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Sustainable Development Strategies in Agriculture and Rural Development WTO Symposium on Trade and Sustainable Development 10- 11 October, 2005 John Nash.

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Presentation on theme: "Sustainable Development Strategies in Agriculture and Rural Development WTO Symposium on Trade and Sustainable Development 10- 11 October, 2005 John Nash."— Presentation transcript:

1 Sustainable Development Strategies in Agriculture and Rural Development WTO Symposium on Trade and Sustainable Development October, 2005 John Nash Agriculture & Rural Development Dept / Trade Dept The World Bank

2 Outline of this Presentation Why is Agriculture so Important for Poverty Reduction and Sustainable Rural Development? Why is Agriculture so Important for Poverty Reduction and Sustainable Rural Development? General Principles for Sustainable Development General Principles for Sustainable Development What are objectives? What are objectives? How to best accomplish them? How to best accomplish them? Principles for effective public interventions Principles for effective public interventions Five Dimensions of Sustainable NRM & Development Five Dimensions of Sustainable NRM & Development Reducing land degradation Improving water management Sustainable forestry Sustainable fisheries Incorporating global warming into development planning The Role of Trade in Agriculture and Rural Development The Role of Trade in Agriculture and Rural Development

3 Agriculture, Poverty and Rural Development

4 Why is sustainable agriculture so important for developing countries and the rural poor? 63 percent of population live in rural areas 63 percent of population live in rural areas 73 percent of poor live in rural areas 73 percent of poor live in rural areas Agriculture and agro- processing account for percent of GDP in developing countries, and an even larger share of employment Agriculture and agro- processing account for percent of GDP in developing countries, and an even larger share of employment Even with rapid urbanization, more than 50% of the poor will be in rural areas by 2035, and depend significantly on agriculture Even with rapid urbanization, more than 50% of the poor will be in rural areas by 2035, and depend significantly on agriculture

5 Poverty is disproportionately rural Poverty Rates from PRSPs

6 Sustainable Development Principles (What?) Economic sustainability: sustainable livelihoods and improved well-being through growth and poverty reduction Economic sustainability: sustainable livelihoods and improved well-being through growth and poverty reduction Environmental sustainability: Target agricultural land, forests, water resources, protected areas, and biodiversity, so that opportunities and options of future generations are not degraded Environmental sustainability: Target agricultural land, forests, water resources, protected areas, and biodiversity, so that opportunities and options of future generations are not degraded Fiscal and institutional sustainability: must be realistic about cost and institutional requirements of instruments Fiscal and institutional sustainability: must be realistic about cost and institutional requirements of instruments May require tradeoffs May require tradeoffs

7 Correct the over-exploitation or inappropriate use of resources by ensuring that all environmental services are correctly valued (internalize the externalities) Correct the over-exploitation or inappropriate use of resources by ensuring that all environmental services are correctly valued (internalize the externalities) Establish projects and policies on appropriate levels -- community, watershed, national, regional, global – generally with corresponding implementation/ financing mechanisms Establish projects and policies on appropriate levels -- community, watershed, national, regional, global – generally with corresponding implementation/ financing mechanisms Incorporate institutional development and new technologies Incorporate institutional development and new technologies Reduce risks and vulnerabilities of farming communities Reduce risks and vulnerabilities of farming communities Diversify cropping systems for economic and environmental resilience Diversify cropping systems for economic and environmental resilience Weather forecasting to aid planting date and management decisions. Weather forecasting to aid planting date and management decisions. Weather and price crop insurance. Weather and price crop insurance. Sustainable Development Principles (How?)

