50082 Paper number 119 E N V I R O N M E N T D E PA R T M E N T PA P E R S Environmental Economics Series Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies Gonzalo Griebenow Sunanda Kishore June 2009 Sustainable Development Vice Presidency The World Bank environmenT deparTmenT Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies Gonzalo Griebenow Sunanda Kishore June 2009 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 authors and should not be attributed to the World Bank. Copies are available from the Environment Department of the World Bank by calling 202-473-3641. © The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. Manufactured in the United States of America First printing June 2009 Design: Jim Cantrell Cover photos: Klas Sanders, deforestation in Madagascar; Gonzalo Griebenow, Ghanaian child. Contents Acknowledgments v Abbreviations and Acronyms vii Executive Summary 1 Chapter 1 -- Introduction 5 1.1 The Poverty Reduction Strategy Process 5 1.2 Development Policy Loans 7 Chapter 2 -- Mainstreaming Environment in the PRS Process 9 2.1 Methodology 9 2.2 Ghana 11 2.3 Albania 14 2.4 Bangladesh 17 2.5 Vietnam 21 2.6 Summary and Conclusions 23 Chapter 3 -- Mainstreaming Climate Change in the PRS Process 25 3.1 Evaluating Climate Change Mainstreaming in the PRS Process 25 Issues 25 Causal Links 27 Response Systems 29 Process and Planning 30 3.2 Ghana 30 3.3 Albania 31 3.4 Bangladesh 32 3.5 Vietnam 32 3.6 Summary and Conclusions 33 Chapter 4 -- An Evaluation of Environmental DPLs 35 4.1 Mexico 36 The EnvSAL Program 36 Environmental Economics Series iii Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies The Mexico Climate Change DPL 37 4.2 Brazil 38 4.3 Gabon 39 4.4 Summary and Conclusions 40 Chapter 5 -- Summary 43 5.1 Mainstreaming Environment in the PRS Process 43 5.2 Mainstreaming Climate Change in the PRS Process 43 5.3 Evaluating Environmental DPLs 44 References 45 PRSP and DPL Documentation Reviewed 47 World Bank Staff Interviewed 49 Appendix -- Questionnaire for TTLs of Environmental DPL Case Studies 51 Boxes Box 2.1 Ghana--Forest Policy 13 Box 2.2 Albania--Land Policy 17 Box 2.3 Bangladesh--Policy on Natural Disasters 20 Box 2.4 Vietnam--Reforestation Policy 23 Figures Figure 1.1 Environment in the PRS Process--Results of Previous Assessments 6 Figure 2.1 Ghana--Average Mainstreaming Score in the PRS Process 11 Figure 2.2 Ghana--Average Mainstreaming Score in PRSPs, by Theme 12 Figure 2.3 Albania--Average Mainstreaming Score in the PRS Process 14 Figure 2.4 Albania--Average Mainstreaming Score in PRSPs, by Theme 15 Figure 2.5 Albania--Average Mainstreaming Score in APRs and PRSCs, by Theme 16 Figure 2.6 Bangladesh--Average Mainstreaming Score in the PRS Process 18 Figure 2.7 Bangladesh--Average Mainstreaming Score in PRSPs, by Theme 19 Figure 2.8 Bangladesh--Average Mainstreaming Score in PRSCs, by Theme 20 Figure 2.9 Vietnam--Average Mainstreaming Score in the PRS Process 21 Figure 2.10 Vietnam--Average Mainstreaming Score in PRSPs, by Theme 22 Tables Table 2.1 Available PRSP Documents, by Country 9 Table 2.2 Variables Used in the Assessment 10 Table 2.3 Defining Good Practice 11 Table 2.4 Environmental Mainstreaming across a Maturing PRS Process (average score) 23 Table 3.1 Framework for Assessing Climate Change Mainstreaming in the PRS Process 26 Table 4.1 Environmental DPL Case Studies 35 iv Environment Department Papers Acknowledgments R esearch for this paper was undertaken under the (Poverty Reduction Group) and Usman Iftikhar guidance of Jan Bojö, who supervised earlier (UNDP) were the peer reviewers. We are grateful to assessments of environmental mainstreaming in all the Task Team Leaders who shared their time and PRSPs and helped design the approach followed insights with us, and to several reviewers who sent in this study, and then of Stefano Pagiola. Vera Wilhelm detailed comments. Environmental Economics Series v Abbreviations and Acronyms AFR Africa region APR Annual Progress Report CAS Country Assistance Strategy CEA Country Environmental Analysis CCDPL Climate Change Development Policy Loan (Mexico) CDD Community-driven development CDM Clean Development Mechanism CSO Civil society organization DPL Development Policy Loan EAP East Asia and Pacific region ECA Eastern Europe and Central Asia region EnvPRL Programmatic Reform Loan for Environmental Sustainability (Brazil) EnvSAL Environmental Structural Adjustment Loan (Mexico) GEF Global Environmental Facility GHG Greenhouse gas GNI Gross national income ICR Implementation Completion Report IDA International Development Association IDB Inter-American Development Bank IEG Independent Evaluation Group IMF International Monetary Fund I-PRSP Interim Poverty Reduction Strategy Paper LCR Latin America and Caribbean region MDG Millennium Development Goal NAPA National Adaptation Plan for Action NGO Nongovernmental organization NRM-DPL Natural Resources Management Development Policy Loan (Gabon) PES Payments for environmental services PRS Poverty Reduction Strategy PRSC Poverty Reduction Support Credit PRSP Poverty Reduction Strategy Paper REC Renewable energy certificates REDD Reduced Emissions from Degradation and Deforestation SAR South Asia region SEA Strategic Environmental Analysis SIL Sector Investment Loan TAL Technical Assistance Loan TTL Task Team Leader UNDP United Nations Development Programme UNFCCC United Nations Framework Convention on Climate Change VER Verified emission reductions Environmental Economics Series vii Executive Summary P overty reduction strategies (PRSs) provide a country size, lending volume, and vulnerability to central framework for macroeconomic, structural, climate change. and social policies in developing countries. · An assessment of climate change mainstreaming in Because of the numerous and complex links the PRS process in the same four countries. Like between environment and poverty, it is important that environment as a whole, the potential impacts environmental issues are taken into account in the PRS of climate change have often been considered process. separately--if at all--rather than as an integral part of development policies. We examine the extent The World Bank's Environment Department is to which climate change considerations have been engaged in an ongoing review of the extent to which taken into account in the PRS process environmental issues are mainstreamed in the PRS · An evaluation of environmental Development process and its implementation through Bank- Policy Loans (DPLs) in several middle- income supported concessional lending. This paper follows six countries (Brazil, Gabon, and Mexico). DPLs previous assessments of the degree of mainstreaming represent an important opportunity to mainstream environment in the PRS process using a similar environment and climate change into middle- methodology to present trends and provide an income countries' growth and development. This understanding of the effectiveness of environmental review assesses the process by which environmental interventions in reducing poverty. However, it goes DPLs have been prepared and the effectiveness beyond previous assessments in three important ways. with which they have been implemented. · In-depth country case studies of the evolution In this study, we define the PRS process as including of environmental mainstreaming in the PRS (a) Poverty Reduction Strategy Papers (PRSPs), process over time. Many countries have now gone (b) their Annual Progress Reports (APRs), and (c) through several iterations of their poverty reduc- Poverty Reduction Support Credits (PRSCs); and tion strategies and have received a sequence of environmental DPLs as the subset of Development credits designed to implement key aspects of these Policy Operations defined by the Operations Policy and strategies, making it possible to see how the process Bank Procedures OP/BP 8.60 that deals with specific of mainstreaming environment in the strategies has sectors. evolved over time. In this assessment, we conduct detailed case studies of this evolution in Ghana, Albania, Bangladesh, and Vietnam. The choice Methodology of countries was based on the maturity of each For comparability, we use the same approach as was country's PRS process, taking into consideration used in previous reviews. This entails a scoring system Environmental Economics Series 1 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies with 17 variables organized in four thematic groups or climate change have been mainstreamed. Such an (1) issues, (2) causal links assessment, (3) response examination is beyond the scope of this study, however. systems, and (4) process. PRSPs are assessed on each of the 17 criteria, using a scoring system in which 0 Findings = no mention; 1 = mentioned but not elaborated; 2 = elaborated; 3 = good practice. APRs and PRSCs are assessed using a reduced version of these 17 Mainstreaming Environment in the PRS variables. As their emphasis is on implementation and Process monitoring rather than diagnosis and analysis, only · The degree to which environment is mainstreamed the aspects related to response systems and process are is improving. There is a general tendency of envi- included. This provides a total of six variables to rate for ronmental mainstreaming improving over time, each PRSC and APR. which is more evident in the countries with the most mature PRS processes. The degree to which To assess the mainstreaming of climate change in the environment is mainstreamed is highly variable. As PRS process, we developed a new set of indicators with in previous reviews, we found high variability in 17 variables structured under the same four themes. mainstreaming indicators among documents, with As attention to climate change in the PRS process has PRSCs having the most variable results. been limited to date, we conduct only a qualitative · PRSPs and APRs are better mainstreamed than assessment. PRSCs. The degree of environmental mainstream- Environmental DPLs raise new issues in the evaluation ing in PRSCs does not always correspond to that of development policy loans. In contrast to the PRS seen in a country's PRSPs and APRs. It is possible, process, with its broad approach to poverty reduction, however, that this is due to environmental issues environmental DPLs are narrowly focused on being addressed using other instruments. While improving the environment. Moreover, there are too the PRSCs were instruments geared and tailored few environmental DPLs to date for a quantitative toward supporting the PRS process, their varied approach to yield conclusive results. Therefore, in this attention on environmental mainstreaming case as well, we perform a qualitative assessment rather warrants either strengthening these instruments or than using a scoring system. suggesting other innovative mechanisms to achieve mainstreaming. As this is a desk review, all results depend on the · Attention to investments in natural capital and accuracy, relevancy, and soundness of the documents monitoring remains weak. Despite the overall reviewed. The numerical scores assigned are based only improvement in environmental mainstreaming, on PRSPs, APRs, and PRSCs. For the climate change investments in natural capital and their cor- analysis, we also review other key documents linked to responding monitorable indicators remain a weak climate change policies. Finally, for the DPLs review, we spot in the PRS documents we reviewed, with few include Implementation Completion Reports (ICRs), exceptions. The treatment of prioritized invest- independent evaluation of the ICRs, and interviews. It ments, their time bound costing, and monitorable is possible that a more comprehensive examination of indicators are better integrated for infrastructure- country policies and World Bank assistance would yield related investments geared toward water supply, a different picture of the degree to which environment electricity, and energy access. 2 Environment Department Papers Executive Summary Mainstreaming Climate Change in the PRS · PRSCs are not always well aligned with country Process climate change priorities. Except in the case of Bangladesh, PRSCs have tended to focus on · There is increasing information on climate change. mitigation, with limited references to adaptation. Climate change is increasingly mentioned in As such, they are not always well aligned with PRS policies and strategies. This is particularly PRSPs, which tend to place greater emphasis on noteworthy as there are numerous independent adaptation policies. parallel initiatives addressing climate change that are not necessarily supported by the PRSPs or their Evaluating Environmental DPLs corresponding PRSCs. · Most focus is on short-term climate variability. · Decentralization is an important focus. Promoting PRS documents place a greater focus on short-term the efficient decentralization of environmental climatic variability than on longer-term climate responsibilities from the central government to change. Climate change policies are not always regional and local levels is one of the main objec- explicitly stated in the PRS documents or in the tives of several of the DPLs evaluated. policy matrix, exposing an uneven process of · Climate change is unevenly addressed. While climate change mainstreaming. Mexico has a DPL dedicated to addressing climate · Country priorities vary. The review was useful to change (the first such DPL anywhere), the environ- determine countries' priorities and needs with mental DPLs in Brazil and Gabon do not include respect to climate change and their main develop- climate change. ment requirements as presented in their PRSPs. · Follow-up is uneven. While Mexico has had a While Bangladesh and Vietnam present a climate sequence of environmental DPLs, neither the change adaptation agenda, Albania's agenda is Brazil nor the Gabon environmental DPLs are dominated by mitigation. In contrast, Ghana's likely to continue with a second phase. policies related to climate change are a combina- tion of both mitigation and adaptation. Environmental Economics Series 3 1 Introduction T he link between poverty and environment is 1.1 The Poverty Reduction Strategy Process complex and goes in both directions. The poor In many countries, a poverty reduction strategy (PRS) depend heavily on a number of environmental provides the central framework for macroeconomic, services for their livelihoods and are very structural, and social policies and programs to promote vulnerable to the loss or degradation of environmental growth and reduce poverty, as well as associated external conditions. At the same time, poverty and unequal financing needs. To ensure that the complex linkages access often drives people to use available natural and between poverty and environment are mainstreamed environmental resources unsustainably. Strategies to in a country's development policies, it is important address poverty thus need to address environmental that environmental issues be fully integrated in these problems as well, and conversely strategies to strategies, as well as in the instruments that implement improve the environment need to address poverty. a country's PRS. Unfortunately, these different strands have often remained in separate "silos." The World Bank's Environment Department is engaged in an ongoing review of the extent to which Global climate change reinforces the need to integrate environmental issues are mainstreamed in poverty poverty reduction and environmental management reduction strategies and their implementation through strategies. Climate change is widely recognized as a World Bank­supported concessional lending. (In this growing problem whose impact could be devastating paper, the PRS process is defined as including: (a) and costly (IPCC 2007; Stern 2006a). Poor countries, Poverty Reduction Strategy Papers--PRSPs, (b) their and poorer people everywhere, are critically vulnerable Annual Progress Reports--APRs, and (c) Poverty to the shocks that climate change may bring. The 15th Reduction Support Credits--PRSCs.) Six assessments report of the International Development Association have been undertaken since 2000, each of which adds (IDA) pointed out the need for adaptation to climate a dimension to the mainstreaming work ranging from change in poverty reduction strategies (World Bank a thematic convergence on environmental health, to a 2007). The consensus on the need to tackle climate regional focus on Sub-Saharan Africa, to environmental change as a multisectoral issue has emerged only sustainability identified under the Millennium recently, however, as its