ENVIRONMENT D E PA R TM E N T X--s ~~~P A P E R S PPRN.8 *i PAPERSERNO 8 L TOWARD ENVIRONMENTALLY AND SOCIALLY SUSTAINABLE DEVELOPMENT ENVIRONMENTAL ECONOMICS SERIES Poverty Reduction Strategies and Environment A Review of 40 Interim and Full Poverty Reduction Strategy Papers Jan Bojo Rama Chandra Reddy June 2002 The World Bank THE WORLD BANK ENVIRONMENT DEPARTMENT Poverty Reduction Strategies and Environment A Review of 40 Interim and Full Poverty Reduction Strategy Papers Tan Bojo Rama Chandra Reddy June 2002 Papers in this series are not formal publications of the World Bank. They are circulated to encourage thought and discussion. The use and citation of this paper should take this into account. The views expressed are those of the author(s) and should not be attributed to the World Bank. Copies are available from the Environment Department, The World Bank, Room MC-5-126. Contents ACKNOWLEDGMENTS V EXECUTIVE SUMMARY 1 Chapter 1 Introduction 3 Chapter 2 The PRSP Sample 5 Chapter 3 Method of Environmental Review of PRSPs 7 Issues in Focus 7 Causal Links Assessment 8 Response Systems 8 Process 9 Method of Scoring 9 Chapter 4 Results of the PRSP Review 11 Chapter 5 Examples of Good Practice 15 Issues in Focus 15 Poverty-Environment Links 16 Response Systems 17 Process 21 Chapter 6 Evolution of Mainstreaming from the Interim PRSPs to Full PRSPs 25 Improved Treatment of Environment Issues in the Full PRSPs 25 Gradual Improvement in the Presentation of Targets, Indicators and in the Context of Long-term International Development Goals 25 Improvements in the Presentation of Budget Allocation Linked to Targets 25 Environmental Economics Series iii Poverty Reduction Strategies and Environrment - A Review of 40 Interirn and Full Poverty Reduction Strategy Papers Impacts of natural disasters on the PRSP implementation 25 Chapter 7 Scope for Improvement 27 Group A Countries 27 Group B Countries 27 Chapter 8 Next Steps 29 APPENDICES A Poverty Profiles of PRSP Countries 31 B Natural Resource Profiles of PRSP Countries 33 C Food Security Profiles of Countries 35 D Environmental Health and Habitat Profiles of Countries 37 E Infectious Disease Profiles of Countries (per 100,000 population) 39 F Format for Scoring in the PRSP Assessment 41 NoTEs 43 REFERENCES 45 BoxEs 1 Vulnerability 18 2 Incentive Structure 19 3 Environment Management Capacity 22 TABLES 1 Regional distribution of PRSPs 5 2 Scores on environmental mainstreaming in PRSPs 12 3 Transition of mainstreaming scores from IPRSP to Full PRSP 25 iv Environment Department Papers Acknowledgments W e would like to thank the edition. In addition, participants at several Norwegian Government for seminars both inside and outside the World financial contributions to this Bank have commented on presentations of work. previous versions of this report. We are grateful for their contributions. Numerous The authors wish to gratefully acknowledge changes have been made in the current text to the constructive comments of several readers accommodate comments received, while other of our previous Reviews issued in December points remain the subject of further discussion. 2000, March 2001 and December 2001: Craig Davies, Fadi Doumani, Kirk Hamilton, The authors remain solely responsible for the Norman Hicks, Hans Olav Ibrekk, Anil views expressed herein, which do not Markandya, Jean-Roger Mercier, Priya necessarily represent the opinion of the World Shyamsundar, Paul Steele and Chris Warner Bank, its Executive Directors or the countries have all contributed. Anil Markandya and they represent. Jocelyne Albert peer-reviewed the latest Environmental Economnics Series v Executive Summary A s of late 1999, Poverty Reduction reviewed. This review addresses four major Strategies (PRSs) have been questions: lAxintroduced as a key instrument for a 1. What environmental concerns and country's relationship with the donor opportunities are identified in the PRSPs? community. After completion of a Joint World 2. To what extent are poverty-environment Bank and IMF Staff Assessment, the Boards of causal links analyzed? the World Bank and the IMF review PRSs as 3. To what extent are environmentally they relate to the respective institution's relevant policy responses, costed actions, mandate, presented in the form of a PRS Paper targets and indicators put in place as part (PRSP). This provides a basis for debt relief of the poverty reduction efforts? under the Heavily Indebted Poor Countries 4. To what extent has the process allowed for (HIPC) Initiative where applicable, an mainstreaming the environment? elaboration of the Country Assistance Strategy (CAS) for the World Bank, and concessional Each PRSP has been assessed with a set of 17 lending. criteria on a scale of 0 (no mention) to 3 (good practice). The scores are not weighted, but the As to ". . . help people help themselves and their number of ratings attached to each theme environment. . ." is part of the overall World reflects the level of importance attached to Bank mission statement, the integration of them: (a) issues and opportunities (4 ratings); environmental considerations into the Bank (b) poverty-environment-links (7 ratings); work is firmly grounded. Furthermore, the (c) actions and monitoring (5 ratings); and World Bank's Environment Strategy notes that (d) process (1 rating). there is an urgent need to integrate environment into Poverty Reduction The main findings of the review are: Strategies. * There is considerable variation across In this context, the purpose of this review is to countries in the degree of mainstreaming. The systematically assess the degree of score ranges from a high of 2.2 out of a mainstreaming in PRSPs, and to identify a maximum of 3.0 (Mozambique) to a low of selection of good practice that can lead the 0.3 (Sao Tome Principe). While scores way for further improvements. should not be seen as precise measurements, they do indicate the A total of 40 Interim and full PRSPs from approximate level of attention given to countries in Africa, Latin America, Eastern environmental matters in the PRSPs. Some Europe, Middle East, Central and East Asia are variation across countries is legitimate and Environmental Economics Series I Poverty Reduction Strategies and Environment - A Review of 40 Interim and Full Poverty Reduction Strategy Papers to be expected, but there is no reason to future work. The countries in this sample believe that the low scoring countries are include Mozambique, Honduras, free from concerns of environmental Nicaragua, Bolivia, and Kenya. However, health and natural resource degradation many other PRSPs also contain examples of linked to poverty. good practice. A major portion of this review is dedicated to providing specific * The average score is low-0.9 on the scale of examples of good practice. 0 to 3. This signifies considerable room for improvement. It should be recalled that Future assessment will refine the methodology PRSPs are strategic documents reflecting of this review, and broaden the sample to the development priorities of countries include more PRSPs, as they become available. over a 3- to 5-year period, and that environmental concerns are expected to Finally, it should be recalled that a Poverty vary across countries. Hence, we do not Reduction Strategy Paper is only the written anticipate all countries to reach 3.0 in their expression of an underlying and emerging rating, even as the PRSP process matures process of design, implementation, and and the environmental constituency gains participation. What ultimately matters are the a "seat at the table." However, the fact results on the ground, which we are not in a that many PRSPs pay so little attention to position to evaluate across 40 countries at this basic issues of environmental health, point in time. Nevertheless, we believe there is natural resource degradation and merit in assessing the quality of environmental vulnerability to environrnental hazards is mainstreaming in the PRSPs, as an imperfect a cause for concern. but important indicator of the quality of mainstreaming into the underlying reality of * The full PRSPs are few (8), but rank relatively strategy implementation. By addressing this well in comparison to the IPRSPs. This is aspect, the Review complements other encouraging. Our study shows a consistent initiatives undertaken by the World Bank and improvement among the full PRSPs from partners to support client countries in their level of mainstreaming at the IPRSP mainstreaming environment into poverty stage. reduction. * Good practices do exist. This paper provides several examples that can serve to inspire 2 Environmnent Department Papers 1 Introduction T he World Bank's Mission statement * Oriented to achieve outcome-related goals for includes the objective to ". . .help people help poverty reduction. themselves and their environment by allocating resources, sharing knowledge, building Since environmental health and sustainable capacity, andforging partnerships in the public and natural resources utilization is closely linked to private sectors... " This provides a strong basis for poverty reduction, the purpose of this paper is integration of environmental considerations into to present a systematic assessment of the Bank's operations. The goal of World Bank's environmental mainstreaming in the currently Environment Strategy"... is to promote available Interim and full Poverty Reduction environmental improvements as afundamental Strategy Papers (IPRSP & PRSP respectively).' element of development and poverty reduction This review provides a specialized complement strategies and actions" (World Bank 2001a, p. 45). to the general World Bank PRSP reviews,2 and The Strategy also notes states that "In the Bank-IMF guidelines for Joint Staff implementing the Strategy, we will give priority to Assessment of PRSPs (World Bank, 2000), which certain aspects that are particularly urgent, such as raises points such as: integrating environmental considerations into the PRSPs." (Ibid. p. xxviii). "How well have the nature and determinants of poverty outcomes (income and non-monetary In September 1999, a new framework for Poverty dimensions) been identified? Have trends in key Reduction Strategy Papers (PRSP) was endorsed poverty determinants and outcomes been by the World sank and IME. The PRSP prepared presented? Specifically, by countries in collaboration with the World Bank and TMF, is a three-year strategy document * The extent of income/consumption and aimed at integrating macroeconomic and sector other dimension of poverty (health strategies in achieving poverty reduction targets, including environmental diseases, natural form the basis for Bank and Fund concessional resource degradation, vulnerability, lending, and debt relief under the enhanced disempowerment) and their evolution over HIPC. PRSPs are designed to be (World Bank, time". 