Final answer:
Ferguson and Lohmann identify environmental degradation as a significant side-effect of development interventions, which is often a result of resource exploitation for economic growth.
Step-by-step explanation:
Ferguson and Lohmann identify environmental degradation as one key 'side-effect' of development interventions. This issue often emerges from the tension between the need for economic development and the impact of that development on the environment. While the goal of development is often to promote economic prosperity and political stability, the pressure to exploit resources can lead to deforestation and additional resource competition, causing environmental damage. Furthermore, some scholars, such as those from the UN and the EU, believe that through innovation, technology development, and regulatory intervention, it is possible to achieve sustainable development that combines economic growth with environmental quality, mitigating this negative side-effect.