Transcript Challenges and Opportunities

Overview of Most Effective
Approaches to Mainstream
Biodiversity in Rural
Development
Presented on behalf of
Marjory-Anne Bromhead, Advisor, ARD
75% of the world’s poor are rural and most
are involved in farming
In the 21st century, agriculture remains
fundamental for poverty reduction, economic
growth and environmental sustainability.
World Development Report 2008
Expenditure gains induced by 1%
GDP growth (%)
Growth from Agriculture is Especially
Effective for Poverty Reduction
GDP growth from agriculture
benefits the income of the
poor 2-4 times more than
GDP growth from nonagriculture (43 countries)
8
6
Agriculture
4
2
0
-2
Nonagriculture
Low est 2
3
4
5
6
7
Expenditure deciles
8
9 Highest
Challenges
Agricultural-based countries spend too little on agriculture
(and R&D).
35
30
Ag GDP/GDP
29
percent
25
20
16
15
10
10
5
0
Agriculture-based
Transforming
Urbanized
Challenges
“Mis-investment” is also pervasive.
7
Subsidies
Percent of Ag. GDP
6
5
4
3
Public Investment
2
1
0
1975-79
1980-84
1985-89
1990-94
1995-99
2000-02
Challenges
AGRICULTURE
4%
WORLD POOR
OFFICIAL
DEVELOPMENT
ASSISTANCE
(12% in 1990)
RURAL
75%
AGRICULTURE
4%
PUBLIC SPENDING
(Sub-Saharan Africa)
What Should We Do?

Accelerate smallholder productivity increases for
agricultural growth and food security in Africa;

Follow a comprehensive approach to reduce rural-urban
disparities and poverty in transforming countries of Asia;

Enhance sustainability and environmental services from
agriculture;

Pursue multiple pathways out of poverty: smallholder
farming, labor market, rural non-farm employment, migration,
etc.

