Central Planning, Internal Security, and the Environment

This article examines the economic and political factors that have led to low levels of environmental quality in centrally planned economies. A mathematical model is presented that juxtaposes several of the most plausible explanations: (a) low income levels, (b) highly polluted resource bases, (c) systemic inefficiency in production, (d) the difficulty of incorporating complex environmental considerations into the planning process, (e) the insensitivity of leaders to the welfare of their citizens, (f) high expenditures on internal security as a fraction of gross national product, and (g) the ability of leaders to supress environmental awareness through the control of environmental information. The resulting framework clarifies the distinctions among these explanations, offering insight into this extreme case of government failure.