OPERATIONALIZING GLOBAL ENVIRONMENT FACILITY Sustainable Land Management Activities (OP 15) WITHIN THE WORLD BANK Leonard Berry and Enos E. Esikuri Washington DC, 2005 GLOBAL ENVIRONMENT FACILITY PROGRAM O P E R AT I O N A L I Z I N G G L O B A L E N V I R O N M E N T FA C I L I T Y Sustainable Land Management Activities (OP 15) WITHIN THE WORLD BANK Leonard Berry and Enos E. Esikuri Washington DC, 2005 © 2005 The International Bank for Reconstruction and Development / THE WORLD BANK 1818 H Street NW Washington DC 20433 USA Telephone: 202-473-1000 Internet: www.worldbank.org E-mail: feedback@worldbank.org All rights reserved The World Bank has used its best efforts to ensure that the information contained within this report is accurate, however, it cannot guarantee its accuracy. The representations, interpretations, and conclusions expressed herein do not necessarily reflect the views of the Executive Directors of the World Bank or the governments that they represent. 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Contents Acknowledgements iv Introduction 1 Land Degradation and 2 Sustainable Land Management OP 15 and Related World Bank 3 Policy and Strategy Challenges and Approaches to 6 Achieve Sustainable Land Management Integrating SLM into Bank Lending 8 Private Sector Involvement 9 Summary 11 Appendix A Regional Perspectives and Opportunities 13 Sub-Saharan Africa 13 Middle East and North Africa 17 Latin America and the Caribbean 18 Europe and Central Asia 21 South Asia 24 East Asia and the Pacific 26 References 31 Leonard Berry is Professor and Director, Florida Center for Environmental Studies, Florida Atlantic University, USA. Enos E. Esikuri is Technical Specialist, Sustainable Land Management, Environment Department, The World Bank, Washington, DC USA. Acknowledgements The authors would like to thank the following people for their invaluable contribution and support to this work: Mathew Corbett; Samuel Wedderburn; Rohit Khanna; Kristalina I. Georgieva; James Cantrell; Ayesha Aparakka and Mary Paden. iv capture and be nested within these changing opportunities and international contexts. Until 2002, the GEF supported the prevention and control of land degradation as a supporting activity to three of its four designated focal areas: biological diversity, climate Introduction change, and international waters. This support generally resulted in projects centered on the focal area objectives, with, at best, a minor land degradation component. The international development scene is changing rapidly with In October 2002, the GEF designated land degradation as altered contexts and emerging realities at the institutional, a focal area as a "means to advance GEF support for the national, and international levels. Certain major events in successful implementation of the United Nations Convention recent years have challenged the development community to Combat Desertification (UNCCD)." Elevating the impor- to propose high-quality land-related interventions that can tance of land degradation to a GEF priority has resulted demonstrate benefits to local, national, and global stake- in a new effort to provide targeted incremental funding for holders. These events have been: sustainable land management (SLM) that will accelerate country initiatives. n the focus on the Millennium Development Goals (MDGs); The following May, the GEF approved the GEF Operational n the focus that the 2002 Johannesburg World Summit Program on Sustainable Land Management (OP 15), which on Sustainable Development (WSSD), placed on the provides a framework for the incremental financing of United Nations Convention to Combat Desertification activities to address "the root causes and negative impacts (UNCCD) as a tool for poverty alleviation and sustain- of land degradation on ecosystem integrity, functions and able natural resource management; services as well as on people's livelihoods and economic n a projected increase in lending for agriculture and rural well-being through sustainable land management prac- development based on a commitment by the World Bank tices" (GEF 2003). These activities cover agriculture, and other donors to reverse the decline in lending over pasture/livestock management, and forest production, as the last 20 years; and well as land-use planning and management. Sustainable n the 2005 G-8 Summit at Gleneagles, United Kingdom, land management offers not only income benefits to rural that specifically called for investment in sustainable land users and natural resource protection/improvement, agriculture, especially in Africa where agriculture is but also off-site ecosystem health benefits to the broader the most important economic sector. community. Efforts by GEF and the World Bank to promote an active Ultimately, such funding will achieve the dual aims of improving sustainable land management (SLM) agenda will need to the livelihoods of households affected by production decline, 1 as well as maintaining or improving the health of ecosystems. even greater importance is the proportion of poor who rely These two aims recognize that poverty and resource degrada- on this production for their subsistence. Despite increasing tion are closely linked, because rural productivity is directly urbanization, the essential reliance of the poor on rural produc- dependent on the health of the natural resource base. tion will not change in the foreseeable future. As a conse- quence, pressure on the land and the biological resources This report discusses the need for sustainable land manage- that it supports will increase. Land degradation results from ment, explains which activities are eligible for GEF funding this complex ecosystem/socioeconomic linkage. under OP 15, and discusses the Bank's policy and strategy context for sustainable land management. It identifies oppor- Land degradation takes many forms. Its principal manifesta- tunities and methods for integrating SLM objectives into tions are erosion (water and wind), soil nutrient depletion, Bank programs and projects and describes the main lessons soil structure decline, salinity, and water logging. It usually learned from past SLM projects. Finally, it summarizes the takes place hand-in-hand with the degradation of biological Regional contexts, projects, and opportunities for SLM. resources. Land degradation commonly also degrades nearby natural resources; for example, erosion in one area is likely to cause sedimentation in nearby rivers and lakes. Land Degradation Land degradation is caused by inappropriate land-use prac- and Sustainable Land tices relative to the capacity of the land. Poor practices include Management inappropriate tillage methods, over-cropping and insufficient soil nutrient replacement, poor irrigation techniques, over- grazing, deforestation, and use of marginal lands. Land degradation is a cumulative global phenomenon that Although the relationship may be complex, poverty and land adversely affects approximately 23 percent of the land under degradation are closely linked because rural production human use (GEF 2003). Land degradation stresses the liveli- depends directly on the health of the natural resource base. hoods of more than 1 billion people in developing countries Any attack on rural poverty must include a substantial compo- who rely heavily on land-based natural resources for food, nent that addresses increased and sustained rural produc- water, and materials. tivity based on sustainable land management (SLM). Agricultural lands, covering approximately one-quarter of the SLM delivers sustainable socioeconomic and ecosystem world's land area, are the most severely affected by degrada- benefits to households, communities, and regions. tion. It is estimated that, over the past 30 years, two-thirds of Socioeconomic benefits include stabilizing and improving all agricultural land has been degraded to some extent. household income, reducing the risk of agricultural enter- prises, and increasing food security. Ecosystem benefits Most developing-country economies derive the majority of include protecting, rehabilitating, and even enhancing their gross domestic product (GDP) from rural production. Of resources both on and off-site. 2 SUSTAINABLE LAND MANAGEMENT ACTIVITIES (OP15) WITHIN THE WORLD BANK OP 15 and Related n improving land cover to increase livestock and forest World Bank Policy and production (local), which also would deliver carbon sequestration, biodiversity protection, and a reduction Strategy in atmospheric dust (global); n improving grazing capacity by establishing inter-communal (local) and transboundary grazing management agree- ments (global); This chapter describes the types of project eligible for funding n transitioning from shifting cultivation/providing viable under OP 15 and how these types of projects fit into the alternatives to slash-and-burn agriculture for increased larger Bank development policy and strategy. land productivity (local), which would also protect biodi- versity and enhance carbon sequestration (global). OP 15 Funding and Priorities Under OP 15, SLM funding priorities fall into three broad interventions: capacity building, on-the-ground invest- The GEF has adopted a catalytic role in supporting SLM, ments, and targeted research. GEF support for capacity seeking to partner with the country, the World Bank, other building helps to provide an enabling environment based donors, and land users. The goal is to develop a compre- on integrating SLM in national planning frameworks hensive approach that will provide coordinated financial and (such as poverty reduction strategy papers) to facilitate technical support to achieve long-term global environment the coordinated mobilization of funding. This support benefits through sustainable development. This role recognizes may be complemented by policies, regulations, and that this complex and extensive issue of land degradation will conomic incentives and by strengthening institutional planning only be solved by a coordinated effort by all players. capacity. On-the-ground activities are designed to facilitate innovation, demonstration, and replication GEF land degradation projects usually comprise packages of of sustainable agriculture, rangeland/pasture, and interventions to address livelihoods and economic well-being forest management. Targeted research provides in-field (baseline actions) and global environment issues (incremental research through piloting or demonstration, as well as the actions). GEF assistance focuses on funding the incremental development and provision of information and tools to assess costs to accelerate country-driven land and forest manage- land degradation and SLM benefits. ment that will deliver global benefits. Examples of local benefits and their correlative incremental global benefits Activities eligible for GEF funding under the three to land, water, biota, and the atmosphere include: broad interventions include: mainstreaming SLM, policy-setting, integrated land-use planning, institutional n stabilizing upper watershed erosion (local benefit), which capacity enhancement, information management and would reduce sedimentation and the resulting loss of