effects on developing countries Development Goals (MDGs) (Bojö and Reddy 2002; become more evident. Climate change adds a new Bojö and Reddy 2003a; Bojö and Reddy 2003b; Bojö development dimension and an additional challenge for and others, 2004; and Kishore 2007). aid effectiveness. Environmental Economics Series 5 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies Figure 1.1 Environment in the PRS Process--Results of Previous Assessments 2.5 2.0 Average score 1.5 1.0 0.5 0.0 AFR EAP ECA All AFR EAP ECA LCR MNA SAR All AFR IPRSP PRSP I PRSP II Source: I-PRSP and PRSP I results based on data in Bojö and others (2004); Africa region PRSP II results based on data in Kishore (2007). Figure 1.1 summarizes the results of previous · In-depth case studies of the evolution of environ- assessments of the extent to which environment mental mainstreaming in the PRS process. Previous has been mainstreamed in the PRS process. In all assessments focused on cross-country comparisons World Bank regions, the degree of environmental of how environment has been mainstreamed in mainstreaming increased as countries moved from the PRS process at a given moment in time, for interim PRSPs (I-PRSPs) to full PRSPs (a higher score global or regional samples of countries. With many illustrates a higher extent toward mainstreaming), countries now having developed several iterations although room remains for considerable improvement. of their poverty reduction strategies and having re- An analysis of full PRSPs in the Africa region showed ceived a sequence of credits designed to implement no overall improvement between the first and second key aspects of these strategies, it is now possible to PRSPs, though this result masks improvements in some see how the process of mainstreaming environment countries and declines in others. in PRSs has evolved over time. In this assessment, we conduct detailed case studies (Chapter 2) of This assessment builds on the previous assessments, this evolution for a small sample of countries, thus using a similar methodology. As the PRS process trading breadth of coverage for depth of coverage. develops in a growing number of countries, a The four case studies are drawn from across the comprehensive assessment of progress in all countries World Bank regions: Ghana, in the Africa region becomes less feasible. Like previous assessments, (AFR); Albania, in the Eastern Europe and Central therefore, this assessment focuses on two specific aspects Asia region (ECA); Bangladesh, in the South Asia of progress in mainstreaming environment in the PRS, region (SAR); and Vietnam, in the East Asia and namely: Pacific region (EAP). The choice of countries was based on the maturity of each country's PRS 6 Environment Department Papers Introduction process, taking into consideration country size, development, natural resources, forestry, and more lending volume, analytical activities, and climate recently climate change. Recent years have seen the change vulnerability; and emergence of an evolving subset of DPLs that focus · Assessment of the mainstreaming of climate change specifically on the environmental sector. in the PRS process. Like environment as a whole, the potential impacts of climate change have often A first-year review of development policy lending been considered separately--if at all--rather than operations was undertaken for 21 DPLs that went to as an integral part of development policies. We the Board between September 1, 2004, and August 30, thus complement our overall assessment of how 2005 (Mani and Sears 2006). The review concluded environment has been mainstreamed in the PRS that there were very few good practice examples among process with a specific analysis of how climate the sample. Only in DPLs in Vietnam, Lao People's change has been mainstreamed in this process, Democratic Republic (Lao PDR), and Madagascar were using our same sample of countries (Chapter 3). opportunities for reinforcing positive environmental effects through DPL operations identified. A number of 1.2 Development Policy Loans areas of weaknesses suggested that the quality of DPLs could be significantly strengthened through better and Development Policy Loans (DPLs) are lending more systematic incorporation of environmental and instruments that provide quick-disbursing assistance natural resource issues. to middle-income countries to support structural reforms in a sector or the economy as a whole. They This review assesses the process by which environmental support the policy and institutional changes needed DPLs have been prepared and the effectiveness with to create an environment conducive to sustained and which they have been implemented. From the larger set equitable growth. DPLs form an increasing part of the of DPLs, we review a subset of environmental DPLs to World Bank's lending, and they represent an important assess the level of integration of these documents with opportunity to mainstream environment and climate countries' development plans (Chapter 4). We selected change into middle-income countries' growth and three countries that have one or more such DPLs development. There is evidence of a growing attention implemented: Mexico and Brazil, both in the Latin to the environment in DPLs that are being streamlined America and Caribbean region (LCR), and Gabon, in to address specific sectoral concerns, including an Africa. increased focus on cross-cutting themes like sustainable Environmental Economics Series 7 Mainstreaming Environment 2 in the PRS Process T his chapter presents the methodology used to on the PRSPs that describe the advances in the evaluate the mainstreaming of environment in implementation of the PRSP commitments in a the PRS process, and then analyzes in detail the country's development agenda. experience of our four sample countries. · Poverty Reduction Support Credits. PRSCs are World Bank development assistance instruments, based on the Country Assistance Strategy (CAS), 2.1 Methodology supporting an IDA-eligible country's policy and The assessment focuses its review on the following main institutional reform program to help implement documents: its poverty reduction strategy through policy and institutional reforms (World Bank 2001). · Poverty Reduction Strategy Papers. PRSPs are country-owned documents that describe a coun- Table 2.1 indicates the number of PRS-related try's macroeconomic, structural, and social policies; documents available for each of the countries in programs to promote growth and reduce poverty; our sample. This chapter begins by summarizing and associated external financing needs. PRSPs are the methodology used to evaluate the level of prepared by governments through a participatory environmental mainstreaming into national policies in process involving civil society and development our sample, and then presents the results of each of the partners, including the World Bank and the case studies. International Monetary Fund. Early PRSPs were generally described as "interim" PRSPs. I-PRSPs We use the same methodology to assess the summarize the current knowledge and analysis mainstreaming of environment in the PRS process as in of a country's poverty situation and describe the previous reviews (Kishore 2007). For PRSPs, ratings are existing poverty reduction strategy, but are often assigned to seventeen variables under four themes: (1) less detailed and participative than full PRSPs. issues, (2) causal links assessment, (3) response systems, · Poverty Reduction Strategy Paper Annual Progress and (4) process (Table 2.2). As PRSCs and APRs Reports. APRs are country-owned documents based emphasize implementation and monitoring rather Table 2.1 Available PRSP Documents, by Country Country Region I-PRSPs PRSPs APRs PRSCs Total Albania ECA 1 1 3 3 8 Bangladesh SAR 1 1 4 6 Ghana AFR 1 2 2 5 10 Vietnam EAP 2 3 6 11 Total 3 6 8 18 35 Environmental Economics Series 9 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies than diagnosis and analysis, these papers are evaluated Conceptually, good practice involves a treatment that using only the six variables related to response systems (a) is substantive, containing hard data of significance, and process (Bojö and others 2004). Each theme and (b) displays compelling reasoning (Table 2.3). The has a number of variables that are used to evaluate interpretation of these concepts will vary somewhat environmental mainstreaming in more detail, except depending on which variables are being scored. In the for process, which is a single variable. For additional case of issues, good practice needs to exhibit data and discussion on the framework used to evaluate each reasoning that place the issue solidly on the poverty variable, see Bojö and Reddy (2002, 2003a, 2003b) and reduction agenda for the particular country. In a causal Bojö and others (2004). links assessment, the relationship between the variables (for example, lack of safe drinking water and various We follow previous assessments by assigning a health indicators) needs to be presented convincingly. numerical score ranging from 0 to 3 to each variable, In a response system assessment, good practice requires depending on the treatment of relevant issues (Bojö specific measures to be defined, costs to be estimated, and others 2004; Kishore 2007), as follows: 0 = no institutional responsibilities to be defined, and a mention; 1 = mentioned but not elaborated; 2 = timeline to be given. With respect to process, one would elaborated; 3 = good practice. The overall score for look for a full description of the involved stakeholder every document is then computed by averaging the groups, the format and frequency of meetings, the main scores for the individual variables. The first three scores issues raised, and whether they are followed up in the are related directly to the level of attention given, while PRSP (Kishore 2007). the highest score (3) implies a judgment of the quality of the information provided in the document. This scoring method is intended to be a practical way to condense considerable information into Table 2.2 Variables Used in the Assessment numbers to have a better perspective of Theme Variables environmental mainstreaming and to Issues Land use facilitate the interpretation of results through Water quantification. To reduce subjectivity and Air and climate imprecision we do not put attention on small Biodiversity differences in scores, and we rounded the Causal links assessment Natural resource degradation and poverty scores obtained from each of the variables in the documents we evaluated. Environmental health Vulnerability This is a desk review and as such all the Property rights results depend on the accuracy, relevancy, Incentives and soundness of the documents that are Empowerment reviewed. It is important to bear in mind that Gender and environment the discussion as well as the scores assigned Response systems Environmental management capacity in this chapter are based only on the three types of documents reviewed (PRSPs, APRs, Investment in natural capital and PRSCs). Other aspects of a country's Investment in human-made capital development policy, and of the World Bank's Monitoring natural resource outcomes assistance strategy, may exhibit greater or Monitoring human resource outcomes lesser degrees of mainstreaming. An important Process Participatory process limitation is the subjectivity inherent in scoring the documents. 10 Environment Department Papers Mainstreaming Environment in the PRS Process Table 2.3 Defining Good Practice Issues Substantial discussion of and prioritization of the underlying environmental problems Causal links assessment In-depth analysis of the dynamic and evolving relationship between poverty and environment, including land tenure, gender, empowerment, and macroeconomic distortions Response systems Assessment of appropriate regulatory and effective institutional responses, and clear identification of budgeted interventions, which are identified across monitorable targets and indicators Process Significant attention to participatory processes and inclusion of environmental constituencies 2.2 Ghana degradation, poaching, and habitat destruction, are related to the overexploitation of natural resources. In Ghana is a low-income country with a population of addition, recurrent droughts and climatic changes are 23 million inhabitants and a per capita gross national affecting agricultural activities. As much as one third income (GNI) of US$510. For the past two decades of the land in Ghana is threatened by desertification. the country has had steady economic growth, giving it Poor access to sanitation services is another source of a good chance of becoming a middle-income country environmental problems; according to the Human in the next decade. (Unless otherwise indicated, all Development Report (UNDP 2008), only 18 percent of country statistics are drawn from the most recent the population used improved sanitation in 2004. available data in the World Bank's World Development Indicators database.) Ghana has committed to improving management of its natural resources, with the PRS process serving Between 2003 and 2006, the World Bank committed as a platform. The PRS process in Ghana started in and disbursed US$1.2 billion to 19 IDA-financed 2000, and since then the country has built an extensive projects or grants, which support improvements in PRS process that is maturing progressively, with agriculture, rural productivity and sustainable resource improvements in environmental issues across its ten use, energy infrastructure, the business environment, documents. Our review of the three PRSPs, two APRs, and transport. and five PRSCs revealed an increased tendency to mainstream environment into government plans and Most current environmental problems in Ghana, strategies (Figure 2.1). such as deforestation, overgrazing, soil erosion, soil Figure 2.1 Ghana--Average Mainstreaming Score in the PRS Process 3.0 2.5 Average score 2.0 1.5 PRSP 1.0 APR 0.5 PRSC 0.0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Year Environmental Economics Series 11 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies However, in some areas, the inclusion of environmental national and local levels. In addition, the monitoring issues is still inconsistent, thereby reducing the overall of natural resources has been increasingly included and average scores of the documents reviewed. The PRSPs extensive importance has been placed on projects to provide an example of this inconsistency; the average improve agriculture, irrigation, and forestry. score of PRSP II (1.9) is lower than that of PRSP I (2.2). PRSP I mainstreamed environmental issues well, improving substantially on most of the I-PRSP The PRSPs' environmental pillars are centered on the variables measured. However, water and sanitation agriculture, forestry, energy, and water sectors. Priority indicators in PRSP I had worsening outcomes, environmental issues such as those related to land use, increasing infant mortality rates. In contrast, PRSP II sanitation, and water management have been included improves the link between health and the water sector, since the elaboration of the I-PRSP, and are increasingly reducing the incidence of waterborne diseases like mainstreamed in more recent documents (Figure 2.2). Guinea worm as well as infant mortality and morbidity. Tenure regimes and collective decision making at the The need to combat malaria features more prominently community level are also included in the process. In in PRSP II; other key health indicators have shown contrast, issues related to air quality, such as indoor and little improvement. outdoor pollution, were not initially considered in the PRSP process, but have gained increased attention in APRs show a good level of environmental recent documents. mainstreaming with most variables scored as good practice. There is detailed attention to poverty The link between gender and environment has become reduction indicators that are closely linked to the more robust with the maturity of the PRS process. MDGs. Importance has been placed on areas such as There is a strategic focus on increasing agricultural land reform, agriculture, fisheries, and community productivity and the incomes of the rural poor through involvement in the management of forests and wildlife, improved infrastructure, market access, and extension and there is good follow-up between APR execution services. The relevance on the participatory process is and PRSP objectives. The implementation of methods evident across documents with several consultations