Relationship between small enterprises and environmental degradation in the developing world (with emphasis on Asia)

The first asserts that small firms are less likely to degrade the environment than large firms, the second that small firms are worse polluters than large firms. This report assesses the impact of SSE"s on the environment, with specific reference to water and land pollution, air pollution, and forest depletion. The relationship between small firms, agriculture, and environmental degradation is also examined. Major findings are as follows. (1) Most SSE"s are not involved in activities with high environmental impact and those that are usually not major polluters. There is evidence, however, that SSE"s pollute more per unit of output than do large firms operating in the same sectors. (2) The bulk of urban air and organic water pollution is due to motor vehicles and household wastes, not industry, whether small or large, though certain SSE"s such as lead smelters deserve special attention due to the toxicity of their fumes. (3) SSE"s are not the major cause of deforestation in most Asian countries; commercial logging and agricultural encroachment, as well as underlying failures in land tenure arrangements, are much more serious problems. (4) SSE"s may contribute to environmental preservation by creating off-farm employment, thereby drawing labor off fragile lands, and by engaging in specific activities such as recycling waste products. (5) The links among agriculture, SSE"s, and environmental degradation are both negative and positive on all sides. General policy and technical approaches to environmental problems are presented, as well as specific recommendations for A.I.D. programs. Includes bibliography.