dissemination, transboundary agreements, on-the- aquatic biodiversity in significant downstream water bodies ground investments, drought-mitigation related activities, (global benefit); and targeted research. GEF can also cofinance 3 Table 1. Eligible GEF Activities and Actions, and Related Country/Partner Baseline Actions ELIGIBLE ACTIVITY BASELINE ACTIONS INCREMENTAL ACTIONS (COUNTRY/PARTNER FUNDING) (GEF FUNDING) CAPACITY BUILDING Mainstreaming SLM n Formulating a national development n Harmonizing a country's SLM priorities across different action plans plan, poverty reduction strategy paper, or n Integrating country-driven land degradation prevention and control priorities Comprehensive Development Framework (CDF) Integrated land-use planning n Establishing development planning systems n Strengthening institutional planning capacity and participatory mechanisms n Preparedness planning for drought n Incorporating SLM in drought preparedness and other risk systems and other extreme climatic events n Development of policies, regulations, and incentive structures n Strengthening information management systems and disseminating and replicating good practice Transboundary resource n National policies n Management agreements and mechanisms agreements ON-THE-GROUND INVESTMENTS Sustainable agriculture n Improving livelihoods by crop diversification; n Piloting demonstrations of better management practices or conservation introduction of higher-yield and drought- works such as reduced tillage methods and better use of crop residues; resistant crops; introduction of improved establishment of erosion controls such as windbreaks, buffer strips, cropping practices, water harvesting and and filter strips; rehabilitation of wetlands to stabilize river flows and efficiency; better access to credit, extension, improve water quality; alternatives to slash-and-burn; protection of and marketing; physical works; chemical/ riparian zones; and introduction of indigenous crops to lower-loss risks fertilizer use; and pest management Sustainable pasture n Reducing livestock stocking density to n Piloting demonstrations of better management practices or mechanisms such management a sustainable carrying capacity as strengthening traditional grazing management systems; mechanisms to n Distributing water points to resolve wildlife-livestock-agriculture conflicts; rangeland rehabilitation with spread grazing intensity indigenous plants; fire management; use of indigenous livestock varieties; n Introducing rotational grazing protection/ rehabilitation of erosion, riparian vegetation, and recharge areas n Improving access to credit, veterinary, and marketing services Forest management n Developing community-based n Piloting demonstration activities to strengthen indigenous forest management management systems n Rehabilitating land with multi-use tree species n Establishing plantations or tree crops n Protecting ecologically sensitive forest, riparian n Minimizing forest clearance for cropping forest, wetlands, recharge areas by improving crop productivity n Piloting methods to compensate communities that protect ecosystems TARGETED RESEARCH n Demonstrating improved land management practices via partnerships with land users n Developing/providing information, knowledge, and tools to assess land degradation costs and SLM benefits Source: Adapted from OP 15 2003. 4 SUSTAINABLE LAND MANAGEMENT ACTIVITIES (OP15) WITHIN THE WORLD BANK projects that result in long-term sustainable improvement ment via reducing desertification and other types of in the environment. land degradation; n fact that SLM is a vital component of poverty reduction;. Examples of eligible GEF activities and incremental n importance of nonfarm economic growth; and the actions and associated baseline actions supported by n need to foster an enabling environment for sustainable country/partner funding are listed in Table 1. rural growth. OP 15 expressly links poverty and the global environ- The Bank's 2001 Environment Strategy, Making Sustainable ment, acknowledging that sustainable solutions require Commitments, seeks to contribute to measurable poverty packages of finance to support interventions that address reduction by enhancing people's livelihoods, improving both dimensions. management of natural resources, and reducing the risk and vulnerability of the poor to natural hazards. Specifically, the strategy aims to improve the quality of Related World Bank Policies and life through: Strategies n sustainably managing natural resources such as land, The objectives of OP 15 are directly aligned with many core and, World Bank policies and strategies that address poverty n reducing vulnerability to environmental hazards such reduction, rural development, and sound environmental as droughts. management. The economic and environmental benefits of SLM are aligned with the Millennium Development Goals The Bank's 2002 Forest Policy, Sustaining Forests: A Development (MDGs). While general economic development will help Strategy, emphasizes the: attain many MDGs, SLM is directly aligned with three of the goals: n potential of forestry programs to reduce rural poverty within the management and sustainable use of forests; n Eradicate extreme poverty and hunger. n role of forests in protecting vital local and global envi- n Ensure environmental sustainability. ronmental services; and, n Develop a global partnership for development. n possibilities of integrating forest and woodland devel- opment in sustainable economic development. The World Bank has aligned its global and regional strategies with the MDGs. The following revised policy and strategy state- The Bank's 2004 Water Resources Sector Strategy (World ments have components directly relevant to OP 15 objectives. Bank 2004a) relates to SLM by emphasizing: The World Bank's 2003 Rural Development Strategy, Reaching n terrestrial services including management of forests and the Rural Poor, recognizes the: land in critical watersheds; n need to enhance sustainability of natural resource manage- n aquatic services; 5 n transboundary, shared basins, and watershed manage- n Inappropriate land management practices will result in ment issues; and suboptimal outcomes in poverty reduction, environmental n security against climatic variability (droughts and floods). management, and food security interventions. These strategy papers all, to varying degrees, identify land From an operational point of view, a number of major degradation issues as important and requiring attention. physical, social, economic, and organizational challenges Given the synergies among OP 15; the MDGs; and World must be overcome to effectively introduce SLM. The major Bank's rural development, poverty reduction, water, forest challenges are: and environment strategies, there are numerous opportuni- ties to work cooperatively on SLM projects. Complexity. The interrelated social, economic, and biophys- ical factors that result in poor land use and, ultimately, land degradation are difficult and complex. Dynamic economic and climatic conditions add to this complexity, Challenges and as can political and cultural norms that influence such Approaches to Achieve features as land tenure and participatory action. This Sustainable Land complex socioeconomic/ecosystem link provides both a significant opportunity for economic development and Management for ecosystem protection through SLM, but it is also the core challenge. Extent. Land degradation is extensive. Therefore, protecting, Several major global challenges are posed by land-degra- rehabilitating, and improving broad areas in the medium to dation-related issues: long term requires considerable resources. Resource limitations will dictate that some areas or forms of severe degradation do n Agricultural land is a scarce resource; yet, world food not warrant rehabilitation, because the economic and biophysical needs will more than double by 2050. resource return per dollar invested is low compared with n Agricultural expansion and inappropriate practices investment return from less degraded sites. In addition, constitute one of the biggest threats to biodiversity loss the benefits from SLM are economic and physical, at all levels (species, habitat, ecosystem). localized and dispersed. As a result, they may not be n The degradation of land threatens agricultural productivity fully recognized nor easily quantified, making it difficult and food security and impairs the capacity of ecosystems to establish the full return on investment and justify addi- to provide critical environmental services. tional funding when considered against other types of n Although land degradation activities are scale dependent investment. (that is, local), their cumulative effects make them an issue on regional and global scales that requires partnerships Distribution. Land degradation is usually widely dispersed and collective actions. and commonly located in remote rural areas that make the 6 SUSTAINABLE LAND MANAGEMENT ACTIVITIES (OP15) WITHIN THE WORLD BANK provision of services difficult. Additionally, natural resource of women and other disadvantaged groups, such as the degradation rarely stops at an administrative boundary; landless, nomadic pastoralists, in local decision-making thus, project administration often requires the involvement may be difficult to achieve. of more than one commune, district, or country. Ownership, poverty, and participation. Land users are the Requirements, Project Design, and ultimate "owners" of land degradation mitigation measures Implementation Methods for SLM as it is their day-to-day actions that usually have the greatest impact on ecosystem health and they are the group most Based on a rapid review of Bank natural resource manage- affected by economic loss caused by degradation. Thus, ment projects across the regions, the following underpinning broad-scale SLM can be achieved only if land users have the requirements and successful project design and implemen- incentives and means to improve their land-use practices. tation methods emerged. The poverty trap that grips many land users makes it diffi- n Long-term political commitment that supports policy change cult for them to take steps toward more sustainble land-use and commits to the necessary level of investment. despite the often obvious medium- to long-term incentive of n Coordinated actions at national and local levels. This increased production. Subsistence land users do not have requires cross-sectoral cooperation within the country the capacity to invest in long-term remediation, nor will as well as within the World Bank, with cooperation they adopt new practices if these practices might jeopar- encouraged at senior levels and rewarded at the dize food on their tables, no matter how good the longer- operational levels. To coordinate efforts and mobilize term benefits may be. Nevertheless, the mobilization of the quantity of resources required, strong partnerships land users is crucial to achieving SLM, since, ultimately, it need to be developed among host countries, World is their long-term decisions and practices that will deliver Bank operational units, other donors, nongovernmental ecosystem health or degradation. organizations (NGOs), local community leaders, and participant farmers. These partnerships must be based In addition, the community and ecosystem benefits derived on clearly defined roles for each partner in order to from some land protection or rehabilitation actions­­such coordinate and mobilize the quality and quantity of as improvement in city reservoir water quality or protection resources required for the interventions. of forest biodiversity­­may accrue primarily off-site to non- n Watershed or land-unit-based interventions that land users. In such cases, the incentive for local land-user match natural resource areas and processes, land use, investment of time or capital may be low. and degradation. n Site-specific and simple project design tailored Political, institutional, and cultural norms can place restric- to local and national conditions, taking account tions on land-user participation in SLM. For example, land of the interrelationships among socioeconomic users with poor, inadequate, or no land tenure are less likely and biophysical factors that comprise the land to invest effort in restoration efforts. Thus the participation management system. 