2001c): In addition, this review is also meant to * Country-driven: with broad participation of capture good practice, to stimulate civil society independent reviews of new PRSPs, and * Based on an understanding of the links inspire teams working on forthcoming PRSPs between public actions and poverty to enhance the integration of environmental outcomes and problems and opportunities. Some early assessments criticized the interim PRSPs for Environmental Economics Series 3 Poverty Reduction Strategies and Environrment - A Review of 40 Interim and Full Poverty Reduction Strategy Papers "excluding the environmental dimension of ultimately matters is the quality of the process, development" (GTZ, 2000). This review seeks to and the success in implementing a good contribute to this debate. strategy. Thus, while the quality of PRSPs is central to the success of the program, It should be emphasized that PRSPs are only the expectations of the PRSPs should take into expression of complex underlying processes in account of country circumstances, along with achieving poverty reduction objectives. What fact that PRSPs are living documents. 4 Environment Department Papers 2 The PRSP Sample T his report is based on the analysis of 40 Second, the Africa Region dominates the Interim and full PRSPs. The breakdown number of PRSP submissions with a share of in categories and regions is specified in about 60 percent. the Table 1. An environmental profile of each of the 40 Two features stand out in the sample reviewed. countries is obviously beyond the scope of this First, many PRSPs are still interim. This paper, but selected poverty and environmental signifies that the process is still in its infancy, indices of countries are presented in Appendix I and we should expect that full PRSPs will to Appendix V. These indices should be provide a better basis for environmental considered as a partial basis for comparisons on mainstreaming. It is assumed that some IPRSPs the level of environmental mainstreaming by have been assembled under very strict time countries and their performance across poverty constraints to meet the HIPC deadlines. and environment issues. Table 1. Regional distribution of PRSPs Region Interim PRSPs Full PRSPs Total PRSPs Africa 19 5 24 Eastern Europe & Central Asia 7 7 East Asia 4 4 Latin America & Caribbean 1 3 4 Middle East I I Total 32 8 40 Environmnental Economics Series 5 Method of Environmental Review of PRSPs T he assessment framework is built on the 1. Issues in focus: description of major lines of previous work on mainstreaming concerns and opportunities environment in CASs (see Ekbom & Bojo, 2. Causal links assessment: poverty- 1997, Shyamsundar and Hamilton, 2000). environment link analysis However, the PRSPs, while sharing some 3. Responses to environmental challenges: characteristics, are different from CASs in several environmental management measures, aspects. Hence, the specific points of observation monitoring & evaluation have been adapted to fit the character of, and 4. Process: participation and inclusion of demands on the PRSPs. The general World environmental constituencies and voices. Bank/IMF perspective on the PRSP as laid out in the Joint Staff Assessment Guidelines (World Issues in Focus Bank 2000) forms a background for this The first set of issues concerns the resource base, specialized assessment. environmental problems, and opportunities. We would expect countries to differ in their This review suggests a simple method thatwolexctourisodfernthr This eviewsuggets a implemetho thattreatment of these issues, and not all countries enables one to assess the environmental focus of w lea extetg th e ame ll of PRSPs on a set of multiple criteria in a structured attention to all issues e.g. biodiversity. The format. The scoring format provides a basis for aisestin focus ego ioken To assessing the progress on environmental four major themes: variables at each stage, from the IPRSP to PRSP and from one 3 year PRSP cycle to the next Land use: including deforestation and We will return to this in section 6 below. The degradation of forests and woodlands, soil scoring method is also useful to compare the degradation (erosion, sahnization, progress on any given criterion, although we do waterlogging, nutrient depletion, impacts not report at that level of detail here. Hence of mining, and overgrazing) environmental assessment at each PRSP revision serves to improve the environmental focus of * Water: access to safe drinking water, PRSP and provides information on the areas that irrigation, water pollution, coastal zone, require attention. marine and fishery aspects The method of PRSP assessment is described * Air: air quality, pollution from biomass or here conceptually and further illustrated using fossil fuels, industrial processes that examples in the next section. The framework for generate lead, particulate matter, sulfur, assessing the environrnent mainstreaming is nitrogen oxides and other pollutants and grouped under four categories: Environmental Economics Series 7 Poverty Reduction Strategies and Environment-A Review of 40 Interim and Full Poverty Reduction Strategy Papers * Biodiversity, and climate variability and * Empowerment: the degree to which poor change: threats to genetic resources, people are in control of decision-making on degradation of ecosystems, but also environmental matters of immediate opportunities for poverty alleviation concern to them. While this point is closely through sustainable use of biological related to property rights, it is more diversity; climatic variability and long- concerned with the levels and rules of term change. collective decision-making about the Causal Links Assessment environment than legal title. * Gender and environment: attention to how Once the environmental issues of the country are assessed, the ground has been laid for a causal the role of gender affects the utilization of analysis. Why is the environment degrading? natural resources. Are women denied How does this impact the poor? This theme has secure tenure to certain assets? Are they been broken down into seven categories: particularly hurt by the degradation of natural resources? If so, to what extent do * Natural resource degradation and poverty: they have a "voice" in society? what links are identified and possibly quantified? Examples include nutrient Response Systems depletion leading to falling yields, and The country-level response systems to hence falling incomes among the poor. environmental challenges and opportunities are assessed based on the PRSP's proposal to * Environmental health: how pollution of air improve the environment management capacity, and water is linked to poor health, and targeted investments in promoting how it relates to the burden of disease. environmental objectives, and measuring the progress of interventions through monitoring * Vulnerability: how climatic variability and and evaluation. The assessment of response natural disasters impact poverty, e.g. systems is based on the following five criteria. through periods of drought, floods, earthquakes, and hurricanes. * Environmental management capacity: This point focuses on environmental legislation, * Property rights: analysis of how natural institutional reform, regulation (e.g. of resources are "owned" and how the EAs), introduction of environmental security of tenure may impact the standards for emissions/effluents or utilization of resources. It may also include ambient conditions, awareness raising a discussion about the inequality of through education and information, resource access, such as unequal land establishment of environmental ownership that forces the poor to cultivate information systems, early warning marginal environments. systems and preparedness for natural hazards. It also concerns the use of * Incentives: how price regulation, taxation, economic instruments for environmental subsides, exchange rate policies, trade management such as user fees, effluent/ regime, and the debt burden impact the emission charges, product pricing, and environment. Do public interventions green taxes. correct market failure, or do they make them worse? * Investment in natural capital: This is an important measure of government's 8 Environment Department Papers Method of Environmental Review of PRSPs concern for natural resources management Process and its commitment to improve natural resource productivity. Examples include The final category concerns the process and rehabilitation of degraded soils or forests, planning behind the PRSP, and also includes the the gazetting of Protected Areas, process for implementation. While these restoration of wetlands and so on. aspects are not uniquely "environmental" they are added here because an inclusive and * Investment in man-made capital: In this participatory process is an important context, an assessment of planned requirement if the basic concerns of investment regarding housing, water environmental health, natural resource supply systems, sewage systems, water degradation and vulnerability to natural treatment plants, sanitation, solid waste disasters are to be heard, registered and acted management infrastructure, and so forth, upon. becomes significant. The process rating has caused considerable * Monitoring natural resource outcomes: debate, and it is worth emphasizing what this Tracking the outcomes of Poverty does, and does not, measure. As with other Reduction Strategy implementation aspects of this PRSP review, it reviews what is in requires a monitoring and evaluation the text. It is not possible to evaluate the quality of system that should be described in the a set of consultative events. For example, it has PRSP. A subset of this M&E system is a set been argued that some "participatory" events are of indicators. The indicators