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This report, first published in 1996, argues that radical changes in industrial organization and its relationship to society tend to arise in rapidly industrializing countries, and that new principles of sustainable production are more likely to bear fruit in developing than in developed countries. The rising tide of investment by multinational firms - who bring managerial, organizational and technological expertise - is a major resource for achieving this. Developing countries could steer such investment towards environmental goals through coherent and comprehensive policies for sustainable development.