1. Investment in Sustainable Natural Resource Management (focus: Agriculture) increases in agricultural productivity have come in part at the expense of deterioration in the natural resource base on which farming systems depend

2. It is urgent that this trend be reversed by encouraging farmers to adopt more sustainable methods of farming that will have long-term benefits in environmental conservation and development of sustainable livelihoods. Public sector investments are critical for reversing trends in degradation of natural resources.

3. Specific objectives for sustainable natural resource management (NRM) include improving agroecosystem productivity, conserving biodiversity, reducing land degradation, improving water management, ensuring the sustainability of forests, managing the sustainability of wildlife and fisheries, and mitigating the effects of global climate change.

4. Sustainable NRM optimizes the use of resources to meet current livelihood needs, while maintaining and improving the stock and quality of resources so that future generations will be able to meet their needs.

5. various levels of NRM decisions: household, farm, community, national, and global.

6. Rationale for Investment Agricultural production systems depend on natural resources- land (over 55 percent of non-forest land), water (about 80 percent of total fresh water), biodiversity, forests, pastures, and wildlife. rural livelihoods are intricately linked to the condition of natural resources, particularly for those 1.3 billion people living on fragile lands.

7. Over the last 40 years as food production has doubled, agricultural production systems have expanded, with significant impacts on the natural resource base (figure):

8. Global Change in Agriculture Area (’60-’00)

9. Status of Agriculture The amount of agricultural land going out of production each year due to soil erosion is about 20 million hectares, and approximately 40 percent of the world’s cropland is now degraded. Irrigated agriculture consumes about 70 percent of the total volume of fresh water used by humans, resulting in major environmental consequences: salinization, lowering of water tables, waterlogging, and degradation of water quality, with subsequent impacts on ecological systems affecting fisheries and wetlands. Agriculture currently contributes about 30 percent of the global emission of greenhouse gases resulting from human activity. This has major implications for global climate change.

10. ecosystem services An ecosystem is a dynamic complex of plant, animal, and microorganism communities and the nonliving environment interacting as a functional unit. Examples of ecosystems include natural forests, landscapes with mixed patterns of human use, and ecosystems that are intensively managed and modified by humans, such as agricultural land and urban areas. Ecosystem services are the benefits people obtain from ecosystems. These include: Provisioning services such as food, water, timber, and fiber. Regulating services that affect climate, floods, disease, wastes, and water quality. Cultural services that provide recreational, aesthetic, and spiritual benefits. Supporting services, such as soil formation, photosynthesis, and nutrient cycling.

11. The unplanned expansion of intensive production systems, which are typically monoculture and often developed at the expense of primary forests and savanna woodlands, can contribute to a significant loss in biodiversity. Deforestation rates have reached almost one percent per year in some regions. The major findings of the Millennium Ecosystem Assessment warned that approximately 60 percent of the ecosystem services are threatened.

12. Sustainable NRM is important to agricultural development as a basis for General agricultural productivity Off-farm agricultural uses Nonfarm employment Risk and vulnerability reduction Pollution reduction Environmental services Cultural integrity

13. Water use 1995

14. Key Issues for Investment in NRM Political nature of NRM Policy and regulatory environment Economic characteristics of natural resources

15. Success may depend on: (1)appropriately valuing these resources with incentives for conserving and maximizing their productivity and (2) developing markets and appropriate pricing mechanisms that reflect the true value of the resource, incorporating externality values.

16. Investment strategies to enhance value of natural resources

17. Successes contd Promoting adoption of NRM practices Providing alternative livelihood options Poverty focus Maintaining protected areas Global and regional considerations

19. Trends of Government expenditure in Agriculture (Rs million ’88-01)

20. Global Forestry Cover Change

21. Future Directions for NRM Investments Establishing a sound policy and regulatory environment Establishing secure property rights. Decentralizing NRM: Community-driven development, Rural investment funds, Participatory management plans, Communal management of a common resource Strengthening NRM institutions New technologies/knowledge and information services Developing market-based strategies Improving environmental monitoring and information systems. Providing a range of livelihood options Reducing agricultural system pollution Developing environmental services markets

22. Thank you for your attention