for natural designed as top-down ceremonies, leaving little resource management may include those room for upward feedback. It has also been for land use (e.g. trends in crop yield) argued that consultations sometimes ignore forest management (e.g. deforestation rate environmental concerns raised. This may be true forest managementland g.nderprotesatin atea in some cases, and the lack of inclusion of (e.g.percennumt lad udeograprtct area environmental concerns or actions will be (e.g. percent of geographical area rfetdi o aig ne hs aeois protected), soil conservation measures (e.g. reflected in low ratings under those categories. types and extent of treatment), water stress or scarcity (e.g. per capita availability in Method of Scoring cubic meters), and the extent of renewable energy use.3 The 17 variables identified and described above are scored with respect to each country's * Monitoring human resource outcomes: This PRSP (See Appendix F for a summary of the aspect of the M&E system should be format for scoring). A score range of 0 to 3 is attached to another set of indicators: e.g. used and the description is provided below: infant mortality, incidence of infectious diseases, access to safe water (e.g. percent = no mention of population in rural/urban areas), 2 = elaborated sanitation (percent of population and poor 3 = good practice households covered), housing standards (e.g. crowding: floor area/person), energy The unweighted average scores of the sources used (e.g. coverage of electricity, assessment are presented in Table 2. The use of biomass fuels). aggregate multidimensional indices are subject to debate and criticism on the weights used. Environmental Economics Series 9 Poverty Reduction Strategies and Envirorunent - A Review of 40 Interim and Full Poverty Reduction Strategy Papers Refinements involving a weighting system consistent across countries in the format we have been rejected in favor of a format that use. We do not encourage attention to small includes scores on different aspects of differentials in scores between countries, but environmental challenges and opportunities, see scores as valuable indicators of which implicitly serves as a weighting system. approximate level. The assessment process designed allows us to succinctly present It is recognized that any assessment, including quantitative information to complement the scoring, involves subjective judgment. qualitative analyses of PRSPs undertaken in However subjectivity is made transparent and the JSA and by other studies.4 10 Environment Department Papers 4 Results of the PRSP Review A s noted earlier, most PRSPs are Interim, neglect to mention issues that would be and the results should be interpreted relevant, much less elaborate them. This ,Axwith that in mind. The time available signifies considerable room for improvement for preparation of full PRSPs in successive time to approach the theoretically achievable top periods provide opportunities for improvement. score of 3.0. However, one would not expect all The ranking on the environmental countries to approach that figure, as not all mainstreaming of PRSPs is summarized in the countries can be expected to award Table 2. environment that level of priority. The following findings stand out from the table Third, thefull PRSPs are only eight in number, and the analysis. First, there is considerable but rank relatively well in comparisons to the variation in the degree of mainstreaming: from IPRSPs. Their average as a subgroup is about 1.7. a high score of 2.2 (Mozambique) to a low of This is encouraging. However, the full PRSP from 0.3 (Sao Tome Principe). There is a top cluster Tanzania is still not highly placed within the with Mozambique, Honduras, Nicaragua, sample. Few would deny that Tanzania has its Bolivia, and Kenya that has set relatively high share of environmental health issues, and its standards. While scores should not be seen as concerns about natural resource degradation. precise measurements, they do indicate that the level of attention given to environmental Fourth, good practices do exist, and this paper issues varies considerably. Some variation is provides some examples that can serve to inspire legitimate and to be expected. However, there future work. As examples below will illustrate, is no reason to believe that the low scoring the standard for "good practice" is not countries are free from concerns of extraordinarily demanding, and should be easily environmental health and natural resources achievable if sufficient attention is given to degradation linked to poverty. The low scoring environmental mainstreaming. cluster including such countries as Guinea- Bissau, Senegal, and Central African Republic These conclusions have proven robust over time. clearly illustrates this. As the data contained in Previous Reviews in December 2000 (covering 19 the appendixes to this report indicate, the low PRSPs), March 2001 (25 PRSPs), and August scores of these countries are not due to 2001 (38 PRSPs) showed similar results. The one irrelevance of such considerations, but due to encouraging feature over time, however, is the lack of attention to their appropriate place. tendency for full PRSPs to show better mainstreaming scores than Interim ones. Second, the average score is lowu: only about 0.9. The exact figure is not that important, but in Looking at the four groups of points for qualitative terms, it means that many PRSPs scoring, the following picture emerges: Environmental Econoryics Series 11 Poverty Reduction Strategies and Environment - A Review of 40 Interim and Full Poverty Reduction Strategy Papers Table 2. Scores on environmental mainstreaming in PRSPs Env. score S. No. Country Region Interim Full of PRSPs I Mozambique Africa F 2.2 2 Honduras Latin America F 2.1 3 Nicaragua Latin America F 2.0 4 Bolivia Latin America F 2.0 5 Kenya Africa 1 1.9 6 Burkina Faso Africa F 1.7 7 Lao PDR East Asia 1 1.6 8 Mauritania Africa F 1.4 9 Rwanda Africa 1 1.3 10 Cambodia East Asia 1 1.2 11 Uganda Africa F 1.1 12 Madagascar Africa I 1.1 13 Georgia Central Asia I 1.0 14 Guyana Latin America I 1.0 15 Gambia Africa i 0.9 16 Tanzania Africa F 0.9 17 Ghana Africa 1 0.9 18 Guinea Africa 1 0.9 19 Mongolia East Asia 1 0.8 20 Vietnam East Asia 1 0.8 21 Moldova Eastern Europe 1 0.8 22 Chad Africa 1 0.8 23 Ethiopia Africa 1 0.8 24 Armenia Eastern Europe i 0.7 25 Albania Eastern Europe 1 0.7 26 Cameroon Africa 1 0.6 27 Mali Africa 1 0.6 28 Lesotho Africa 1 0.6 29 Malawi Africa 1 0.6 30 Sierra Leone Africa 1 0.6 31 Kyrgyz Republic Central Asia 1 0.5 32 Benin Africa 1 0.5 33 Zambia Africa 1 0.5 34 Guinea-Bissau Africa I 0.5 35 Tajikistan Central Asia 1 0.4 36 Yemen Middle East 1 0.4 37 Senegal Africa 1 0.4 38 Macedonia Eastern Europe 1 0.3 39 Central African Rep. Africa 1 0.3 40 Sao Tome Principe Africa 1 0.3 Note: I = Interim PRSP; F = Full PRSP 12 Environment Department Papers Results of PRSPs Review * Issues: Even though the poor in most PRSP * Responses: The average score across the countries are overwhelmingly dependent five items rated under this theme (see on natural resources, this is not explicitly Appendix F) is about 1.4 on the scale of 0 to brought out in many PRSPs. Problems are 3. However, most PRSPs do not explicitly noted in passing, if at all. Consideration to present the legislative, institutional and poor (environmental) health is generally regulatory inventions needed for poverty better catered to. The average score on the reduction through environmental four points rated under the heading of management. An important issue that has "Issues" (see Appendix F) show an average not been covered by several PRSPs is the of only about 0.6 in this sample, on the cost of environmental interventions and scale of 0 to 3. This is a surprising result, as the sources of funding. Cost of inputs and it would seem straightforward to at least the relationship between inputs and describe the basic problems with respect to outcomes is generally absent, but the case land, air, water, biodiversity and climate. of the Kenya PRSP is an exception. The description if often limited, and tends to focus on water pollution and land * Process: The averages score for this single degradation. These are often the most item, across 40 countries, is about 1.2 on significant from a poverty perspective. the scale of 0 to 3. Though PRSPs generally describe the processes of discussion and * Links: The average score for the seven items stakeholder participation, it is difficult to listed under this theme (see Appendix F) is determine to what extent environmental about 0.8, on the scale of 0 to 3. This is still constituencies have been included, and to low, but shows that even on the basis of a what extent the environmental concerns of weak description of environmental issues, the poor are translated into implementa- many PRSPs make conceptual links tion priorities. It is expected that the between poverty and environment. Links evolution of Interim PRSPs into full PRSPs between polluted water and poor health will bring about considerable improvement are generally captured, and links between in this regard. degradation natural resources and poverty are often mentioned. However, analysis of the incentive structure and its impacts on the environment is generally lacking. Environmental Economics Series 13 5 Examples of Good Practice T his section provides concrete examples In Guyana, over three-quarters of the area is of mainstreaming of environmental forested and the ecosystem is fragile, and the issues in the poverty reduction 10 percent of land area below mean sea level is strategies. The text is kept brief, as the original inhabited by over 90 percent of the total PRSP documents are easily available for the population. The economy is heavily dependent interested reader, through the World Bank's on coastal agriculture, minerals and forest external website: www.worldbank.org. products. Since the coastal land lies below the mean high tide level and is exposed to Issues in Focus flooding, sea defenses are critical for protecting Under this heading, the treatment and agriculture, communications, roads and water sensitivity to environmental issues are supplies. examined and the high level of concern shown with respect to them by some countries is Pollution resulting from lack of environmental summarized in the