at to combat malaria is rightly coordinated with PRSP II Figure 2.2 Ghana--Average Mainstreaming Score in PRSPs, by Theme 3.0 IPRSP PRSP I PRSP II 2.5 2.0 Score 1.5 1.0 0.5 0.0 Issues Causal linkages Responses Process 12 Environment Department Papers Mainstreaming Environment in the PRS Process and the improvement in sanitation is a response to the presented in the PRSCs are well coordinated with the worsening health indicators in PRSP I. Food security PRSPs' main objectives. and nutrition policies have been implemented with the support of additional World Bank instruments, PRSCs I and II support progress toward key PRSP strengthening capacities of communities to achieve I objectives such as employment and agriculture. control over their own resources. They also provide assistance to the government's energy policy adjustment mechanisms for tariffs and Despite a decrease in PRSC V's average score compared improvements in the generation and distribution to PRSC IV (Figure 2.1), the documents show of electricity. In addition, PRSC III and IV outline sustained and increased mainstreaming of environment. initiatives to implement the water strategy and to The participatory process has been taken into account increase water access in rural areas, as stressed in PRSP across all PRSCs, reinforcing the basis for encouraging II. Moreover, PRSC IV and V highlight the community country-owned strategies. Likewise, the PRSCs support water and sanitation strategic plan and the investments strategic environmental management, with sectoral in power generation considered crucial in the PRSP policies being considered for energy, land, forestry, agenda. Other areas with coordinated support are water, health, and transport. The main strategies irrigation, rural electrification, and improvements in forest management (see Box 2.1). Box 2.1 Ghana--Forest Policy Cacao and timber are among Ghana's most important export products. However, the lack of clear forestry policies has resulted in a misuse of resources, depleting forests and changing land cover, often to the detriment of the poor. Most cacao farms border forests, which are thus under considerable pressure from an expanding agricultural frontier, firewood harvesting, and bush fires. Cacao farming in the buffer zones of protected areas is creating conflicts between farmers and local fauna (Griebenow 2006). Land degradation, deforestation, poor enforcement, and inefficient management of forests have contributed to the loss of approximately 79 percent of Ghana's forest cover during the 20th century. To counteract this alarming trend, the government of Ghana has developed strategies to reverse deforesta- tion. The PRS process suggests a strong focus on forest management with specific interventions that include encouraging the sustainable use of forest resources by local communities. PRSP II promotes the reforestation of degraded forest, restoration of degraded soils, and management of protected areas. To improve land tenure and increase the efficiency of land use, the government has initiated the Land Administration Program, as stated in the PRSPs. Following on these progress investments, PRSC III and IV focus in particular on plantation develop- ment. PRSCs have also extended competitive bidding in allocating rights and helped develop a framework for effective log tracking. The Ministry of Lands and Forestry has been implementing a natural resource management program to protect, rehabilitate, and sustainably manage national forest and wildlife with the active participation of rural commu- nities. Actions aimed to organize the forestry sector are specifically directed by the Forestry Commission, which is in charge of implementing government plans and promoting the sustainable management of the forestry sector. Most of the PRSCs' environmental actions focus on supporting the Forestry Commission, funding critical programs to make the sector more efficient. The Forestry Commission is engaged in the demarcation and inven- tory of trees in areas eligible for timber utilization contracts (TUCs). TUCs are essential for the calculation of the timber right fees that will be used to determine the value of forest areas. The importance of this demarcation is crucial to combat underpricing of wood and overharvesting of forests. The Forestry Commission has encoun- tered a number of obstacles in implementing these new policies due to insufficient funding and problems with timber companies reluctant to accept the changes in the forest policy. In response to these issues, the World Bank is seeking to improve the forestry sector in Ghana and has committed additional funds to mitigate the delays in the implementation of these polices through the forthcoming PRSC VI. Environmental Economics Series 13 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies A number of issues fall through the cracks in some Bank's lending portfolio in Albania was approximately of the documents, however. There is a steep decline US$260 million, comprising projects in the social in the process of monitoring natural resources and sectors (US$40 million); energy, transport, and water human development outcomes in PRSC V. It is not (US$100 million); business environment reform clear whether programmatic arrangements in the next including land management (US$60 million); and PRSC (PRSC VI) will further strengthen and build on agriculture, environment, and community development monitoring initiatives from previous PRSCs. The PRSC (US$60 million). V policy matrix indicates that PRSC VI will provide more financial and institutional support to water During years of central planning followed by an often supply and sanitation, agriculture, energy, and natural turbulent economic and political transition, Albania resources management. Ideally, greater attention to accumulated many environmental problems such as monitoring these areas will be incorporated in the next industrial pollution, soil degradation, and deforestation. document. Lack of legislation and institutional arrangements aggravated these problems. Other areas that require attention in the PRS process are the promotion of high-yielding varieties However, changes in the economic direction have (HYV) production and its potential impact on local contributed to more attention being devoted to biodiversity as well as the decline in the incentive and environmental issues and to investments in sustainable empowerment variables. More consideration should development projects. The Stabilization and Association be given to promote trade mechanisms that benefit Agreement signed with the European Union in July the sustainable harvest of natural resources and the 2006 has provided an additional impulse for improving degree to which marginalized and vulnerable groups environmental indicators in the country. Albania can impact decisions related to natural resources started its PRS process with the World Bank early in management. May 2003 and since then eight PRS-related documents have been published. 2.3 Albania Environmental mainstreaming in the PRS process in Albania remains relatively weak. Even though the PRS Albania is a lower-middle-income country with a process showed initial signs of improvement, more per capita GNI of US$2,930 and a total population recent documents exhibit a reverse tendency, as shown of 3.2 million inhabitants. As of 2006, the World by the scores in Figure 2.3. Figure 2.3 Albania--Average Mainstreaming Score in the PRS Process 2.5 2.0 Average Score 1.5 PRSP 1.0 APR 0.5 PRSC 0.0 1999 2000 2001 2002 2003 2004 2005 2006 2007 Year 14 Environment Department Papers Mainstreaming Environment in the PRS Process The two PRSPs exhibit a significant positive trend lays out action plans and time-bound targets to address toward improved environmental mainstreaming: them. It describes specific concerns and opportunities I-PRSP scored 0.9, whereas PRSP I scored 1.7. The related to deforestation, soil erosion, and fishing and main drivers for this improvement rest on investment watershed management. The Action Plan Matrix in human-made capital and participatory process included in the document also acknowledges the variables (Figure 2.4). Both variables recorded a high importance of a robust participatory approach and score, and are measured as good practice in PRSP I. highlights an inclusive process where the civil society In general, most variables showed an improvement has had the opportunity to engage in environment- from I-PRSP to PRSP I, with the poverty and natural related issues. resources degradation variable as the only exception. An additional source of concern is the poor mainstreaming The three APRs indicate a moderate inclusion of of the monitoring natural resources outcomes variable environmental issues. APR I and II both scored 2.2, and the absence of clear links between gender and but the score for APR III declined to 1.8, as shown in environment in both documents. Figure 2.3 and detailed in Figure 2.5. The documents have a good description of policies, action plans, and Improvements in infrastructure and related services in legislation to support environmental protection and the PRSPs are in line with environmental integration natural resource management. Investments in natural and sustainable development, with an emphasis on capital and human-made capital are reasonably well broadening their access to the poor. These services mainstreamed, but with a slight decline in APR III. The represent the supply of potable water, electric power, reports give attention to agricultural sector reforms and and sewage. The reduction in infant mortality rates recognize the importance of property rights and land and the incidence of infectious diseases are other areas tenure as a means of sustainable growth. consistently emphasized in the PRSPs. APRs follow up on the PRSPs' objective of improving PRSP I recognizes the importance of environmental maternal and child health as a priority. Other issues management as a critical pillar for development, and included in the APRs are the rehabilitation of polluted Figure 2.4 Albania--Average Mainstreaming Score in PRSPs, by Theme 3.0 IPRSP 2.5 PRSP 2.0 Score 1.5 1.0 0.5 0.0 Issues Causal linkages Response systems Process Environmental Economics Series 15 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies areas, improved waste management, investment (0.8) to PRSC II (1.8) was followed by a steep decline in landfills, and improvements to make industrial in PRSC III (1.0), as shown in Figure 2.3 and in operations cleaner, as mentioned in APR II. There is a more detail in Figure 2.5. The apparent decline of commitment to reduce pollution and eliminate toxic environmental mainstreaming in PRSC III is due to its substances from inhabited areas or "hot spots." lack of budgetary support for some of the key priorities that have been identified. However, PRSC I mentions The APRs mention the non-income dimensions of that environmental mainstreaming initiatives in PRSCs poverty, stating that about one third of Albanians are coordinated with the activities of other donors do not have access to basic services such as water, in Albania, to minimize overlap in the programs, sanitation, and heating. There are also consistent reduce the likelihood of critical gaps, and identify references to an energy sector crisis. APR III explains areas of comparative advantages in providing support that energy supply has been improved, with the to the government. Thus many projects related to government and the national energy companies making environmental improvement are not necessarily related progress on mitigating electricity shortages; it also to the PRSCs' budget and action plan. In fact, PRSC highlights an action plan adding domestic thermal II points out that credits approved before the PRS generation as an alternative to further mitigate the process started in Albania include irrigation projects crisis. Like the PRSPs, the APRs have a weak focus on and the rehabilitation of water supply. In addition, monitoring natural resource outcomes, with a score of improvements in the energy sector and rural water 1 in all three documents. APRs are also weak in linking are supported by PRSC II and III and other IDA people's participation to environmental decisions. There operations. is a notable decline in the inclusion of the participation process in APR III (Figure 2.5). Policies and action plans to improve sustainability and natural resource use are underlined across the The three PRSCs evaluated for Albania attained three documents, which also give special attention to relatively low scores in comparison to the rest of the energy improvements and environmental instruments PRS process. The progression in scores from PRSC I for monitoring and compliance. PRSCs promote Figure 2.5 Albania--Average Mainstreaming Score in APRs and PRSCs, by Theme 2.5 APR I APR II APR III PRSC I PRSC II PRSC III 2.0 1.5 Score 1.0 0.5 0.0 Response Process Response Process systems systems APRs PRSCs 16 Environment Department Papers Mainstreaming Environment in the PRS Process investments in areas such as agriculture development, PRSCs do, however, consistently follow through on irrigation, and the implementation of land reforms (see some of the main environmental priorities linked to Box 2.2). poverty alleviation identified in the PRSPs. There is consistent support to improving social services, with a The PRSCs' investments in human-made capital are focus on child and maternal health, energy provision, well mainstreamed and harmonized with the main and water and wastewater management. In addition, objectives of the PRSPs. Water supply and sanitation, there is support to agriculture research, irrigation, and electrification, and improved child mortality rates are land tenure. extensively supported by PRSCs. PRSC II promotes fiscal decentralization policies to transfer public sanitation services to local governments. 2.4 Bangladesh Bangladesh, a low-income country with 156 million Indicators to monitor natural resources and human inhabitants and a per capita GNI of US$450, has development outcomes are absent in most PRSCs. one of the highest population densities in the world. Only PRSC II includes progress indicators for water The World Bank's lending portfolio in Bangladesh access, electricity, and energy. Another weak area is the is approximately US$2 billion, of which US$138 participatory process, which is poorly mainstreamed in addresses environmental issues. all three documents. Poverty and overpopulation contribute to exacerbating The PRSCs' objectives promote the development and the country's major environmental problems, which implementation of a plan to monitor the MDGs as a the Environmental Protection Agency of Bangladesh part of an overall monitoring strategy in coordination identifies as deforestation, deteriorating water quality, with the United Nations Development Programme land degradation, salinity, unplanned urbanization, (UNDP). While PRSC II has an extensive policy discharge of untreated sewage, and industrial wastes. matrix that links sectoral priorities to particular MDG targets, the lack of information on MDG 7 related to Since its independence in 1971, the economy of environmental sustainability is of particular concern. Bangladesh has relied largely on agriculture, as most Box 2.2 Albania--Land Policy Ensuring secure land tenure is crucial for sustainable use of natural resources and economic growth in rural areas. The government of Albania has identified land tenure as a key priority for sustainable development and is making commit- ments to improve land ownership in the country by developing a property registration system. The completion of the first-time registration of land and the Action Plan to transfer properties to local government are some of the strategies taken to tackle the issue. The government has also reviewed legislation related to property registration and has ad- dressed the main obstacles to improving land tenure. The Law on Land Protection was enacted, and land registration offices were created, in order to facilitate land ownership and solve registration disputes in a standardized way. Albania's PRS process mainstreams land tenure across its documents. The I-PRSP matrix of economic and financial policies refers to the establishment of a new land tenure system. PRSP I follows up on discussions related to problems in land property management and the absence of a land market. In addition, in a PRSC I "Letter of Development Policy," the government presents the progress made in restructuring agriculture and in