Answer: Because of its cost, and – related to that - because the competition between countries to attract and keep business makes governments slack on imposing and maintaining environmental regulations.
Explanation: costs of pollution control, globalization and environmental regulations
Pollution control technology is often expensive. It does not as a rule add to production quantity and, with the partial exception of agricultural products, product quality. Therefore, pollution control raises production costs. That reduces profits and makes products less competitive in international markets. Recognizing this, governments, especially of poor countries, tend to avoid bothering their business sector with environmental regulations - until environmental problems become such that action can no longer be delayed. Likewise, in their drive to attract foreign investment governments outdo themselves in trying to outdo governments in offering a favorable investment climate. Environmental regulations that increase production costs are not part of that climate. Thanks to globalization, international business can threaten to set up shop elsewhere if environmental regulations are perceived as too tight. Thus both national and international business push, directly or indirectly, to loosen environmental laws, if not in writing then in enforcement.
Moreover, especially in poor, badly governed countries (the two usually go together), those responsible for causing most of the environmental damage are part of the local economic and political elite, and are thus easily capable to block any measures they see as contrary to their interests.
source: http://home.wanadoo.nl
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