Improve the quality of governance in
agriculture at local,
national, and global levels.
2009-2012 Agriculture Action Plan - 5 pillars
1. Raise
agricultural
productivity
2. Link farmers
to market &
strengthen
value chains
4. Facilitate
agricultural
entry, exit &
rural non-farm
income
3. Reduce risk
and
vulnerability
5. Enhance
environmental
services and
sustainability
Societies depend on natural and managed ecosystem
resiliency – watersheds, soils, hydrology, forests, wetlands,
coral reefs, agriculture and grazing land, fisheries – for fuel,
water, fiber, safety, recreation and for many other things.
How Can Biodiversity Benefit
Agriculture?
 Genetic biodiversity improves agricultural productivity
 Ecosystem resiliency sustains land and water
productivity
 Biodiversity increases adaptive capacity of agricultural
production to stresses
 Biodiversity sustains essential functions such as
pollination, pest/disease regulation, nutrient recycling
Environmental Sustainability
Important user of natural resources:
 70% of fresh water resources
 40% of land area
 30% of greenhouse gas emissions
Contributions to greenhouse
gas emissions
Developing country
agriculture &
deforestation 21%
Developing
country other
sources 15%
Industrialized
countries
64%
Many Opportunities:
Sustainable farming systems &
environmental services(conservation
farming, agroforestry, managing
landscapes for climate resilience)
Lifting Livestock’s Long Shadow
From degradation to
carbon sequestration..
From desertification to
sustainable
management..
From pollution to
biogas and clean
water..
Sustainable Forest Management Provides:
Energy
Timber
Coastal Zone Protection
Ecosystem
Services and
Forests
Freshwater Resource
Conservation
Mountain Development
Biodiversity
and many more…
Watershed
Soil Conservation
Fisheries Contribute to Food Security and
Livelihoods and Depend on Healthy Aquatic
Ecosystems.
 Since 2005 the Bank has an expanding project
pipeline (35 projects & US$330 million in
IBRD/IDA) and by establishing the PROFISH
partnership.
 Essential nutrition for 3 billion people; livelihoods
of >500 million in developing countries;
 Aquaculture = World’s fastest growing food
production system (7% annual growth);
The Study
 Input into the new environment strategy
 Reviews a sample of ARD operations
with biodiversity conservation co-benefits.
Bottom line: With some important
exceptions, and for a variety of reasons,
biodiversity conservation has not featured
prominently in the agriculture and rural
development portfolio, though there has been
more focus on broad ecosystem restoration in
programs which aim to restore land and water
productivity.
The Sample of Projects
• ARD projects categorized into 7 subsectors: agricultural
productivity; community action; forestry; fisheries and
coastal zone management; irrigation, drainage and water
resource management; NRM and watershed management;
and land administration.
• To get a better picture of ongoing ARD work, mostly
excluded closed projects, and GEF-only projects, and all
regions have been included.
Types of Biodiversity Interventions
in the Projects Sampled
• Most projects have supported the restoration of land
and water ecosystem functions, which have provided
the base for recovery of wetlands, grasslands, forests
and watersheds, and revival of a wide variety of
fauna and flora.
• Operations which have supported ecosystem
restoration have mostly addressed integrated
watershed management, irrigated land restoration,
and forestry.
Key Findings
1. With some important exceptions, recent agriculture
and rural development operations supported
through IBRD lending and IDA credits have not
aimed explicitly to support biodiversity conservation.
2. GEF co-financing has helped to pilot incorporation
of biodiversity into agricultural and rural
development projects but recently for all but the
countries richest in biodiversity, GEF biodiversity
funding has been very limited.
Key Findings
3. Forestry operations have mostly included
biodiversity conservation as an explicit objective, in
recognition of the multiple services that forests
provide. However, overall Bank support to forestry is
limited, accounting for less than 0.5% of Bank
lending.
4. Bank fisheries operations often include support to
enhanced ecosystem management; but overall
support remains limited, although it is gradually
increasing.
Key Findings
5. There are also more recent examples in middle
income countries of rural competitiveness operations
which also support ecosystem recovery (Latin
America, Europe).
6. There are also cases of supporting rural income
enhancement through development of ecosystem
services (forests for water services in Costa Rica,
landscapes for tourism in Montenegro) but mostly in
upper middle income countries.
Key Findings
7. Operations which have supported ecosystem
recovery together with long term productivity
enhancement include Loess Plateau in China,
Eastern Anatolia in China, a series of Sodic lands
recovery operations in India, policy lending in
Mexico, irrigation/drainage/wetland restoration
programs in the Lower Aral sea basin. Common
features have included a long term commitment and
a commitment to intervene “at scale”.
Key Findings
8. The current global food security initiative (GASFP)
does not address ecosystems recovery or
biodiversity in the pillars it supports.
9. Climate change offers opportunities for renewed
focus on ecosystems recovery both as part of
climate resilience and of low carbon growth/carbon
sequestration and the community of practice should
take advantage of this.
Examples of Agriculture and Rural
Development Projects with
Ecosystems Conservation
Components
Turkey: Eastern Anatolia Watersheds
Total budget $70 million (Various phases 1993 -2012)
The project aims to support sustainable NRM practices and thereby
raise incomes of communities affected by resource degradation. The
GEF component aims to introduce farming practices which will reduce
discharge of agricultural nutrients into surface and ground water in
watersheds.
Large Scale Application of Community Driven
“Land & Water” Good Practice
Community Adoption of Controlled Grazing
Critical to Landscape Recovery
Water Flows & Water Quality Impacts of
Landscape Recovery
Loess Plateau, China: The Long March to
Sustainable Landscapes
Total budget $252 million (1992-2003 Various phases)
Loess Plateau
• Covers ~ 2 million ha in 12 river basins of the Loess Plateau
• Aims to increase agricultural production and incomes and
improve ecological conditions in tributary watersheds of the
Yellow River.
• Features comprehensive development of small watersheds
(integration of forestry, soil and water conservation, agriculture,
and livestock sectors), with interventions to combat soil erosion,
and raise agricultural productivity and farm incomes.
• Direct impacts on biodiversity due to: increased vegetative and
forest cover, better managed grassland, terraced cropland,
dams, more secure land-use rights, taking certain areas out of
crop production to allow natural re-vegetation or planting native
species, etc.
Syr Darya Control and Northern
Aral Sea 64.5 million (2001-2006)
• The project is designed to improve water management in the
Syr Darya basin in Kazakhstan and to reverse the
environmental degradation from the decline of the Aral Sea.
• The project aims to enhance agricultural and fish production
as well as improve human health and biodiversity through
interventions such as the construction of ah dike across the
channel; rehabilitation of barrages supplying water and the
Chardara dam; aquatic restoration and fisheries
development.
The Shrinking Aral Sea: 1973, 1986, 2004
Aral Sea Expansion
April 2005
April 2006
Increase in yields of
freshwater fish, sturgeon and
caviar, and with increased
rainfall, the improving climate
is benefiting air, soil and water
qualities, biodiversity and
flora/fauna.
UP Sodic Lands Reclamation III
$272 million (2009 – 2015)
• Built on the successes of the first and second phases of the project which
helped farmers reclaim over 250,000 hectares of unproductive land. Over
425,000 poor families have benefitted so far, experiencing a three- to sixfold increase in crop yields.
• The project aims to increase agricultural productivity of degraded lands
by reversing water-induced land degradation, enhancing soil fertility, and
improving the provision of agriculture support services.
Mozambique Market-Led Smallholder
Development in the Zambezi Valley
Mozambique Market-Led Smallholder
Development in the Zambezi Valley
Total budget 27.40 million; 6.20 million GEF component (2006 -2012)
The project aims to increase the income of smallholder
armers of the Zambezi Valley region, through direct support to
smallholder groups and other supply chain participants as well
as through local level capacity building. The GEF component
s there to ensure that land degradation is stopped and
eversed and to improve the ecosystem’s resilience towards
climate change in the central Zambezi valley.
Santa Catarina Rural Competitiveness Project
(Total Budget $180 million)
Objective is to increase the
competitiveness of rural family
agriculture producer organizations
and to support it by improved publicservices-providing activities.
 Ecosystem Management component that aims to implement Ecological
Corridors by creating areas of biodiversity conservation-friendly land use
mosaics, established on private lands, supporting ecological corridor
connectivity in project watersheds.
 Development and implementation of incentive mechanisms involving
private/productive lands that requires rehabilitation or preservation (to
comply with environmental legislation and/or receive PES) or
improvement to obtain e.g. certification or to add ecological value to their
production.
Improving the Enabling
Environment: Challenges and
Opportunities
Instruments: CAP, WTO, Vertical Funds
100
90
80
14
12
% rural poverty
70
60
50
40
30
10
8
6
4
% ODA to Ag
20
10
2
-
0
1990
1992
1994
1996
1998
2000
2002
2004
% ODA to agriculture
% poverty in rural areas
Challenge: Donor Support to Agriculture
Challenge: Increasing Land &Water Constraints
Cropland per capita of agricultural population
180
140
% of population in absolute water scarcity
ECA
LAC
120
70
60
MENA
EAP
80
SA
60
SSA
40
50
Percent (%)
100
40
30
20
10
20
SSA
2003
1997
1991
1985
1979
1973
1967
0
1961
Index of cropland per ag population (1961=100)
160
SA
EAP
MENA
ECA
LAC
Opportunity: Recognition of the need to increase food
production, due to increasing global food demand.
Opportunity: Growing annual World Bank commitments to
agriculture ($3.6 billion in 2009)
IBRD/IDA annual agricultural assistance: $ million, 3 year
moving average
4,500
4,000
US$ million
3,500
3,000
2,500
2,000
1,500
1,000
500
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Opportunity: A new agriculture of high value
products and non-traditional exports.
Developing country exports
250
200
Meat
150
100
50
Horticulture
Cereals
0
1981 1984 1987 1990 1993 1996 1999 2002
Value of exports (1980=100)
Kcal consumption/capita/day
(1981=100)
Developing country consumption
350
Horticulture
300
Meat
250
200
150
Traditional
exports
100
50
0
1980
1990
2000
2004
How can renewed focus on agriculture
also renew focus on the link between
ecosystem services and agriculture?
Renewed focus on the challenges of…
 Long term land and water productivity enhancement
versus short term production needs
 Upstream-downstream trade-offs
 Private versus public goods
 Local versus global public goods
Vertical Funds: Challenges and Opportunities
 The GEF supports biodiversity
 Climate funds provide opportunities
 GASFP does not mention ecosystem services
 Do the vertical funds risk fragmenting the ecosystem
services agenda or support it?
 How can we mainstream ecosystems in agricultural
support measures?
EU Common Agricultural Policy (CAP)
2007-2013
Pillar I:
~ 80%
Pillar II:
~ 20%
Production
Subsidies
RD measures
RD Core objectives:

