~~.~~r m a.~~-OfiSeI W tbe~S Brazilian Rain Forest Volume 4, Number 4 October 1996 Pilot Program Receives High Marks in Bonn The Third Annual Meeting of the Participants of the International Advisory Group (IAG), the World Bank, the Pilot Program to Conserve the Brazilian Rain Forest InterAmerican Development Bank, the United Nations provided evidence of broadening political support in Development Program and the private sector also Brazil and internationally for protecting the world's participated in the three-day meeting, which was chaired largest remaining tropical forests. The wide by Mr. Gobind T. Nankani, the World Bank's Country representation at the meeting, which took place in Bonn, Director for Brazil. Germany on September 10-12, 1996, also reflected the broad-based participation and support for the Pilot Oeigadessmd yM.Kas n broa-baed artiipaionand upprt or te Plot Mr. Carl-Dieter Spranger, the Federal Minister of Program. One of the meeting's conclusions was that the Mr.arl-Detpranier, the Fel mi is Pilot Program may well serve as a model for other Germany, emphasized that the Pilot Program is collabotPrrative y intelational sendeavos amond ol fprogressing well and helping to forge new partnerships in envlabortir en insuesationalendeavors sustainable development. Mr. Spranger stressed the importance of the rain forest's wealth of unexplored Brazilian representatives at the Bonn meeting biodiversity, and its role in maintaining the global included Mr. Gustavo Krause, Minister of the climate. "The German govemment," he said, "will Environment, Water Resources and the Legal Amazon continue to take part as best it can in the continued (MMA); Mr. Seixas Lourenco, Secretary of State for the realization of the Pilot Program to Conserve the Brazilian Legal Amazon; Mr. Eduardo Martins, President of the Rain Forest in coming years." Mr. Caio Koch-Weser, Brazilian Institute of the Environment and Renewable Managing Director (Operations) of the World Bank, also Natural Resources (IBAMA); Mr. Julio Gaiger, President reaffirmed the Bank's commitment "to providing of the National Indian Foundation (FUNAI); and the continued strong institutional support to the Pilot Secretaries of the Environment from all nine Amazon Program and to the principles that it embodies." states. Donor representatives from Canada, France, Participants at the meeting expressed consensus that Germany, Italy, Japan, the Netherlands, the United Kingom,theUnied Sate an th Eurpea Unon lso the Pilot Program represents a unique international Kingdom, the United States and the European Union also collaboration and the best example of an attempt to put attended, as well as representatives from Denmark, into practice the principles expressed in Agenda 21 of the Finland, Greece, Luxembourg and Portugal. United Nations Conference on Environment and Develop- Representatives of Brazilian and international NGOs, the (Continued on page 3) About the Pilot Program The Pilot Program to Conserve the Brazilian Rain Forest supports an integrated set of projects that will contribute to a reduction in the rate of deforestation of Brazil's rain forests in a manner consistent with the sustainable development of the area's natural and human resources, and that will provide lessons for designing future activities. The Pilot Program was launched at the request of the Group of Seven (G-7) industrialized countries and also enjoys financial support from the Commission of the European Communities and the Netherlands. The total volume of financial and technical assistance pledged to the Pilot Program to date, including associated bilateral projects, is about US$250 million. The Pilot Program is coordinated by the World Bank, in accordance with agreements reached by the Pilot Program Participants (the donors and Brazil). The Pilot Program is designed to address the underlying causes of deforestation in Brazil's rain forests through a three- pronged approach. Projects will help strengthen the capacity of the public sector to set and enforce sound environmental policy; improve management of special protected areas, including parks, extractive reserves, national forests and indigenous lands; and increase the knowledge base on conservation of the rain forest and sustainable utilization of its resources. Project Updates ...* 9 0................ DEGRADED LANDS EXTRACTIVE RESERVES During a project concept meeting in July 1996, The Extractive Reserves Project has financed a representatives of the Ministry of the Environment, Water detailed evaluation of the land tenure situation in the Resources and the Legal Amazon (MMA), the Brazilian extractive reserves. The recently concluded report, which Institute of the Environment and Renewable Natural was prepared by an attomey who reviewed federal Resources (IBAMA) and the World Bank focused on judicial records, recommends the next steps needed for defining the basic objectives and design of the Degraded adjudicating the remaining court cases and completing the Lands Projiect. The participants emphasized that the regularization (legalization) of the extractive reserves. project should be designed to address the causes of land Regularization is necessary prior to the granting of long- degradation in the Amazon, rather than the rehabilitation term concession contracts to the associations of reserve of already degraded areas. It was also agreed that the residents. project should focus on providing long-term preventative During the past six months, the project also carried measures to stem continued environmental deterioration, out numerous trainings throughout the reserves which including a proposed fire prevention program for the served to establish and strengthen community-level Amazon. Preparation of the Degraded Lands Project groups (nucleos de base) that are part of the strategy for will continue with additional meetings in October 1996. decentralzing decision-making and strengthening the IBAMA is expected to submit a revised project concept reserve associations. This strategy is important, in part, paper in late November 1996. ~** because of the large distances and dispersed settlement DEMONSTRATION PROJECTS patterns in the reserves. Forty-eight community groups The Executive Commission (EC) of the have already been established in the four extractive Demonstration Projects (PD/A) will meet in Macapa, reserves. Amapa on November 4-8, 1996 to review subprojects This year also saw an intensification of extension submitted uander the PD/A small grants program. The activities in the reserves, including the establishment of EC, which is composed of five NGO representatives gardens and nurseries, and practical training in fruit and nominated by the Amazonian Working Group (GTA) and vegetable gardening, small animal husbandry and other the Atlantic Forest Network (RMA) and five government topics. In addition, the reserve associations, with the representatives, is responsible for making final decisions support of project technical specialists, have developed on subproject funding. and proposed 27 small commercial production projects The upcoming meeting will be the EC's eighth oriented toward local markets. These project proposals meeting and the first to be held outside of Brasilia. The are being evaluated by the Extractive Reserves Project meetmg ~ ~ ~ ~ ~ ~ ~ ~~~~orinto team ine accodanc wit the investmentlBrsla. participants also plan to visit an environmental project in coordit ataon team f accordance wtth the vestment the region. By holding this meeting in Amapa, the EC criteria agreed for the project. *: members hope to be able to disseminate more information INDIGENOUS LANDS about PD/A and the process of subproject selection in the On August 6-19, 1996, a Bank team conducted a region. * supervision visit to evaluate the implementation of the Indigenous Lands Project. Representatives of the German Your questions andcomments areEwelcome. . Bank for Reconstruction (KfW) and the German Agency Wrie t for Technical Cooperation (GTZ) also participated. The The -Wod d, Bahk i - supervision team also met with the Project Consultative P,,ilot Progamto.Conseryve the Brailian Ra est Commission that is composed of four government and :Attn:. Rain ForestR lt Progra me i - Update ........... four indigenous representatives. The US$22 million, 181811 StrQeet,iN. W. - Ro Q 7-057- five-and-half year project became effective December 8, Washingto DC :.r2043.?, USA 1995. The project's first annual work plan was finalized Edtrs: Jait isnyad Lorettas in March 1996. The supervision team concluded that the Brasilia Address: implementation progress of the project to date has been lgCN Quadra 01i:- Lote A t0l i- - 450 incipient, largely because of an inadequately staffed Ed. lCorpolrate Financal C(enter, Anjitor 303/30..0 :000project implementation unit in the National Indian 71 71 0.~50-SD0 sX-fT-:B'rasil-0t';ia,'-00E0' Brazil.... Foundation (FUNAI), delays in budgetary transfers and fTel: (5-61).329-1+000Fax: .(55-.1 329-1010. legal changes that have directly and indirectly affected (Continued on page 3) RAIN FOREST PILOT PRO6 RAM UPDATE Indigenous Lands (Cont. from page 2) A project stakeholders meeting, scheduled to take project activities. By early August 1996, the place in Laranjal do Jari, Amapa in late October 1996, projectiactivti ies.of By .earl ust e1996, will bring together local, state and grassroots/NGO idni*c n orepresentatives to discuss how this area could be affected Since mid-August 1996, FUNAI has begun the by zoning activities under the NRPP project. A technical demarcation of a block of ten indigenous lands in the state meeting to discuss state zoning issues will also be held in of Amazonas with the participation of UNI-Acre (Union Palmas, Tocantins in late October 1996. of Indigenous Nations of Acre and South Amazonas), an indigenous organization. Bidding for the demarcation of Emergency enforcement projects for five states- indigenou