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Sustainability Discussion with an Example of Selected Countries in Asia and Oceania

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EcoProduction and Logistics

Part of the book series: EcoProduction ((ECOPROD))

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Abstract

A systemic approach to innovative development, creation, and implementation of efficient mechanisms for innovation policy, sustainable financial sector reform, and ultimately, sustainable, balanced, and harmonious development of countries based on investment innovative models, calls for the creation and implementation of an innovative product to support strategic decision-making based on integrated indices and risks in a triune concept of sustainable ecological, social, and economic development in the global, regional, and national contexts. This chapter seeks to illustrate one approach to the indicated model, using the examples of South East Asia and Oceania, and taking into consideration the risks and opportunities for innovative development in these countries. This research incorporates the Environmental Performance Index (EPI).

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Notes

  1. 1.

    “Sustainability risk” will be used interchangeably with “developmental risk”. This definition is in line with the approach used in the finance, risk management, and insurance industries.

  2. 2.

    CO2 intensity reflects the emission intensity, or the average emission rate of CO2 from a given source relative to the intensity of a specific activity. Carbon intensity of the economy can be observed in two main relationships: energy intensity and carbon intensity of energy use.

  3. 3.

    Completeness and integrity of environmental information is essential for the efficiency of the decision-making process related to global climate change adaptation and the application of innovative approaches to optimize use of the bio-capacity at a national level. In a modeling process unavailability of EPI information is considered as a penalty.

  4. 4.

    The countries include Bangladesh, Bhutan, Cambodia, India, Laos, Maldives, Mongolia, Myanmar, Nepal, Papua New Guinea, Samoa, Solomon Islands, Sri Lanka, Timor-Leste, Tonga, Vanuatu, Vietnam, Brunei Darussalam, China, Fiji, Hong Kong SAR, Indonesia, Malaysia, Philippines, Singapore, South Korea, Thailand.

  5. 5.

    UN Human Development Report (2009).

  6. 6.

    World Bank (2008).

  7. 7.

    Transparency International (2009).

  8. 8.

    Kaufmann et al. (2007).

  9. 9.

    Doing Business Report (2009).

  10. 10.

    All underlying risk indicators are normalized to the scale [0; 1], where 0 indicates the weakest performance, and 1 the strongest performance.

  11. 11.

    Due to underlying data limitation, Environmental Performance Index was not available for Hong Kong SAR, Samoa, Tonga, Vanuatu, Timor-Leste.

  12. 12.

    Clustering is performed using the Ward agglomerative method.

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Acknowledgments

The views expressed herein are those of the individual contributor and do not necessarily reflect the views of IFC or its management.

Author information

Authors and Affiliations

  1. International Finance Corporation (IFC), 2121 Pennsylvania Ave, NW, Washington, DC, USA

    Victoria Bakhtina

Authors
  1. Victoria Bakhtina
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Corresponding author

Correspondence to Victoria Bakhtina .

Editor information

Editors and Affiliations

  1. Poznan University of Technology, Strzelecka 11, Poznan, 60-965, Poland

    Paulina Golinska

Appendices

Appendix 1: Grouping of Countries by Sustainable Development Index, Harmonization and Resilience to Global Risks

 

Country

Harmonization (G)

Sustainable development index (SD)