Improving farm & forestry sector competitiveness through restructuring, development &
innovation support

Improving environment & countryside through support for land management

Improving quality of life in rural areas & encouraging diversification of economic activity
Axes to implement the objectives
Priority Axis 1:
Competitiveness of Agriculture and Forestry
Priority Axis 2:
Improving the Environment and Countryside
Priority Axis 3:
Quality of Life and Diversification of the
Rural Economy
“LEADER” Axis:
Area-based, bottom-up, local partnership
Axis 2: Improving the Environment
and Countryside
Agricultural land:
Mountain areas; other areas
with handicaps; Natura 2000
areas; agri-environment;
animal welfare; support for
non-productive investments
Forestry land:
First afforestation; first establishment of agro-forestry
systems, Natura 2000 areas; forest-environment;
restoring forestry potential and introducing prevention
actions; support for non-productive investments
Agri-Environment Programmes
Payments to farmers from public
money to produce environmental
products/services by maintaining,
enhancing or restoring traditional
landscapes, valuable wildlife habitats
and other areas rich in natural,
cultural and historical features.
Types of AE Schemes:
“Broad and shallow
schemes”- benefits to
biodiversity, landscape,
water quality throughout
the countryside.
“Higher” or specialised
schemes targeting specific
habitats and species
WTO ‘Green box’ Mechanisms
(WTO terminology: subsidies are identified by “boxes”)
• Amber Box Measures: Agricultural subsidies/domestic support
measures that can distort production and/or change the flow of
trade
• Examples: commodity-specific market price supports, direct
payments and input subsidies.
• Green Box Measures: Agriculture-related subsidies that are not
trade distorting and include direct income supports for farmers
that are decoupled from current production levels and/or prices.
• Examples: environmental and conservation programs, research
funding, inspection programs, domestic food aid including food
stamps, and disaster relief.
WTO Measures
 Opportunity for enhancing green box measures
with more focus on agri-environment measures
 Vertical funds on biodiversity and climate change
could potentially be combined with green box
measures to reinforce ecosystems outcomes
Questions/Comments….