In all developed and some developing countries, 20 to 45 per cent of GDP is transferred to the central government as taxes and other revenue, representing a significant effort to meet the collective needs of society for security and welfare (World Bank 1998). In comparison, global contributions to the United Nations and other international organizations are minimal, even though the need for global political, social and environmental security is growing. As a greater proportion of wealth creation by the private sector is globalized and escapes national taxation, the base of economic activity supporting national environmental and social action, as a proportion of total activity, will shrink. The lack of international sources of funds for environmental protection is one reason why global environmental stewardship is falling so far behind development.
Many public environment agencies have experienced severe cutbacks over recent years. These cuts have affected the ability of these agencies to fulfil their core responsibilities. While sustainable development requires that sectors and agencies integrate the environment into their decision-making, this does not make environment agencies redundant nor is it a reason to reduce their budgets or to cut back on environmental spending. On the contrary, environmental agencies should take the lead in integrating environmental considerations in other policy domains from a position of strength. This will require the establishment of cross-cutting institutions whilst maintaining strong environmental agencies able to assess the overall state and trends of the environment, implement environmental policies and enforce environmental laws.