7 n Multisectoral/multidisciplinary project approach to the achievement of objectives. Although it is difficult to natural resource management and poverty alleviation. measure the quality of capacity building and community Collaboration among the main disciplines/agencies is participation in decision-making, in the absence of any crucial for delivering sustainable outcomes. attempts, quality is likely to receive less attention as n Generally long-term projects to produce sustainable project teams become preoccupied with meeting progress change with resilient outcomes that will survive the end on quantitative targets. of the project and can survive or adapt to changing n Flexible project budgeting to accommodate participatory economic conditions or harsh climatic periods. project implementation, not constrained by predetermined n Project actions centered on land-user participation, outputs but relying on demand-driven identification providing land users with the incentives and means of activities. to improve their practices. To effect change, adequate n Targeting the poorest segments of society through resources and enabling conditions must be in place. clear monitoring mechanisms and strong engagement Actions must balance the benefits to land-user livelihoods with tribal organizations where traditional community and ecosystem health, delivering short-term economic structures exist. benefits to participants to provide an immediate incentive for change. n Use of "artificial" project-sponsored incentives to generate land-use change restricted to required catalytic actions that lead to voluntary long-term land-use change. Integrating SLM into n Focus on building applied capacity based on an assessment of institutional capacity in relation to project design. Bank Lending Adequate initial training and capacity building is a prerequisite to start up activities requiring beneficiary participation. The Bank's commitment to the various sector strategies n Dissemination of information about the benefits of and Millennium Development Goals sets the scene for a improved land management to achieve cost-effective, significant increase in investment in SLM. SLM can make broad-scale introduction of sustainable management a large contribution toward reducing poverty, primarily in practices through the voluntary adoption by land users rural areas through improved sustainable production and outside the project area. by lowering the risks associated with reliance on natural n Innovative, complex, and process-oriented Bank interventions resource use. At the close of FY 2004, the total active proj- given strong oversight and constant Bank management ects with Environment and Natural Resources Management to ensure that implementation is aligned with design (ENRM) content amounted to US$11.2 billion, constituting and scope and that Bank procedures and policies are 12.2 percent of the Bank's total active portfolio. During the strictly met. same year, global Bank investment in Land Management n Performance indicators designed upfront to monitor (SLM) accounted for US $1.6 billion, 14 percent of total and track qualitative and quantitative progress toward investment in ENRM (World Bank 2004). 8 SUSTAINABLE LAND MANAGEMENT ACTIVITIES (OP15) WITHIN THE WORLD BANK While each of the Bank's sector strategies contains commit- ment and approaches to achieve SLM, these strategies have Private Sector for the most part not yet been integrated into a compre- hensive approach to SLM. The infusion of a comprehensive Involvement approach to SLM into these sector strategies is a required enabling action. The private sector, particularly small and medium enter- Incremental funding under OP 15 provides for grant money prises (SME), can become involved in SLM activities in attached to World Bank loans and or grants. In addi- a number of ways. One feature of the World Summit tion, GEF Block B grants1 for project preparation are an on Sustainable Development was an extensive review of important means of gaining the strong participation of host private sector involvement in sustainable development, countries and communities, hence their commitment to the though little of this discussion focused on SLM issues. proposed interventions. However, the following potentials exist for complemen- tary SME investment: In many instances, a focus on SLM has not yet been incor- porated in country macro-perspectives. A portion of poverty Project loans for support infrastructure such as water control reduction strategy papers (PRSPs) and country assistance technologies, marketing facilities, and communication tech- strategies (CASs) attention needs to be focused on SLM. nology. For example, small loans for the development of While many countries clearly identify the destruction of pump and irrigation maintenance and control could form natural resources, and in particular land degradation, as a project component. a major issue, this recognition has not been clearly inte- grated in assistance responses. Micro loans for technological support to small enterprises to provide employment opportunities in rural townships, There is a case for greater representation of natural resource which often provide needed services to the farmer. and SLM expertise at the country planning level, both from country and World Bank perspectives. SLM activities Market-oriented or local processing as a component of an demand a linked, or integrated, approach at all levels. This SLM activity to increase yields. approach requires that national or regional- level policy issues be intertwined with local-level land, water, and Private sector investment in clean water supply to rural settle- resource management. In turn, it is important to have an ments, clean water being a key component of environmental understanding of the potentials and limitations of markets health improvement and improved labor productivity. and technology and their contribution to SLM. The more various sector strategies that can be frameworked into At a landscape scale, re-vegetation and rehabilitation of a project context, the better. Generally, a sequence of degraded lands can bring into play the issue of carbon actions delivers better project outcomes than a set of credits and returns for investment in specific environ- complex, parallel activities. mental services. 1 These are grants provided to assist in project development, up to $350,000 for a single country project and up to $750,000 for multi-country projects. 9 Some examples of actual private sector involvement in Box 1. Connecting Indian Small Scale Farmers SLM are: to Markets n Multilateral Investment Guarantee Agency (MIGA)- Many Indian producers remain poor in part due to system-wide guaranteed loan support for a coffee processing facil- regulatory inefficiencies that allow middlemen to exploit them. ity in Uganda ($7 million) and a flour mill in Guiana For instance, soybeans are exempted from India's Small Scale ($9 million). Industries Act to allow for processing in large, modern facilities, yet 90 percent of the crop is sold by small scale farmers who n Development of private sector Amelioration Associations have only a vague idea of price trends, and must sell their (AAs) in Georgia to manage irrigation and drainage. soybean crop at the price offered by traders at auctions. n World Bank-supported development of community forestry in Mexico primarily by making private sector To enable farmers to better negotiate with these traders, a technical assistance available to indigenous communi- private company (ITC ­ India's largest tobacco company) ties who own forest land. established E-Choupals (Choupal is a Hindi word meaning n Support Fund to help farmers work with micro-finance a meeting place in a village where informal assembly takes place to share and discuss issues), which links rural poor institutions (Bulgaria). farmers to market information via the Internet using a VSAT or phone connection (The Economist. June, 3rd 2004). Finally it is crucial to note that policies and incentive Internet-enabled PCs were placed in homes of selected systems will ultimately and decisively determine private sector farmers in the rural hinterland allowing them to find prices involvement in SLM. For example, in India, a large private of soya prevailing in local and international markets, as tobacco company initiated a project that gave small scale well as what ITC is ready to pay at its local buying centers. Hence, the farmer need not travel to find the price. soya farmers computer access to accurate market prices for their crops, thus enabling them to better negotiate with The e-Choupal system allows farmers to access information local buyers (See Box 1.) This case illustrates one of many that gives them more control over their choices. They have innovative opportunities. used this information to achieve a higher profit margin on their crops (on average a higher margin of US$ 6 per metric ton For many SLM projects, removing barriers to private sector of soy), cheaper procurement of farm inputs, and improved participation and development may be the most critical productivity. In mid-2003, e-Choupal services reached more than 1 million farmers in nearly 11,000 villages. The component. Producers will not engage in SLM if it is unprof- computer, typically housed in a selected farmer's house, serves itable due to system-wide policy distortions. A concerted an average of 600 farmers in 10 surrounding villages within long-term effort to create better policy and regulatory envi- about a 5 kilometer radius. In areas covered by e-Choupals, ronments, as well as better capacity is probably needed to the percentage of farmers planting soy has increased 50­ 90 engage the private sector in SLM. The most viable forum percent, while the volume traded in formal market auctions has to achieve this reform and scale-up successful experiences dropped by 50 percent (i.e., much of the soy volume is sold via the e-Choupals). In addition to soya, e-Choupals provide would be through demand-driven partnership programs. information on wheat, coffee, and aquaculture (shrimp). 