Conclusion

The indicators for macroeconomic activity described in the section on Driving Forces of the Economy provide a framework to analyse the interaction between the economic, environmental and social spheres. Changes in macroeconomic activity put pressure on the environment, the magnitude depending on the nature of economic activity. The use of natural and environmental resources is analysed through a sectoral breakdown of economic activity, the rates of growth in the different sectors and an analysis of production methods used in, and the energy intensity of economic activity. The current state of the economy is characterised first by slow economic growth in resource and pollution-intensive sectors, but also by improved activity in relatively cleaner, tertiary activities (see Table 6.1). Secondly, economic growth is currently mainly driven by speculative capital inflow, which does not lead to systematic improvements on the level of unemployment. This macroeconomic situation does not bode well for either environmental or social sustainability (see Table 6.2). Possible responses are focussed on changing the driving forces to a more sustainable development path. The complexity of linkages between macroeconomic policies and sustainable development is highlighted and it is suggested that a step-wise approach to complement policy-making be followed. South African reality is far removed from an idealised outcome in the field of complementary environmental policies (see Table 6.3).

The integration of economic activities and it's impact on the environment has been institutionalised through some supporting activities such as environmental assessments. There is, however, a general concern about the institutional capacity to process applications and monitor policies. In addition to this capacity constraint there seems to be a lack of awareness among macroeconomic policy makers to sustainable development issues. The pursuit of economic growth without the incorporation of environmental costs, namely, the depletion and degradation of natural and environmental resources, is unsustainable. A need for, amongst others, comprehensive natural resource accounting becomes imperative. Additionally, the application of fiscal and monetary policies, complemented by environmental and institutional policies which adhere to sustainable development, need to be researched and implemented.

>     Economic Environment: References

There is also information about the Economic Environment in the following reports:
Metropolitan reports:
	Cape Metropolitan Council (1998 edition)		Durban Pilot Study
	Greater Johannesburg Metropolitan Council (1999 edition)		Greater Pretoria Metropolitan Council (1999 edition)