organization. Biddin for the demarc n o Acre, Maranhao, Mato Grosso, Para and Tocantins-have 13 other indigenous lands has also begun. been approved for a total of US$750,000. The five With respect to the two indigenous lands under the projects will support enforcement activities in target areas project referred back to FUNAI for further information to prevent forest clearing by fire and illegal logging. : during the contestation process under Decree 1775 (Seruini-Mariene in Amazonas and Kampa de Rio Envira VARZEA RESOURCES MANAGEMENT in Acre), final decisions were expected from the Ministry Project preparation meetings took place in Brasilia of Justice by October 10, 1996. As of late October 1996, in July and October 1996 to discuss the continued these decisions had not yet been issued. The Bank team development of the Aquatic Resources Management continues to closely monitor the Indigenous Lands Project Project, which has been renamed the Vdrzea and a technical visit is currently planned for early (Floodplains) Resources Management Project to reflect December 1996. *:. its focus on the conservation and sustainable use of NVATURAL RESOURCES POLICY (NRPP) resources found in the aquatic and terrestrial ecosystems of Amazonian floodplains. During the October 1996 The World Bank, MMA and donors met in August meeting, the participants identified a team of Brazilian 1996 to discuss proposed modifications to the NRPP and international Amazonian specialists led by Dr. Mauro along the lines recommended by the International Rufino to collaborate with IBAMA on the formulation of Advisory Group during its March and July 1996 a final project proposal by early 1997. Participants in meetings. In addition to an overall simplification of both project preparation meetings included representatives project administrative procedures, the key features of the of IBAMA, MMA, the World Bank, KfW and GTZ. *: reformulation proposal developed by MMA and the Bank include: (1) the transfer of institutional strengthening ParticipantsMeeting (Cont.frompage1) components to local environmental management ment. A number of participants stressed the catalytic role subprojects so that institutional activities can be clearly of the Pilot Program and its potential to involve a wide linked to concrete subproject objectives; (2) the range of actors and resources in promoting sustainable involvement of local and state governments in the development. There was general support for innovative coordination of zoning and environmental management strategies, including ecotourism, genetic prospecting and activities in order to facilitate significant community other conservation-based economic activities. There was stakeholder participation; and (3) the creation of effective also general support for the Brazilian/World Bank incentives under the project to encourage local support proposal to promote international business collaboration for environmental management activities. Such with Brazilian firms, and Brazil's plan to establish a incentives could include a proposed Sustainable Business Council for Sustainable Development. Development Fund to help local districts finance their The European Union (EU) announced during the own priority small-scale projects, or programs to provide meeting that it would provide an additional ECU$11.3 easier access to loans and a greater share in the transfer of million for 1996 and further funding for 1997. France state funds. announced that it would provide US$2.5 million for the Implementation of NRPP continues after agreement Demonstration Projects. Both the EU and German was reached by the State Environmental Agencies, MMA representatives pledged their commitment to support the and the Bank on the annual operating plans for 1996. Pilot Program through to a future second stage. About US$2 million in project funds have been disbursed Germany, the EU and Brazil stressed the need for more since June 1996. The agencies responsible for executing equitable distribution of financing among the donors and the NRPP are in the process of hiring consultants to help Brazil. It was agreed that a smaller interim meeting of adapt zoning methodologies to local conditions, train Brazilian, Bank and donor representatives on financing local staff in the use of advanced geoprocessing software issues would be held in April or May 1997. and improve the effectiveness of the State Environmental The Participants commended the Pilot Program's Councils. progress during the past year, noting that there are (Continued on page 4) 3 RAIN FOREST PILOT PROrRAM UPDATE There has been a great deal of speculation in recent occurrence of accidental fires in pastures and forests was months about the relationship between "fire points" noted with concern by the land owners interviewed. detected by NOAA (National Oceanographic and The IPAM study concludes that the dynamics of fire Atmospheric Administration) satellite imagery and actual in the deforestation belt of the