following paragraphs. regulation and the impacts on human health is well illustrated by the Honduras PRSP..iack of The Burkina Faso PRSP notes that "...climatic land use and urban development planning, has conditions, land locked status, low agricultural contributed to increased problems of productivity, degradation of soil and water environmental deterioration and pollution in thze resources, are major constraints to economic main urban centers of the country, with impacts on growth and contribute to massive poverty and human health ... pollutants in soils and water cause severefood insecurity among rural inhabitants. high rates of diarrhea illnesses in Tegucigalpa... Income from farming and livestock raising is Likewise studies of air quality carried out by the highly dependent on rainfall which varies Municipal Statistics Research Directorate in the considerably from year to year." city of San Pedro Sula found an above normal concentration of nitrogen dioxide of 0.029 ppm! Most poor households in The Gambia depend day. Monitoring air quality during January-May upon wells for drinking water and pit latrines 1999 showed average pollution to be two times for sanitary purposes. In 1998, only 37 percent higher than the norm for particulates up to 10 of the population had access to proper sanitary microns and fourteen times higher for suspended f acilities. L ack of awareness to water supply particles... The high level of air pollution in the and disease incidence is a major factor of water cities is the main cause of morbidity..." point contamination. Diarrhea spread from polluted water is the major cause of child The Kenya IPRSP presents a description of the morbidity and mortality and poor sanitation environmental issues relating to land use and further exacerbates disease spread. water and suggests strategies, monitoring indicators and cost of implementing the Environmental Economnics Series 15 Poverty Reduction Strategies and Environmnent - A Review of 40 Interim and Full Poverty Reduction Strategy Papers strategies relating to land use, water and supply infrastructure does not function, and energy. The IPRSP also expresses concern poor households cannot afford the fees for regarding the loss of biodiversity. drinking water. The Kyrgyz IPRSP identifies air and water Yemen's per capita water supply is about 2 pollution as major health concerns. For percent of the world average and 85 percent example, the benzopyren emission from below the amount needed for domestic use. vehicular pollution is estimated to be 25 to 35 Ground water has reached a state of over- times the official standard. The lead and exploitation as a result of over drilling chromium concentrations exceed the norms set stimulated by diesel subsidies. for soil pollution by 1.4 times and 12.7 times respectively. Poverty-Environment Links Since environment is a cross-sectoral issue, The IPRSP of Lao PDR notes that ". ..the critical analysis of poverty-environment links government is aware of the costs of deforestation, is important in the design of responses, arguably the main environmental problem of the resource allocation, and in setting goals and country, including the erosion, loss of wetlands targets. The PRSPs provide useful insights into and loss of natural habitat and biodiversity, analysis and implementation of policies that climatic and other risks stemming from have influence on poverty-environment links. deforestation ." In Bolivia, the poverty in rural areas is as high The PRSP of Nicaragua highlights the as 82 percent and of which 59 percent are relationship of low income, high diarrhea extremely poor, 78 percent of rural households incidence, limited education of mother, lack of do not have access to drinking water and 72 safe water, over crowded housing, and spacing percent lack basic sanitation service. In terms of births as major determinants of of environmental quality, water pollution is the malnutrition. Over 30 percent of poor children country's greatest problem requiring greatest and almost 40 percent of extremely poor priority for drinking water and sanitation. Due children are malnourished compared to 12 to poor sanitation, rural households are percent of non-poor children. Poor children exposed to three endemic infectious diseases: under 5 are particularly affected by chronic chagas disease, malaria, and tuberculosis. malnutrition resulting in varying degrees of Chagas disease is spread over 60 percent of the stunting. Among the extremely poor children country and is responsible for 13 percent of 36 percent are affected. deaths in people aged 15 to 75, while the incidence of malaria (8 per 1000 inhabitants) The Rwanda IPRSP notes that the major portion and tuberculosis (113 per 100,000 inhabitants) of the energy consumed by poor is in the form is still the highest in the region. of fuelwood. Shortage of fuelwood imposes time and financial costs on poor households, Burkina Faso IPRSP notes that soil degradation and makes it harder for children to attend and a decline in soil fertility as a result of over- school. Poor access to energy has also impeded exploitation of arable land is a widespread the development of agro-processing and non- phenomenon. Soil degradation is most marked agricultural activities, compromising the in the northern and central regions where most economic diversification. Access to potable of the rural population is caught in a vicious water in rural areas fell from 64 percent in circle of soil degradation, poverty and food 1984 to 50 percent in 1996. A third of the water insecurity. 16 Envirorment Department Papers Examples of Good Practice The PRSPs of Burkina Faso, Guinea, Honduras, community based catchment management strategy and Mauritania present maps showing regional to ensure adequate quality and quantity of water distribution of poverty, population and natural to the poor". resource attributes. The poverty and resource maps help in the assessment of spatial and Participatory poverty assessment in Lao PDR temporal relationships between poverty and provides reference to the degree of rice self the resource base. The maps can also be used to sufficiency as a major determinant of poverty track the impacts of policy and management Other common causes cited are arable land interventions relating to poverty reduction. constraints, livestock diseases, natural disasters, and shifting cultivation. The Guyana PRSP notes that weak framework for land use as a systemic deficiency In Moldova, most rural households survive on exacerbating the poverty. Lack of land records, subsistence farming, and with few land inventory, and coordination on land use opportunities for credit, they lack the ability to resulted in overlapping mandates and uses for adopt modem inputs. Although there has been agriculture, forestry, mining and housing. In progress in land privatization, it has not led to addition, poor quality of housing is an improvement in productivity. characterised by large scale squatting and unfit dwellings. The Mongolia PRSP notes the direct influence of pasture degradation due to desertification The Honduras PRSP highlights strong and land degradation on the poverty and correlation between the areas of high living standards of herdsmen and the quality deforestation due to slash and burn agriculture of pasture with yield losses reaching 19 to 24 and persistent poverty. The deforestation percent. Increased live stock numbers and affects 61 percent of the forest area in the adverse impacts on water supply and carrying western and southern regions and 55 percent capacity affect 40 percent of herdsmen and 70 of forest area in the Atlantic region. Other percent of pasture. Another major impact of causes of deforestation identified are the poverty and unemployment is the illegal changes in forest soils, fuelwood consumption, fuelwood extraction as a source of livelihood, forest fires, and unregulated logging. In 1998, further reinforcing the cycle of poverty and the Central American Environment and natural resource degradation. Development Commission estimated the annual economic losses of Honduras The Mozambique PARPA (Plan for Reduction of deforestation, in terms of damage to timber Absolute Poverty) highlights the and non-timber products, biodiversity losses, environmental impacts of population growth, and losses of affected water resources and poverty and dependence on firewood and ecotourism at about US$112 million. charcoal for domestic energy, and makes proposals for electrification and solar energy The Kenya PRSP expresses concern over development in the districts. property rights related to natural resources, and proposes "...to implement land law system to create an efficient and equitable system of land ownership". In the context of water, the PRSP As expected, the response systems of countries notes "the incidence of violation of water rights, vary depending on their socio-economic conflicts, and pollution have dramatically conditions, the environmental challenges they increased. The government proposes to develop a face, institutional framework, and previous Environmental Economics Series 17 Poverty Reduction Strategies and Environment - A Review of 40 Interim and Full Poverty Reduction Strategy Papers Box 1. Vulnerability A range of vulnerabilities related to natural hazards presented by PRSPs are summarized as follows. The earthquake of 1988 affected 40 percent of Armenia's geographical area and one-third of country's popula- tion, with the poor being the most affected. In addition to loss of life, it disrupted critical services like housing, water supply, and sewage systems. The Honduras PRSP presents a detailed assessment of vulnerability due to hurricane Mitch. The PRSP notes that "Hurricane Mitch had a severe impact on living conditions in Honduras and this in turn affected poverty levels nationwide. It is estimated that percentage of poor households rose from 63.1 percent in 1998 to 65.9 percent in 1999..." While the damage to total capital stock of the country is estimated at $3800 million, accountingfor 7 percent of GDP. In case of housing sector alone, the damages were estimated at US$344 million from the total damage of 35,000 houses and 10 to 50 percent damage to another 50,000 houses. Mauritania is severely affected by drought and desertification in the Sahel region. The PRSP notes that "With