Do all developing areas suffer from serious industrial pollution as they grow?
No. Findings. Indonesia’s province of Bali is one of the fastest-growing industrial regions in the world. Between 1984 and 1987, the island’s industrial output expanded threefold, even faster than the twofold national growth of Indonesian manufacturing (figure 1). Despite this growth, industrial air and water pollution on Bali remains negligible. The reason? Bali’s growth has been based on low-polluting export-oriented assembly of garments, jewelry, furniture, and other products. The catalyst for growth has been remarkable openness to small-scale foreign investment, which has in turn generated huge opportunities for subcontracting and, increasingly, direct marketing by Indonesian entrepreneurs. Implications. Wherever industrial growth follows the Bali pattern, pollution will be minimized. And fortuitously, Bali-style production is exactly the kind in which low-wage developing countries have the greatest comparative advantage. With continued development of organizational skills and mark
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