Transcript Slide 1

Legal natural resource
governance: Innovation in
response to fundamental rural
challenges.
Professor Paul Martin
Australian Centre for Agriculture and Law
University of New England
The argument
• Evidence suggests that resource
governance can be too costly,
ineffective and/or unfair. Why?
v
– 5 basic challenges
– 5 rural challenges
• What should the next generation
of resource governance be like?
• Proposed directions to consider
– Research and investigation methods
– Better frameworks for public policy
– Governance instruments and
systems
• Where might we go to from
here?
+ IUCN/WCEL
investigations of
legal governance
effectiveness (x2)
The instrument explosion
6B-9B
2B-6B
1B-2B
Ecolex: 2,070
treaties; 110,000
national laws and
regulations 1,100
court decisions.
Is this the best rural
governance model?
Mercantile/technocentric system
Ecolabels Index
458 ecolabels in
197 countries, and
25 industry
sectors
Frontier 2
Industrialised/populist system
Frontier 1
<1B
16th
17th
18th
19th
20th
21st
Agricultural / monarchic system
Governance effectiveness:
the evidence
The biophysical and social evidence plus
•Political and scholarly critiques; business sector critiques
•Rio+20 ‘The Future We Want’: Cl 19.
•IUCN
– Natural Resource Governance Framework (NRGF) (World
Commission on Environmental Law and the Environmental Law Centre. Bonn).
– Academy of Environmental Law
•UNEP’s Environmental Governance sub-programme
•Memorandum of Understanding UNEP and International
Organization of Supreme Audit Institutions (INTOSAI - Working
Group on Environmental Auditing, WGEA)
•Organisation of American States
Society needs fundamental governance
improvement
5 basic challenges
1.
2.
3.
4.
5.
Ever-increasing human pressures upon the earth.
Governance systems that privilege harm-doing.
Failures of public will and institutional capacity.
Dynamic, complex and changing systems.
Fragile governance paradigms
– We lack continuous improvement based upon objective
performance analysis (e.g. system and instrument
performance).
– We are misled through instrumentalism (e.g. laws, markets).
– We lack realism in design and implementation.
– The evolution of methods is shackled by disciplines.
Overlaid by rural-specific characteristics
Country
People./h
a.
Switzerland
2
UK
2.62
USA
0.35
Canada
0.04
France
1.2
Iceland
0.03
Argentina
0.16
China
1.41
Thailand
1.32
Indonesia
1.39
Agindependen
t
AgDependent
National
accounts
Employ’t
% Ag.
3
1
1
2
4
5
5
35
38
39
GDP
% Ag.
1
1
1
2
2
6
9
10
12
14
1
2
1
1
24
10
Rurality & governance:
international evidence
Natural
resources
Biodiversity
Benefits
Index
Renewable
water
(GL1000)
Extraction
per person
(L1000/y)
Agindependent
30
1543
936
AgDependent
35
860
635
Gov't
Net Public
GDP/ha
GDP/p
revenue/p
Social $
(US$1000) (US$1000)
(US$1000)
(%GDP)
Agindependent
AgDependent
17
69
44
18
5
5
16
4
Social welfare Schooling
Agindependent
AgDependent
Child Labour
(% 5-14)
17
14
Health $
(%GDP)
12
7
6
Inequity
Transparency
Sustainability
Rural-specific concerns,
Australia as an example
Rural Australia in context
GDP/km2
Mongolia
Great Britain
Iceland
Australia
USA
China
What is
feasible?
0
10
20
30
40
Population/km2
GDP/Capita
Mongolia
Great Britain
Iceland
Australia
USA
China
Mongolia
Great Britain
Iceland
Australia
USA
China
0
20,000 40,000 60,000
0
100
200
300
Pest animals – a rural problem
People: the issue and resource
Capacity: A critical limit
Education: shaping responses
Indicators of variability in capacity to address target
pest species
Depth of shading is a 3 way function of
1. Number of the 4 pest species present.
2. Population sparsity; and
3. Index of social disadvantage
“Vicious” rural system issues
5 rural-specific challenges
# 1 & 2)
1. Major problems have special systemic
cause/effect/solution characteristics.
–
–
Extensive, trans-boundary collective action problems.
“Autopoietic”, often coupled with adaptation.
2. Eco-social system complexities.
–
–
–
–
–
–
–
Farming and commodity system economics
Interwoven social, economic and ecological factors.
Social disadvantage linked to resource dependence.
Rural cultural and political distinctiveness.
Traditional owners’ eco-dependency and interests
Societies depend on private rural actions.
Private costs of providing these public benefits
(
5 rural specific challenges
(# 3 & 4)
3. Spatiality has complex, often hidden, governance
implications.
–
–
–
“Space between”, social isolation, collective action and
transaction costs.
“Distance to”, cultural and political isolation, service
access.
“Extensiveness”
4. Sparcity limits which interventions are feasible
and fair.