the exception of mining and fisheries, the country is under-endowed in directly exploitable natural resources. Vegeta- tion andforest resources are sparse and water resources, both surface and underground, are either limited or difficult to reach. Due to limited water resources, the arable land potential of Mauritania is less than 0.5 million ha (< 1 percent of country's geographical area). In addition, 60 percent of the farms are less than 1 ha and lack secured tenure." In Madagascar, repeated fires have severely affected the vegetal cover, given the relief of the country, soil ero- sion has assumed major proportions. It is estimated that 200 to 400 tons/ha of top soil is washed away annu- ally. The Nicaragua PRSP presents linkages of vulnerability and marginality. The PRSP notes "volcanic eruptions, hurricanes, earthquakes, droughts, fires and floods are common periodic occurrences, which produce ecological deterio- ration and destruction of property... recent catastrophes (EL Nino, Hurricane Mitch, La Nina, Masaya earthquake) have shown that the poor are much more likely to be adversely affected than the non-poor. Because of the inadequate construction, their dwellings are particularly vulnerable; and when affected have insufficient savings to address the emergencies." Mongolia has a predominantly pastoral economy. The PRSP highlights the environmental vulnerability result- ing from overgrazing, declining pastoral mobility, conflict over pasture, dzud (harsh winter weather resulting in sheets of ice and snow covering pastures), drought, flooding, dust and sand storms, and steppe fire. Pastoral risk management is proposed for managing covariant risks and the vulnerability to drought and dzud. measures undertaken. Good practices of review of water supply and sewage tariffs. It investment, interventions and monitoring also proposes to improve water supply and systems are summarized below. sewage systems through a World Bank credit. The Armenia PRSP proposes environmental Bolivia proposes a Law on Risk Reduction and protection through measures to conserve land, Disaster Management to regulate state forests, pastures, mineral resources; activities and establish an institutional improvements in pollution control, recycling of structure to reduce the impact of natural waste, district heating, maintenance of disasters. The prefectures, municipal dwelling stock, enforcement of environmental governments and regional agencies propose to regulation and improvements to formulate plans for reconstruction, in environmental information systems, and coordination with the Ministry of National 18 Environment Department Papers Examples of Good Practice Box 2. Incentive Structure Policies like subsides, regulation, pricing, taxation, exchange rate, trade, debt and other sector specific and macroeconomic policies affect environment in several ways. Discussion in PRSPs of such policies are exempli- fied below. However, the impact of economic policies and instruments on the environment is not explicitly analyzed. The Gambia's export earnings depend upon agriculture, tourism and re-export trade. All three sectors have been severely affected by the world prices for groundnut, devaluation of CFA franc, adverse terms of trade, and protectionist policies of the neighboring countries. Georgia's energy sector reform reflects the impacts of privatization on the poverty-environment relationship. With the collapse of Soviet Union, Georgia lost access to cheap energy resources. Privatization of the electricity market raised the energy tariff by 2.4 times up to about 20 percent of the average family income. Inability of the poor to pay for electricity resulted in increased demand for wood. A system of energy allowances to house- holds adopted early in the reform was found to be inadequate and inefficient to meet the targeted budgetary support to poor. The Ghana PRSP highlights the benefits of the Structural Adjustment program to natural resource manage- ment. Community water supply and sanitation benefited from the injection of capital and restructuring of the Ghana Water and Sewage Corporation. The water tariff reform is proposed taking into account the ability to pay of poor households and the financial viability of the utility. In the cocoa sector, policy changes are under- way to encourage cocoa growing through remunerative pricing, reduced export tax, and incentives to export. However, further studies are needed to assess the impact of relative cocoa prices on the environment. Honduras' PRSP refers to the proposed development of economic instruments such as carbon markets, sale of environmental services, incentives and disincentives for promoting sustainable management of natural re- sources, and the environmental fund to support environmental investment projects. In Moldova, a series of natural disasters, terms-of-trade shocks from liberalized energy prices, and regional instability caused intermittent policy reversals in the implementation of the structural reform program and resulted in adverse impacts on the standard of living. A social protection plan has been implemented to rationalize the energy prices, eliminate non-targeted energy subsidies and limit the energy subsidies to the most vulnerable groups. The plan is likely to benefit government finances and improve the targeting of social protection program. Mauritania initiated an investment code, tax incentives and transparency in the award of titles in the mining sector to encourage foreign direct investment, product diversification and technological improvements and partnerships. Nicaragua proposes US$48.5 million through financing mechanisms such as debt-for-nature swaps to implement a broad based program on the environment and vulnerability mitigation with the objectives of managing renewable resources, financing sustainable development, rationalizing land use, and for restoration of water- sheds. Defense and the Ministry of Sustainable with an investment of US$64.2 million to Development and Planning. In the area of provide solidarity shelters and to establish housing, a Risk Prevention, Mitigation and minimum habitability standards to housing Emergency Management program is proposed affected by national disasters. Environmental Economics Series 19 Poverty Reduction Strategies and Environrment - A Review of 40 Interim and Full Poverty Reduction Strategy Papers The Burkina Faso PRSP specifies a program of against climatic hazards. The PRSP also soil and water conservation designed to break presents the interventions' aimed at inproving the vicious circle of soil degradation, poverty, soil and water resource management, and food insecurity. It also refers to new restoration of agricultural infrastructure, legislation pertaining to environment, water ensuring property rights and income sources to resources and mining. Related to vulnerable groups. environmental management is the testing of ways to provide for secure property rights to Based on the experience of the hurricane land under a national land management Mitch, Honduras proposes to strengthen risk program. A cost assessment of programs management and disaster preparedness by relating to irrigation, measures to combat enacting a national law on emergencies, along vulnerability, and projects for strengthening with directions to private sector and municipal institutional capacity is also presented. corporations to provide a budget for risk Cambodia PRSP emphasizes access to land as a The Kenya PRSP proposes to develop a major poverty alleviation measure and household energy supply strategy through proposes land reform involving land promotion of energy efficient stoves, charcoal registration, management of national land conversion kilns, charcoal briquette stoves, stock, and a legal framework for enforcing biomass recovery technologies, and alternative property rights within the municipal and energy sources such as geothermal and wind national master plans. Other measures energy. proposed are the revised forestry laws for sustainable forestry management, concession Despite the livestock sector's potential for management, log export, community forestry reducing poverty in Mauritania, it is seen as initiatives to improve property rights of "poorly integrated and inadequately structured". indigenous people, and water supply and The government proposes to integrate the sanitation policies based on financial agriculture and livestock sectors; adopt a autonomy involving tariff adjustment, cost farming code to open the pasture and range recovery, private sector participation, and lands, improve milk and meat production; institutional capacity for expanding the water introduce environmental friendly range connections to end users. management; promote studies to support value added in the leather and hide industries; and The Ethiopia IPRSP highlights the progress establish research and extension programs for achieved in soil and water conservation, improving the pastoral economy. The terracing and tree planting activities carried government intends to promote early warning out under the food-for-work program, and systems and response mechanisms to limit the proposes to adopt suitable technologies in impacts of climatic fluctuations on food moisture deficit and drought prone areas to security. The plan includes a food security address the food security problems at observatory and a national reserve stock household level. comprising reserve of food products and financial reserve to facilitate the response to Georgia's PRSP proposes privatization of land food crises at regional level. and water resources, promotion of a land market, creation of water user associations, Moldova proposes to implement mass and implementation of a rural credit policy registration of 1.2 million private land titles in establishing guarantee funds and insurance territorial cadestre offices, liquidate state 20 Environmnent Department Papers Examples of Good Practice farms and create producer and service costs, and repairs to the irrigation and cooperatives. The PRSP proposes to improve drainage infrastructure. the energy sector through privatization and deregulation, and enhance the competitiveness The Vietnam PRSP proposes to strengthen of the electricity market. forestry and public resource management through reform of tax policy and Mozambique proposes five year