10 SUSTAINABLE LAND MANAGEMENT ACTIVITIES (OP15) WITHIN THE WORLD BANK Summary the design and implementation of SLM operations for local and global benefits. SLM is complex and there is not one optimal way to achieve it. But with clear analysis of socio-economic and environmental costs and benefits and due attention to Land degradation is widespread, affecting approximately 23 watershed communities, SLM can contribute to lasting poverty percent of land under human use and placing stress on the reduction and enhanced natural resources management. livelihoods of over 1 billion people in developing countries. It is critical not to overestimate (or underestimate) the bene- Land degradation was designated a GEF focal area in fits and costs of SLM operations. Rigorous, continuous and 2002 in response to the recognized need for greater independent analysis, should underpin any major invest- action. The GEF Operational Program on Sustainable Land ments in SLM. Only by making a transparent "business Management (OP 15) provides a framework for the incre- case" will stakeholders at local and national levels invest mental financing of activities to address "the root causes in such programs. SLM should not become entirely reliant and negative impacts of land degradation on ecosystem on external support. integrity, functions and services as well as on people's livelihoods and economic well-being through sustainable The main challenge for SLM programs is to design appro- land management practices" (GEF 2003). priate sliding-scale incentive systems that allow producers to adopt practices and technologies that maintain or enhance The dual socioeconomic and ecosystem benefits of halting their productivity while maintaining ecosystem integrity or reversing land degradation are directly aligned with three (on which their productive practices depend). Designers of the Millennium Development Goals: eradicate extreme of such systems should ensure that their systems: (a) are poverty and hunger (no. 1); ensure environmental sustain- not captured by special interest persons or groups; (b) ability (no. 7); and develop a global partnership for devel- are targeted and focused on providing farm-level AND opment (no. 8). Given this fortunate synergy, it is timely for public/watershed-level goods and services; (c) do not the World Bank to focus on SLM with its partners. create a perverse incentive; and (d) are not too prone to the free-rider problem. The introduction and promotion of SLM faces the challenges of problem complexity due to the interplay among social, The potential exists for private-sector involvement in SLM economic, and biophysical factors, the fact that the areas through project loans for support infrastructure, micro loans affected by degradation are extensive and remote; and the for technological support, market-oriented or local processing difficulty of getting land users who are trapped in poverty and private-sector investment in clean water supply. to invest in new land use practices that may not have an immediate economic benefit. In fewer than 25 years, global food demand may double, driven by income and population growth. Hence, rural Each Bank Region has many successful SLM models. This development and agricultural sector interventions that paper shares information and experiences that might inform contribute to national economic development and to 11 meeting global food needs, consistent with economic efficiency and environmental sustainability, provide a key entry point for GEF interventions. The food security-environment-poverty linkages in many developing countries and rural areas are mediated largely through the way land resources are allocated, accessed, and used. Hence, sustainable land management (SLM) is a critical vehicle for alleviating poverty, improving manage- ment of natural resources, and strengthening the asset base of the poor. The Bank as Implementing Agency of the GEF should continue operationalizing GEF's Operational Program Number 15 on Sustainable Land Management to: (a) main- stream SLM issues in national development strategies; (b) design high-impact interventions that add value to ongoing initiatives while providing tangible and measurable local and global benefits; (c) provide significant cofinancing from the institution's lending envelope; and (d) catalyze and scale-up country-level and cross-sectoral multistakeholder partnerships for implementing SLM interventions. 12 SUSTAINABLE LAND MANAGEMENT ACTIVITIES (OP15) WITHIN THE WORLD BANK Any attack on rural poverty in Africa must include a sub- stantial component that addresses achieving SLM. The Bank's Regional environmental priorities identify land deg- radation issues as particularly important in the Sudano- Sahelian zone, Eastern Africa, and Southern Africa and in the Indian Ocean Islands. Appendix A The 2003 Rural Development Strategy for Africa, "From Action to Impact," emphasizes four pillars, all of which relate Regional Perspectives directly to SLM: making governments and institutions work and Opportunities better for the rural poor; promoting widely shared growth; enhancing management of natural resources; and reducing risk and vulnerability. Approximately 70 percent of Sub-Saharan Africa's (SSA) households are engaged in food crop and nonfood crop This appendix summarizes land degradation and sustain- production for their livelihoods. Yet, at the end of FY able land management (SLM) strategies and opportunities 2004, total environment and natural resource manage- for each of the six World Bank Regions. It includes a table ment (ENRM) investments in SSA amounted to US $1.1 summarizing natural resource management projects in each billion with land management investments accounting for Region, describes a sample project in each Region to il- only 10 percent of this, well below pollution management lustrate the range of eligible actions and how they can be (30 percent) (World Bank 2004b). Given the obvious im- integrated into a coordinated package. portance of land-related activities to most communities in SSA, there is a need to enhance the operational sphere of SLM interventions at local, national, and transbound- ary levels. The GEF's OP 15 provides one such vehicle Sub-Saharan Africa by which to strategically (and selectively) increase the profile of SLM interventions in a region that is heavily Land and its associated natural resources are vital to dependent on sound land management for sustainable the well-being of most Africans. Despite rapid urbaniza- growth and poverty alleviation. tion, over 60 percent of Africans still live in rural areas, while many urban poor rely on natural resources for at Regional Challenges and Opportunities least part of their incomes. Approximately 70 percent of the cultivated land in Africa suffers from some sort of A review of selected PRSPs for Africa, all completed with- degradation, with one-fifth of this affected area classed in the last two or three years, suggests that a focus on as severely degraded. SLM has not yet been incorporated in this component of 13 the country perspectives. Much the same is true for the Sample Project: Burundi Agricultural CASs that were reviewed. In several countries, Niger, Rehabilitation and Support Project for example, the destruction of natural resources is a clearly identified major issue. However, this recogni- Agriculture and rural development is the prime mechanism tion is not directly or visibly integrated into the Bank's available to move Burundi away from its state of poverty. The assistance responses to these countries. Clearly, one Burundi Agricultural Rehabilitation and Support Project illustrates strategy is to refocus some of the PRSP attention on SLM. how GEF funding can enhance core rural development. It is also crucial that many sustainable land management projects in Africa need to deal with land use and land The project appraisal document notes that Program activi- and tenure issues (See Table A1.) ties are designed to scale up the successes of a FAO-sup- ported pilot program. To ensure sustainability, however, it Drought is a continent-wide risk in Africa. In many SSA is essential to support this immediate development action countries, droughts present a significant challenge to by improving land use and addressing land degradation rainfed and irrigated agriculture (crops, livestock, inland in critical watersheds and improving the management of fisheries, etc) and pose a significant barrier to investments wetlands that are affected by encroaching agriculture. for producers in rural space. In addition, global climate Unsustainable agricultural practices and deforestation in change is projected to lead to more frequent and extreme Burundi impact on globally significant resources including droughts. Therefore, helping producers who are heavily forest reserves, Lake Tanganyika, and the extensive wet- dependent on rainfed agriculture adapt to droughts and lands (including RAMSAR sites) straddling the boundaries climate change would help reduce their vulnerability to with adjacent countries.2 The government lacks sufficient such exogenous shocks. Inadequate investment in drought resources to address these issues adequately. mitigation implies that the potential to sustainably increase agriculture productivity in affected areas would not be GEF involvement will enable the project to support invest- achieved and the macro-economic disruptions that fol- ment and capacity building programs that will `go the extra low droughts will continue to keep national growth rates mile' beyond the baseline loan in promoting sustainable below the levels desirable for alleviating poverty (Esikuri land use. The project will help the government establish sus- 2005). Unfortunately, few SSA countries have made the tainable land management systems to preserve the structure transition from drought disaster/crisis management to and functional integrity of the wetlands ecosystems, and to drought risk management. Consequently, to lessen the stabilize soil loss and sediment accumulation in international impacts of periodic drought, SLM may need to address waters. Introduction of improved land use and agricultural drought through combined crop, tree crop, and livestock practices, and soil and water management measures will strategies; rainwater harvesting; small-scale irrigation; help sustain livelihoods, reduce pressure on critical fragile and cross-boundary grazing agreements. Drought plan- marshlands, help maintain hydrological cycles affecting ning at national and local levels is an important part of global water resources, and contribute positively to carbon drought risk management, and this should form a basic storage in forest and wetland sinks. Institutional and hu- element of SLM interventions in SSA. man resource capacity will be strengthened, the property 2.The Convention on Wetlands, signed in Ramsar, Iran in 1971, is an intergovernmental treaty that provides the framework for national action and international cooperation for the conservation and wise use