–
–
–
Low manpower intensity of rural spaces
Low economic intensity of rural economies
Limited human capacity of rural spaces
5 rural-specific challenges
(# 5)
5. Fragmentation limits effective (extensive scale)
collective action.
–
–
–
–
–
–
–
–
–
Title fragmentation
Institutional fragmentation
Program and policy incoherence
Instrument proliferation
Land use and enterprise diversification
Emerging rural economies
Intensifying resource conflicts
Increasingly diverse rural values and interests
Strengthening non-local communities of interest
Dynamics of rural futures
Unpublished
Direction and magnitude
of future changes in
sustainability indicators
for the five agro-climatic
regions of Australia from
2011 to 2100 under
Representative
Concentration
Pathways.
Brett Bryan, CSIRO.
Where to from here
??
10 directions for rural
governance
1. Rural governance systems, not mere instruments.
2. Precise multi-point, multi-instrument strategies.
3. Science-informed behavioural focus.
4. Streamline institutional architectures.
5. Broaden rural regulatory evaluation.
6. Use hybrid governance, with integrity mechanisms.
7. Empower ‘collective citizen action’ via institutions.
8. Actively manage (citizen) transaction costs.
9. Implement policy risk management.
10.Apply scientific continuous improvement.
Paul Martin & Neil Gunningham Improving regulatory arrangements for
sustainable agriculture: Groundwater as an illustration. Macquarie Journal
for International and Comparative Environmental Law Volume 1 (1), 2014
Weed pathway
Whose decisions? What institutions?
Risk themes ?
Consumers
Competitors
Identification
Indigenous Ecosystem
Selected
Genotype
Optimisation
Cultivar
Genotype
Nutrient inputs
Water inputs
How could we act more
strategically to change a
rural system?
An example..
Cultivation
Local Ecosystem
Crop
Biofuel
Processing
Local competitors
Establishment
Local consumers
Weed
Naturalisation
IUCN Academy of
Environmental Law
Innovation in risk
management
Selling
Weed pathway
Consumers
Competitors
Whose decisions? What institutions?
Field scientist
Scientific
Lab scientist
Identification
protocol
Science institutions
Industry Entrepreneur
Civil
liability
Bio-security
agencies
Risks expert
Policy agencies
Administrative
Customs Bureaucrat
Commercial insurers
controls
Commercial Propagator
Optimisation
Land
use
Nutrient inputs
Water inputs
Local Ecosystem
Development agency staff
Site investor/owner
Land-use approver
Land-use agencies
Economic agencies
Property investors
Industry organisations
Primary industry agencies
bonds
Investor codes
Plantation entrepreneur
of conduct
Plantation manager Industry codes
Cultivar
Genotype
Cultivation
of conduct
Standards Certifiers
Biofuel processor
Biofuel investor
Biofuel consumer
“Green”
branding
Crop
Public media
Establishment
Local consumers
Selling
Extension officer
Rural NGO activist
Plantation neighbour
Fuel companies
Risk insurance
Legal system
policies
Risk-calibrated
management options
Economic incentive for
risk management
Informed, harmaccountable investors
Risk-control by the
industry
Risk-informed consumer
choices
Active harm monitoring
Compensation
Knowledge for
avoidance/control/reme
diation
Consumer organisations
Performance
Government weeds
manager
Conservation agencies
accountability
Regional environmental
Incentives for
officer
control/remediation
Science institutions
Local weeds manager
Integrity
mechanisms
Naturalisation
Weeds officer
Weed
IUCN Academy of
Environmental Law
Innovation in risk
management
Closing the riskresponsibility/reward
cycle
Biofuel
Processing
Local competitors
Risk/context scientific
evaluation
Enterprise investors
Indigenous Ecosystem
Selected
Genotype
Risk themes ?
Monitoring agencies
Funds for control and
remediation
CreatingFieldascientists
systemic governance strategy.
Instrument
focussed
or
Systemic
behaviour
focussed?
4 rural oversight reforms
Regulatory processes need to drive government to
more effective, efficient and fair governance:
1.Use more robust benefit/cost assessment, with
realistic assumptions.
2.Make the distributions of benefits and costs
transparent and contestable.
3.Evaluate the true feasibility for citizens and
agencies to implement.
4.Implement a discipline of policy risk management.
Martin, Bartel, Sinden, Gunningham and Hannam Developing a Good
Regulatory Practice Model for Environmental Regulations Impacting on
Farmers Australian Farm Institute and Land and Water Australia 2007
What is policy risk?
The risk that a policy may:
1. Fail to be effectively implemented
–
Through formal political
processes; or
–
Informal political resistance.
2. Be adopted politically but fail in
practice
–
Transaction costs
–
Implementation platform
failings
3. Cause excessive harmful
‘spillovers’.
How often do governance policies fail?
They said it better than I ever could:
Match the words to the mind.
He who innovates will
have for his enemies
all those who are well
off under the existing
order of things, and
only lukewarm
supporters in those
who might be better
off under the new.
Insanity: doing the
same thing over and
over again and
expecting different
results.