PROAGRI, a administration for efficient management of combination of initiatives for sustainable and natural resource concessions, improved equitable growth in agriculture, forestry and revenues from the sustainable management of animal husbandry to contribute to poverty forestry, mining and petroleum resources. reduction and food security, while protecting the physical and social environment. In Process addition, the PRSP proposes principal While process issues, participation and design measures to be implemented in the sectors of cannot be expected to specifically highlight the energy, water supply, agriculture, forestry, involvement of environmental constituencies, irrigation, and fisheries. the more inclusive designs allow such voices to be heard. It is interesting to note that most of Nicaragua supports the environmrental policy the countries that have been identified as and ctio pln (PNic andprioitis in~"cproviding good practices relating to process areas; water, forestry, soils, refuse (solid and an d paalso srelhing to liquid waste), environmental education, and . . institutional coordination. The actions mainstreaming: Bolivia, Kenya, and Nicaragua are such examples. proposed include rehabilitation of the most vulnerable water basins and plans for To strengthen the institutional mechanisms for watershed management, reforestation, soil participation, Armenia proposes to conduct conservation, crop diversification, and legal focus group discussions, stakeholder analyses, framework for natural resource management social assessments, an information an .mncia environmentssesactivities. Theh campaign and municipal environment activities. The on the poverty strategy, and to collect feedback second rural municipal development project from key stakeholders. financed by the World Bank proposes to spend US 12.5 million on municipal infrastructure In Bolivia, National Dialogue 2000 was initiated and environment... as participatory mechanism for implementing a social, economic and political agenda. A Rwanda commits to a resettlement progrm to separate jubilee 2000 dialogue was organized ensure that new settlements have access to involving the Council of Native Eastern basic public services such as water and Peole, te developm e instio sanitation for People, pnvate development ostrtutions, sthe ion0,000 households living in camps under youth and women organizations, The processes the 250,000 households living in camps under provided opportunity for civil society plastic sheets, and more than 60,000 live in con ion o nt ty reductioncand damaged housing.. ~~~consultation on the poverty reduction and damaged housing.. development strategy. A series of workshops under the theme of "Government Listens" was Tajikistan proposes a draft legislation on water instrumental in providing civil society opinion resources and establishment of autonomous and proposals on environment, capacity water supply and distribution organizations, building, gender, participation, opportunities, water users associations, recovery of operating vigilance, and monitoring. Enviromnental Economics Series 21 Poverty Reduction Strategies and Environment - A Review of 40 Interim and Full Poverty Reduction Strategy Papers Box 3. Environment Management Capacity To reorganize development and management of national land resources and make property rights more se- cure, Burkina Faso adopted the environment code, forestry code, mining code, and water code. Plans are being adopted to implement the codes under the National Land Management Program. The Cambodia PRSP notes that land registration, cadastral mapping, inventory of land resources, GIS/LIS, land valuation, and land survey network require attention. Priority will be given to develop a comprehensive land planning system, including the preparation of master plans at all levels. New data and the existing information will be fed into a GIS to complete an inventory of all land. Cambodia also proposes to establish a hydrological information system of surface and ground water sources that supports strategic planning and environment-friendly development of water resources for irrigation, potable water, hydropower, fishery, and flood control. Cameroon proposes to establish an equalization fund to transfer income from forest development to municipal districts, com-munity participation in the management of forests, transparency in the award of forest develop- ment rights, and detailed classification of concessions. The Gambia proposes a regulatory framework for the energy sector, alternative energy sources, and to promote independent power providers. The governrment also proposes to strengthen environmental capacity by setting up an environmental information system. Honduras plans to reduce ecological vulnerability by improving risk management at both central and decen- tralized levels and develop economic and financial instruments that promote sustainable management of natural resources. The PRSP proposes legal framework in the form of Water Law, Forestry Law, and Law on the National System for Risk Reduction and Emergency Response, National Land Use Strategy, Joint Imple- mentation Program to promote cooperation among private enterprise, municipalities and communities, and information system for early warning and disaster mitigation. The Kenya IPRSP presents the regulatory and legal framework for implementing EIAs and environmental audits through the National Environment Management Authority; the National Environment Council; the Environment Tribunal; the Environmental Trust Fund; and an environment information system at a cost of more than $3 million. The IPRSP also proposes to restructure forestry institutions and forest management. The proposals include a full forest inventory; new licensing procedures; improvement in wood recovery rates; on- farm based wood production; 30 percent women to be involved in forest-based activities; and collaborative agreements with rural communities at the cost of about $10 million. Mozambique emphasizes the regulatory framework for environmental institutions, measures to support the National Council on Sustainable Development, adoption of environrnental standards on CFCs and marine pollution, territorial planning and zoning, programs to combat bush fires and deforestation, a strategy for waste management, and measures to strengthen the capacity of early warning systems of the National Meteorological Institute. Nicaragua PRSP states "the government is strengthening its capabilities in risk reduction... geographic information system to map natural threats, develop early warning systems, produce geological and warning maps, and improve its monitoring of volcanoes and areas vulnerable to land slides... Fishing, forestry and water legislations have been drawn up...mining law is under consideration...and a law to protect nation's biodiversity is being drafted... A National Sys- tems for Prevention, Mitigation and Disaster Relief (SNPMAD) is beginning operations with the World Bank financ- ing. .. " The Vietnam PRSP proposes an Emergency Relief Fund to help poor and vulnerable people to take preventive measures against storms, floods, droughts, and pests by organizing training to manage disasters. 22 Environment Department Papers Examples of Good Practice The Chad PRSP presents multi-criteria, The Kenya IPRSP presents a participation plan revealed preference and focus group for the preparation of the full PRSP. The plan approaches to identify the needs of poor. includes information on the objectives to be However, in this case, the participatory design met; activities to be undertaken at the national, has not (yet) carried over to mainstream provincial, and district levels; stakeholders to environment in the PRSP itself. be involved in the consultation process; monitoring indicators proposed; and a time The Gambia is one of the early countries to frame for implementing governance formulate a Strategy for Poverty Alleviation indicators. The cost of the plan is about $1 (SPA) in 1992 through a participation and million. consultation process involving civil society, private sector and community groups. The Lao PDR presents a decentralization policy that major outcomes of the consultation process forms the basis of the participation process. were the redefinition of poverty to include new The decentralization policy permits the dimensions such as vulnerability; food provinces, prefectures, special zones and security; access to assets; improved villages to manage revenue and expenditure sensitization to gender and decentralization resources associated with their annual plans. issues; strengthened relationship between The villages have to observe living conditions government and NGO community; and of each family and categorize them into enhanced ownership of the poverty strategy. wealthy, self-sufficient and poor. Building The IPRSP emphasizes improved information provinces, prefectures and special zones into and participatory assessments. strategic units means that these stakeholders have to formulate their own plans and Ghana has launched a decentralization policy implement them. Lao PDR also proposes to to promote participation and ownership of develop focal sites to initiate capacity building government policy by shifting the governance at each level. The focal sites are to serve as from command-and-control to a consultative learning centers and models for given agro- process and by devolving power, competence climatic conditions. and resources to the district level. The administrative and fiscal decentralization, and Mozainbique notes that during the period of consultative process to implement the Ghana 1998-2000, 24 consultations relating to Vision 2020 framework is the cornerstone of agriculture, energy, fisheries, environment and the Ghana's Poverty Reduction Strategy. tourism were conducted, out of a total of 99 consultations involving NGOs in the Guyana proposes to strengthen participation preparation of the PRSP. Participatory rural and accountability through consultation diagnoses were conducted in 7 provinces and involving target groups in civil society, such as 21 districts to encourage the participation of the Amerindian community and trade communities and civil society organizations, associations and to solicit discussions through and to strengthen the qualitative insight of the workshops and electronic media. The PRSP monitoring process. A Questionnaire of places emphasis on capacity building, Indicators of Well Being is also proposed as coordination, information technology and part of annual survey with focus on the indices comprehensive household surveys biannually of poverty. to assess and update regional, gender and poverty profiles. Nicaragua initiated series of consultations for the formulation of the Environmental Policy Environmental Economics Series 23 Poverty Reduction Strategies and Enviromnent - A Review of 40 Interim and Full Poverty Reduction Strategy Papers and Action Plan (PANic). The first stage with the Environmental and Natural Resource consisted of 45 workshops and included 153 Commission, undertook detailed consultation indigenous communities. The second stage process involving indigenous communities, involved 17 workshops with the active and the Municipal Development Plans with participation of civil society organizations. The the active participation of private sector, civil Ministry of Agriculture and Forestry, along society and government institutions. 