of wetlands and their resources. There are presently 146 Contracting Parties to the Convention, with 1458 wetland sites, totaling 125.4 million hectares, designated for inclusion in the Ramsar List of Wetlands of International Importance. Source: www.ramsar.org. 14 SUSTAINABLE LAND MANAGEMENT ACTIVITIES (OP15) WITHIN THE WORLD BANK Table A1. Sub-Saharan Africa Regional SLM Project Examples PROJECT TYPE MAIN COMPONENTS REGIONAL PROJECT EXAMPLES Natural resource management n Land-use planning at local level n Mali Community Land Management linking pastoral and agricultural n Production and market development Project (before scaling up) land use for poverty reduction for livestock and crops n Kenya Arid Lands Resource Management Project n Water management n Capacity building n Institutional policy framework Combined watershed management n Improving ground cover on vulnerable slopes n Burundi Agriculture Rehabilitation and agricultural production n Improved water management and small- and Support Project scale water retention for crops n Rwanda Rural Sector Support Project n Small-scale woodlands in critical areas n New tillage and conservation agriculture n SME loans for market development and services Community and sustainable n Sustainable use of wood and other forest products n Ghana Natural Resource Management Project forestry for poverty reduction n Economic pricing of forest products n Tanzania Forest Conservation n Land-use planning to reduce soil loss and sedimentation and Management Project n Capacity building n Cote d'Ivoire Rural Land Management n Development of appropriate market structures and Community Information Project n National and regional policy n SME loans for market development Reduction of vulnerability to n Local level land-use planning n Chad National Transportation drought through SLM n Water and groundwater management Program Support Project n Introduction of new tillage methods n Ethiopia Agricultural Research and Training Project n Crop marketing n Ghana Northern Savanna Biodiversity n Capacity building Conservation Project n Information management n Development of information exchange Linking conservation and production n Community-based planning to include conservation areas n Mozambique/Zimbabwe Frontier systems through sustainable tourism n Agricultural production as part of Conservation Areas Program ecosystem management n Madagascar Biodiversity Conservation Program n Land use and information planning at general and local levels n Capacity building n Watershed protection n SME loans for business development 15 Table A2. Middle East and North Africa Regional SLM Project Examples PROJECT TYPE MAIN COMPONENTS REGIONAL PROJECT EXAMPLES Sustainable land management to mitigate n Integrated land and water management n Tunisia Water Sector Investment Project the impact of recurring drought n Small-scale irrigation n Morocco Irrigation-Based Community n Development of water user associations (WUAs) Development Project n Livestock management and selective marketing n Capacity and institution building n Promotion of private investment in water and agriculture Community-based irrigation and n Land-use planning involving grazing and animal n Yemen Irrigation Project integrated land use for dry areas husbandry on drylands and irrigation on small plots n Egypt Matruh Resource Management Project n Assessment of sustainable water use n Yemen Ground Water and Soil Conservation Project n Development of community management through WUAs n Marketing support through SMEs n Micro and SME financing to develop alternative livelihoods in rural areas Community sustainable forestry n Land-use planning for forestry, pastoral, n Tunisia NW Mountainous Areas Development Project development and poverty alleviation and agricultural activities n Morocco Forestry Development Project n Capacity building in local communities n Institution building for sustainable activities n Loans for SME marketing structures n Rural infrastructure Integrated watershed management to n Land-use planning for environmental n Iran Integrated Land and Water alleviate rural poverty and improve improvement and economic growth Management Project environmental management n Revegetation of hillslopes in sustainable production n Morocco Lakhdar Watershed Management Project (forest products, silviculture, fruit trees) n Algeria Pilot Forestry and Watershed n Intensive agriculture with local irrigation on lowlands Management Project n SME loans for product development and marketing n Rural infrastructure Sustainable land management n Soil conservation technologies n Lebanon Agricultural Infrastructure based on community involvement n New crop types Development Project in soil and water conservation n Marketing support n Yemen Land and Water Conservation Project n Land-use management n Water-quality improvement n Capacity development n Extension support including SME loans n Rural infrastructure 16 SUSTAINABLE LAND MANAGEMENT ACTIVITIES (OP15) WITHIN THE WORLD BANK rights challenges addressed and the economic productivity Salinization is a significant problem in some irrigated of the land improved on a sustainable basis. areas, but the impact of salinity across the Region has not been satisfactorily quantified. As an example, it is estimated that approximately 35 percent of agricultural land in Egypt is affected by salinization, resulting in the Middle East and North Africa loss of 10­15 percent of potential crop value (World Bank 2002). The Middle East and North Africa (MNA) Region, whose combined population is approaching 300 million, contains Despite the extent of degradation, in 2003 only 6 per- large areas of arid or semi-arid lands and has one of cent of total ENRM investments ($0.7 billion) went into the lowest per-capita water resources Accordingly, water land management activities. This percentage is well be- quality and the reduction of subsurface water supplies are low water resource management (39 percent) and pol- important issues. lution management (36 percent) (World Bank 2004b). The persistent and increasing land degradation issues Land degradation is an important problem throughout the require that MNA consistently address this imbalance in MNA Region, made more intense because of the relatively Land Management investments. More importantly though, small cultivated area (approximately 6 percent). Food self- because land degradation contributes to water pollution sufficiency in the context of growing populations has led and sedimentation, investments in water resource man- to expansion of agricultural land, some of which is under agement and pollution management will not achieve irrigation, and in turn utilizes some 88 percent of the Middle sustainable outcomes if land degradation issues are not East and North African water resource base. simultaneously given adequate attention. Table A3. Yemen Irrigation Improvement Project: A Successful Concept Enabling Framework n WUAs are given progressively more operational and financial control as their responsibilities increase. n The appropriate legal framework is put in place to recognize WUAs as autonomous, self-reliant organizations. n Government agencies have the role of facilitating and assisting WUAs, not directing them Structure n WUAs are based on pre-existing water user groups. n WUAs are created democratically and inclusively through consultations with downstream farmers and other water users. Capacity building n WUAs take responsibility for operations and maintenance (O&M) gradually. n The process of establishing WUAs includes an awareness campaign, user mobilization, and training. n WUAs are firmly established before any physical work takes place. 17 Regional Challenges and Opportunities Land degradation and deforestation are important components of rural area poverty. Central America and the Caribbean pos- Water management and salinization are two key areas in the sess the highest percentage of severely degraded land in all Region in which opportunities exist to improve resource use. of the world's Regions. Twenty-five percent of the land area in the Caribbean is classed as severely damaged, while in South In the Middle East and North Africa, the attention given to America 15 percent falls into this category. Degraded areas the analysis of costs of degradation is particularly helpful in are strongly correlated with rural poverty and, ironically, with enabling countries to direct their own resources to these is- the greatest dependence on the natural resource base. sues. Few countries in the Region have completed PRSPs. Forty percent of the world's natural forest loss in the Increased agricultural production has a key role to play past 30 years has been in LCR. The twin process of in alleviating the widespread poverty often found in land degradation and deforestation has especially rural areas. Despite this, national political issues may pre- impacted two major areas in the Region: the arid and semi- clude land management from being a priority in the near arid areas, including the high Andean Plateau; and the future, while social norms make participatory SLM projects deforested areas of humid regions. This combined degra- difficult to implement (See Table A2.) dation/deforestation covers northeast Brazil, Colombia, and Peru and almost all countries of Central America Sample Project: Yemen Irrigation Project and the Caribbean. The Yemen Irrigation Improvement Project aimed to At the end of FY 2004, total active ENRM lending amount- ensure the sustainable and efficient use of water for ed to $1.4 billion, with land management accounting for agriculture. It focused on developing an appropri- 21 percent of these investments, slightly behind water ate enabling framework and structure, as well devel- resource management (29 percent) and pollution man- oping capacity among community-based water user agement (27 percent). It is clear that the LCR portfolio, to associations (WUAs). The successful project concept is a large extent, has mainstreamed and internalized land summarized in Table A3. management as a priority theme for environment and development investments. Regional Challenges and Opportunities Latin America and the Caribbean Agriculture and the rural sector will remain important in the Statistically, Latin America and the Caribbean (LCR) is Latin America and the Caribbean Region; therefore, SLM the wealthiest of the developing country Regions, but it is will be an important way to directly address rural poverty also the Region with the greatest inequality. Although 75 there. More localized issues include cross-boundary coop- percent of the population resides in urban areas, much eration on the use of ground water in South America and of the poverty occurs in rural areas. forest management in Brazil. 