land registration activities. Later, under PRSC II and III, there is a focus on sustainable management of natural resources, with attention to the use of pastures and forest and to developing a land market and property rights regime. Most agricultural land registration has been completed, with remaining work concentrated in the peri-urban areas. In addition, the registration market is being modernized to allow a functioning land market. Environmental Economics Series 17 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies of the country lies in the fertile floodplain of the The four issues variables in PRSP I reveal progression Ganges, Brahmaputra, and Meghna. However, climate to good practice, with remarkable improvements in the change is causing periodic flooding and drought events air and climate and biodiversity variables (Figure 2.7). to increase in frequency, posing new environmental In addition, PRSP I assembled detailed information threats. The effects of increased flooding resulting from on specific concerns related to these two variables, with climate change will be the greatest problem faced by emphasis on protection of the Sundarbans wetlands Bangladesh (Agrawala and others 2003). and the reduction of indoor pollution. There is also an important mention of the government policy to ban all World Bank assistance to Bangladesh through the two-stroke three wheelers so as to reduce outdoor air PRS process started in 2003. Bangladesh's PRS process pollution. shows increasing inclusion of environmental issues in its PRSPs, but the level of environmental mainstreaming PRSP I also improves on the I-PRSP with respect to in the PRSCs is still limited (Figure 2.6). At the time of the property rights and incentives variables. PRSP I writing, no APRs had been published for Bangladesh. includes land administration reforms and land use policies in order to ensure better access to land by An analysis of the PRSPs reveals an impressive poor and vulnerable community groups. The proposed improvement in scores, from 1.9 in the I-PRSP to 2.7 land administration introduced the Certificate Land in PRSP I (Figure 2.6). Both documents illustrate good Ownerships program bringing positive changes on land practice on the participatory process, environmental tenure patterns including the security of land titles. management capacity, and investments in human-made As for the incentives variable, the document stressed capital, with detailed attention to the vulnerability to the importance of subsidies and special credits for natural disasters. The poverty diagnostic and its link agriculture. There is a policy to generate employment with natural resources is systematic, drawing on rich through agriculture and infrastructure projects, which analysis and thereby serving as a base to launch several further strengthens the link between poverty and programs to aid the poor. This is especially evident in environment. It is important to note that the PRSPs PRSP I. support gender and participation issues. Both PRSPs Figure 2.6 Bangladesh--Average Mainstreaming Score in the PRS Process 3 PRSP 2.5 PRSC 2 Average score 1.5 1 0.5 0 2002 2003 2004 2005 2006 2007 Year 18 Environment Department Papers Mainstreaming Environment in the PRS Process Figure 2.7 Bangladesh--Average Mainstreaming Score in PRSPs, by Theme IPRSP PRSP 3.0 2.5 2.0 Score 1.5 1.0 0.5 0.0 Issues Causal linkages Responses Process stress the importance of women in various aspects of with contributions from various stakeholders in the sustainable development. What is noteworthy is that policy process giving good country ownership. the policy matrix of PRSP I promotes the strengthening of women's perspective in formulating environmental The four PRSCs maintain a steady but low level of policy. environmental mainstreaming with the identical score of 1.3 in all four documents (Figure 2.8). PRSCs I and Response systems have been improved in PRSP I, II use the same framework, focusing directly on the especially the investment variable. In the area of natural implementation of the first two pillars of the I-PRSP capital investments, there is strong attention to the dealing with growth and public sector effectiveness. agriculture and fisheries sector. In fact, the government Reforms under the third and four pillars dealing with is promoting aquaculture on rice fields to improve human development and social protection are pursued the efficiency of resource use and increase economic through other planned and ongoing operations. The returns to farmers. Investments in environmentally priority given to improving governance and accelerating friendly agriculture, reduction of deforestation, and pro-poor growth may explain part of the poor renewable energy are consistently addressed. As for environmental mainstreaming in these documents. the investments in the human-made capital variable, However, we still found policies and an outline of there is detailed information on the investments in proposals relating to environmental management. child and maternal health and nutrition, water and These proposals can in fact be well mainstreamed and sanitation provision, energy access, and microcredit integrated within the larger governance agenda being schemes for pro-poor housing. In contrast, there is very pursued through the Bangladesh PRSC program and limited information on the monitoring natural resource can help provide credibility to the pro-poor growth outcomes variable. The I-PRSP has no information program by reconciling poverty-environment links. on this variable, and PRSP I only makes a limited reference. The documents show extensive consultation, Most variables do not vary across the four PRSCs; nevertheless there are two important points to note. Environmental Economics Series 19 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies Figure 2.8 Bangladesh--Average Mainstreaming Score in PRSCs, by Theme 2.0 PRSCI PRSCII PRSCIII PRSCIV 1.5 Score 1.0 0.5 0.0 Responses Process First, the monitoring of human development outcomes PRSP strategies and pillars. There is a common agenda variable reflects a drop in the score from PRSCs I and II regarding issues of agriculture, fisheries, renewable to PRSCs III and IV. In addition, there is no mention energy, gas and petroleum, rural electrification, and of the monitoring of natural resources outcomes the mitigation of natural disasters (see Box 2.3). These variable in PRSCs I, II, and III. Only in PRSC IV is issues are stated in the PRSPs as main objectives and there a brief reference to indicators of deforestation, followed up with actions in the response systems in the with no elaboration. PRSCs. Both PRSPs and PRSCs demonstrate some level of elaboration of environmental management and Our reading of the policy agenda and policy matrices of policies. In contrast, probably the biggest weakness on the PRSCs reveals a good level of association with the the Bangladesh PRS process is the poor mainstreaming Box 2.3 Bangladesh--Policy on Natural Disasters Because of the highly disaster prone environment in Bangladesh, the country has learned to live with frequent extreme weather events. Flood and cyclones take a high toll on human lives every year, and serious impacts on residential housing, consumer goods, crops, fisheries, and livestock are common. However, the country has been continuously strengthening its disaster management capabilities. Large quantities of public resources are being directed to emer- gency public works, flood protection, and cyclone shelters. The proportional decline in the number of deaths during crises reflects an improved ability to evacuate people from disaster zones and to provide shelter. The Bangladesh PRS process establishes a connection between vulnerability to natural disasters and poverty. The PR- SPs incorporate a strong mainstreaming of disaster management policies to mitigate the vulnerability of the poor. The I-PRSP stresses the existence of a direct link between natural disasters and the poverty in the country. It also envisions a disaster management program with the empowerment and integration of communities. PRSC I and II support the expansion of coverage for disaster preparedness and the provision of a safety net for disaster management. Nevertheless, the most remarkable improvements on natural disasters policy is reflected in PRSP I strategies. PRSP I contains an economic analysis of the impact of flooding and provides a description of specific information on natural disasters. It also analyzes the multiple links between natural disasters and poverty, including a reference to gender is- sues. An important association is made with climate change and an increase in the frequency of flooding and cyclones. One of the strategic goals of the Bangladesh PRSP I integrates climate change impacts with the promotion of sustain- able development. 20 Environment Department Papers Mainstreaming Environment in the PRS Process on indicators for natural resource management. degradation, loss of biodiversity, water pollution, air Information on policy implementation on natural pollution, and solid waste management. Most of these resources is very limited in most PRSCs and in some problems are associated with such socioeconomic cases absent. impacts of rapid economic growth as urbanization, industrialization, and energy development. Areas that require follow-up to ensure more robust mainstreaming of environment in the Bangladesh PRS Vietnam started its PRS process in 2001. Despite process include agriculture policies to increase the use its limited capacity for implementation, the country of fertilizers and the adoption of high-yielding crop has committed to a number of environmental varieties by farmers, and the promotion of coal mining improvements. We evaluated two PRSPs, three APRs, projects to supply energy demands, as stated in the and six PRSCs to get a perspective on Vietnam's I-PRSP and PRSP I. progress in environmental mainstreaming (Figure 2.9). The Vietnam PRSP process illustrates an evolution 2.5 Vietnam in its focus, with growing attention to sustainable Vietnam is a low-income country with a total development. Our review shows an increasing level of population of 84 million and a per capita GNI of environmental mainstreaming over time, although PRSP US$700. Since Doi Moi reforms were conceived in II's scores remained very similar to those of PRSP I. 1986, Vietnam has experienced remarkable changes The two PRSPs (PRSP I and PRSP II) provide in its economic policies, favoring fast-growing consistent attention to the diagnostic issues related development. The economic rate of growth per year to water, including irrigation, improvement in the since 1986 has been over 7 percent and is projected to supply of clean water, and wastewater service to poor be over 8 percent until 2010. households (Figure 2.10). Both PRSPs illustrate good The Environmental Protection Agency of Vietnam practice on the link between poverty and natural reports as major problems land degradation, forest resources, with strategies to create jobs and business opportunities in ecotourism as well as in science Figure 2.9 Vietnam--Average Mainstreaming Score in the PRS Process 2.5 2.0 Average score 1.5 PRSP 1.0 APR 0.5 PRSC 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Year Environmental Economics Series 21 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies and technology applied to agriculture. Attention to Vietnam's PRSC process shows consistent environmental management is strong in the two PRSPs, improvements toward environmental mainstreaming. and the documents identify the importance of fishery The PRSCs illustrate important achievements in and forestry sectors and the adoption of international identifying investments in human-made capital and in environmental standards in industrial production. monitoring natural resources and human development It is important to note that the participatory process outcomes. They also give consistent attention to has improved from a mere mention in PRSP I to a environmental management and policies. PRSC II more elaborate discussion in PRSP II. Nevertheless, marks the beginning of an extensive effort to improve some areas still need improvement; the decline in the regulations and legislation regarding environmental identification of land use issues, and the generally weak protection and solid waste management in urban performance in most of the issues variables, are of areas. In PRSC III, Vietnam continues to emphasize particular concern. irrigation, agriculture, and land use. More recently, PRSCs IV and V highlight the improvements in the Despite considerable variation across variables in the Land Law that promote forest and agriculture sector three progress reports, the APR process shows a steady development. Even though there is no improvement in increase in the attention devoted to environmental the PRSC VI score over that of PRSC V, it continues management capacity and monitoring of human to build on the achievements of previous versions. development outcomes. Vietnam's APRs reveal a strong PRSC VI promotes sustainable agriculture, forestry, commitment to mainstreaming environmental policies and clean energy. Policy actions under the PRSC across the agriculture, forestry, and infrastructure program support the development of a strategy for sectors, with specific strategies to reduce hunger and environmental assessment as well as environmental improve housing. These strategies include investments guidelines for the industrial sector using the Agenda in irrigation systems, expansion of forest cover, and the 21 Polluter Pays Principle as stated in PRSC V. Despite implementation of a housing plan for the poor. a decline in the participatory process in PRSCs IV, V, Figure 2.10 Vietnam--Average Mainstreaming Score in PRSPs, by Theme 3.0 2.5 PRSP I PRSP II 2.0 1.5 1.0 0.5 0.0 Issues Causal linkages Responses Process 22 Environment Department Papers Mainstreaming Environment in the PRS Process and VI, there is an overall improvement in the response 2.6 Summary and Conclusions system variables. Table 2.4 summarizes the results of the four case The environmental policy actions in the PRSCs studies. Overall, there is a general tendency toward correspond with the overall objectives and tasks improved environmental mainstreaming scores across to ensure sustainable development in the PRSPs the four countries evaluated. (see Box 2.4 for an example). Focus on addressing When analyzed by type of document evaluated (PRSPs, problems such as land degradation, forest coverage, APRs, and PRSCs), there is some variability in the wastewater treatment, and solid waste management is scoring. Improvements are most evident in the PRSPs. well articulated in the PRSPs and PRSCs, following In most countries, successive PRSPs had higher scores a common agenda. This links the long-term than previous documents. APRs also generally show PRSP objectives with the PRSCs' key steps in the consistent improvements, except for a small decline environmental policy reform agenda. Box 2.4 Vietnam--Reforestation Policy Vietnam's implementation of its reforestation policy is an example of how a major PRSP target can be used to promote sustainable development at different levels. In 2002, the first PRSP marked the beginning of a reforestation plan, with a target of increasing forest cover from 33 percent to 43 percent by 2010. To achieve this goal, the government has channeled financial resources and provided incentives for the creation of new business that will also help raise the incomes of the poor. The government is also providing benefits to people who plant forest, encouraging community-based management in rural areas for the regeneration and protection of the forests. Forests are helping reduce flood risks and protect the soil by preventing the intrusion of sand and salinity in coastal areas. Supporting regulations have been passed, including changes to the Land Law and a new Law on Forest Protection and Development to set up provincial land registration offices and to promote land use planning and tenure security through Land Use Right Certificates. In addition to supporting the rural economy and empowering communities, the reforestation policy is contributing to reducing poverty by promoting sustainable management of forest lands. However, there is still work to be done. According to PRSC V, only 37 percent of the reforestation goal has been accomplished by 2005 and the quality of the new forests needs to be improved. There is no follow-up on this statistic in PRSC VI. Table 2.4 Environmental Mainstreaming