24 Environment Department Papers Evolution of Mainstreaming from U the Interim PRSPs to Full PRSPs Improved Treatment of Environment Mozambique presents input and process Issues in the Full PRSPs indicators as part of intermediate indicators The revision of IPRSPs into full PRSPs and result and impact indicators as part of Theprovevisiontreatment of IPRSPsinentoP final indicators. There exists further need for improved the treatment of environment,reimntotags,ucms,mpt, specifically the description of poverty- environment linkages, and responses in terms process and the underlying consultation of measures supporting environment management capacity. Significant Improvements in the Presentation of improvement in the coverage of environment Budget Allocation Linked to Targets issues is reflected in the scores of the full PRSPs of Mozambique, Bolivia and Nicaragua in the A few full PRSPs like Honduras present sector- assessment (Table 3). wise budget allocations in relation to the achievements of targets. Mozambique presents Gradual Improvement in the Presentation of overall resource envelope for 2001 to 2010 and Targets, Indicators and in the Context of detailed budget allocation for 2000 to 2005. Long-term International Development Goals However, there is further scope for Most PRSPs present targets in a 3-year or 5- improvement in linking targets and budgets. year time frame. Targets relating to environmental health in terms of child Impacts of Natural Disasters on the PRSP mortality, access to water and sanitation are Implementation presented more explicitly in comparison to other targets relating to deforestation, loss of The full PRSPs of Latin America make biodiversity, pollution, status of fish and reference to the risks posed by natural disasters mining resources. In the context of to the implementation of PRSP proposals. International Development Goals, several full Honduras PRSP states that, a disaster of even PRSPs (e.g. Nicaragua, Bolivia, Mozambique, half the magnitude of Hurricane Mitch would Honduras) present long term goals and targets make PRS goals impossible to reach in the of variables relating to environment. medium term and would delay the Table 3. Transition of mainstreaming scores from IPRSP to Full PRSP S.No Country Score of IPRSP Score of full PRSP I Mozambique 0.5 2.2 2 Honduras 1.6 2.1 3 Nicaragua 1.3 2.0 4 Bolivia 0.7 2.0 Environmental Economics Series 25 Poverty Reduction Strategies and Enviromnent - A Review of 40 Interim and Full Poverty Reduction Strategy Papers achievement of long term goals. Several considerable attention. Kenya, Burkina Faso countries in this group are significantly and Mauritania in Africa and Lao PDR and influenced by natural hazards, e.g. Bolivia, Cambodia in Asia are strongly dependent upon Honduras and Nicaragua. Hence, this type of natural resources, and such considerations vulnerability among the poor has received feature in their PRSPs. 26 Environment Department Papers 7 Scope for Improvement B ased on the environment assessment of about tradeoffs and relationships to MTEF the PRSPs, the countries may be needs to be clear. grouped into two broad categories: Needfor improved treatment of goals and targets: to 1. Group A: Countries in the range of 1.5 to clearly define targets and indicators, combined 3.0 score on the assessment-7 countries with disaggregated analysis. The initiative to use 2. Group B: Countries in the range of 0 and regional maps is commendable and deserves to 1.5 score on the assessment-33 countries. be elaborated. Group A Countries Institutional issues: The implementation of past This group includes 5 full PRSPs and 2 IPRSPs. environmental plans needs to be analyzed in It is encouraging to note that five out of eight full shaping realistic expectations for the future. All PRSPs fall into this category. IDA countries have a NEAP or similar, and experience in terms of its implementation needs From an environment perspective, some to be presented. groundwork has been done in these countries, Long-term perspective: While a few PRSPs generally best in terms of describing expLcitly introduce long-term perspective and environmental problems. However, special make reference to long-term IDGs for 2015, this is emphasis in future revisions needs to be make rm. to verm whether the is prvddin the analysis of specific poverty- not the norm. To verify whether the current and provided in econom ic pover andmedium-term strategies are consistent with environment, sub-national quantitative and achieving those goals, the full timeline needs to qualitative surveys that should go beyond the be considered. general assertions often found, specific information on the environmental interventions and their impacts on poverty, setting of In this category, there is limited focus on environmental targets, establishing monitoring environment in the PRSPs. The majority of systems for environmental indicators, and the IPRSPs still belong to this group. In addition to evolution of participatory processes that will directions suggested above for the Group A allow the representation of environmental issues countries, issues that require emphasis in the articulated by the poor. Areas that need focus in PRSPs are summarized as follows: the PRSP include: 1. Exposition of the status of environment Liniking targets and budget allocation for the and it impacts on poverty should cover sector: More attention needs to be given to the land, water, air quality, natural resource resource allocations and outcomes. Discussions dependence, processes of degradation, and Enviromnental Economnics Series 27 Poverty Reduction Strategies and Enviromnent - A Review of 40 Interimn and Full Poverty Reduction Strategy Papers opportunities provided by environmental 4. Definition of indicators, targets and assets. monitoring and evaluation systems, as they 2. Improvement in the analysis of poverty- relate to environment. environment relationships at the 5. Efficacy of participatory framework in household, regional and macroeconomic identifying environmental priorities and levels. their implementation. 3. An analysis of environmental management capacity in terms of policy, legislation, programs, and projects. 28 Environment Department Papers 8 Next Steps T his report is the fourth in a series, * The review will be extended to include and earlier editions have been widely Joint Staff Assessments by the staffs of the circulated internal to the Bank and to a World Bank and IMF. limited set of partners pursuing similar objectives. The following steps are anticipated * The review will be extended to include during the next year: country Progress Reports on the implementation of PRSPs. Few of them are * The report will be widely disseminated available at this stage, but the number is external to the World Bank, e.g. through expected to grow. webpage postings, and through the Poverty-Environment Partnership in * As a complement to this paper, a separate which the Bank participates among some report on how PRSPs include a long-run 20 donors.6 sustainability perspective, and in particular the Millennium Development * Future editions will contain an increasing Goals, is under consideration. sample of PRSPs, and will be able to consider more full PRSPs. Environrnental Assessment Series 29 Appendix A Poverty Profiles of PRSP Countries Per Income of ODA Pop. in Percentage of population below Extreme capita lowest as % ODA S millions the poverty line poverty PPP GNP quintile of per No. Country (1998) Rural Urban National (%) ($) (%) GNP capita HDI I Albania 3 30.3 14.7 22.6 2,864 13 53 0.656 2 Armenia 4 55.0 23.0 2074 8 58 0 674 3 Benin 6 33.0 857 13 S l 0.378 4 Bolivia 8 79.1 51.0 70.0 38.0 2,205 4.0 11 93 0.593 5 BurkinaFaso I 1 51.0 16.5 45.3 866 5.5 18 46 0.219 6 Cambodia I1 1246 2.9 17 56 0.422 7 Cameroon 14 50.6 23.0 1395 6 34 0.481 8 C. African Rep. 9 Chad 7 67.0 63.0 64.0 843 19 37 0.324 10 Ethiopia 61 47.0 33.0 45.5 566 7.1 16 16 0.252 11 Gambia 1 49.0 1428 4.4 19 42 0.291 12 Georgia 5 9.9 12.1 11.1 3429 6 37 0.633 13 Ghana 18 34.3 26.7 31.4 29.0 1,735 8.4 9 37 0.277 14 Guinea 7.0 52.0 24.0 40.3 1,722 6.4 12 53 0.465 1 5 Guinea Bissau 1.2 70.0 88.0 573 2.1 52 III 0.295 16 Guyana 35.0 21.0 6.3 22 106 0.670 17 Honduras 6 46.0 56.0 50.0 2,338 3.4 10 73 0.573 18 Kenya 16 46.4 29.3 42.0 964 5.0 I1 26 0.463 19 Kyrgyz Rep. 55.3 23.3 20 Lao PDR 5 1683 9.6 16 64 0.465 21 Lesotho 2 53.9 27.8 49.2 2,194 2.8 9 56 0.469 22 Macedonia 2 20.0 5.3 4224 0.749 23 Madagascar IS 76.7 47.1 70.0 32.8 741 5.1 10 20 0.348 24 Malawi 11 551 26 44 0.334 25 Mali 11 74.0 69.0 32.6 673 4.6 18 51 0.236 26 Mauritania 3 76.4 38.0 50.0 1,500 6.2 26 98 0.361 27 Moldova 4 53.4 19.5 1995 6.9 1 14 0.610 28 Mongolia 3 33.1 38.5 36.3 13.9 1463 7.3 24 84 0.669 29 Mozambique 17 71.2 62.0 69.4 740 6.5 86 61 0.281 30 Nicaragua 5 76.1 31.9 50.3 17.3 1,896 4.2 36 160 0.547 31 Rwanda 8 65.0 9.7 42 118 32 SaoTome 0.14 41.0 33.0 650 0.563 33 Sierra Leone 5 76 53 68 26.3 445 1.1 11 80 34 Senegal 9 79.5 30.0 57.9 1,297 6.4 1i 80 0.342 35 Tajikistan 6 81.5 18.5 83.0 16.3 1,041 2 11 0.575 36 Tanzania 32 57.0 41.0 51.1 483 6.8 24 29 0.358 37 Uganda 21 44.0 1,072 6.6 19 41 0.340 38 Vietnam 77 37.0 1689 7.8 4 11 0.560 39 Yemen 17 658 6.1 6 11 0.356 40 Zambia 10 88.0 