18 SUSTAINABLE LAND MANAGEMENT ACTIVITIES (OP15) WITHIN THE WORLD BANK Table A4. Latin America and the Caribbean Regional SLM Project Examples PROJECT TYPE MAIN COMPONENTS REGIONAL PROJECT EXAMPLES Community-based watershed management Integrated land use and management incorporating: n Brazil - Parana Watershed Project including watershed protection, n Hilltop and hillslope protection with forestry or n St. Lucia Watershed and Environment increased agricultural productivity agroforestry while achieving sustainable production Management Project and improved water management n Downslope management of water to reduce flooding and enable n Dominican Republic Irrigated Land dry-season irrigation and field watering (including aquaculture) and Watershed Management Project n Improved crop varieties n Modest support loans for SMEs n Capacity building n Institutional strengthening Community-based sustainable n Land-use management n Costa Rica Biodiversity forest management n Sustainable forest production Resource Development n Marketing support n Mexico Community Forestry II n Targeted research on sustainability n Technical support from SME n Development of new income sources n Land tenure rationalization Dryland rehabilitation and sustainable n Water retention and management n Brazil - Ceara Integrated Water land and water management n Land tenure rationalization Resource Management Projecta for crops and livestock n Agriculture research n Brazil - Ceara Rural Poverty n Land-use planning including small scale irrigation Reduction Project n Crop and livestock marketing support n Chile - Secano Rural Poverty n Alternative livelihood generation Alleviation and NRM Project n Community participation n Mexico Rural Development in n SME water management and marketing Marginal Areas Project Sustainable land management n Slope revegetation n Brazil - Parana State Soil and based on community involvement n Local watershed management Water Conservation in soil and water conservation n Soil conservation technologies n Brazil - Santa Catarina Natural n New crop types Resource Management and n Marketing support Poverty Reduction Project n Land-use management n Peru Agricultural Research and Extension n Water quality improvement Land-use planning to alleviate natural n Land-use assessment to determine vulnerable areas n Mexico Natural Disaster disasters and n Slope revegetation with sustainable forestry and/or agroforestry Management Project reduce rural poverty n Small-basin water management n Nicaragua Natural Disaster n Capacity building Vulnerability Reduction Project n Marketing support through SMEs n Information exchange n Training Private sector support for SLM in n Identification of opportunities for private/public n Mexico Regional Private Latin America and the Caribbean partnerships in individual countries Sector Development n Loans for private-sector support of community-based small farms n Farmer management training n Marketing links with commercial sector n Cooperative formation n Private-sector infrastructure support for SLM n Micro-financing support 19 The World Bank has emphasized the political economics landscapes; (c) increase carbon sequestration in ripar- of water reform and the use of innovative technical and in- ian forests and in agricultural soils; and (d) contribute to stitutional models to deal with water and soil management the conservation of biodiversity of global importance by on small watersheds (See Table A4.) planning and implementing corridors of native riparian forests to connect fragments of remaining native veg- The 2001 United Nations Food and Agriculture Organization's etation, and by capacity building activities that enable (FAO) analysis of farming systems identified the challenges long-term biodiversity conservation. to overcoming increasing levels of natural resource degra- dation in the region as: The principal project activities will involve: (a) improv- ing the relevant policy, legal and regulatory frameworks n Sustainable management of natural resources and the to facilitate future implementation of payment mecha- reversal of resource degradation, both in established farming nisms for environmental services rendered by riparian systems with high population densities, and in frontier forests; (b) testing and validating ecosystem restoration areas where significant growth is anticipated. practices and improving seedlings production capacity n Improved access to, and control over, land by poorer to support future large-scale restoration of riparian for- rural populations. ests; (c) implementing on-the-ground investments for the n Increased capacity of farming systems, and their smaller field testing of sustainable land management practices producers, to respond adequately to globalization and to reduce pressure on and restore agro-pastoral lands market development. and riparian ecosystems, while at the same time plan- ning and implementing corridors of native riparian for- Sample Project: Brazilian Ecosystem Restoration ests as a means of connecting fragments of remaining of Riparian Forests Project native vegetation; (d) improving institutional and com- munity capacity to address land degradation issues and The Brazil Ecosystem Restoration of Riparian Forests in support sustainable land management; (e) improving São Paulo project´s development objective is to foster institutional capacity to coordinate cross-sectoral inter- the development of adequate tools and mechanisms to ventions, to monitor project impacts and to disseminate facilitate future large-scale restoration of riparian forests lessons and exchange information. throughout the State of São Paulo, both in the Atlantic Forest and Cerrado Biomes, while providing opportu- The project's principal outcomes will be: (a) a compre- nities for improved livelihoods in rural communities. hensive policy and regulatory framework supporting The GEF related (OP 15) global objectives of this proj- the implementation of payment mechanisms for services ect are to: (a) stop and reverse land degradation pro- rendered by riparian forests; (b) adapted models/prac- cesses in the State of São Paulo, with special focus on tices for ecosystem restoration and increased capacity riparian ecosystems, both in public and private areas; for seed retrieval and seedlings production; (c) adapted (b) restore the structure, function, and ecosystem services sustainable land management practices to reduce pres- of riparian forests located within productive agricultural sure on and restore agro-ecosystems and riparian forests 20 SUSTAINABLE LAND MANAGEMENT ACTIVITIES (OP15) WITHIN THE WORLD BANK to be implemented in at least 10 pilot/demonstrative mi- The national benefits of this project include: (a) better cro-watersheds; (d) strengthened institutional and com- quality and quantity of water for local consumption through munity capacity to address land degradation issues, and restoration of degraded lands and the resulting decrease increased public awareness of the importance of and in erosion rates and sediment flow into water bodies; (b) need to adopt/support sustainable land management; reduced local rural poverty through the adoption of sustain- and (e) improved institutional capacity to coordinate able land management practices in small rural properties, cross-sectoral interventions and to monitor and dissemi- leading to increased soil productivity and new possibilities nate project impacts and results, respectively; and (f) a to obtain financial resources derived from environmental long-term Riparian Forest Restoration Program (PRMC) services rendered by riparian forests; and (c) increased designed by end of project, drawing lessons from the capacity for implementing cross-sectoral approaches to land proposed project. management, including improved outreach and involvement of civil society and the private sector in natural resources The global benefits of the GEF alternative include: planning and management. (a) increased opportunities for conservation of biodiver- sity and carbon sequestration through the development and adoption of a comprehensive policy and regulatory framework supporting the implementation of payment Europe and Central Asia mechanisms for services rendered by riparian forests; (b) enhanced ecosystem integrity as a consequence of the The Europe and Central Asia (ECA) Region has diverse adoption of improved land management and restoration environmental problems. In the Baltic and Central European practices, both in productive landscapes and in riparian countries, the critical problems have been chemical and areas, which results in decreased soil erosion, increased petrochemical pollution. However, even within this group carbon sequestration, and improved conservation and of countries, some economies, including Albania and sustainable use of biodiversity; (c) enhanced ecosystem Turkey, rely heavily on their natural resource bases. In integrity through implementation of corridors of native Turkey, the management of land and water resources riparian forests of global importance that connect fragments is critical for poverty alleviation and for the national of remaining native vegetation; (d) restoration of globally economy itself. important ecosystems, including through decreased flow of sediments into streams, rivers, and estuaries (mostly SLM is most important in Central Asia and in the Caucasus, the estuaries of the Paraíba do Sul and the La Plata in which arid land and water management issues also rivers), with positive impacts on conservation of aquatic are deemed critical. Land degradation, including the sa- biodiversity; (e) improved capacity for seed retrieval linization of irrigated lands, is a major issue associated and production of seedlings of native riparian species; with poverty and the sustainability of rural populations. and (f) an established riparian forests monitoring and An estimated 6 percent of the irrigated area has highly evaluation system incorporating global concerns to the saline soils, while water tables are within 2 meters of the baseline monitoring and evaluation activities. surface in approximately 35 percent of the area. 21 Table A5. Europe and Central Asia Regional SLM Project Examples Project type Main components Regional project examples Rehabilitation of irrigation schemes linked n Land-use planning for irrigated and rainfed production n Kgrgyz On-Farm Irrigation Project with integrated land-use planning of locality n Increased capacity to manage irrigation and drainage n Georgia Irrigation and Drainage n Community organizations establishment Revitalization Project n Local marketing and service sector development n Change of principal water management policies where necessary Watershed management and n Integrated approach to land-use management n Turkey - Anatolia Watershed rehabilitation to reduce rural poverty for agriculture, grazing, and forestry Rehabilitation Project n Local community development n Tajikistan Community- Oriented n Land-use planning Watershed Development Project n Slope stabilization through revegetation n Improved pasture n New crop varieties n Market infrastructure through SME loans and grants Sustainable community forest n Improvement of rural income and environmental management n Armenia Natural Resources Management management in mountainous areas n Land-use planning to allocate areas for forest retention or and Poverty Reduction Project (Rural Loan) development and lands for pasture and/or agriculture n Turkey - Eastern Anatolia Watershed n Revegetation of steep slopes Rehabilitation Project n Community