Environmental globalization

Abstract

PurposeThe purpose of this paper is to present an alternative viewpoint to better manage the global natural resources using the case of soybean international market as a baseline and water as the natural resource, although the product and natural resource could be any other.Design/methodology/approachThe case of Brazilian soya production and the international soybean market was used to illustrate the commodities and agricultural use of water, a global and finite natural resource. The water footprint analysis was applied to balance the international water trade associated to soybean exportation.FindingsThe net water balance indicates that Brazil is more efficient in the water use to soybean production considering water origin (types of water) and availability. That implies a benefit for soybean importers from Brazil who does not internalize this natural input in the cost of their products.Research limitations/implicationsThe alternatives proposed and discussed in this essay are far from being complete and definitive. The details of their implications are beyond the scope and purpose of this essay. However, it may be the starting point for a wider academic and political debate.Practical implicationsThere are externalities in the soybean market that are generating environmental and social costs. Those costs could be minimized by a fair international market that internalizes the costs of using finite natural resources. For that, adequate public policies should be designed, implemented and maintained. The monetary funds obtained from internalization of costs in water use could be addressed to research devoted to enlarge the water saving practices.Originality/valueFrom a discussion about the fundamental role of natural resources in the maintenance of mankind life and the implications of its irrational use, a global governance of natural resources is being proposed. As practical actions for global governance, a green soybean, marketed under a water seal, has been discussed.