8. Identification of barriers for non- market goods 30 min Chapter 5 Ivan Nygaard, Ulrich Elmer Hansen

Content: Publically provided goods Other non market goods - Technologies provided by institutions - Institutional change to improve livelihood - Behavioural change How to identify barriers for non-market goods?

Publicly provided goods Key characteristics: Large infrastructure projects Large capital investment May depend on donor funding Political decision at government level Investment will be preceded by – socio economic cost-benefit analysis – environmental impact analysis Impact a large group of actors Positive and negative impacts not equally shared E.g. large hydro dams: – Resettlement of the rural poor – Loss of tourist sites (income) – Lower electricity price (for consumer) – Employment (construction, operation).

Barriers for publically provided goods Barriers to procurement Initial project idea/proposal – No feasibility studies, CBA, EIA – Resistance by local people and NGOs Financing – Little interest by international donors Tendering – Few potential IPP companies – Few technology suppliers – low level of stability and trust Barriers to long term sustainability Challenges regarding operation and maintenance Non-transparent political involvement in state-owned companies Politically set tariffs, which do not allow full cost recovery Non-payment of services delivered to government institutions

Other non-market goods I Technologies provided by public institutions Examples of technologies Early warning systems for drought Seasonal weather forecast New vaccination systems Generic screening for pathogens Barriers to implementation? Few feasibility studies and CBA Cost may be higher than benefit Difficult access to finance Barriers to long term sustainability? Poor management traditions Few national resources for operation Limited qualified personnel

Other non-market goods II Institutional change to improve rural livelihood Examples Micro finance institutions Forest management groups Village development groups Barriers to implementation? Mixed experience with interventions Cost higher than benefits Access to funding Barriers to long term sustainability? Capture by local elites Dispute over external resources Misappropriation of funds Strategies of dependence

Other non-market goods III Behavioural change at the individual level Examples of change of practice Changing farming practices Turning off lights or air conditioning Cars to public transport and bicycles Use of existing mosquito nets Barriers to implementation? Few project proposals available Low understanding of success factors Limited funding available Barriers to achieving change? Multiple, complex and difficult to overcome Culturally embedded practices – Convenience, pride, social esteem – Tradition, religious beliefs

Barriers for non-market goods Summing up Publically provided goods Other non market goods - Technologies provided by institutions - Institutional change to improve livelihood - Behavioural change - Government and donors take decisions on implementation - Barriers are of different nature than for market goods - Barriers for implementation - Barriers for long term sustainability