management n Capacity building n Alternative livelihood investments (forests products, tourism) n Loans for SMEs n Policy changes on local control and prices SLM directed at improving agricultural n Land-use planning and management n Estonia Agricultural Project productivity through integrated approaches n Land tenure change to private ownership and with strong community participation n Agriculture extension services n Marketing support n Capacity building to manage private farms 22 SUSTAINABLE LAND MANAGEMENT ACTIVITIES (OP15) WITHIN THE WORLD BANK It is estimated that SLM is a priority in one-third to one-half rate of return (ERR) of 16.8 percent with many additional of the countries in the Region in terms of poverty alleviation unquantified and offsite socio economic, institutional and and balanced economic growth. For this whole Region, water environmental benefits. management is a key priority in terms of water supplies for people and for agriculture. However, achieving sustainable Approach: The project adopted a demand-driven (as dis- water management is a critical environmental issue that tinct from a target-driven) approach, implemented through cannot be satisfactorily dealt with unless combined with participatory micro-catchment (MC) planning. Micro-catch- sustainable land management. ments contain anywhere from three to 10 villages and 3,000 to 7,000 people. The diversity of the micro-catchments in At the end of June 2004, the active portfolio of ENRM terms of both ecological and socio-economic conditions and lending in ECA was $1.6 billion, with land management the attitudes of communities affected the scope and scale of accounting for 22 percent of this total, slightly behind interventions. The project is noteworthy for having focused pollution management (29 percent) and water resource on quality, rather than aiming at simple area targets, and management (25 percent). the project showed considerable flexibility which allowed learning throughout the term of the project. Regional Challenges and Opportunities Scope: From its original design embracing 54 MCs in three Not all countries in the Region have placed sustainable provinces, the project expanded in 1998 to include a further land management high on their priorities. In most of 18 MCs in three additional provinces. In 1999, it expanded the Region's Poverty Reduction Strategy Papers (PRSPs) further, bringing its overall scale to a total of 88 MCs in 11 SLM was not addressed in a priority fashion or main- provinces. These micro-catchments cover some 600,000 streamed with other environmental issues. Instead, water hectares and are home to 300 villages and a population and pollution issues dominated the discussion. Clearly, of over 200,000 people in eastern Turkey. for countries in which land and resource degradation is important, addressing the issue through the PRSP process ERR: The March, 2002 project implementation comple- is an important first step. In this Region, a strong link- tion report (ICR) found the ERRs for the various agricultural age between water and sustainable land management activities ranged from 18.4 percent for the agronomic pack- strategies is important to achieving sustainable growth age subcomponent to as high as 32.9 percent for gully (See Table A5.) horticulture and 31.4 percent for apiculture. The forestry- administered activities generated ERR ranging from 9.5 per- Sample Project: Turkey's Eastern Anatolia cent for the oak coppice rehabilitation to 20.3 percent for Watershed Management Project the rangeland rehabilitation. The ERR for the project as a whole has been assessed at 16.8 percent. However, this This project was designed to generate social, economic and analysis is conservative since it takes no account of other environmental benefits, based on rehabilitating degraded benefits such as the likely increase in the economic life of watersheds in Anatolia, Turkey. It achieved an economic dams in the project area through reduced sedimentation. 23 Nor does the analysis take into account the likely falls in The Region's environmental problems include resource deple- productivity due to declining soils fertility in the absence of tion and ecological degradation; indoor and urban air pol- the project. lution; lack of access to clean water; toxic and hazardous agro-industrial waste; and vulnerability to natural disasters. Stakeholder assessment: When the provincial agencies Major environmental health issues account for 20 percent evaluated the project impact they identified 45 positive of the Region's total disease problems, with the rural poor impacts. Among 11 social impacts noted were: a reduced being most vulnerable. tendency in rural out-migration as a result of increased rural income; improved ownership of the investments; At the end of FY 2004, $1.7 billion was spent on the ENRM and renewed attachment to the land. The 21 institutional portfolio in this region, with just 5 percent spent on land impacts included: better provision of services as a result management­­a pittance in relation to the extent of the of interactive, integrated and planned work; adoption of problem and the degree of rural poverty. a holistic approach to problem identification and solution finding; and change in approach to erosion control, Regional Challenges and Opportunities with better understanding of the soil degradation on agricultural land. Most notably, in the context of SLM, The South Asia Region holds a large proportion of the the eight environmental benefits noted included: reduced world's rural poor; therefore, emphasizing sustainable land risk of floods and land slides; reduced soil degradation management across this Region can achieve a major re- and biodiversity loss; reduced pressure on forests and duction in global rural poverty. rangelands; improved environment for wildlife; improved access to clean and continuous water. The economic The resources required to improve land management here will impacts identified were: increased employment; increased be substantial, but there is abundant local expertise. Good income as a result of decreased production costs; increased Regional project experience exists in saline lands, commu- land value and increased productivity of natural resources, nity forestry, watershed management, and coastal resources. crops and livestock. This experience provides a strong base on which to build a set of strategic GEF links in a SLM program for South Asia (See Table A6.) South Asia Sample Project: India's Uttar Pradesh Sodic Lands Reclamation Project I South Asia, with a population of 1.4 billion people, is home to some 40 percent of the world's poor (over 480 million), This project in the Indian plains addressed the reclamation most of whom live in rural areas. In this Region, 750 mil- of land that had become barren because of inadequate lion people depend directly on farming, fishing, and rais- water management and drainage techniques, resulting in ing animals for their livelihoods. Fifty-seven percent of the sodification and total loss of production. Sodification is the population lives in areas subject to climatic uncertainty. development of dominance of the soil exchange complex by 24 SUSTAINABLE LAND MANAGEMENT ACTIVITIES (OP15) WITHIN THE WORLD BANK Table A6. South Asia Regional SLM Project Examples PROJECT TYPE MAIN COMPONENTS REGIONAL PROJECT EXAMPLES Sustainable land management through n Development of WUA to manage n Pakistan - NWFP On Farm Water reform of irrigated agriculture and irrigation on a community basis Management Project integration with livestock management n Water control and drainage n Bangladesh Water Management n Salinity management Improvement Project n Local land-use planning to reduce the n Pakistan - Baluchistan Community sedimentation of waterbodies Irrigation and Agricultural Project n Development of pastoral areas n Market infrastructure support n Loans for SME to develop alternative livelihood systems Rehabilitation of salinized degraded n Land revitalization n India - Uttar Pradesh Sodic lands through community action n Land-use planning Lands Reclamation to alleviate rural poverty n Community capacity building n Institutional reform and development n Water and drainage management n New crops n Private sector micro-loans for impacts n Land titling n Applied field research Community-based forestry and n Restoration of degraded forest to provide sustainable n India - Andhra Pradesh sustainable land management economic growth for local communities Community Forest Project n Land-use planning for forestry, cropping, and animal husbandry n Development of market infrastructure n Micro-loans for local enterprises n Capacity building n Institutional development Integrated watershed development n Community participation in watershed n India - Uttaranchal Decentralized with sustainable land management development management Watershed Development Project n Land and water use planning and management n India - Integrated Watershed n Improved water retention for biomass growth Development Project (Hills) n Agricultural and pastoral production (including dairy) n Development of sustainable woodlands and forests n Microenterprise development through small loans n Capacity building n Information management Sustainable land management to n Drought management n India - Rajasthan Water Sector alleviate the impact of drought n SLM to alleviate drought impact through better management Restoration Project of local resources to conserve water for production n Bangladesh Agricultural Services n Land and water use planning Innovation and Reform Project n Improvement of agricultural technology n Minor irrigation works n Soil and water conservation n Drought-resistant crops n Micro and SME loans for marketing infrastructure and alternative livelihood development 25 sodium. In Uttar Pradesh, sodification has left an estimated ing high-value crops. Animal husbandry has improved, and 1.25 million hectares of land, mostly in poorly managed fewer farmers abandoned the fields to seek work in nearby irrigated areas, completely barren. A further 1.25 million cities. Women's savings and credit groups were established hectares of low-yielding salt-affected lands cover about 10 to supplement family incomes. Loan repayments have been percent of the net cultivated area. When the land becomes prompt; arrears are negligible. Farmers have launched pri- sodic, it is too salty to farm. vate sector micro-businesses to provide inputs and services like seeds and tree seedlings, agricultural extension, and Scope: The project had four main components: land rec- soil testing. Farmers have continued cultivating reclaimed lamation, including environmental protection; institutional lands even after the end of project assistance--a strong development; agricultural development and technology dis- measure of project sustainability semination; and reclamation technology development and special studies. The targets for project coverage were in- The March, 2002 ICR estimated the project ERR to creased at mid-term by 50 percent to 68,800 hectares for be 28 percent at completion compared with 23 per- land reclamation, drainage and cultivation, which in turn, cent