International Aid for Cleaner Production Promotion Policies in East Asia: Effectiveness and Challenges

Abstract

International aid has been provided for promoting cleaner production (CP) in East Asia for a decade. Theoretically, CP has an advantage in giving as many firms, including small ones, incentives for pollution prevention, because it can generate profit by enhancing production efficiency and reducing raw materials. However, it has not been diffused in East Asia.

This paper examines the reasons government intervention and international aid is justified for promoting CP from previous researches. Then it examines progress, effectiveness and challenges of international aid for assisting cleaner production promotion policies from case studies of People's Republic of China, Thailand and Malaysia. Main findings are: (a) big differences is seen in the policy development and policy integration for CP among three countries, though all of them have received international assistance in a significant manner, (b) China has progressed most, but it recognized it in a different manner: CP as a complementary cost-effective way of ensuring compliance with environmental regulations, (c) international assistance has failed to set up market-based instruments and to promote green purchasing along the production supply chain that had been effective in promoting CP in industrialized countries.