Transcript Progress in Environmental Policy Reform in EECCA

Progress in Environmental Policy
Reform in EECCA
Introductory Remarks
Multi-stakeholder meeting
Brussels
13-14 March 2007
Brendan Gillespie
Head, EAP TF Secretariat
OECD
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Progress Mixed
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200 positive examples; 12 countries; 15
policy areas
No acceleration of progress since Kiev;
some regression
Long time required for convergence with
CEE
Challenge is to scale-up, broaden and
deepen environmental reform, and
establish a stronger set of incentives for
environmental improvement
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Weak Drivers
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Weak market incentives for efficiency;
affordability an important concern
Weak public and political demand for
stricter environmental requirements
Weak international drivers:
– Trade and investment
– Lower donor support compared to CEE and
SEE
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Economic Context
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Per capita income:
– 4 countries > USD 3,000 (RF, Kaz, Tur, Bel)
– 4 more > USD 1,000
– 4 countries < USD 1,000
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7 countries qualify for IDA
40% of population in poverty, particularly
in rural areas; 70% in Tajikistan
7% average growth 2003-06, but have
not recovered 1989 income levels yet;
GDP less than half 1989 levels in
Georgia and Moldova
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Growing Diversity
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Income
Access to resources
Size
Environmental challenges
Politics
Yet: all EECCA countries inherited the
Soviet administrative tradition
So: what is the scope for treating
environmental policy reform at national,
sub-regional and EECCA-wide levels?
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Environmental ministries and
agencies
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General challenge of public sector reform
Systemic challenges in environmental institutions
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Leadership and strategic objectives
“permanent revolution”
Process not results-orientation
Weak link of information to policy
Shortages of strategic skills
Environmental policy tools
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EIA/SEA
Permitting
Standards
Market-based instruments and finance
Compliance assurance
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Integrating environment into
sectoral policies
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Poor understanding of economic benefits
of environmental policies, or costs of
inaction
Weakens the ability to make an economic
case for the environment
And to develop “win-win” strategies
Failure to address the political economy
of environmental reform: issues of
winners and losers
Opportunities for using SEA?
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Working with stakeholders
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Need to transform relations with industry and
provide incentives for better environmental
performance
– Modern, realistic policy instruments
– Shift from revenue-raising to incentives
– Carrots as well as sticks
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Representative business associations needed for
dialogue with government
Government cooperation with NGOs
– Should move beyond culture of resistance
– Remove obstacles to NGO activity
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NGOs need to establish a stronger financial and
political base
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Working with donors
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Bilateral assistance lower than in 2001;
EC increasingly most important donor
IFI loans have increased since 2003
50% of bilateral and 75% of multilateral
assistance went to RF and KAZ
Questions about aid effectiveness linked
with shift to budget support
Underlines the importance of:
– Integrating environment into national
strategies
– Identifying areas of mutual interest
– Better donor coordination
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