in the staff appraisal report. However, this does increased the number of target beneficiaries to more than not take into account (a) socioeconomic benefits from 1 million people. improved education, health and family income; (b) en- vironmental benefits; (c) secondary benefits accruing Approach: The project organized groups of poor, landless to farmers whose land is adjacent to the project area farmers into small cooperatives and provided technology and is benefiting from drainage works carried out un- and advice on land reclamation. It invested substantially in der the project, approximately about 400,000 hect- participatory processes and community mobilization and ares of land; and (d) incremental revenues from the organization before and during implementation. This in- relatively small areas of horticulture crops. Taking into vestment has enabled the physical targets of land reclama- account these supplementary sources of benefit would tion to be scaled up substantially and has led to effective increase the ERR significantly. Before the project, nearly models for poverty alleviation, environmental protection, half of the project area was barren thus the opportunity and improved agricultural production. Local nongovernmen- cost of the lands was low; if this condition is taken into tal organizations helped organize water users into basic account the ERR could increase significantly. units of four to five hectares, which typically comprised 10 - 15 families. Project staff worked with farmers to divide the land into parcels and negotiate the complex process of ensuring clear title. East Asia and the Pacific Benefits: Thousands of formerly landless farmers have ob- East Asia and the Pacific, with a population of almost 2 tained titles to land. Yields of rice and wheat doubled billion, supports 1.2 billion people living in rural areas original project estimates, wage rates doubled, and land who are primarily dependent on agriculture and the nat- values quadrupled. Farmers have planted income-generat- ural resource base that supports it. Water and air pol- 26 SUSTAINABLE LAND MANAGEMENT ACTIVITIES (OP15) WITHIN THE WORLD BANK Table A7. East Asia and the Pacific Regional SLM Project Examples PROJECT TYPE MAIN COMPONENTS REGIONAL PROJECT EXAMPLES Increasing rural productivity n Land-use planning at the local level n China - Loess Plateau Watershed Rehabilitation Project through watershed management by n Hillslope stabilization bamboo or tree planting n China - Mid Yangtse Project increased ground cover and improved (fruit trees or wood generally for local market) n Philippines - Central Visayas Regional Project lowland agricultural production n Water management for agricultural production n China - Fujian Soil Conservation and n Capacity building for improved Rural Development Project production and marketing n China ADB and Japan Special Fund n SME loans to promote local agricultural processing and sales Drought management through n Land-use planning to promote mixed n China - Gansu and Inner Mongolia development of sustainable land agriculture and livestock production Poverty Reduction Project management and diversification of rural n Assessment and management of local water resources n Indonesia - Maku Regional Development Project enterprises aimed at poverty reduction n Planning for drought response n Vietnam Natural Disasters Management Project (central and local policy) n Papua New Guinea El Nino Drought Response Project n Possible relocation of farmers to areas with small scale irrigation potential n Alternative income generation with improved access to credit Integrated natural resource n Assessment of local potential with improved n Mongolian Sustainable Livelihoods Project management to reduce rural poverty land and water management n China Loess Plateau Watershed Rehabilitation Project n Development of land use and production plan with communities for crops and livestock n Capacity building n Market development with SME loans or grants n Information linkages n Policy issues Community and sustainable n Market assessment for forest products n China Sustainable Forestry Development Plan forestry for poverty reduction at local and Regional levels n Philippines Environment and Natural Resources n Land-use management plan for forests Management ­ Forest is a Component in relation to other activities n China - Fujian Soil Conservation and n Capacity building Rural Development Project n Loans for equipment, services, and marketing n China - ADB and Japanese Special Fund n Policy change to ensure economic prices for forest products n Sustainable management plan 27 lution are the most immediately discernable impacts in to South Asia, emphasizing SLM across this Region the area, but the pressures on the rural resource base can have a significant contribution to reducing global also are considerable. Degradation of rural land is less rural poverty. easily reversed than water and air pollution, because it involves the sustainability of agriculture, pastoralism, Good Regional SLM project experience, particularly fishing, and forestry. in China and the Philippines, can be built on in these countries and elsewhere in the Region. Despite this Land degradation is a widespread problem. It is often associated strong Regional base, there is a huge Regional need. As with deforestation, which in this Region reached the highest national policies evolve in this direction, Indonesia, with rates in the world in the 1990s. For example, the Philippines its decentralization program, and Cambodia, Vietnam and Indonesia lost a combined total of 30 million hectares of and Laos all have great needs. forest over the last 15 years of the twentieth century. Massive degradation of marine and coastal ecosystems has also oc- China dominates the Region in terms of population; curred and was recently made worse by the December, 2004 therefore, it will be a focus of poverty reduction and envi- tsunami that devastated many coastal areas. ronmental efforts. To some degree, the importance of urban air pollution Sample Project: China's Loess Plateau and the health impacts of inadequate water quality and Watershed Rehabilitation Project--Phase I waste disposal have dominated environmental concerns in the Region. However, the focus on poverty reduction and The objectives of the project were (a) to increase agricul- the growing concern to maintain the productivity of the tural production and incomes on 15,600 square kilome- natural resource base has turned attention to rural areas ters of land in nine tributary watersheds of the Yellow River and sustainable use of land and water resources. Despite in the Loess Plateau and (b) to reduce sediment inflows to the impressive economic growth in the Region, over 500 the Yellow River by locating the project areas in parts of million people live in poverty, many in rural areas. the watersheds that had suffered severe soil erosion. The project was designed to: (a) create sustainable crop At the close of FY 2004, the Bank's ENRM portfolio in the production on high-yielding level farmland thereby replacing Region amounted to US $4.8 billion. 15 percent of this the areas devoted to crops on sloping lands; (b) plant Regional total was spent on land management, coming in sloping lands to a range of trees, shrub and grasses for a modest third behind pollution management (33 percent) land stabilization and production of fuelwood, timber and water resource management (27 percent). for construction and fodder; and (c) substantially reduce sediment runoff from slope lands and gullies (See Table A7.) Regional Challenges and Opportunities The project had two main components: land development The East Asia and the Pacific Region is home to a large and erosion control works; and institutional development. percentage of the world's rural poor. Therefore, similarly The first component was further divided into the following 28 SUSTAINABLE LAND MANAGEMENT ACTIVITIES (OP15) WITHIN THE WORLD BANK sub-components: (a) terracing, (b) afforestation, (c) orchards, (d) grasslands, (e) sediment control dams, (f) warping land (warping denotes the creation of land through the managed deposition of sediment especially in areas that are severely affected by (gully) erosion), (g) irrigation; and (h) gully control; while the second component was divided into (a) training, (b) research, and (c) technology transfer. The outcome of the project objectives is rated highly sat- isfactory. Over 1 million farmers in the project area have directly benefited by raising their annual grain output from 427,000 to 698,600 metric tons, fruit production from 80,000 to 345,000 tons, per capita incomes from ¥360 to ¥1,263 (US$43 to US$152). The annual sediment flow to the Yellow River has been reduced by 57 million tons. In addition, production on terraces has significantly reduced labor inputs and together with road access to the terraced fields has allowed for mechanization. These labor savings have permitted many farmers to pursue new income earn- ing activities such as off-farm jobs and livestock produc- tion. Increased income and the prospect of sustainable agriculture have allowed farmers to invest in a wide range of enterprises and social programs, which have benefited communities as a whole. In an April 2003 ICR recalculation the project's economic returns of the investment was estimated at 19 percent, if only on-site benefits were considered (i.e., without sedi- ment reduction and carbon sequestration), but as high as 29 percent if environmental (e.g., flood regulation, carbon sequestration) and downstream benefits (e.g., with sedi- ment reduction) are included. Today, over 3,000 villages are actively involved on 30,000square kilometers, encom- passing over 1,200 micro-catchments. By the end of phase two, now underway, project beneficiaries will number in excess of 3 million people. 29 References Dixon, J., A. Gulliver, and D. Gibbon. 2001. Global Farming Systems Study: Challenges and Priorities to 2030. Sustainable Development Department. Food and Agricultural Organization, FAO. Rome, Italy. Esikuri, E.E. 2005. "Mitigating Drought ­ Long-Term Planning to Reduce Vulnerability." Environment Strategy Note Number 13. Environment Department. The World Bank. Washington, D.C. USA. Global Environment Facility (GEF). 2003. Operational Program on Sustainable Land Management (OP 15). The Economist. June 3rd 2004. http://www.economist.com/printedition/displayStory.cfm?Story_ ID=2725013 World Bank. 2001. Making Sustainable Commitments: An Environment Strategy for the World Bank. _____. 2002a. Sustaining Forests: A Development Strategy. _____. 2002b. Water: A Priority for Responsible Growth and Poverty Reduction: An Agenda for Investment and Policy Change. _____. 2003. Reaching the Rural Poor: A Renewed Strategy for Rural Development. _____. 2004a. Water Resources Sector Strategy: Strategic Directions for World Bank Engagement. _____. 2004b. Environment Matters. 31 Global Environment Facility Coordination Team Environment Department THE WORLD BANK 1818 H Street, NW Washington, D.C. 20433, USA Telephone: 202.473.1816 Fax: 202.522.3256 Email: GEOnline@worldbank.org Web: www.worldbank.org/gef