The recently constructed G-20, of which India is an influential member, is a promising step towards redressing this imbalance. . So, as you move into a new era of economic growth, developing countries have a rare opportunity to fashion their own development model. No country is in a better position to take the lead in creation of this new sustainable development model than India. Because of the strength and experience of its democracy, its diverse natural resource base, its formidable scientific and technological capabilities, its well developed industrial sector and entrepreneurial tradition, the quality and strength of its institutions and professional cadres, its commitment to education and its high degree of environmental awareness. Implementation depends on motivation.
Motivation then is the central issue.
Economics, of course, is a powerful motivator. And in this, the role of governments is crucial in establishing the policies, the fiscal incentives and the regulations that influence the behaviour of corporations and individuals. Today the fiscal and regulating regimes and the systems of subsidies of most governments are designed to meet goals that are for the most part unrelated to the environment and sustainable development, provide few incentives and many disincentives to sustainable development. A recent study by the Earth Council estimated that in four sectors alone water, transport, agriculture and energy governments expend some seven hundred billion dollars annually on subsidies which contribute to unsustainable practices, and often unnecessarily waste public funds. One of the most important things which governments could do to foster sustainable development would be to review and revive the system of incentives and penalties to provide positive incentives for achievement of sustainability.