Toxic Waste in developed countries 1.1

Over the past several decades there has been the issue of what to do with a nation's toxic waste, no matter how it is generated.  The Basel Ban was established as an extension to the Basel Agreement.  It came into being because of the huge issue of this waste being taken to "developing" (new word for 3rd world) countries for illegal disposal.  Keep in mind the focus of this international issue was not the proper disposal of toxic waste, but the illegal disposal of it in developing countries (DC).

It is strongly believed that no matter what the circumstance, it is wrong for any country (primarily economically advanced) to dispose of waste in a DC.  There are some good justifications of this stance, and some bad ones.  One of the ideas is that if a developed country is allowed to move its waste to a DC then there will be no reason for them to change their production methods and resulting waste streams (reduction).  Good idea.  Another idea, almost a truism in the minds of most, is that any waste that is taken to a DC will be illegally disposed.

But the behind the scene presumption of this idea is that the DC is not capable of establishing a proper waste disposal facility, and that the waste will end up in a critically sensitive environment within the DC for a number of reasons.

The illegal dumping of wastes has been on sites that are within population centers, or in critical environments (rivers, wetlands, within groundwater recharge zones, etc).  These are typically logistically easier to get to for the trucks doing the dumping.  The average corrupt national/local politician turns a blind eye, or facilitates with a call to the security office not to patrol a certain area.

Fact of the matter is that there are some really good locations within some of these DC for establishing efficient disposal facilities.  What would make for a good location?  This is something the average reader should easily be able to identify that include things such as location or weather.  Location speaks to geology, endangered species, human contact, etc.

For argument sake let us assume that a perfect location exists that is remote, no groundwater, arid, and generally hostile.  The next issue is the facility.

A properly designed treatment and disposal facility can be built in this ideal location, that would meet all the requirements of being protective of humans and the environment.  The end product of the treatment process could then be placed into a proper landland fill within the disposal facility.  The cost factor would be significantly less at this facility than one in say Denmark.

The Basel Convention (BC) was birthed as a means to establish some control over the practice of toxic waste disposal.  It was not uncommon for the bad actors of the world to dump toxic wastes in these DC at a very low cost.  The DC that accepted this waste was hard pressed for currency, or legally or illegally.  The people of the world responded well to the acts being committed by the few, but who's actions were impacting a lot of people.  The BC requires a notification of transport of these wastes to various parties who can be impacted by a release of these materials (intentional or un-intentional).  This makes the people who transport them more likely to think twice about documenting their illegal activity.


   

Considerations In Negotiations

International business requires that the negotiator be in tuned with the client's personality, which includes cultural norms.   In many places, including the USA, the client may request a 'taste' of the deal that is being negotiated.  The USA, and most of the EU, client knows that this is not acceptable and in many cases illegal, but it happens every day, and many businesses hungry for the sale turn a blind eye.  Other countries the culture is more accommodating and accepting of this practice.

The use of bribes to expedite a contract signing, or getting the necessary permits is considered by many in the international community as the way to get things done.  When dealing with governments this is a very dangerous road that can put the participants in jail and the business on a black list. There are many schemes that are drafted up to make the bitter taste of the bride palatable for the giver, and giving the receiver a sense of legitimacy.   The lesser known localities typically have less sophisticated practitioners of the pinch and will openly have their hands out.  The more advanced countries use key words, and have places to funnel the money that sound legitimate to all involved.

A USA firm going to Africa to set up shop will have to deal with the hands in the pocket at every turn, especially if the first hand is filled.  Once you start down the path it will quickly turn into a highway of traffic heading one way out.  Once the term "Brother" is used be prepared for the hand coming out. Also the use of the "you don't understand this country" is another sign that the game is at hand.

How to avoid this trap?  Do not start down the dark path in the first place.  Show how your good/service can benefit the user (financially) without the complications of the taste.  This takes a tactful negotiator that understands the culture, who has done his/her homework, and has the patience to deal with the 'stall' tactic that will be used.

Captialism, Energy, and Sustainability

It is not a new concept to make money from sustainable projects.  Long term project returns and properly planned and managed projects can return large secured gains.  It is the focus on long term returns while working with countries that have had less than stellar pasts that can cause the monetary community to shy away.

There are a number of countries who's outward appearance would seem to indicate a lack of resources that could be of interest to a investment company.  The non-developed community of nations.  But it is within these nations in which the greatest returns with the lest amount of competitive landscape exists. 

The leading indicator for economic development within a nation is always correlated directly with its energy consumption.  So that in order to increase economic prosperity within a nation the first thing that must occur is the securing of a energy source.

