycotoxins happening as a result of the geographical modifications in the arrangement of vital cereal cropping systems, thus impacting crop rotations. With such backgrounds, Elsgaard et al. This paper provides projections for , of the model-based approximations of changing cropping shares resultant from the different temperature and precipitation.
Frank et al. They use partial equilibrium models for the purpose with a focus on Europe and conclude that agricultural demand, supply, and even the producer prices will be remarkably influenced by climate change.
The demand side impacts can be minimized through adaptation mechanisms like reapportionment of resources or intensification to hold the preliminary climate shocks. Changing climate instigated productivity disturbances contrasted to an initial basic framework without climate change and showed a worldwide cutback in the crop supply along with associated price hikes. Through feeding costs, the livestock sector is affected indirectly as well from the changes in crop supply leading to higher prices.
However, the European consumers are comparatively not much impacted by climate change about diminishing calorie consumption, while other than Europe, people face elevated foodstuff prices caused by climate change.
Moreover, the general response patterns reflected in the global models clarified that adjustments on the supply side are stronger compared to rather inelastic behavior on the demand side, and prices are the most sensitive parameter affected by climate change Nelson et al. Despite these shortcomings, the results find out a negative effect of climate change upon European consumers and producers, through falling productivity and rising prices.
However, the agricultural market competitiveness impact of climate change which is in close relation to the price changes is not considered in the paper.
The agricultural setup of the European Union was considerably transformed by the cycle of the Common Agricultural Policy reforms from to The operation consisted of a continuous but limited and irregular liberalization of European agriculture. This was due to more focus on destroying the intervening apparatus rather than reorganizing, contemporizing, and modifying towards a greater competitive domain.
Thus, with such a background, the states were incentivized to formulate policies to accelerate individual competitiveness and innovative capacity under the setup of Common Agricultural Policy The paper aimed to find out the effects coming upon the competitiveness of the EU from the first phase of European Union enlargement and the second phase of economic crisis.
However, the competitive performance of the countries was calculated by making use of the different trade indices; such as Export and Import Market Share, Revealed Comparative Advantage, Net Export Index, and Vollrath indices.
The findings revealed insignificant changes in the food sector and agricultural competitive performance for the past fifteen years. Hermans et al. To evaluate the European agricultural competitiveness, demography, technology, climate, and international demand for agricultural commodities were used. The indicators like economic strength of farms in a region along with the population pressure on agricultural land were used to assess the sustainability of agricultural production in a liberalized market scenario.
Their findings revealed that notwithstanding a few unfavorable impacts from climate change, the future need for food can be fulfilled with a smaller land area due to the technological progress in the sector. However, the study is exploring the future agriculture market scenario in case of complete liberalization of the same markets, by eliminating the trade restrictions and subsidies; and is not focused on competitiveness alone.
Moreover, the study is focused on the international competition and trade aspect of competitiveness and ignores the sustainability and productivity aspects of competitiveness. The study also does not focus on the unit of analysis used for finding out the agricultural market competitiveness. Furthermore, the proxies used for finding competitiveness are not sufficiently supported in previous literature. Exploratory research is needed to find out the appropriate proxies for the conduction of the study.
Another study by Costinot has used the already existing GAEZ models, to sum up, the individual impacts of the changing climate on the produce of different countries. The study makes use of micro-level studies to provide a macro-level knowledge regarding how climate change affects the agricultural markets.
Moreover, Costinot relates the impacts to comparative advantage and global dispersion of the crops through trade, while considering the productivity measures provided by agronomists, before and after climate change as his main variable of interest. He comes up with the finding that adjustments in production by using the comparative advantage phenomenon can alleviate the harmful outcomes from the changing climate. However, competitiveness is a relative term and can be quantified in multiple ways, and productivity cannot be the only measure.
Market share, total revenue, and total sales, etc. As productivity can only provide knowledge regarding the output but the loss of product during transportation and dispersion in the market due to inappropriate temperature etc.
Moreover, the paper focuses on the trade aspect and comparative advantage. While competitiveness is not necessarily a trading concept, it can also express the sustainability of crops and agricultural markets.
Therefore, for quantification of climate change impacts at the micro-level, the data set is based on the productivity measures provided by agronomists, both before and after climate change.