across a Maturing PRS Process (average score) Document PRSPs APRs PRSCs Country I-PRSP I II I II III I II III IV V VI Ghana 1.5 2.2 1.9 2.7 2.8 1.3 1.3 2.3 2.8 2.2 Albania 0.9 1.7 2.2 2.2 1.8 0.8 1.8 1 Bangladesh 1.9 2.6 1.3 1.3 1.3 1.3 Vietnam 1.9 1.9 1.5 1.7 2.0 0.7 1.0 1.3 1.7 2.0 2.0 Average 1.4 2.2 1.9 2.2* 1.3* * Average over all documents reviewed. Environmental Economics Series 23 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies in Albania's last APR. PRSCs proved to be the most among the countries evaluated. PRSPs, APRs, and fluctuating regarding scoring. Vietnam and Ghana did PRSCs all show progressive improvements in the reasonably well, but Bangladesh's scores were low and integration of environment in government policies. with no variation, and Albania had a steep decline in the last document. A good PRSP is usually correlated Ghana (10 documents) and Vietnam (11) are the with a good APR but not necessarily with a good countries with the most mature process of PRS PRSC. The results based on the documents evaluated implementation and also show the most consistent show that in the PRS process the Bank response to process of environmental mainstreaming. Albania environmental mainstreaming is not as evident as (8) and Bangladesh (6) have a smaller number of countries' responses. documents, and so the observed overall positive tendency is based on fewer observations. The process of scoring environmental mainstreaming has exposed unique characteristics across the countries Comparisons within countries and across regions are evaluated. The fluctuation in the scores and the analysis useful to determine priorities and differences in the of the values of each of the variables evaluated helped World Bank approach to various countries. Despite to determine weaknesses, strengths, and priorities in the a general tendency toward improving environmental environmental policies of each of the countries as well mainstreaming in the PRS process, investments in as the World Bank. natural capital and their corresponding monitorable indicators remain generally weak in the PRS documents · Albania's PRSPs and APRs show a steady increase for the four case studies, with a few exceptions. The in scores whereas the PRSC scores decline. The treatment of prioritized investments, their time- decline was due to lack of budget support and bound costing, and monitorable indicators are better prioritization of other areas. integrated for infrastructure-related investments geared · Bangladesh's PRSPs show good environmental toward water supply, electricity, and energy access than mainstreaming, with the highest score among for investments in natural capital. This disconnect can countries evaluated (2.6) for PRSP I. All variables also be seen in the divergence between the often robust improved from the I-PRSP to PRSP I, and Process treatment of the need to strengthen environmental was rated as good practice (3.0). In contrast, the management capacity for agricultural, forestry, and PRSC score was low (1.3) and did not improve, fisheries reforms in PRSPs and related documents primarily because of budget prioritization in other and the limited corresponding follow-up, with few areas. programs aimed at natural capital being included in the · Ghana's PRSP process is the most mature among countries' budget processes with robust monitorable the countries evaluated. The environmental targets. This aspect needs concerted attention and considerations are well mainstreamed, albeit with strengthening in all four countries. a small decline in the latest PRSP. APRs show an outstanding level of environmental inclusion (2.7, While PRSCs still include well-documented proposals 2.8). PRSCs improve, but with a noticeable decline and policies relating to environmental management, in the most recent document. The reasons for the it becomes clear that the Bank's own mainstreaming PRSC decline were budget prioritization in other effort across its concessional lending operations areas and possibly a new environmental DPL (the requires strengthening and coordinated alignment Natural Resources and Environmental Governance with other Bank instruments. With a focus on policy Project). reforms, PRSCs need to be streamlined in ways that · Vietnam's PRS process shows the most consistent support and strengthen ongoing country initiatives on positive tendency of environmental mainstreaming environmental priorities. 24 Environment Department Papers Mainstreaming Climate Change in 3 the PRS Process I ncreased climatic variability can set back developing 3.1 Evaluating Climate Change countries' economies, reverse development gains, Mainstreaming in the PRS Process and slow the achievement of pro-poor growth. The overarching themes and variables considered for Climate change impacts will vary considerably from assessing the mainstreaming of climate change in the country to country and within countries, depending PRS process in this study are structured under the same on geographic characteristics and natural resource four themes used for the evaluation of environmental endowments. Africa is the continent most vulnerable to mainstreaming (issues, causal link assessment, response climate change (IPCC 2007). Risks are associated with systems, and process). We developed specific variables water scarcity and with reductions in food security and under each theme to evaluate detailed information agricultural productivity, particularly for subsistence (Table 3.1). agriculture (IPCC 2007). Existing problems such as deforestation can exacerbate climate change. Impacts A preliminary investigation early in the review are likely to vary, with hotter and drier regions likely suggested that, while attention to climate change is to be hurt the most (Kurukulasuriya and Mendelsohn increasing in the PRS process, it is still insufficient to 2006). be assessed quantitatively. The variability in data and information on climate change would not provide a To assess how well climate change is mainstreamed in comprehensive quantitative cross-country comparison. the PRS process, we developed a new set of indicators. As such, for this review, we conducted an assessment We then used these indicators to examine how climate based on a qualitative description of climate change change has been mainstreamed in the PRS process issues that can be built on as the review matures and in the same four countries that we studied in the as attention to climate change issues grows in the PRS broader analysis of environmental mainstreaming. As process. the PRS documentation for individual countries does not necessarily give a complete picture of its policies on climate change, we complemented this analysis by Issues also examining other key documents linked to climate change policies, such as the National Communications, Within the Issues theme, we considered four variables the CAS, and the Country Environmental Analysis (land use; water; air, emissions, and climatic parameters; (CEA). and biodiversity) as general and most indicative to Environmental Economics Series 25 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies Table 3.1 Framework for Assessing Climate Change Mainstreaming in the PRS Process Theme Variables to be evaluated Issues Land use Land use and cover changes. Expansion of the agricultural frontier on forested lands, deforestation. Degradation and desertification. Reforestation, afforestation. Water Changes in the hydrological parameters such as precipitation, river flow, runoff, lake/water reservoirs level decline and glaciers ablation. Sea level rise. Water scarcity. Air, emissions, and climatic Changes in average temperature, heat stress, frosts. Emission of greenhouse gases. parameters Biodiversity Species distribution and ecosystems changes, alteration of ecoregion boundaries, high altitude and low latitude migration of species. Changes in crop seasons. Forest/plantation plagues, invasive species. Causal link assessments Poverty and natural resource Degradation of natural resources increasing poverty (degradation of land, water, air, and biodiversity) Loss of degradation environmental services and natural resources productivity. Decline in agricultural outputs. Loss of land and resource access due to fire, inundations, and changes in meteorological parameters. Environmental health Exacerbation or emergence of new diseases. Vector-borne diseases, in particular those associated with blood-sucking arthropods such as mosquitoes. Other diseases associated with the degradation of natural resources and water availability such as cholera, dysentery. Agriculture decline due to plagues. Vulnerability Impacts of natural disasters such as floods, droughts, and landslides; also the increase in extreme weather events such as hurricanes and tornados. Property rights Land tenure, community or privately owned, to promote reforestation projects and/or avoid degradation. Incentives Agricultural or sectoral policies, CDM, carbon trading, water pricing. Green taxes and tax benefits on clean technologies. Avoided deforestation, REED, and PES. Empowerment Community-driven development, participation in the decision making process and control over the resources. Decentralization at the regional and municipal level. Capacity building for natural disaster response. Gender Issues related to the link between climate change and gender. Impacts on the availability of natural resources such as water, wood. Response systems Environmental management Policies and regulations mainstreaming adaptation and mitigation to climate change. Policies related to institutional strengthening, information dissemination, environmental education. Enforcement. Investments in natural capital Projects related to the improvement of natural resources. Mitigation and adaptation to climate change. Avoided deforestation, reforestation, protected areas, and natural corridors. Adaptation investments in agriculture and water such as reservoirs. Investments in human- Investments in mitigation to climate change. Projects linked to energy usage and efficiency. Projects on made capital transportation, alternatives fuels, clean technologies. Domestic and industrial energy use. Investments in adaptation. Infrastructure resilience such as roads, construction. Response to environmental problems derived from climate change. Monitoring natural resource Reduction rates on deforestation and degradation of natural resources. Increase in protected areas, avoided outcomes deforestation, reforestation. Monitoring human Rates of alternative energy usage, cleaner fossil fuels, and energy efficiency. Carbon credits, renewable development outcomes energy certificates (RECs), verified emission reductions (VERs or carbon offsets). Reduction of greenhouse gases. Process and planning Participatory process Consultations with key stakeholders, including CSOs, NGOs, the private sector, and other relevant agencies at local and regional level, to include their concerns and perspectives about climate change and its implications for their activities. 26 Environment Department Papers Mainstreaming Climate Change in the PRS Process measure climate-related threats and opportunities in index (McGeehin and Mirabelli 2001). New evidence developing countries. indicates that observed climate change is likely to have already increased the risk of certain extreme events Land use. Land use change is related to climate change such as heat waves (IPCC 2007). Emissions from as both a causal factor and a major way in which the industrial and transport sectors represent a risk for effects of climate change are experienced (Dale 1997). increased greenhouse effect but also an opportunity for Deforestation is responsible for 20 percent of current developing countries to gain benefits from international greenhouse gas (GHG) emissions (Moutinho and agreements and improve their technology. others 2005; Stern 2006b). Unless current trends are reversed, rates of deforestation are likely to increase. Biodiversity. The global distribution of biodiversity The Amazon basin--the greatest area of forest in the is fundamentally constrained by climate (IPCC world--is deforested at a rate of 0.6 percent annually; 2001). Climate change is expected to force species the main drivers are illegal logging and the expansion of distributions toward higher elevations and lower cattle ranching and agriculture (Margulis 2004). latitudes, leading to extinctions of species whose future habitable climate spaces become too small or too Water. A global increase in precipitation is predicted, isolated from their current geographical ranges (Hill but it will vary from region to region and within and others 2002). Over the past 30 years, numerous countries. Some areas may experience declining shifts in the distributions and abundances of species precipitation. The largest changes are anticipated in as a consequence of changes in climatic parameters equatorial regions and Southeast Asia (DFID 2004a). contributed to several extinctions. A study done with Glaciers and ice caps are rather sensitive to climate a pool of species around the world determined that change; rapid changes in their mass are possible and as many as 15­37 percent of the species around the may make an important contribution to the rate globe will be committed to extinction by climate of sea level rise (IPCC 2001). In addition, climate changes (Thomas and others 2004). Climate change models predict that greenhouse warming will cause may disrupt human systems and change the context in temperatures to rise faster at higher than at lower which biodiversity conservation must take place (Parry altitude (Bradley and others 2006) causing glacier and others 1999). Human agricultural systems have melting in areas such as the Andes and the Himalayas. evolved in the current 10,000-year anomaly of a warm Sea levels are expected to rise, with severe implications and stable environment and have not had to cope with for coastal areas and low-lying islands in particular rapid changes in climate posing a huge risk for current (DFID 2004a). In addition, global warming will agro-biodiversity (Hannah and Midgley 2002). contribute to worldwide sea-level rise from thermal expansion of ocean water and the melting of mountain glaciers and polar ice sheets (Gornitz 1995). Causal Links The causal analysis of links between poverty and climate Air, emissions, and climatic parameters. Heat and change gives special attention to the level of damage heat waves are projected to increase in severity and that climate change can cause to the poor. Poverty and frequency with increasing global mean temperatures. geographic distribution are key factors in assessing Studies in urban areas show an association between vulnerability to climate change. Seven variables are increases in mortality and increases in heat, measured evaluated by taking into account direct and indirect by maximum or minimum temperature and heat correlations between climate change and the poor. Environmental Economics Series 27 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies Natural resource degradation and poverty. Developing- heavy toll on societies, with poorer countries finding country economies tend to be more vulnerable to it particularly difficult to absorb the shocks. Floods climate change, as they depend more heavily on along the Yangtze River in China were responsible for natural resources. Despite technological advances 4,000 deaths and economic losses of US$30 billion in such as improved crop varieties and irrigation systems, 1998, for example (Vellinga and van Verseveld 2000). weather and climate are still key factors in agricultural In Bangladesh, one of the countries most vulnerable to productivity. For example, weak monsoon rains in 1987 climate change, the flooded area is projected to increase caused large shortfalls in crop production in India, by 23­29 percent or more, with a global temperature Bangladesh, and Pakistan, contributing to a reversion increase of 2°C. Extreme drought is expected to increase to wheat importation in India and Pakistan (Ninno and from 1 percent of land area to 30 percent (IPCC 2007). others 2001). By the 2080s, an additional 80 million people are expected to be at risk of hunger due to Property rights. Poor people often live in places and have climate change (Parry and others 1999). Humans may livelihoods that are susceptible to natural calamities need to adapt not only to conserve wildlife but also to or adverse economic factors, limiting their ability to replace lost ecological services normally provided by cope with and to recover from