Amazon are highly deforestation of primary forest. Press reports, based complex and dependent on the type and location of the primarily on comparing the number of fire sites in the fires. Ground fires below the forest canopy are especially months of June 1994 with those in June 1995, generated difficult to detect and measure through conventional widespread public concern that deforestation rates might methods. The study also confirms that the incidence of have increased sharply in 1995. It has long been known burning cannot necessarily be taken as a direct indicator in the scientific community that the NOAA imagery, of deforestation rates. Economic losses caused by an which is widely used to detect the general location of apparent increase in accidental fires in pastures and fires in the Amazon, is not an entirely reliable tool for forests further underscore the need for more effective estimating the extent of deforestation. Nevertheless, control of the use of fire in the region. The Pilot these reports have refueled a lively debate about the Program will continue to address these issues, incidence of fires in the Amazon, the relationship to particularly in the design of the Degraded Lands Project, deforestation rates and the capacity of current satellite which has been proposed to include the development and technology to provide reliable deforestation information. implementation of a fire prevention program for the In an effort to address the relationship between Amazon. *: satellite imagery and actual changes on the ground, the Participants Meeting (Cont. from page 3) Pilot Program funded an innovative study on "The Use of Fire in the Amazon: Case Studies in the Deforestation currently six projects under implementation and six under Belt" by Drs. Daniel Nepstad, Foster Brown and Ane preparation, four of which are at an advanced stage. It Alencar of the Institute for Environmental Research in the was also noted that disbursements during the last year, Amazon (IPAM). This study examines the incidence and approximately US$11 million through the World Bank determinants of fire in the so-called "deforestation belt" and US$2.5 million from Germany, exceeded projected stretching from the western Amazonian states of Acre and disbursements for the year. Rond6nia through northern Mato Grosso to southern and Numerous participants reaffirmed the importance of eastern Para. protecting Brazilian indigenous lands and people, and The IPAM study examined five pilot areas urged that the pending cases of contestation under Decree representative of different forest types, rainfall, land use 1775 be resolved expeditiously. There was also broad and land ownership patterns. The researchers gathered consensus for speedy implementation of the Indigenous information on the incidence and characteristics of fires in Lands Project, which many view as a bell-wether for the approximately 280 properties (800,000 ha.) through entire Pilot Program. interviews with local land owners, field visits, mapping There was considerable discussion about the nature and analysis of LANDSAT TM satellite images. The of the evolving monitoring and evaluation unit in MMA study ultimately sought to determine if there was an and the reformulation of the Natural Resources Policy increase in forest fires in these areas over the past three Project, for which rapid follow-up attention was years; what exactly was burned (primary forests, logged recommended. The Participants suggested that further forests, pastures or previously cultivated areas); whether work is needed in the following areas: (1) monitoring the fires were caused intentionally; and, if so, for what and analysis of deforestation and land degradation; (2) purpose. promotion of private sector initiatives; and (3) better Preliminary results from the study reveal that while tracking and integration of associated bilateral projects. the incidence of fire in the pilot areas was greater in 1995 The Participants Meeting was preceded by a one-day than in 1994, for the most part the fires did not result in workshop in Bonn on "The Amazon and Sustainable new deforestation. Rather, they occurred in areas that Development" sponsored by Brazil to discuss a paper had already been cleared. There is disturbing evidence, prepared jointly by the Bank's Rain Forest Unit and however, that in certain areas, especially southern Para, MMA's Pilot Program Coordination Unit, entitled "Pilot selective logging is leaving the forest more flammable, Program: Lessons Learned and Its Implications in the leading to an increase in the number of accidental fires. Years to Come. " Some of these fires were revealed during interviews to be The next annual meeting of the Pilot Program ground fires in the undergrowth of logged forests, which Participants is scheduled for October 1997 in Manaus, were not always identifiable in the corresponding Brazil. * LANDSAT images. The economic cost of this increased 4 RAIN FOREST PILOT PROGRAM UPDATE