Further, from the previous studies discussing the factors impacting the competitiveness of the agriculture sector of countries, key factors responsible for competitiveness in the agricultural sector were also recognized. Finally, with the twelve global competitiveness determinants and the global agricultural competitiveness determinants, they figured out nine key factors responsible for competitiveness in the agricultural sector, and based on these determinants; they proposed nine strategies for improving global agricultural competitiveness.
Moreover, they declare that a merger general and agriculture specific determinants of competitiveness; is the only possible way for measuring global agricultural competitiveness. The strategies proposed for increasing agricultural competitiveness 1. Efficient organizations 2. Sustainable handling if available natural resource 3.
Innovative and advanced technology adoption 5. Favorable environment creation 6. Advanced risk management mechanism of agriculture 7.
Effective land markets 9. Better market access Conclusion The development of the agricultural sector is declared as one amongst the most robust elements to eliminate extreme poverty, enhance mutual welfare, and feed an estimated number of 9. However, all this food security, poverty alleviation, and economic growth generated from the agriculture sector are highly at risk.
Most of the crop yields are already getting impacts from the changing climate, particularly damaging the most food-insecure regions. World Bank, On the other hand, the development of countries is analyzed more based on their competitiveness in the current global world.
Competitiveness in agricultural and food markets is gaining importance rapidly not just in developing countries, but the world over. Conscious of the valuable analytical work being conducted by many States on climate change and of the important contributions of the World Meteorological Organization, the United Nations Environment Programme and other organs, organizations and bodies of the United Nations system, as well as other intentional and intergovernmental bodies, to the exchange of results of scientific research and the coordination of research,.
Recognizing that steps required to understand and address climate change will be environmentally, socially and economically most effective if they are based on relevant scientific, technical and economic considerations and continually re-evaluated in the light of new findings in these areas,.
Recognizing that various actions to address climate change can be justified economically in their own right and can also help in solving other environmental problems,. Recognizing also the need for developed countries to take immediate action in a flexible manner on the basis of clear priorities, as a first step towards comprehensive response strategies at the global, national and, where agreed, regional levels that take into account all greenhouse gases, with due consideration of their relative contributions to the enhancement of the greenhouse effect,.
Recognizing further that low-lying and other small island countries, countries with low-lying coastal, arid and semi-arid areas or areas liable to floods, drought and desertification, and developing countries with fragile mountainous ecosystems are particularly vulnerable to the adverse effects of climate change,. Recognizing the special difficulties of those countries, especially developing countries, whose economies are particularly dependent on fossil fuel production, use and exportation, as a consequence of action taken on limiting greenhouse gas emissions,.
Affirming that responses to climate change should be coordinated with social and economic development in an integrated manner with a view to avoiding adverse impacts on the latter, taking into full account the legitimate priority needs of developing countries for the achievement of sustained economic growth and the eradication of poverty,.
Recognizing that all countries, especially developing countries, need access to resources required to achieve sustainable social and economic development and that, in order for developing countries to progress towards that goal, their energy consumption will need to grow taking into account the possibilities for achieving greater energy efficiency and for controlling greenhouse gas emissions in general, including through the application of new technologies on terms which make such an application economically and socially beneficial,.
Determined to protect the climate system for present and future generations,. The ultimate objective of this Convention and any related legal instruments that the Conference of the Parties may adopt is to achieve, in accordance with the relevant provisions of the Convention, stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.
Such a level should be achieved within a timeframe sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner. In their actions to achieve the objective of the Convention and to implement its provisions, the Parties shall be guided, inter alia, by the following:. The Parties should protect the climate system for the benefit of present and future generations of humankind, on the basis of equity and in accordance with their common but differentiated responsibilities and respective capabilities.
Accordingly, the developed country Parties should take the lead in combating climate change and the adverse effects thereof. The specific needs and special circumstances of developing country Parties, especially those that are particularly vulnerable to the adverse effects of climate change, and of those Parties, especially developing country Parties, that would have to bear a disproportionate or abnormal burden under the Convention, should be given full consideration.
The Parties should take precautionary measures to anticipate, prevent or minimize the causes of climate change and mitigate its adverse effects. Where there are threats of serious or irreversible damage, lack of full scientific certainty should not be used as a reason for postponing such measures, taking into account that policies and measures to deal with climate change should be cost-effective so as to ensure global benefits at the lowest possible cost.