shocks (DFID 2004c). wildlife. It may be necessary to develop adaptations Defined land tenure and property rights regimes create to losses of natural pest control, pollination, and seed disincentive for deforestation and degradation of forests dispersal. Although replacing providers of these three in rural areas. Public lands are often open sources for services sometimes may be possible, these alternatives indiscriminate access and depredation of resources. The may be costly (Buchmann and Nabhan 1996). Finding lack of property rights also discourages investments in a replacement for other services, such as contributions reforestation and afforestation projects. to nutrient cycling and ecosystem stability/biodiversity, Incentives. The poor's adaptive capacity needs to be will be much harder. supported by macro-level policy, institutions, and Environmental health. Many important diseases mechanisms, and should be reflected in developing are highly sensitive to changing temperatures and planning (DFID 2004d). International agreements precipitation. These include common vector-borne and government policies on climate change encourage diseases such as malaria and dengue, as well as other private sector investments. Some adaptation policies major killers such as bacterial, protozoal, and viral promote the introduction of climate-resistant crops diarrhea. Climate change already contributes to the by giving credit incentives to farmers. Likewise, global burden of disease, and this contribution is mitigation policies open the opportunity to explore expected to grow in the future (WHO 2008). The carbon markets through the Kyoto Protocol Clean health impacts of climate change are already evident in Development Mechanism (CDM) and the Reduced mortality from extreme climatic events and from the Emissions from Degradation and Deforestation incidence of vector-borne diseases. Climatic anomalies (REDD) program. Natural protection is being eroded resulting in drought and floods have been linked to with the gradual loss of coastal protection, in the form outbreaks of malaria in Africa, Asia, and South America of mangrove forests, and flood protection in the form (Githeko and others 2000). of wetlands, as these are drained and developed (DFID 2004a); payments for environmental services (PES) Vulnerability. Vulnerability is a cause of poverty, with provide an alternative means of protecting and restoring sudden loss of income and assets, sometimes on a the natural resilience of ecosystems while making periodic basis, condemning millions to poverty (DFID business green (Pagiola and Platais 2007). 2004a). Extreme weather events already impose a 28 Environment Department Papers Mainstreaming Climate Change in the PRS Process Empowerment. Local communities play a major role to implement and monitor actions to reduce climate in how humans deal with climate change. The level of change impacts on human and natural systems. participation, organization, and support that is given to them in rural areas will be important to increase their The principal response strategies, mainstreaming of natural capacity to deal with climate-driven problems. climate change mitigation and adaptation, are often Community-driven development (CDD), participation depicted as largely dependent on initial identification in the decision-making process, and control over of particular characteristics of the country and/or resources should be promoted. The adaptive capacity of region in which those strategies will have influence, the poor to climate variability--their range of response differentiating the spatial and temporal scales. Other options (DFID 2004c)--needs to be enhanced, important strategies include investing in information through action plans that involve the establishment and knowledge. and training of networks of local organizations taking Environmental management. Technical, financial, part in activities such as risk mapping and vulnerability and institutional capacity, and the actual planning assessments at the regional and municipal level. and implementation of effective adaptation, is Communities' competence for rapid response to natural currently quite limited in many regions (IPCC 2007). disasters should be increased as well by training women Management capacity is evaluated by determining the and men across all social groups to take part. level of information systems, legislation, and policies Gender. The impacts of climate change are likely oriented to tackle climate change. Information is to be gendered, because of the strong relationship important to improve response to changes in climatic between poverty and vulnerability to environmental events; disaster preparedness and contingency plans that change, and the stark fact that women as a group are bolster safety nets help save lives and natural resources. often poorer and less powerful than men (Nelson and Governments' ability to design economic tools that others 2002). For example, women and girls were create incentives toward climate change mitigation and systematically disadvantaged by food relief in the adaptation should be promoted. Likewise, enforcement aftermath of flooding in West Bengal that destroyed capacity is fundamental to assure the implementation of crops and farmland (Sen 1988). The gender differences policies and regulations promoted by governments. to the impacts of climate change are more evident in Investments in natural capital. Government projects rural areas, where women need to spend more time on natural resources to mitigate and adapt to climate collecting food, water, and fuelwood for their families. change are reviewed to determine their influence to The vulnerability of women to climate change impacts increase the resilience to climate change impacts. is also linked to inequalities, access to resources, and the Carbon sinks and reforestation and afforestation capacity to cope with other problems associated with projects protect the environment while providing a climate change such as health and migration (Adger source of income, shelter, and energy for the poor 1999). in rural areas. Protected areas and natural corridors reduce the effects of climate change over biodiversity Response Systems by giving alternative migratory routes to species. Government projects to reduce climate change impacts This section reviews the linkages between key on agriculture will also be evaluated. vulnerabilities and response strategies in order to improve resilience to climate change. The five variables Investments in human-made capital. Studies reveal considered measure the response capacity of countries that money spent on prevention is more efficient Environmental Economics Series 29 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies than the amount invested to recover from natural 3.2 Ghana calamities. Every US$1 invested in mitigation can save Climate change impacts in Ghana will increase the US$7 in disaster recovery costs (Abramovitz 2001). vulnerability of the poor, exacerbating many of the Projects linked to energy efficiency, clean fuels, and country's environmental problems. Ghana's two most transportation are also part of the evaluation scope of important economic activities--cacao and timber this variable. extraction--are likely to be affected by climate changes. Monitoring natural resources outcomes. Monitoring Increased rainfall variability and an overall drop in indicators are necessary tools to assess the follow-up of rainfall will dramatically affect agriculture productivity. polices and strategies. This variable evaluates policies Likewise, the predicted rise in average temperatures and strategies that use quantifiable indicators to assess will make forest and savanna areas more prone to fires, their impact. The topics covered are similar to those further increasing the vulnerability of rural areas to the mentioned in the investments in natural resources effects of climate change (IPCC 2007). variable. Climate change has been gaining attention as the PRS Monitoring human development outcomes. This process matures in Ghana. While earlier documents variable also evaluates policies and strategies that use revealed limited focus on the issue, evidence on quantifiable indicators. The topics covered are similar mainstreaming climate change and its impacts is clear to those mentioned in the investments in human-made in most recent documents. The review of the Ghana capital variable. PRS process found policies and strategies included to tackle climate change mitigation and adaptation with an emphasis on vulnerability and climate variability. Process and Planning Several actions and development plans can be Participatory process. This variable assesses the extent interpreted as seeking to include climate change in the to which key stakeholders--civil society organizations country's development agenda. However, this process (CSOs), nongovernmental organizations (NGOs), is still limited and often more related to sectoral needs private sector firms, and other relevant agencies at than to concerted climate change policies. Ghana's the local and regional levels--are consulted, and their energy constraints illustrate the case. Barely 40 percent concerns and perspectives about climate change and of Ghanaians have access to electricity, including its implications for their activities are included. The only 1 percent of the rural population (ESMAP participatory process is evaluated by the participation 2007). Promoting efficiency programs and alternative of stakeholders in the design of the PRS. However, the energy sources would be a vital part of overcoming level of mainstreaming public participation into the such limitations even in the absence of concerns over PRS and the attention the government gives to CSO emissions. and NGO proposals are difficult to determine through the assessment of this variable. Extensive consultations Among Ghana's PRS documents, PRSPs are the are expected during the process of formulating the most descriptive regarding policies related to climate PRSP. Such consultation secures long-lasting policies change. The I-PRSP emphasizes areas related to energy and broad ownership of the implementation process. and forestry, albeit as stand-alone programs without Based on how well the participatory process is direct links to climate change. PRSP I gives increased documented, the variable may or may not be reflected attention to reforestation policies, the promotion of adequately in the current assessment. energy efficiency, and the use of alternative energy 30 Environment Department Papers Mainstreaming Climate Change in the PRS Process sources. Following up on the PRSP I agenda, both and ensure the government's commitments on tackling APRs and PRSP II support energy efficiency and this issue. promote the use of alternative energies. They include a strategy to increase access to modern forms of energy 3.3 Albania to the poor and vulnerable. The documents back the implementation of rural energy programs involving Climate change poses significant threats to Albania renewable and indigenous types of energy (wind, because of the country's high dependence on natural biogas) in areas where it is economically feasible. resources (Ministry of Environment of Albania 2002). Major constraints on water availability and an increase In addition, the PRSP II policy matrix commits to in extreme events are predicted (Bruci 2004). initiating actions to reduce the impacts of climate change, with particular attention to land degradation. Climate change mainstreaming in Albania's PRS process It recommends the adoption of a policy framework is still incipient. Even so, some actions have been taken on climate change and mainstreaming the national to mitigate the problem and prepare the country. PRSP action program to combat drought and desertification. I adopted as a priority the preparation of environmental It also recommends adaptation strategies to reduce policy instruments approving and implementing the negative effect of climate change in rural areas, the Law on Carbon Tax. APR I followed up on this including the development of small-scale irrigation objective, noting the process of drafting, approving, dams and rain water harvesting. and implementing carbon tax regulations. APR II refers to two papers that were prepared to estimate the costs Interventions highlighted in PRSCs put little of reducing GHG emissions and also considered solar emphasis on climate change adaptation but include energy investments as part of the energy alternative some mitigation-related strategies. PRSCs II and III plans, including budget projections from 2000 to 2007. support energy efficiency and PRSC V supports public In addition, APR III indicates that Albania has started education campaigns on energy use and conservation to report priority data to the European Environmental and the procurement of six million compact fluorescent Agency, including an inventory of GHGs. Regarding bulbs to replace incandescent bulbs throughout the adaptation, APRs point out that the Ministry of country. Environment prepared an action plan to tackle impacts from climate variability including a coastal Our review of Ghana's PRS process thus indicates management plan. Among PRSCs, the most relevant that there is a small but rapidly growing tendency information is mentioned in PRSC III, which includes to include climate change in the country plans and carbon taxation as one of the environmental measures strategies. While several actions to promote climate to be supported by concessional lending. change adaptation and mitigation are being undertaken in Ghana, most are not part of a coordinated effort Other than the aforementioned findings, the amount to address climate change in the context of the of information about climate change adaptation and country's development policy but ad hoc responses to mitigation in Albania's PRS documents is limited. critical necessities in individual sectors. Our review of Information tends to be mostly concentrated in more complementary information reveals the same trend. recent PRS documents, indicating a slightly improving trend. Nevertheless, other sources of information Therefore, more emphasis is needed on mainstreaming provided additional information on policies climate change in the PRS process in Ghana. It will related to climate change. Albania's First National optimize the World Bank poverty reduction strategy Communication to the United Nations Framework Environmental Economics Series 31 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies Convention on Climate Change (UNFCCC), Key targets of PRSP I supported the preparation of presented in July 2002, assesses the country's present the first National Communication on Climate Change situation and serves as the basis for future action and and the National Adaptation Plan for Action (NAPA) research. A second communication, under preparation, integrating climate change vulnerability in the country's aims to develop and enhance national capacities and coastal zone policy. Other actions regarding climate facilitate the process of mainstreaming climate change change included sector-specific studies and a country issues into national planning and policy. Hence, there is program to undertake an inventory of GHG emissions. evidence of growing attention to climate change and of efforts to gradually integrate it into Albania's sustainable The PRSP policy agenda for 2005­07 includes further development agenda. commitments to mainstream climate change. The PRSP process supports a policy and institutional framework to integrate climate change adaptation activities in 3.4 Bangladesh all relevant public and private investments. It also With most of its territory lying barely above sea level, incorporates adaptation to climate change and risk its long coastline, and its high level of dependence on management into national disaster risks reduction agriculture, Bangladesh is particularly vulnerable to the activities through the NAPA. As a future priority, PRSP impacts of climate change. I commits to building capacity to integrate climate change in water and agriculture sector planning and Bangladesh's PRS process shows an increasing level of implementation. Furthermore, it pledges to promote climate change mainstreaming across its six documents, community-based adaptation projects to address which consistently identify the links between adverse effects of climate change. environment and climate change in government policies. The documents also stress the necessity to The PRSC process also mainstreams policies to