This edition of the United Nations Environment Programme (UNEP) annual report is structured in three parts. Part 1 focuses on three contemporary problems (ground water, toxic chemicals and human food chains and environmental economics) and attempts to solve them. Also included is a modified extract of "The Annual State of the Environment Report" presented to the ninth session of the UNEP Governing Council by the executive director, Dr. Mostafa K. Tolba. Part 2 contains separate reports on UNEP activities, including: environmental monitoring; International Referral System for Sources of Environmental Information (Infoterra); chemicals in the environment; outer limits and basic human needs; human settlements; human/environmental health; desertification; soils/water conservation/living and genetic resources; environmental management and the integrated approach to environment and development; environmentally sound and appropriate technologies; oceans; ecosystems; environmental law; industry and environment; natural disasters; energy; environmental education; environmental data; information; and expenditures of the Environment Fund. Major program/project activities and costs (when appropriate) are provided in these reports. Part 3 includes a guest editorial (by A. W. Clausen) entitled "Sustainable Development - The Global Imperative." (JN)