Resilience to global risks

Class by G and SD

Class by sustainability

Bangladesh

0.83

1.09

0.23

Low

High Risk

Bhutan

0.78

1.29

0.82

Upper moderate

Low risk

Brunei Darussalam

0.93

1.50

0.84

Very high

Lowest risk

Cambodia

0.88

1.12

0.36

Low

Moderate risk

China

0.81

1.19

0.36

Upper moderate

Moderate risk

Fiji

0.94

1.34

0.47

High

Moderate risk

Hong Kong SAR

0.72

1.36

0.51

Upper moderate

Low risk

India

0.97

1.07

0.41

Low moderate

Moderate risk

Indonesia

0.92

1.22

0.34

Low moderate

Moderate risk

Lao People’s Democratic Republic

0.82

1.25

0.54

Upper moderate

Moderate risk

Malaysia

0.99

1.43

0.78

High

Lowest risk

Maldives

0.95

1.38

0.59

High

Low risk

Mongolia

0.68

1.01

0.36

Very low

Moderate risk

Myanmar

0.92

1.08

0.13

Low moderate

High risk

Nepal

0.73

1.23

0.56

Upper moderate

Moderate risk

Papua New Guinea

0.87

1.05

0.38

Low

Moderate risk

Philippines

0.92

1.39

0.45

High

Moderate risk

Samoa

0.79

1.16

0.63

Upper moderate

Low risk

Singapore

0.94

1.57

1.00

Very high

Lowest risk

Solomon Islands

0.87

1.18

0.39

Low

Moderate risk

South Korea

0.95

1.56

0.69

Very high

Lowest risk

Sri Lanka

0.91

1.42

0.56

High

Low risk

Thailand

0.95

1.32

0.71

High

Low risk

Timor-Leste

0.81

0.82

0.00

Lowest

High risk

Tonga

0.71

1.10

0.53

Very low

Low risk

Vanuatu

0.84

1.10

0.52

Low

Moderate risk

Vietnam

0.91

1.27

0.46

Low moderate

Moderate risk

Appendix 2: Principal Component Analysis. Application to Risks

 

 

F1

F2

F3

F4

F5

Eigenvalue

5

2

2

1

1

Variability (%)

38

17

13

10

6

Cumulative (%)

38

55

69

78

85

 

Factor loadings

 

F1

F2

F3

GDP index

0.89

0.13

0.24

Life expectancy index

0.72

0.54

0.10

Education index

0.96

−0.06

−0.17

EPI

0.00

0.40

−0.55

Disbalance between economic and human development

0.47

−0.61

−0.46

AWS

0.16

0.70

0.06

HIV

0.27

0.23

0.77

EDB

0.82

0.07

0.01

CI

−0.08

−0.52

0.28

CPI

0.89

−0.27

−0.02

PSAV

0.70

−0.41

0.11

DRI

0.29

0.34

−0.56

Appendix 3: Principal Component Analysis. Application to Sustainable Development and Harmonization Indices

 

Eigenvectors

Factor loadings

 

F1

F2

F3

F1

F2

F3

Economic

0.71

0.01

0.71

0.97

0.01

0.24

Social

0.71

−0.06

−0.71

0.97

−0.06

−0.24

Ecological

0.03

1.00

−0.05

0.04

1.00

−0.02

Appendix 4: Correlations Among Key Risk Variables

 

Variables

GDP index

Life expectancy index

Education index

EPI

Disbalance between economic and human development

AWS

HIV

EDB

CI

CPI

PSAV

DRI

GDP index

1.00

0.72

0.86

0.04

0.24

0.22

0.44

0.69

0.03

0.77

0.47

0.10

Life expectancy I\index

0.72

1.00

0.65

0.03

−0.13

0.33

0.29

0.65

−0.30

0.41

0.31

0.42

Education index

0.86

0.65

1.00

0.11

0.60

0.13

0.14

0.73

−0.01

0.87

0.61

0.34

EPI

0.04

0.03

0.11

1.00

0.14

0.35

−0.14

−0.10

−0.14

−0.03

−0.28

0.20

Disbalance between economic and human development

0.24

−0.13

0.60

0.14

1.00

−0.19

−0.26

0.23

0.09

0.60

0.54

0.02

AWS

0.22

0.33

0.13

0.35

−0.19

1.00

0.24

0.14

−0.20

0.00

−0.14

0.08

HIV

0.44

0.29

0.14

−0.14

−0.26

0.24

1.00

0.03

0.03

0.20

0.24

−0.22

EDB

0.69

0.65

0.73

−0.10

0.23

0.14

0.03

1.00

−0.15

0.68

0.49

0.15

CI

0.03

−0.30

−0.01

−0.14

0.09

−0.20

0.03

−0.15

1.00

0.09

0.04

−0.26

CPI

0.77

0.41

0.87

−0.03

0.60

0.00

0.20

0.68

0.09

1.00

0.63

0.15

PSAV

0.47

0.31

0.61

−0.28

0.54

−0.14

0.24

0.49

0.04

0.63

1.00

0.10

DRI

0.10

0.42

0.34

0.20

0.02

0.08

−0.22

0.15

−0.26

0.15

0.10

1.00

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Bakhtina, V. (2013). Sustainability Discussion with an Example of Selected Countries in Asia and Oceania. In: Golinska, P. (eds) EcoProduction and Logistics. EcoProduction. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-23553-5_2

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