tackle implement polices to tackle climate change and to climate change vulnerability. PRSC II states that mainstream its economic opportunities. climate change is likely to increase the frequency of flooding and cyclones, hence the need to improve the A notable improvement was achieved on climate change poor's vulnerability. PRSC IV mentions that large parts mainstreaming from the I-PRSP to PRSP I. While the of the population and agricultural land are exposed I-PRSP identifies vulnerabilities, adverse ecological to the threat of sustained climate change resulting processes, and the high incidence of natural disasters, in a rise in sea levels. It concludes by remarking that PRSP I links extreme weather events with climate few countries are as imperiled by climate change as change. Bangladesh. Addressing climate change issues is identified as one of the strategic goals in the policy actions and triggers 3.5 Vietnam matrix in PRSP I. Climate change considerations can Vietnam's PRSP process shows an increasing tendency also be seen in the discussion of afforestation, whose to mainstream climate change, with considerable benefits are described in PRSP I as including not only climate-related information distributed in the 10 a source of energy but also a way to reduce carbon documents reviewed. emissions. PRSP I also advocates seeking additional financial assistance from the international community Adaptation to climate variability is one of the main through the Global Environment Facility (GEF) and concerns in Vietnam's PRSP process. However, the the sale of carbon credits. concept is not usually linked to a long-term climate 32 Environment Department Papers Mainstreaming Climate Change in the PRS Process change policy. Climate variability and the increasing There seem to be independent parallel initiatives to frequency of extreme weather events are seen as mainstream climate change adaptation initiatives growing concerns in PRSPs and are further targeted in that are not necessarily supported by the PRSP or its government policies. PRSP I identifies the economic corresponding processes including the PRSCs. There is, and social impact of climate variability in agriculture therefore, potential to support a more coordinated and and construction. PRSP II builds on this, and supports structured program, where climate change interventions investments in flood-resistant residential areas and can be mainstreamed across larger sectoral strategies. At in adapting cultivation methods to reduce the high present, the PRS process could be said to be somewhat sensitivity of agriculture to climate change. of a missed opportunity in regard to climate change mainstreaming. More recently, the PRSC process has included for the first time clear concepts of climate change mitigation The review was useful to determine the countries' as part of its supporting policies. Since the adoption of priorities and needs related to climate change and the National Strategy for Environment under PRSC II their main requirements as presented in their PRS in 2003, Vietnam has implemented new policies. These processes. In Bangladesh and Vietnam, natural disaster policies began to emphasize climate change adaptation management, sea level rise, and agricultural impacts and mitigation in PRSCs IV, V, and VI. These latest drive the climate change adaptation agenda; in Albania, PRSCs put special emphasis on the promotion of GHG reduction, carbon taxes, and renewable energy clean technologies in industries and on suggestions for dominate the agenda; and in Ghana, policies related how the country's productive sectors can implement to climate change are a combination of mitigation-- the Kyoto CDM guidelines. Moreover, the policies through energy efficiency and reforestation--and envisaged for the new PRSCs VII through X include adaptation--reducing vulnerability to desertification, facilitating access to carbon finance transactions under agricultural impacts, and environmental education. the CDM. The review was also useful to determine the World Vietnam's government policies regarding climate Bank responses to developing countries' PRSP climate change are evolving and increasingly mainstreamed in change agendas and the alignment of the Bank's the PRSP processes. The country's general approach to responses to their needs. In Albania, Ghana, and environment is becoming more specific in recognizing Vietnam, PRSCs have a predominant mitigation the importance of mainstreaming climate change. agenda with some references to adaptation projects. Only in Bangladesh do PRSCs have a predominant adaptation approach, supporting natural disaster 3.6 Summary and Conclusions resilience. The results suggest a poor alignment between The available information was insufficient to PRSCs and PRSPs on issues related to climate change proceed with a quantitative evaluation of climate and development. While most PRSP strategies related change integration similar to that of environmental to climate change are geared toward adaptation mainstreaming in the PRS process. However, we do policies, PRSCs mainly support mitigation policies. We find an increasing tendency to mainstream climate substantiated that in Albania and Bangladesh PRSC change in policies and strategies. In general, the policies and strategies are more aligned with the PRSPs. mention of climate change policies is more frequent However, that is not necessarily the case for Ghana in recent documents. However, the focus is greater on and Vietnam, where PRSCs predominantly support short-term climatic variability than on longer-term mitigation to climate change policies. climate change. Environmental Economics Series 33 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies Climate change policies are not always explicitly management are in response to climate-related events stated in the PRS documents or in the policy matrix, but not necessarily due to a concerted climate change however, exposing an uneven process of climate change agenda. Thus reconciling the climate change agenda mainstreaming. The focus on energy-related programs, with the increasing number of projects that promote including those for renewable energy, stems from adaptation and mitigation policies in the PRS process increases in energy access and is not necessarily geared can provide a powerful impetus toward sustainable toward sustainable energy. Energy programs can have development in developing countries. Climate change multiple objectives. Likewise, programs supporting programs need to be acknowledged and mainstreamed improvements in infrastructure, agriculture, and water in pro-poor strategies. 34 Environment Department Papers An Evaluation of Environmental 4 DPLs D evelopment Policy Loans are lending approach to be useful. Our qualitative analysis may, instruments that provide quick-disbursing however, lead to a more quantitative assessment in assistance to middle-income countries to the future. As in our assessment of the PRS process, support structural reforms in a sector or the we focus on the documents produced in the DPL economy as a whole. They support the policy and process. In addition to undertaking an initial subjective institutional changes needed to create an environment assessment of DPL documentation, we also interviewed conducive to sustained and equitable growth. Task Team Leaders (TTLs) and other staff to obtain DPLs form an increasing part of the World Bank's additional information and insights into the main lending. Recent years have seen the emergence of an drivers, achievements, and challenges involved in the evolving subset of DPLs that focus specifically on the design and implementation of environmental DPLs. environmental sector. The interviews proved to be critical to improving our understanding of the main drivers of the loans. The Environmental DPLs raise new issues in the evaluation Appendix contains a complete set of questions that of development policy loans. In contrast to the were asked of Bank staff in the interview. PRS process, with its broad approach to poverty reduction, environmental DPLs are narrowly focused None of our case study countries for the assessment of on improving the environment. Because of these environmental mainstreaming in the PRS process has differences, we adopted a different approach to evaluate had an environmental DPL. Accordingly, we had to find environmental DPLs. Instead of using a scoring system, new case study countries. We evaluate environmental we performed a qualitative assessment. There are in any DPLs in three countries: Mexico, Brazil, and Gabon. case too few environmental DPLs for a quantitative The DPLs evaluated are shown in Table 4.1. Table 4.1 Environmental DPL Case Studies Amount Country, DPL (US$ million) Effective Mexico Environmental Structural Adjustment Loan I (EnvSAL I) 202 2002­03 Environmental Structural Adjustment Loan II (EnvSAL II) 201 2005­06 Environmental Structural Adjustment Loan III (EnvSAL III) 301 2008­ Climate Change Development Policy Loan (CCDPL) 501 2008­ Brazil Programmatic Reform Loan for Environmental Sustainability (EnvPRL I) 505 2004 Technical Assistance Loan (TAL I) 8 2006­ Gabon Natural Resources Management Program Development Policy Loan (NRM­DPL) 15 2007­ Environmental Economics Series 35 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies It must be highlighted that the environmental DPLs III, for US$300.75 million, with each loan linked to studied are from middle-income countries while the specific triggers. The EnvSAL program's main objectives PRS case studies are all from low-income countries. are to (a) improve the environmental management This implies a very different mix of government process and (b) mainstream environmental issues priorities and World Bank strategies. in selected sectoral agendas--tourism, energy, forestry, and water. It was also designed to improve environmental efficiency at the local level by promoting 4.1 Mexico the decentralization of environmental functions. It Background. Mexico has one of the highest per capita attempts to strengthen environmental management incomes in the Latin America region. It has a wide by developing economic instruments to improve variety of climates and topography across its 1.9 million financing of environmental management at federal and square kilometers. Different altitudes and a latitudinal subnational levels. The proposed policies support the continuum produce a diverse number of ecosystems development and refining of specific strategies related with a significant amount of natural resources. It is to climate change, focusing on actions addressing the sixth biggest oil producer, the eighth most visited adaptation and mitigation strategies across economic country, and the fourth most biodiverse country in the sectors as stated in the National Climate Change world. Strategy. Mexico faces a number of environmental problems Drivers for DPL design and implementation. Much of as a consequence of rapid economic growth and the EnvSAL program's policy matrix is drawn from industrialization. It has one of the highest rates of previous government and World Bank work, resulting deforestation in the world, with emissions from land in high government ownership. It is important to note use change contributing more than one third of the that the government formulated the environmental country's GHG emissions. A third of Mexico is under policy and development goals, initiating actions on water stress and over half of the country's aquifers them prior to the Bank's entry. Government ownership are overdrawn, posing serious problems for human of the EnvSAL program is confirmed by its requesting consumption and agriculture (Esty and others 2008). EnvSALs II and III in spite of Mexico's strong fiscal Ninety (90) percent of wastewater is untreated and situation. The Ministry of Environment was not only one third of solid and hazardous waste is properly initially interested in the EnvSAL program, arguing that disposed. The economic losses from environmental the lending operation would not provide any additional degradation are estimated to be about 9.2 percent of resources to them directly. The primary interest came GDP in 2004 (INEGI 2008). from the Ministry of Finance, which was interested for budget and payments support reasons. However, coordinated work between the World Bank team and The EnvSAL Program their counterparts succeeded in bringing the Ministry Scope of the loan. The Environmental Structural of Environment on board. Adjustment Loan (EnvSAL) program was requested by the government of Mexico in order to support Integration of the loan with country program and country environmental reforms and mainstream environment policies. The Mexican government has taken several across the six pillars and 17 programs of its actions to reverse the environmental degradation and Environment and Natural Resource Program. It reduce pollution. The National Development Plan was consists of three operations: EnvSAL I, for US$202 the basis for the Environment and Natural Resource million; EnvSAL II, for US$201 million; and EnvSAL Program 2001­06. 36 Environment Department Papers An Evaluation of Environmental DPLs The EnvSAL program was specifically tailored to EnvSAL III has been recently approved and will further support critical areas of the government's environmental pursue the general objectives of the previous EnvSAL agenda. It complements other World Bank, GEF, and program by integrating environmental concerns in government operations to improve water management, the sectoral policies and programs of key development biodiversity, forestry, and energy efficiency. It also has sectors: tourism, energy, forestry, water, agriculture, and a climate change agenda that supports both adaptation housing, as prioritized by the government of Mexico. and mitigation projects, in cooperation with other partners such as the Netherlands Carbon Fund and the The Mexico Climate Change DPL GEF. Scope of the loan. The US$501 million Climate Change Inclusion of climate change. Climate change policies Development Policy Loan was another important are included in the EnvSAL program, supporting component of the World Bank's portfolio in Mexico. the development of specific policies, strategies, and It is the first World Bank operation specifically aimed measures related to climate change as expressed in at addressing climate change issues in a developing the National Climate Change Strategy. EnvSAL I country. The CCDPL is based on prior government and EnvSAL II were designed prior to the Climate analyses of the possible impacts of climate change Change Development Policy Loan (CCDPL). As such, and the 2008­13 CAS for Mexico, and supports they make no reference to coordinating work with efforts to mainstream climate change in government the CCDPL. However, EnvSAL III will complement policy, including the submission of a Third National actions supported by the CCDPL. Communication to the UNFCCC, the approval of the National Climate Change Strategy by the government's Outcome evaluation and weaknesses. The implementation Intersecretarial Commission on Climate Change, and of EnvSAL I is considered to have been successful, the integration of climate change considerations in promoting important behavior change. Municipalities sector programs. had never paid for water before EnvSAL I was implemented, for example, but the DPL helped create Main drivers leading to DPL design and implementation. a culture to pay, through the design and use of fiscal The CCDPL aimed to concentrate efforts on instruments to promote the payment of municipal climate change previously scattered across several water fees. Although there were some delays in loan small operations into one comprehensive operation. effectiveness due to operational and inter-institutional Although the government was primarily interested in coordination, other important areas were rated as accessing the World Bank's advisory services rather high. Both the efficacy of the loan and the relevance than in borrowing, an inclusive agreement between the of the project were rated high. However, some critical government and the World Bank that included advisory areas are not covered by EnvSAL I, such as agricultural services tied to a loan was found to be the best solution. expansion's threat to biodiversity and air pollution from the energy sector, though these might be addressed by Outcome evaluation and weaknesses. One of the main other World Bank projects in these areas. criticisms of the CCDPL is that it was prepared in only six weeks, with little time for