Fossil fuels are not a secure source of energy for any country no matter a highly developed or a newly formed republic.  Even if a country has a large reserve of this fuel it is not a good strategy to develop these reserves for energy production within the developing nation.  The smart long term strategy is to sell these fuels to the 'developed' nations at a premium, and reinvest the revenues into developing renewable energy. 

The renewable energy infrastructure can be financed through the private sector so that general revenues funds can be maintained within the treasury.  The energy then pays for the infrastructure on a pay as you go system which includes the government as a partner so that the pay back period is shortened.  There are numerous financial vehicles that can be used to finance these projects through the private sector, but the key is a trusting relationship between a knowledgeable government and the capital/management group.  The key element is trust.

Trust can take a few weeks or a few years to establish in any relationship.  But without it the private investment group would always be at a disadvantage.

Business Opportunties

International environmental business opportunties are wide open, and will be expanding exponetially over the next ten years.  It is the company or individual that opens their eyes, and can connect the dots who will benefit.  The old mentality of just doing a task is only so good, as it is no different than a store front enterprise on main street.  Excelling in this world requires creative marketing, development of a strong network, and above all looking out for the benefit of everyone. 

So many companies focus on their bottomline and miss the ship.  They are today people who then miss the treasures found with diligence, and hard work.  Through compassionate capitalism the international business will see no bounds or limits to the opportunties that are presented.

The key is to look out for the people whom are part of the overall project.  Not just the people in the organization, but those who will directly impacted as well as the client.  This requires a lot of work, and looking outside. 

Environmental - Argentina

Argentina is a country of mystery.  The environmental laws are in place to protect the people, but the application is stuck in the 1960's.  Very minimal understanding of what the laws mean, and less understanding of how to implement. 

Businesses that engage in activities that may impact the environment are required to obtain various permits, but these are not required in advance of the activity.  In fact a business can extend the permit application out a year or longer with no major issues.  The political issue is the worse that one will experience, unless the business is involved in a high visible activity. 

The government is proud of their laws, but are more interested in checkboxes and less in content.  It is best to find a 'connected' consultant to complete the required permits and not be concerned about what they write.  Once you have the permit you can modify as needed based on the reality of the operation.

If the government does get 'serious' do not expect any major fine, only a finger pointing and a month to get into compliance.

Going to Jail

My title is a bit of drama.  The truth as long as you and your company are doing the basic things of doing what is right no one is going to jail for accidential contamination.  Now for the rest of you out there jail time is coming your way sooner than you think.  Sure right now a lot of companies are getting away with all sorts of intentional dumping, especially in the un/under developed countries; along with paying off the right people to look the other way.

I know there are strategies that businesses use to keep their owners/board members protected.  Such as hiding behind a Environmental (or EHS) manager.  Giving these positions the outward impression of having decision making authority.  So that if the hammer ever were to fall these folks would be taking the majority of the beat down.  Think pawn; expendable.

Or there is the strategy of documentation without documenting anything.  Very clever move.  The impression that all looks good.  And again with the support of local politicans it is easy to look good to the world.

There are environmental laws in alot of countries that do not respect the corporate veil of protection.  In fact they use the veil to identify these responsible parties.  The worse part is that these laws do not allow the violation fines to be tax deductable; tsk tsk

I am sure the smart business people (including the sales staff) have accountants making the decisions of what to do to prevent spills (training and equipment), as well as how to handle the spills when one occurs (clean up).  Unless you have a BP level incident little public involvement allows for a lot of mess to go unaddressed. 

But there are companies that see the world through different eyes.  The eyes of a responsible corporate citizen.  Seeing the good of long term business, and know that having a good name is as valuable a asset as a piece of machinery.  These are the companies that will weather the economic tidal troughs and surges. 

Site Cleanup

I have found it interesting to see how similar the world is getting. We are all quickly moving towards the middle in all facets of life. Environmental is no different. As the developing nations develop they want to be respected in all areas including environmental. It does not hurt that the World Bank requires that any project they loan money for must comply with their environmental guidelines; similar to EU or USA standards.

What I try to convey to people is that most all countries on the planet have environmental regulations, but what separates them is enforcement. Some countries strictly enforce, while others selectively enforce. It is the selective enforcement that gets most companies. It is common for US companies to be highly regulated by a country, while local businesses go unchallenged. The US company managers ignore the regulations and end up paying in the end to keep it quiet.

Be aware that these country laws can give the regulating agency a lot of latitude to pierce the corporate veil and can issue criminal as well as civil violations.

Site cleanup is not difficult in these countries as the local regulator typically does not use the comical EPA standard of clean. As long as you can show that you have returned the site to at least the condition you found it in then you should be good to go. It is always best to do your homework in advance, ignore whatever the commercial people say. A baseline assessment will go a long way to allowing you to sleep well at night.