1.1. BACKGROUND

Tanzania, like many developing countries, is facing the challenge of sustainable development. Sustainable development has been defined to mean "continued development to meet the needs of the present generation without compromising the ability of future generations to meet their own needs." Sustainable development implies, then, that the supply of and health of the natural resources are not compromised, and that humans do not suffer as a result of development efforts. Thus, a healthy environment and productive development must go hand in hand so that development is sustainable¹.

The opening of the economy to private business, trade liberalization, and the lifting of restrictions on imports and foreign investment are all components of structural adjustment, and all affect the performance and opportunities for the business sector. While environmental problems have always been present from business activities, they are increasing in number and volume due to the changing business climate; thus, these problems are all the more relevant today.

"The integration of environmental considerations into economic development policies and programmes in a way that do not undermine or override environmental objectives. This involves the integration of policies, plans and programmes of interacting sectors and interest groups to balance long-term and short-term needs in the environment-development equation. It calls for a coherent policy context where priorities can be defined and set for the promotion of long-term economic growth, creating incentives for sustainable utilisation of natural resources and effective management of the environment." Ministry of Tourism, Natural resources and Environment, Tanzania: National Environment Action Plan - A First Step. 10th June, 1994 (Hereinafter to referred to as NEAP), p. iii.

Furthermore, in this context of changing economic and development climate of Tanzania today, when environmental problems detract from sustainable development, they are increasingly coming to the attention of the consumers and the public of Tanzania as well as government policy makers.

Recent events demonstrate this changing awareness of consumers and the public and its impacts on the business sector. For example, a proposal for construction of a factory to produce pesticides was challenged heavily by neighbors to the site. When expired foodstuffs (such as rice) were imported, an informal consumer boycott occurred. Awareness about industries discharging pollution into water supplies has led to several legal court cases against the polluters, as well.

International market and political pressures also play a role in bringing these issues to the forefront. Both domestic and international investors and business are and will continue to be affected by failure to address environmental problems as consumers and the public become more aware, the government's policy on environmental issues evolves, and markets become more open. For example, increasing awareness of "environmentally friendly" tourism means that unfriendly practices deter customers. Importation of wildlife products by other countries is limited by the international treaty conditions established on wildlife trade. Consumer boycotts in other countries on imported products such as those made from tropical hardwoods can also affect Tanzanian exports in some areas.

Government policy makers are also increasingly aware of environmental issues. In 1992, the United Nations held its first- ever Conference on Environment and Development (UNCED) in Rio de Janeiro, Brazil. Many senior government officials attended the Conference and participated in the preparation of AGENDA 21, a strategy for implementing in Tanzania the objectives agreed to at the Rio Conference. In addition, a draft environmental policy has been prepared by the government, as well as a National Conservation Strategy for Sustainable Development and a National Environment Action Plan. These policy and strategy documents are intended to be merged into one comprehensive strategy in the near future.

Finally, in the context of this increased awareness among government policy makers, discussions are underway in government for preparation of an environmental bill to introduce in Parliament. In addition, many of the policies and laws which govern specific sectors of the economy are being re-drafted to incorporate more stringent environmental regulations and requirements which will impact the business sector.

What each of these points demonstrates is that as awareness increases and the economy grows, environmental regulations will have more of an impact on the economy and the economy more of an impact on the environment. Therefore, businesses must be familiar with both the relevant issues and the regulatory legal frameworks and should adopt a culture of voluntary so that any economic development is "sustainable" for both the present and future generations of Tanzanians. It is within this context that this environmental law handbook for the business sector is prepared.

1. The National Environmental Action Plan (NEAP) for Tanzania defines "Sustainable development"