Giddens’s approach is overly simplistic, viewing globalization as involving the decline of state power, replaced by the dominance of multinational corporations. Nation-states remain powerful and important. Therefore, they must not succumb to the interests of entrepreneurs who could damage natural resources. According to Giddens (1994), there are four main contexts in which these high-consequence risks arise. Each relates to the institutional dimensions of modernity. One of these is the risk associated with the impact of modern social development on the global ecosystem.
The relationship between humans and their environment has become problematic in several ways. The material resources necessary for sustaining human life, and especially the way of life in industrialized parts of the world, appear threatened in both the medium and long term. Industrial modernity has accelerated exploitation beyond the limits of the environment’s carrying capacity in the pursuit of an insatiable capital accumulation.
A report from the Club of Rome has highlighted the threats to non-renewable natural resources. The widespread forest fires in Indonesia are the most visible and recent example of the destruction and loss of these natural resources. Ecology advocates are also increasingly concerned about the Earth’s capacity to absorb waste from various industrial activities. A number of currently identifiable ecological hazards, such as the impact of global warming from the greenhouse effect, ozone layer depletion, tropical forest destruction, drought, and air and water poisoning, will continue to pose risks to the world’s inhabitants.
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