8 Principles for Effective Public Interventions Socially profitable and non-distortionary with respect to underlying long run prices Socially profitable and non-distortionary with respect to underlying long run prices Pro-poor targeting mechanisms Pro-poor targeting mechanisms Demand-driven: maximize private sector/community involvement in priority setting and implementation Demand-driven: maximize private sector/community involvement in priority setting and implementation Co-financing by beneficiaries Co-financing by beneficiaries Exit strategy where appropriate Exit strategy where appropriate

9 Five NRM Elements of Sustainability for Rural Development Reducing land degradation Improving water management Sustainable forestry Sustainable fisheries Incorporating global warming into development planning

10 Reducing land degradation Increase productivity on the best land Increase productivity on the best land Diversify agroecosystems to protect food systems, improve diets, minimize risks, diversify incomes, and conserve agrobiodiversity Diversify agroecosystems to protect food systems, improve diets, minimize risks, diversify incomes, and conserve agrobiodiversity Rehabilitate productivity and ecosystem functions of degraded lands to enhance environmental roles e.g. C sequestration – BioCarbon fund. Rehabilitate productivity and ecosystem functions of degraded lands to enhance environmental roles e.g. C sequestration – BioCarbon fund. Technologies include integrated soil fertility management, adapted varieties, crop rotations, conservation tillage, buffer strips, and organic farming Technologies include integrated soil fertility management, adapted varieties, crop rotations, conservation tillage, buffer strips, and organic farming Strengthen local institutions and facilitate community-driven land and water resource management for managing shocks, stresses, and global trade barriers Strengthen local institutions and facilitate community-driven land and water resource management for managing shocks, stresses, and global trade barriers

11 Example of Successful NRM Project: Eastern Anatolia Watershed (I) Control soil erosion and stabilize slopes to protect local communities, towns, rivers, dams. Reintroduce native species (oaks, pines, walnut, wild cherry & almond, rose) along contour ridges and terraces for soil and native biodiversity conservation and income generation.

12 Improving water management

13 Elements of Water Resources Management: Multiple objectives, multiple levels Water Resources Management Water supply & sanitation Irrigation & drainage Energy Environ- mental services Infrastructure for management of floods and droughts, multipurpose storage, water quality and source protection Institutional framework Institutional framework Management instruments Political economy of water management Other uses including industry and navigation

14 The poor generally settle on the most fragile land with meager and/or highly variable water resources

15 Irrigation has been successful in lifting many rural poor out of poverty…trick is to do it in a sustainable manner Average income levels & irrigation intensity in India

16 Managing Water Sustainably: the Dublin Principles in operation The ecological principle: The ecological principle: Strategies should be holistic (including environment), comprehensive, inter- sectoral... Strategies should be holistic (including environment), comprehensive, inter- sectoral... The institutional principle: stakeholder participation subsidiarity (federal, state, municipality, users…) greater role for private sector, NGOs and women The instrument principle: greater attention to economic value of alternative uses greater use of economic instruments (water rights, user charges…)

17 Challenges in water management Small stocks of water infrastructure in developing countries compared to those in climatically similar industrial countries Small stocks of water infrastructure in developing countries compared to those in climatically similar industrial countries Simultaneous need for institutional solutions/ reforms Simultaneous need for institutional solutions/ reforms Pricing for fiscal sustainability and to encourage conservation (agriculture uses about 70% of water, and is very wasteful) Pricing for fiscal sustainability and to encourage conservation (agriculture uses about 70% of water, and is very wasteful) Ownership and devolution of management responsibility Ownership and devolution of management responsibility Urgency in developing an integrated package of structural and non-structural tools which respond to the imbalances by human demand and hydrologic patterns accentuated by global changes Urgency in developing an integrated package of structural and non-structural tools which respond to the imbalances by human demand and hydrologic patterns accentuated by global changes

18 Making Forestry more Sustainable

19 Forests are especially important to the poor… 1.6 billion rural people are dependent upon forests to some extent. 1.6 billion rural people are dependent upon forests to some extent. 1 billion out of 1.2 billion extremely poor depend on forest resources for part of their livelihoods 1 billion out of 1.2 billion extremely poor depend on forest resources for part of their livelihoods 350 million people are highly dependent on forests. 350 million people are highly dependent on forests. 60 million indigenous people are almost wholly dependent on forests. 60 million indigenous people are almost wholly dependent on forests. Source: World Bank Forests Strategy and Policy, Country Forest Dependent Population India 275 million Congo 62.6 million Indonesia million Myanmar 25 million Vietnam 20 million Turkey 8 million Source: APFSOS, WP/27

20 … and to the global economy… Production of wood and manufactured forest products contribute more than US$450 billion to the world market economy. The annual value of internationally traded forest products totals US$ billion. Globally, forest based industries provide about 47 million full time jobs.

