Presentation on theme: "WTO Symposium on Trade and Sustainable Development"— Presentation transcript:
1WTO Symposium on Trade and Sustainable Development Sustainable Development Strategies in Agriculture and Rural DevelopmentWTO Symposium on Trade and Sustainable DevelopmentOctober, 2005John NashAgriculture & Rural Development Dept / Trade DeptThe World Bank
2Outline of this Presentation Why is Agriculture so Important for Poverty Reduction and Sustainable Rural Development?General Principles for Sustainable DevelopmentWhat are objectives?How to best accomplish them?Principles for effective public interventionsFive Dimensions of Sustainable NRM & DevelopmentReducing land degradationImproving water managementSustainable forestrySustainable fisheriesIncorporating global warming into development planningThe Role of Trade in Agriculture and Rural Development
4Why is sustainable agriculture so important for developing countries and the rural poor? 63 percent of population live in rural areas73 percent of poor live in rural areasAgriculture and agro-processing account for percent of GDP in developing countries, and an even larger share of employmentEven with rapid urbanization, more than 50% of the poor will be in rural areas by 2035, and depend significantly on agriculture
5Poverty is disproportionately rural Poverty Rates from PRSPs
6Sustainable Development Principles (What?) Economic sustainability: sustainable livelihoods and improved well-being through growth and poverty reductionEnvironmental sustainability: Target agricultural land, forests, water resources, protected areas, and biodiversity, so that opportunities and options of future generations are not degradedFiscal and institutional sustainability: must be realistic about cost and institutional requirements of instrumentsMay require tradeoffs
7Sustainable Development Principles (How?) 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 mechanismsIncorporate institutional development and new technologiesReduce risks and vulnerabilities of farming communitiesDiversify cropping systems for economic and environmental resilienceWeather forecasting to aid planting date and management decisions.Weather and price crop insurance.
8Principles for Effective Public Interventions Socially profitable and non-distortionary with respect to underlying long run pricesPro-poor targeting mechanismsDemand-driven: maximize private sector/community involvement in priority setting and implementationCo-financing by beneficiariesExit strategy where appropriate
9Five NRM Elements of Sustainability for Rural Development Reducing land degradationImproving water managementSustainable forestrySustainable fisheriesIncorporating global warming into development planning
10Reducing land degradation Increase productivity on the “best” landDiversify agroecosystems to protect food systems, improve diets, minimize risks, diversify incomes, and conserve agrobiodiversityRehabilitate 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 farmingStrengthen local institutions and facilitate community-driven land and water resource management for managing shocks, stresses, and global trade barriers
11Example 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.
13Water Resources Management Elements of Water Resources Management: Multiple objectives, multiple levelsWater Resources ManagementWater supply & sanitationIrrigation & drainageEnergyEnviron-mentalservicesInfrastructure for management of floods and droughts, multipurpose storage, water quality and source protectionInstitutional frameworkManagement instrumentsPolitical economy of water managementOther uses including industry and navigation
14The poor generally settle on the most fragile land with meager and/or highly variable water resources
15Average income levels & irrigation intensity in India Irrigation has been successful in lifting many rural poor out of poverty…trick is to do it in a sustainable mannerAverage income levels & irrigation intensity in India
16Managing Water Sustainably: the Dublin Principles in operation The “ecological” principle:Strategies should be holistic (including environment), comprehensive, inter-sectoral...The “institutional” principle:stakeholder participationsubsidiarity (federal, state, municipality, users…)greater role for private sector, NGOs and womenThe “instrument” principle:greater attention to economic value of alternative usesgreater use of economic instruments (water rights, user charges…)
17Challenges in water management Small stocks of water infrastructure in developing countries compared to those in climatically similar industrial countriesSimultaneous need for institutional solutions/ reformsPricing for fiscal sustainability and to encourage conservation (agriculture uses about 70% of water, and is very wasteful)Ownership and devolution of management responsibilityUrgency 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
19Forests are especially important to the poor… 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 livelihoods350 million people are highly dependent on forests.60 million indigenous people are almost wholly dependent on forests.Source: World Bank Forests Strategy and Policy, 2002.CountryForest Dependent PopulationIndia275 millionCongo62.6 millionIndonesia40-70 millionMyanmar25 millionVietnam20 millionTurkey8 millionSource: 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 environmentForest 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.
223 Pillars of Sustainable Forestry Harnessing the potential of forests to reduce povertyIntegrating forests into sustainable economic developmentProtecting local and global forest values
23Fighting PovertySupporting policy, institutional and legal frameworks for forest development and to ensure rights of forest-dependent peoples;Promoting the scaling up of collaborative forest management;Integrating forest, agro-forestry, and small enterprises into rural development strategies.
24Making forestry sustainable Supporting the development of policies and projects for sustainable forest management and conservation;Building capacity for improved governance;Supporting the containment of illegal activities;Addressing fiscal and trade issues related to forest sector and products;Proactively promoting catalytic investments in forest management and conservation.
25Improving governance requires Institutional reforms/buildingPolitical accountabilityCompetitive private sectorPublic sector reform (including judiciary and police)Civil society participation
26Institutional reforms Establish clear property rightsEstablish well-defined permanent forest estatesReduce distortions to trade in forest productsSet the “right” level of forest taxation and rent captureSimplify forestry legislation and strengthen implementation
27Examples of institutional reforms Philippines: Multisectoral Forest Protection CommitteesCambodia: Forest Crime Monitoring UnitBrazil: Geo-referenced licensing system and identification of illegal logging from land-use monitoring via satellite imageryIndia: Village Forest Protection Committee (Joint Forest Management)Bolivia: Legislative reforms conferring greater responsibility to individuals and local communitiesEcuador: Independent certifiers and outsourcing of supervisory functions of the forest departmentGhana: Timber Utilization Contracts
28Protecting local and global values Build markets for international public goods such as carbon;Build national markets for environmental services;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.
29Effective certification requires 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;measures to maintain or enhance sound and effective community relations;conservation of biological diversity and ecological functions;measures to maintain or enhance environmentally sound multiple benefits accruing from the forest;prevention or minimization of the adverse environmental impacts from forest use;effective forest management planning;active monitoring and assessment of relevant forest management areas; andthe maintenance of critical forest areas and other critical natural habitats affected by the operation.
31Why 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 countriesA 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.
32And 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.
33Key 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 offsIntroduction of Property and Use Rights;The allocation of fishing rights to interested fishers: geographical, or quota systemsIntroduction of Co-Management SystemsEstablishing shared governance responsibility for the fisheries between government and local users
34Key elements in sustainable fisheries strategy: (2) Fisheries management Fishing Capacity Reduction;Decommissioning fishing vessels or buying back licenses is the most direct way of tackling overcapacityFully Protected Marine Reserves and Marine Protected areas;Longer term closure to allow recovery of stocksPromotion of alternative livelihoods;Creation of economic alternatives to fishing for small scale fishers and fishing communitiesAquaculture;Expected to help meet world demand for fish and seafoodFood safety and eco-labeling programsTo enhance added value and fishers income
36Prototype 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.
37Bank’s BioCarbon Fund ($53 million worth of projects in FY05)
38The Role of Trade in Agriculture and Rural Development
39The Role of TradeAgriculture (including fisheries and forestry products) is a highly tradable sectorTrade is the best lever for agricultural growthRaising incomes mitigates pressure on the environmentNot 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…Trade gives consumers a powerful lever to effectuate change in the supplying country (fair trade, certification)
40But 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….
41But that’s another l-l-l-o-o-o-n-n-n-g story Thanks