Title of paper

2.1 Historical development

The roots of the concept of sustainable development go back to when it became clear that globalization meant more than only economic development. Globalization went along with environmental degradation and social exploitation and was bearing many risks for society and nations.

Over time, sustainable development evolved as the keyword for the framework within which globalisation should take place. Globalisation and sustainable development became the two sides of a coin. While globalisation addressed economic progress, and hence the positive aspects; sustainable development was supposed to minimise the negative side effects of globalisation.

Initially, sustainable development has been a range of ideas on how humans should best interact with each other and the environment. It has been honed by the definition in the Bundtland-Report in 1987, but has gained widespread acceptance since becoming the cornerstone of the United Nations Conference on Environment and Development in 1992, the so called Earth Summit. It was also in Rio when the three pillars of sustainable development were established: the economic, the environmental and the social.
Governments, the industry and other institutions at different levels have developed strategies on how to put sustainable development into practice and what it means in their respective field. In the minerals sector, for example, the International Council on Mining & Metals has recently adopted a sustainable development charter.

2.2 Namibia’s way to sustainable development

A sustainable development framework should address different challenges at different levels. Some challenges to sustainable development should be addressed at global level, like climate change for example, and others should be addressed at national (regulatory changes) or local level (resource use). In each case, however, the principle of subsidiarity should be adhered to, recognizing decisions should be taken as close as possible to and with the people and communities most directly affected (MMSD, 2002: 23).
Steps taken towards sustainable development were taken by the Namibian government right after independence. The Earth Summit took place not long after independence and the young Namibian government did not hesitate to implement the lessons learnt into its national framework.
Against this backdrop, it is understandable why the Namibian Constitution is one of the few in the world that mentions the need for environmental protection. Article 95 of the Namibian Constitution was written when environmental concerns became high on the international agenda. Until today, all policies, projects and programmes with environmental aims are based on Article 95.
In preparation for the Earth Summit, Namibia developed, under the auspices of the Directorate of Environmental Affairs (DEA), Namibia’s Green Plan. More than thirty different organisations contributed to the Green Plan which was introduced at the Rio conference. Namibia’s Green Plan is famous for its approach taken. In comparison to most other countries that developed detailed strategy plans, Namibia followed the example of Canada, establishing a flexible strategy plan in order to be able to take into account future developments and necessities. The Green Plan still serves as the framework for many environmental activities within the country.
Probably the single most important initiative towards sustainable development taken by the Namibian government was the introduction of communal conservancies under the community-based natural resource management-programme (CBNRM). A communal conservancy allows its communities to use the natural resources in that area. Conservancies are linked to rural development by enabling communal farmers to derive a direct financial income from the sustainable use of wildlife whereby providing an incentive to rural people to conserve wildlife and other natural resources through shared decision making and financial benefit.

According to the community-based natural resource management-programme, people will use natural resources wisely and sustainably when they benefit personally. Prior to the amendment of the Nature Conservation Ordinance and introduction of communal conservancies, all game belonged solely to the state. Through communal conservancies it was conferred to the communities on condition they use and manage the game sustainably making a profit by enhancing tourism.

Today, communal conservancies are on 40% of communal land, which makes up more than 17% of the whole surface of Namibia. The first four communal conservancies were established in 1998. In 2013, there were almost 80 with more than 40 joint-venture lodges on it. More than 250,000 people benefit financially from communal conservancies.

3. Pillars of the sustainable development principle

Today, sustainable development means the coexistence of these three pillars that must be balanced against each other:

All in all, sustainable development is a concept characterised by

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  close links between the policy goals of economic and social development and environmental protection;
  
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  the qualification of environmental protection as an integral part of any developmental measure, and vice versa; and
  
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  the long-term perspective of both policy goals, namely states’ intergenerational responsibility that widens the conceptual and temporal dimension of sustainable development (Beyerlin/Marauhn, 2011: 79).
  

3.1 The economic pillar

The economic pillar stands for the market to signal the relative scarcity of goods such as natural resources and creates a robust economy that can serve as the foundation for environmental and social progress (MMSD, 2002: 19).
For Namibia, the economic advantages of mining cannot be underestimated. It is an important part of the national economy. Currently, there are ten large mines operating in Namibia that extract diamonds, uranium, salt, gold, zinc, copper and flourspar. In 2009, the Chamber of Mines of Namibia had 78 members. Diamonds are still the most important mineral in Namibia, while uranium comes second. However, once the Husab uranium mine goes into production, it is very likely that Namibia will become the second largest producer of uranium oxide in the world after Kazakhstan.
Mining contributed 9.5% of the GDP in 2001. However, this is a severe decline in comparison to 2008, where mining contributed 16.1% to the GDP. In recent years, mining accounts for around 40% of foreign-exchange earnings, between 30 and 50% government revenue, and about one third of fixed capital formation.
Mining also offers a lot of job opportunities for Namibians. For example, 90% of Areva’s employees at Trekkopje are Namibians. However, up and downturns in the number of workers employed at mines can be experienced. This is due to the volatile price of commodities such as uranium. Jobs in the mining sector are not necessarily long-term job opportunities. While in 1990 the mining industry employed over 13,600 workers, the number had been reduced by more than half in 2000. In 2010, almost 7,000 people were employed at Namibian mines.
Guiding principles for achieving the economic pillar of the sustainable development concept should be, in general, to ensure efficient use of all resources, natural and otherwise, seeking to identify and internalize environmental and social costs as well as maintaining and enhancing the conditions for viable enterprises (MMSD, 2002: 24).
The Namibian government has undertaken some efforts to increase the profitability of the mining sector while aiming at a sustainable use of natural resources.
One of its first projects has been the conduction of a strategic environmental impact assessment and a strategic environmental management plan for the entire Erongo Region which is said to be the first one ever for a whole mining region.³⁸
In 2011, the government surprised the mining industry with the declaration of some minerals as strategic and the establishment of Epangelo. Since then, cooperation between a private foreign mining company and state-owned Epangelo is compulsory for the application of a mineral licence for a strategic mineral. Only state owned companies like Epangelo can apply under the new rules for a mineral licence. After the issuance of the licence, a joint venture with a foreign mining company is possible. It is still unclear as to how many percent Epangelo is required to hold. Among the minerals that were declared ‘strategic minerals’ are uranium, diamonds, gold, copper and coal. These minerals have usually been mined by foreign companies. Although these companies are supposed to pay taxes, the Namibian government was of the opinion profits can be increased if licences are only issued to Namibian state-owned companies. This has already been the case in Namibia for diamonds for many years. By mid 2012, Epangelo already held 29 prospecting licences for strategic minerals. This new approach was criticised by some economists as a kind of nationalisation of resources which is in contradiction to a free market economy that is guaranteed in the Namibian Constitution.
Currently, the government is considering the replacement of the practiced open licensing system for mineral licences with a system of auctioning for mineral licences. At the moment, everyone fulfilling the requirements laid down in the Minerals Act can apply for a mineral licence and the Ministry of Mines and Energy approves applications on a first come first serve basis. Basically, auctioning is an appropriate measure to increase profits but auctioning is only sustainable if the criteria taken into account at the auctioning process include environmental and social aspects. If the only criterion for being successful is making the highest bid, it is very likely that mining companies will invest less in environmental protection under the new system since they will have already invested large amounts of money in the mineral licence and need to make a profit.