46.0 68.0 57.9 678 4.2 35 251 0.378 Note: ODA-Official Development Assistance. Source: World Development Indicators 2000, UN Development Indicators 2000 and country PRSPs. Environmental Economnics Series 31 Appendix B Natural Resource Profiles of PRSP Countries Percentage Rate of of land Per capita Percentage of deforestation under Fresh water energy Primary area under (percent) protected withdrawals Coastal consumption (kg mineral S No. Country closed forests (1990-95) area (m3lcapita/yr) length (kmn) oil equivalent) exports I Albania 37.3 2.8 94 649 335 2 Armenia 21.1 7.6 804 0 508 Copper 3 Benin 15.5 -1.2 7.0 28 153 388 4 Bolivia 53.9 -1.2 14.4 201 0 547 S Burkina Faso 0.0 -0.7 10.4 39 0 6 Cambodia 65.1 16.2 66 1127 7 Cameroon 42.4 4.5 38 1799 413 Gold 8 C. African Rep. 9 Chad 0.0 -0.8 9.1 34 0 10 Ethiopia 17.3 -.0.5 5.5 S I 0 294 11 Gambia 39.1 2.2 29 503 12 Georgia 376 448 13 Ghana 8.6 -1.3 4.8 35 758 370 Gold 14 Guinea -1.1 1614 Bauxite 1 5 Guinea-Bissau -0.4 3176 1 6 Guyana 97.4 0.3 1819 1154 17 Honduras 51.6 -2.3 9.9 294 1878 532 18 Kenya 16.8 -0.3 6.2 87 1586 497 19 Kyrgyz Rep. 20 Lao PDR 30.0 259 0 21 Lesotho 2.4 0.2 30 0 22 Macedonia 7.1 0 1430 Copper 23 Madagascar -0.8 9935 Ti, Ni,Co 24 Mali 0.0 3.7 162 0 25 Malawi 0.0 11.3 98 0 26 Mauritania 1268 Iron Ore 27 Moldova 3.7 1.2 667 0 1014 28 Mongolia 22.5 1.3 271 Copper 29 Mozambique 13.6 -0.7 6.1 40 6942 416 30 Nicaragua -2.5 1915 550 31 Rwanda 16.1 14.7 135 0 32 Sao Tome 33 Seirra Leone 1.1 98 Diamonds 34 Senegal 16.0 -0.7 11.3 202 1327 316 35 Tajikistan 0 571 36 Tanzania 9.1 15.6 40 3461 454 37 Uganda 5.0 -0.9 9.6 20 0 38 Vietnam 17.2 3.1 416 11409 51S 39 Yemen 0.0 0.0 253 3149 206 40 Zambia 7.1 8.6 216 0 694 Copper Note: Ti, Ni, and Co refer to Titanium, Nickel, and Cobalt. Source: World Resources 2000-01 and country PRSPs. Environmental Economics Series 33 Appendix C Food Security Profiles of Countries Daily lrri land Food aid per Daily per as Annual Agr. as as capita capita Per percentage fertilizer percentage percentage calorie animal capita of crop use S No Country of GDP of imports supply protein crop land land (kg/ha) I Albania 63 9 2,349 682 0.21 49 2 Armenia 41 1864 404 0.17 52 12 3 Benin 38 13 2,325 104 0.36 i 4 Bolivia 16 33 2,190 406 0.33 4 4 5 Burkina Faso 35 18 2,471 109 0.34 1 7 6 Cambodia 51 47 1805 163 0.39 4 3 7 Cameroon 41 1 2167 125 0.55 0 4 8 C. African Rep. 9 Chad 39 31 1,840 113 0.53 0 2 10 Ethiopia 55 50 1,661 101 0.20 2 14 II Gambia 30 4 2295 126 0.16 1 5 12 Georgia 32 2,614 316 44 13 Ghana 36 15 2,360 84 0.27 0 3 14 Guinea 23 2 2,232 62 6 Is Guinea-Bissau 54 5 2,430 165 5 16 Guyana 36 40 2410 343 0.60 26 30 17 Honduras 20 10 2,352 332 0.37 4 28 18 Kenya 29 10 1,914 241 0.17 1 31 19 Kyrgyz Rep. 20 Lao PDR 52 44 2106 136 0.19 19 2 21 Lesotho I1 6 2,164 136 0.16 1 19 22 Macedonia 12 2392 488 0.31 8 88 23 Madagascar 32 19 2,022 239 35 24 Mali 49 21 2,040 192 0.29 2 8 25 Malawi 36 26 1911 56 0.18 2 16 26 Mauritania 25 10 2,622 443 10 27 Moldova 31 2892 388 0.49 14 53 28 Mongolia 10 1917 845 6 2 29 Mozambique 31 30 1,685 44 0.19 3 2 30 Nicaragua 34 15 2,186 165 3 31 Rwanda 37 56 2,238 60 0.22 0 I 32 Sao Tome 33 Sierra Leone 14 2035 66 5 6 34 Senegal 18 1 2,368 193 0.29 3 8 35 Taiikistan 7 2,001 36 Tanzania 47 18 2,054 129 0.13 4 10 37 Uganda 44 51 2,160 138 0.36 0 38 Vietnam 26 9 2302 226 0.09 32 192 39 Yemen 18 2 2130 144 0.11 31 7 40 Zambia 16 15 1,954 113 0.67 1 11 Source: World Resources 2000 01 and country PRSPs. Environmental Economics Series 35 Appendix D - Environmental Health and Habitat Profiles of Countries Percent of population Per capita Percentage of Percent of population with access to electricity Crowding Urban pop. with with access to water sanitation consumption (floor area / access to garbage S No. Country Rural Urban Rural Urban (kwh) person m2)5 collection$ I Albania 70 97 10 97 8 90 2 Armenia 13 81 3 Benin 53 41 11 60 S0 5 25 4 Bolivia 43 88 39 77 409 92 5 Burkina Faso 26 S0 5 38 21 12 40 6 Cambodia 33 65 8 81 7 Cameroon 43 57 36 64 10 60 8 C. African Rep. 9 Chad 17 48 7 74 14 10 Ethiopia 20 90 22 16 52 11 Gambia 67 50 sI 12 35 12 Georgia 13 Ghana 52 88 75 342 6 60 14 Guinea 56 50 10 84 74 7 50 I5 Guinea-Bissau 57 38 17 32 40 16 Guyana I1 26 17 Honduras 66 91 71 91 486 18 Kenya 49 67 35 11 47 19 Kyrgyz Rep. 20 Lao PDR 51 60 16 98 21 Lesotho 14 64 5 7 22 Macedonia 23 Madagascar 10 83 25 64 41 6 24 Mali 20 56 22 61 27 3 95 25 Malawi 32 80 4 22 7 26 Mauritania 41 86 19 44 67 10 15 27 Moldova 18 98 8 90 15 83 28 Mongolia 68 100 54 100 9 29 Mozambique 40 17 68 67 12 37 30 Nicaragua 29 84 34 77 412 31 Rwanda 44 79 32 Sao Tome 113 33 Sierra Leone 21 58 8 17 34 Senegal 28 82 12 68 93 8 75 35 Tajikistan 32 86 14 83 36 Tanzania 45 65 6 58 5 25 37 Uganda 32 47 so 60 34 4 20 38 Vietnam 43 20 6 45 39 Yemen 55 88 17 47 4 51 40 Zambia 27 64 37 66 781 7 Note: $ = Crowding and accessito garbage collection are the estimates available for the urban areas of the capital city of the country. Source: World Development Indicators 2000, World Resources 2000-01 and United Nations Social Indicators. Enviromnental Economics Series 37 Appendix E- hifectious Disease Profiles of Countries (per 100,000 population) Tuber- S No. Country Malaria Cholera culosis Polio Measles AIDS I Albania 19 0.00 2 Armenia 28 0.08 5 3 Benin 10,398 3.7 44 0.13 194 9.0 4 Bolivia 480 30.9 130 0.00 1 5 Burkina Faso 4,637 13.8 14 0.11 54 9.2 6 Cambodia 870 41.8 142 1.30 20 2.9 7 Cameroon 1,067 4.7 57 0.06 19 10.9 8 C. African Rep. 9 Chad 50 3.03 10 18.9 10 Ethiopia 26 0.35 1 1.5 II Gambia 1.3 92 0.00 12 6.7 12 Georgia 30 0.00 0 13 Ghana 24 0.20 232 6.5 14 Guinea 8567 88.5 52 0.37 15 13.4 15 Guinea-Bissau 11.3 163 0.00 49 3.4 16 Guyana 4819 35 0.00 0 17 Honduras 949 83.3 88 13.7 18 Kenya 23,068 5.7 103 0.04 12 22.4 19 Kyrgyz Rep. 20 Lao PDR 1111 28.0 25 0.16 65 0.3 21 Lesotho 236 0.00 15 22 Macedonia 112 36 0.00 10 23 Madagascar 80 0.00 79 0.1 24 Mali 19.0 29 0.24 31 5.3 25 Malawi 49,410 172 0.00 44 36 6 26 Mauritania 169 0.22 9 0.6 27 Moldova 5.4 66 26 28 Mongolia 299 11.0 60 23 29 Mozambique 112 0.00 24 12.6 30 Nicaragua 1035 214.1 64 0.0 0 0.5 31 Rwanda 38 0.02 541 32 SaoeTome 3.0 33 Sierra Leone 245.2 43 8 34 Senegal 38.8 91 0.01 73 1.6 35 Tajikistan 36 Tanzania 27,343 5.7 134 0.07 11 37 Uganda 2.7 120 0.51 217 13.7 38 Vietnam 1189 8.2 47 0.19 8 0.5 39 Yemen 260 99 0.30 1 0.4 40 Zambia 44,498 158 0.07 106 46.9 Note: Though AiDS is not an infectious disease, it has been included-because of its impact on the human resource-poverty- environment links. Environrmental Economics Series 39 Appendix F Format for Scoring in the PRSP Assessment 1. Issues in Focus Score I 1. Land use: degradation, deforestation, erosion, overgrazing, etc. 2. Water: drinking water, irrigation, fisheries and water pollution 3. Air: - quality and pollution 4. Biodiversity & climate change: threats to ecosystem stability, nature-based opportunities 2. Causal Link Assessment Score 2 1. Poverty profile and NR degradation: resource dependence and inequality 2. Environmental health: communicable and vector borne infections, e.g. diarrhea, malaria 3. Vulnerability: - impacts of climate variability (hurricanes, floods, drought) 4. Property rights: tenure and natural resource management 5. Incentives: price stability, taxation, subsidies, exchange rate, policies, trade, income and employment from natural resources and issues relating to external debt 6. Empowerment: decentralization and partnerships 7. Gender: concerns on gender and environment links 3. Response Systems Score 3 1. Environmental management capacity: regulation, legislation, institutional reform, cross-sectoral coordination, information and early warning system, environmental standards and market mechanism through economic instruments like cost recovery, product pricing, private sector participation 2. Investment in natural capital: Projects and programs relating to land and water resources management and conservation, air quality and pollution abatement 3. Investment in man made capital: Projects and programs relating to water supply, sanitation, urban infrastructure and housing for poor 4. Monitoring natural resource outcomes: Forests, protected area, agricultural., soil & water resources, renewable energy use 5. Monitoring human resource outcomes: Housing, sanitation, preventive care (life expectancy, infant mortality and nutrition), and population growth and welfare 4. Process Score 4 1. Quality and level of participatory process in identifying the poverty-environment links and in the integration of environment into PRSP proposals and implementation Score: 0 = Issues not mentioned 2 = Issues elaborated I= Mentioned but not elaborated 3 = Good practice Environrnental Economics Series 41 Notes 1. In this paper we will, for the sake of mainstreaming in PRSPs, see DFID (2002). simplicity, use the term "PRSP" to also 5. This paper reviews good practice in include Interim PRSPs when the distinction existing PRSPs only. For a much broader is not essential. perspective on good practice of envi- 2. See World Bank and IMF (2002) for a broad ronmental mainstreaming in PRSs, see the review of PRSPs. Environment is given Environment chapter in the Poverty marginal attention in that overall review. Reduction Sourcebook (Bojo and others 3. For a detailed discussion about environ- 2000). mental indicators, see Shyamsundar 6. Feedback is encouraged to <<jbojo@world (2001). bank.org>> and <<rreddyl@worldbank. 4. For a qualitative and complementary org>>. assessment of environmental Environmental Economics Series 43 References Bojo, Jan, Julia Bucknall, Kirk Hamilton, Nalin fur Technische Zusammenarbeit (GTZ) Kishor, Christiane Kraus and Poonam GmbH. Pillai. 2000. "Environment." In Poverty Reduction Strategy Sourcebook. World Bank, IMF and IDA. 1999. "Poverty Reduction Washington, D.C. Strategy Papers-Operational Issues." Prepared by the Staffs of the IMF and the DFID. 2000a. Achieving Sustainability: Poverty World Bank. Processed. Elimination and the Environment. Strategies for Achieving the Intemational Kaufmann, Daniel, Aart Kraay, and Pablo Development Targets, Department for Zoido-Lobaton. 1999. Governance Matters. International Development. London. World Bank Policy Research Department _____ ~~~~~~~~~~Working Paper No. 2196, World Bank, - . 2000b. Integrating Sustainability into Washington, D.C. 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