Conclusions

Since Fall 2008, the financial crisis has stalled global economic growth for both developed and developing countries. Stimulus packages introduced by major economies, while targeted specifically for certain sectors, have so far also functioned as a parachute for the global economy more generally—at least as of early September 2009. Although unemployment rates are still increasing, car sales in the US and Japan during August 2009 have shown weak but positive increases (1 and 2.2%) for the first time in 22 and 13 months, respectively.

The double-pronged policy to boost business sales and transform the national consumer goods portfolio to a greener one has been effective in Japan, owing largely to both consumers' and private sector's readiness to respond. The incentive-provision policy not only encouraged consumers to buy more, and greener, products but also pushed manufacturers and retailers to enrich their product varieties, create demand by setting prices lower and showcase them more proactively at general retail stores. This green stimulus package, however, was conceivable in a realistic sense because of the ample personal savings or disposable incomes of citizens in developed countries which may not be the case in most developing countries.

While the scale and type of intervention may not be possible or necessary in most developing countries, this financial crisis should be considered as a golden opportunity for any sector in any country to emerge as green innovator in a short space of time. Governments can support this by trimming outdated business-as-usual public policies and providing incentives for transformation.

Globally, it is time to shift our attention to post-stimulus package policies to harness the momentum of greening markets. A new global initiative that guides the world toward sustainable development is now needed, particularly as some of the current global agreements are fast approaching their deadlines: 2009 for COP15 to develop a post-Kyoto framework, 2012 for the 10th Anniversary of Johannesburg Summit, 2015 for Millennium Development Goals and 2020 for global implementation plans as well as carbon emission reduction goals for some developed countries. A space shuttle boosted by the financial stimulus package has been successfully launched. We need to ensure that its trajectory is on a right path toward a permanent orbit of sustainable development.

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