21 … and the environment Forest destruction is responsible for global biodiversity losses of 2-5% per decade; Forest destruction (especially though burning) is estimated to contribute between 10 and 30% of all carbon gas emissions into the atmosphere; slowing deforestation and restoring forests are important elements of a strategy for slowing global carbon emissions.

22 3 Pillars of Sustainable Forestry Harnessing the potential of forests to reduce poverty Harnessing the potential of forests to reduce poverty Integrating forests into sustainable economic development Integrating forests into sustainable economic development Protecting local and global forest values Protecting local and global forest values

23 Fighting Poverty Supporting policy, institutional and legal frameworks for forest development and to ensure rights of forest-dependent peoples; Supporting policy, institutional and legal frameworks for forest development and to ensure rights of forest-dependent peoples; Promoting the scaling up of collaborative forest management; Promoting the scaling up of collaborative forest management; Integrating forest, agro-forestry, and small enterprises into rural development strategies. Integrating forest, agro-forestry, and small enterprises into rural development strategies.

24 Making forestry sustainable Supporting the development of policies and projects for sustainable forest management and conservation; Supporting the development of policies and projects for sustainable forest management and conservation; Building capacity for improved governance; Building capacity for improved governance; Supporting the containment of illegal activities; Supporting the containment of illegal activities; Addressing fiscal and trade issues related to forest sector and products; Addressing fiscal and trade issues related to forest sector and products; Proactively promoting catalytic investments in forest management and conservation. Proactively promoting catalytic investments in forest management and conservation.

25 Improving governance requires Institutional reforms/building Institutional reforms/building Political accountability Political accountability Competitive private sector Competitive private sector Public sector reform (including judiciary and police) Public sector reform (including judiciary and police) Civil society participation Civil society participation

26 Institutional reforms Establish clear property rights Establish clear property rights Establish well-defined permanent forest estates Establish well-defined permanent forest estates Reduce distortions to trade in forest products Reduce distortions to trade in forest products Set the right level of forest taxation and rent capture Set the right level of forest taxation and rent capture Simplify forestry legislation and strengthen implementation Simplify forestry legislation and strengthen implementation

27 Examples of institutional reforms Philippines: Multisectoral Forest Protection Committees Philippines: Multisectoral Forest Protection Committees Cambodia: Forest Crime Monitoring Unit Cambodia: Forest Crime Monitoring Unit Brazil: Geo-referenced licensing system and identification of illegal logging from land-use monitoring via satellite imagery Brazil: Geo-referenced licensing system and identification of illegal logging from land-use monitoring via satellite imagery India: Village Forest Protection Committee (Joint Forest Management) India: Village Forest Protection Committee (Joint Forest Management) Bolivia: Legislative reforms conferring greater responsibility to individuals and local communities Bolivia: Legislative reforms conferring greater responsibility to individuals and local communities Ecuador: Independent certifiers and outsourcing of supervisory functions of the forest department Ecuador: Independent certifiers and outsourcing of supervisory functions of the forest department Ghana: Timber Utilization Contracts Ghana: Timber Utilization Contracts

28 Protecting local and global values Build markets for international public goods such as carbon; Build markets for international public goods such as carbon; Build national markets for environmental services; Build national markets for environmental services; Strengthen policies and investments in conservation and protected areas; Strengthen policies and investments in conservation and protected areas; Assure that investments and programs do no direct or indirect harm to the permanent forest estate. Assure that investments and programs do no direct or indirect harm to the permanent forest estate.