To achieve this, such policies and measures should take into account different socio-economic contexts, be comprehensive, cover all relevant sources, sinks and reservoirs of greenhouse gases and adaptation, and comprise all economic sectors. Efforts to address climate change may be carried out cooperatively by interested Parties.
The Parties have a right to, and should, promote sustainable development. Policies and measures to protect the climate system against human-induced change should be appropriate for the specific conditions of each Party and should be integrated with national development programmes, taking into account that economic development is essential for adopting measures to address climate change. The Parties should co-operate to promote a supportive and open international economic system that would lead to sustainable economic growth and development in all Parties, particularly developing country Parties, thus enabling them better to address the problems of climate change.
Measures taken to combat climate change, including unilateral ones, should not constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on international trade. All Parties, taking into account their common but differentiated responsibilities and their specific national and regional development priorities, objectives and circumstances, shall:. Montreal Protocol, using comparable methodologies, to be agreed upon by the Conference of the Parties;.
The developed country Parties and other Parties included in annex I commit themselves specifically as provided for in the following:. These policies and measures will demonstrate that developed countries are taking the lead in modifying longer-term trends in anthropogenic emissions consistent with the objective of the Convention, recognizing that the return by the end of the present decade to earlier levels of anthropogenic emissions of carbon dioxide and other greenhouse gases not controlled by the Montreal Protocol would contribute to such modification, and taking into account the differences in these Parties' starting points and approaches, economic structures and resource basis, the need to maintain strong and sustainable economic growth, available technologies and other individual circumstances, as well as the need for equitable and appropriate contributions by each of these Parties to the global effort regarding that objective.
These Parties may implement such policies and measures jointly with other Parties and may assist other Parties in contributing to the achievement of the objective of the Convention and, in particular, that of this subparagraph;. This information will be reviewed by the Conference of the Parties, at its first session and periodically thereafter, in accordance with Article 7;.
The Conference of the Parties shall consider and agree on methodologies for these calculations at its first session and review them regularly thereafter;. Such review shall be carried out in the light of the best available scientific information and assessment on climate change and its impacts, as well as relevant technical, social and economic information.
Based on this review, the Conference of the Parties shall take appropriate action, which may include the adoption of amendments to the commitments in subparagraphs a and b above. The Conference of the Parties, at its first session, shall also take decisions regarding criteria for joint implementation as indicated in subparagraph a above. A second review of subparagraphs a and b shall take place not later than 31 December , and thereafter at regular intervals determined by the Conference of the Parties, until the objective of the Convention is met;.
The Depositary shall inform the other signatories and Parties of any such notification. The developed country Parties and other developed Parties included in annex II shall provide new and additional financial resources to meet the agreed full costs incurred by developing country Parties in complying with their obligations under Article 12, paragraph 1.
They shall also provide such financial resources, including for the transfer of technology, needed by the developing country Parties to meet the agreed full incremental costs of implementing measures that are covered by paragraph 1 of this Article; and that are agreed between a developing country Party and the international entity or entities referred to in Article 11, in accordance with that Article.
The implementation of these commitments shall take into account the need for adequacy and predictability in the flow of funds and the importance of appropriate burden sharing among the developed country Parties. The developed country Parties and other developed Parties included in annex II shall also assist the developing country Parties that are particularly vulnerable to the adverse effects of climate change in meeting costs of adaptation to those adverse effects.
The developed country Parties and other developed Parties included in annex II shall take all practicable steps to promote, facilitate and finance, as appropriate, the transfer of, or access to, environmentally sound technologies and know-how to other Parties, particularly developing country Parties, to enable them to implement the provisions of the Convention. In this process, the developed country Parties shall support the development and enhancement of endogenous capacities and technologies of developing country Parties.
Other Parties and organizations in a position to do so may also assist in facilitating the transfer of such technologies. In the implementation of their commitments under paragraph 2 above, a certain degree of flexibility shall be allowed by the Conference of the Parties to the Parties included in annex 1 undergoing the process of transition to a market economy, in order to enhance the ability of these Parties to address climate change, including with regard to the historical level of anthropogenic emissions of greenhouse gases not controlled by the Montreal Protocol chosen as a reference.
The extent to which developing country Parties will effectively implement their commitments under the Convention will depend on the effective implementation by developed country Parties of their commitments under the Convention related to financial resources and transfer of technology and will take fully into account that economic and social development and poverty eradication are the first and overriding priorities of the developing country Parties. Private International Commercial Law.
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