29 Effective certification requires compliance with relevant laws; compliance with relevant laws; recognition of and respect for any legally documented or customary land tenure and use rights as well as the rights of indigenous peoples and workers; recognition of and respect for any legally documented or customary land tenure and use rights as well as the rights of indigenous peoples and workers; measures to maintain or enhance sound and effective community relations; measures to maintain or enhance sound and effective community relations; conservation of biological diversity and ecological functions; conservation of biological diversity and ecological functions; measures to maintain or enhance environmentally sound multiple benefits accruing from the forest; measures to maintain or enhance environmentally sound multiple benefits accruing from the forest; prevention or minimization of the adverse environmental impacts from forest use; prevention or minimization of the adverse environmental impacts from forest use; effective forest management planning; effective forest management planning; active monitoring and assessment of relevant forest management areas; and active monitoring and assessment of relevant forest management areas; and the maintenance of critical forest areas and other critical natural habitats affected by the operation. the maintenance of critical forest areas and other critical natural habitats affected by the operation.

30 Sustainable Fisheries

31 Why are fisheries so important to developing countries? Trade and income generation on national and global levels : Global trade of US$ billion annually, with 50 per cent of trade from developing countries Global trade of US$ billion annually, with 50 per cent of trade from developing countries A Major Source of Income and Export for developing countries: at least 13 developing countries where fisheries is more than 5 percent of GDP, e.g. Ghana; Senegal; Namibia; License fee income. License fee income.

32 And important for poverty reduction A Source of Livelihoods & Income for 30 million poor fishers and their families, employing an additional 150 million people in developing countries in associated sectors, e.g. marketing, boat-building, etc.; A Critical Source of Food Security for 400 million poor people; Potential source of alternative employment for rural poor through aquaculture.

33 Key elements in sustainable fisheries strategy: (1) Governance Adoption of the Ecosystem Approach to Fishing; Introduction of Institutional, Regulatory and Judicial framework; Specific institutions for fisheries management (including Sector Councils, independent agencies for MCS), with transparent decision making mechanisms and agreed trade offs Introduction of Property and Use Rights; The allocation of fishing rights to interested fishers: geographical, or quota systems Introduction of Co-Management Systems Establishing shared governance responsibility for the fisheries between government and local users

34 Key elements in sustainable fisheries strategy: (2) Fisheries management Fishing Capacity Reduction; Fishing Capacity Reduction; Decommissioning fishing vessels or buying back licenses is the most direct way of tackling overcapacity Fully Protected Marine Reserves and Marine Protected areas; Fully Protected Marine Reserves and Marine Protected areas; - - Longer term closure to allow recovery of stocks Promotion of alternative livelihoods; Creation of economic alternatives to fishing for small scale fishers and fishing communities Aquaculture; Expected to help meet world demand for fish and seafood Food safety and eco-labeling programs To enhance added value and fishers income

35 Global Warming

36 Prototype Carbon Fund (PCF) Recognizing that global warming will have the greatest impact on its client countries, on July 20th, 1999 the Executive Directors of the World Bank approved the establishment of the PCF, with the operational objective of mitigating climate change. This aspires to promote the Bank's tenet of sustainable development, to demonstrate the possibilities of public-private partnerships, and to offer a 'learning-by-doing' opportunity to its stakeholders.

37 Banks BioCarbon Fund ($53 million worth of projects in FY05)

38 The Role of Trade in Agriculture and Rural Development

39 The Role of Trade Agriculture (including fisheries and forestry products) is a highly tradable sector Agriculture (including fisheries and forestry products) is a highly tradable sector Trade is the best lever for agricultural growth Trade is the best lever for agricultural growth Raising incomes mitigates pressure on the environment Raising incomes mitigates pressure on the environment Not all increases in trade are environmentally benign, but…. Not all increases in trade are environmentally benign, but…. The best solution is generally to target the problem directly by adopting appropriate environmental policies, not to restrict trade, and… The best solution is generally to target the problem directly by adopting appropriate environmental policies, not to restrict trade, and… Trade gives consumers a powerful lever to effectuate change in the supplying country (fair trade, certification) Trade gives consumers a powerful lever to effectuate change in the supplying country (fair trade, certification)

40 But developing countries share of agricultural exports to rich countries have stagnated, while South-South trade has grown, suggesting that trade barriers need to be lowered….

41 But thats another l-l-l-o-o-o-n-n-n-g story Thanks


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