consultations with Follow-up. The results of the implementation of different stakeholders--although the National Climate EnvSAL I and EnvSAL II were rated as satisfactory in Change Strategy on which the CCDPL is based had the Implementation Completion Report (ICR). The undertaken significant consultation. The degree of triggers agreed for the disbursement of the loans were ownership by the various ministries is also a concern. satisfactorily implemented in EnvSAL I and EnvSAL II. The EnvSAL program enjoyed a high level of ownership Environmental Economics Series 37 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies thanks to the coordinated work of World Bank a longer-term program of environmentally sustainable representatives with the affected stakeholders. In the economic development and poverty reduction. It case of the CCDPL, however, the Ministry of Finance included several reforms in seven different ministries, managed the project with limited participation from targeting specific areas such as deforestation, forest other stakeholders. management, hazardous chemical management, and water resources management, with projects distributed Follow-up. Unlike the EnvSAL program, the CCDPL along the green, brown, and blue agendas. In addition, is not a programmatic loan leading directly to a second an intersectoral approach was taken to mainstream operation. However, the Inter-American Development environment across government organizations in Bank (IDB) is preparing its own climate change projects aiming at the improvement of environmental operation. The vice-minister of planning from Bolivia sustainability of the energy sector and the inclusion has also requested information on the CCDPL for a of environmental principles into financial and fiscal potential future requirement. policies. To reduce the operational risks of EnvPRL I, the World 4.2 Brazil Bank approved a complementary Technical Assistance Background. Few countries in the world have as large Loan (TAL I) for US$8 million. It was designed to an endowment of natural resources as Brazil. In its help advance the pace of reforms by improving the approximately 8.5 million square kilometers, the government's capacity to monitor environmental country has landscapes ranging from semi-desert to indicators and implement priority programs. evergreen tropical rain forests. Savannas, wetlands, forests, deserts, and coral reefs make Brazil one of the Main drivers of DPL design and implementation. The mega biodiverse countries in the world. The Brazilian EnvPRL emerged from a combination of strong interest Amazon is equivalent in size to the European Union of the Ministry of Environment and the World Bank's and holds as much as 11 percent of the world's response to the recommendations of analytical work. freshwater. The real champion of the process was the minister of environment, Mr. José Carvallo, who was instrumental Brazil's government recognizes the link between natural in defining the sector policy and pushing for the resources and economic growth. The 2004­07 CAS Ministry of Finance's endorsement. The Ministry and the subsequent Programmatic Loan for Sustainable of Finance gave its full support to the design and and Equitable Growth aimed to harmonize economic implementation of the loan. This clear support gave growth, social development, and improvements to the Ministry of Environment the necessary leverage environmental quality. to negotiate with the seven ministries involved in the operation the actions and reforms agreed in the Scope of the loan. The Programmatic Reform Loan for document. However, the budgetary support given to Environmental Sustainability (EnvPRL) was intended the Ministry of Environment was reduced in 2005 due to be a series of up to three loans over a four-year to fiscal constraints. period, totaling up to US$1.2 billion. EnvPRL I, for US$505 million, supported key measures EnvPRL I also had the endorsement of a wide range within a broader government program to improve of stakeholders. Several consultations with NGOs and environmental management and mainstream the CSOs improved the consensus and ownership of the environment in national policy. It focused on short- document. One World Bank staff member's previous term policies and programs that lay the foundation for experience with the World Wildlife Fund was an 38 Environment Department Papers An Evaluation of Environmental DPLs important asset during the consultation process with The Simplified Implementation Completion Report conservation groups. According to one of the sources rates both the borrower's and the Bank's performance as interviewed for this study, even Rede Brazil, one of the satisfactory. The innovative nature of the EnvPRL was most active critics of the World Bank in Brazil, stated recognized when the project team received a "Green that "we continue to be against DPLs but this one is Award" during the 2005 Environmentally and Socially different." Sustainable Development Network (ESSD) Week. The high level of borrower ownership and commitment Integration of the loan with country program and country to pursuing the objectives agreed in the policy matrix policies. The poverty-environment links in EnvPRL I were crucial for the success of the operation. The were in line with those identified in the 2004­07 CAS. Bank's multidisciplinary and comprehensive technical The CAS's major goals are more equitable access to assistance played a decisive role in the follow-up. local services, better water quality and water resource management, and more sustainable land management, In contrast, the Independent Evaluation Group's (IEG) forests, and biodiversity. EnvPRL I is also in line with ICR Review criticized the EnvPRL program for lacking the 2004 and 2006 Sustainable and Equitable Growth clear measures of progress toward the expected program DPLs and with other World Bank Group activities in outcomes; for having imprecise objectives, particularly the country. for the first loan; and for poor mainstreaming of lessons learned in Mexico's EnvSAL I that could have been External factors affecting implementation. Preparation beneficial for the design and implementation of Brazil's of EnvPRL I took into account initiatives by other EnvPRL. partners, such as IDB and the German development bank KfW, and the government's environmental Follow-up. After completing the triggers agreed in the sustainability agenda to avoid duplication and seek EnvPRL I policy matrix, the government of Brazil synergies among projects. was expected to request an EnvPRL II designed to complement EnvPRL I by focusing on major Inclusion of climate change agenda. The EnvPRL does legislative and institutional reforms on environmental not include any policies related to climate change. management. However, no request for an EnvPRL II However, it gives strong attention to reducing was ever made by the borrower. This follows a pattern deforestation, thus reducing the amount of GHGs of reduced borrowing by the country, which dropped released by Brazil. from about US$2 billion in fiscal 2006 to only US$300 million in fiscal 2007. Other operations were also Outcome evaluation and weaknesses. EnvPRL I had two affected: the 2006 Sustainable and Equitable Growth major weaknesses. First, coordination across the tiers of DPL II was downsized from US$400 million to government was sometimes poor. While coordination US$150 million, and the US$20 million 2006 TAL II between the federal and the state level has improved, was dropped entirely coordination with the municipal level still lags. Second, deforestation continues to be a significant problem with no clear solution in the near future. Deforestation is a 4.3 Gabon complex problem that has environmental, social, and Background. Gabon is an upper-middle-income economic connotations. Although deforestation rates country, with a per capita GNI of US$5360, more declined sharply since 2005 it is expected to grow in the than six times the average for Sub-Saharan Africa. It next years as high commodity prices increase demand is one of the most politically and economically stable for land in the Amazon. countries in Africa. Since the discovery of offshore oil Environmental Economics Series 39 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies reserves in the 1960s, oil has been the main driving 2007 and successfully negotiated a solution with the force in the economy. In 2004, oil accounted for 81 prime minister that allowed the operation to proceed. percent of export earnings, 55 percent of government revenues, and 50 percent of GDP. Gabon is also well Integration of the loan with country program and endowed with forests, fisheries, and mineral resources. country policies. The NRM-DPL is aligned with the It is Africa's second largest exporter of timber, has the government vision document, "Gabon 2025," and second largest deposit of manganese in the world, and the PRS prepared in December 2005. It is also linked is also an exporter of gold and uranium. Despite its to International Monetary Fund (IMF) operations abundance of natural wealth, however, poverty remains supporting forestry reforms with simplifications in the widespread and income inequality is high. fiscal regime, improvements in the collection rates of forest taxes, and restructuring of the National Gabonese Scope of the loan. The US$15 million Natural Resources Timber Company. Other donors working in Gabon Management Program Development Policy Loan have also expressed their intention to use the NRM- (NRM-DPL) was designed to improve the efficiency DPL­supported Forest, Fisheries, Biodiversity, and of natural resources management in Gabon, to increase Environment Sector Program to coordinate further its impact on poverty alleviation, to protect the assistance. environment, and to reduce the country's dependence on declining oil resources. It covers three sectoral Inclusion of a climate change agenda. Climate change programs: the Forest, Fisheries, Biodiversity and actions were not included under the NRM-DPL, as Environment Sector Program; the Extractive Industries the issue is being addressed through other operations Transparency Initiative; and the Mining Sector Reform supported by Japanese cooperation and the GEF. Program. Although they have converging objectives, Outcome evaluation and weaknesses. Lack of capacity these programs have been developed independently and within the Ministry of Finance and other ministries have reached different stages of development. impeded development of the loan. Negotiating changes The NRM-DPL was designed to be the first of two in the DPL proved particularly difficult; in fact, no natural resource management DPLs, with the second major modifications were introduced since the proposal DPL deepening and consolidating the implementation was first elaborated in 2000. of reforms introduced under the first. These two Follow-up. Poor ownership of the first NRM-DPL operations support the two pillars of the CAS: and high oil prices make it seem unlikely that the strengthening the management of natural and financial government of Gabon will require a second NRM-DPL public resources for improved social outcomes, and in the short term, as initially envisaged, but declining improving the investment climate to foster sustainable, oil prices may change matters. private sector-led growth. Main drivers leading to DPL design and implementation. 4.4 Summary and Conclusions Design of the NRM-DPL began as a Sector Investment Loan (SIL), initially scheduled for 2000­01. Work was Environmental DPLs are relatively new instruments suspended in 2002, because of ministerial changes and and as such any assessment is likely to find much that an unwillingness to borrow. Work resumed in 2004 can be improved. Therefore, learning from these initial as a DPL. However, in 2007, the Ministry of Forestry experiences is important, as several other countries are withdrew willingness to continue with the operation. actively seeking similar loans, including Cameroon, A World Bank commission traveled to Gabon in May Ghana, and Peru. 40 Environment Department Papers An Evaluation of Environmental DPLs The widely varying scope of the Environmental DPLs a catalytic role in many cases. The importance of the examined--ranging from large sectoral programs to World Bank's role is particularly evident in the cases of specific policy reforms on climate change--results Brazil and Gabon, where DPLs would not have come in a diverse mix of programs. The main objectives of to fruition without significant Bank efforts. the DPLs evaluated are to mainstream environment in the sectoral agenda and to promote the efficient The overarching and cross-sectoral nature of decentralization of environmental responsibilities from environmental mainstreaming requires strong the central government to regional and local levels intersectoral coordination. It is evident from the case (Brazil and Mexico). In the case of Gabon, there was studies that, while the main thrust for environmental also a necessity for diversification due to the decline DPLs may have come from the finance ministries, in the country's oil reserves. Among the countries additional buy in from relevant agencies and reviewed, Mexico has the most mature and complete ministries, including the environment ministry, took set of environmental DPLs; Brazil and Gabon both time to cultivate. Whether the relevant agencies have only one. Middle-income countries opting for held back due to their limited control of financing environmental DPLs recognize the importance of to implement specific reforms or because of weak addressing environmental concerns in order to continue intersectoral coordination, the issue of ownership needs on their developmental paths. The flexibility and scope strengthening. Without the availability of the right of environmental DPLs allows them to be streamlined incentives and better coordination among key agencies and tailored to a specific country context--therein, lies for the development, design, and implementation of their strength. This trend is evident in the variability DPL reforms, progress on such concessional lending across country reforms, sectoral foci, and subsequent programs will be met with slow implementation and policy triggers that are identified in the DPLs of the compromised outcomes. three case study countries. As countries mature to mid-income economies, One of the critical weaknesses identified in an earlier their interest tends to shift to securing Bank-related review of DPLs was a failure to integrate environmental expertise and technical assistance on specific policy concerns across sector priorities as well as a limited issues rather than concessional lending. Combining assessment of plausible environmental impacts from analytical and technical assistance with a strong the implementation of macroeconomic, public sector, concessional lending program will create a synergistic and sectoral priorities in DPL reforms (Mani and Sears approach to environmental mainstreaming. The paucity 2006). of environment-related analytical work remains an important impediment, however (Mani and Sears The drivers and issues of country-led ownership are 2006). critical to the success of any Bank-led concessional lending operation for its clients. While the initial While climate change is not explicitly included in the impetus to the design and development of these Brazil and Gabon DPLs, in Mexico it is highlighted as tailored environmental loans has come from ministries a priority. of finance in client countries, the World Bank played Environmental Economics Series 41 5 Summary A s this is a desk review, all results depend on attention on environmental mainstreaming the accuracy, relevancy, and soundness of the warrants either strengthening these instruments or documents reviewed. The numerical scores suggesting other innovative mechanisms to achieve assigned are based only on PRSPs, APRs, and mainstreaming. PRSCs, although wherever possible we took other · Attention to investments in natural capital and documentation into account. It is possible that a more monitoring remains weak. Despite the overall comprehensive examination of country policies and improvement in environmental mainstreaming, World Bank assistance would have yielded a different investments in natural capital and their cor- picture of the degree to which environment or climate responding monitorable indicators remain a weak change have been mainstreamed. Such an examination spot in the PRS documents we reviewed, with few was beyond the scope of this study, however. exceptions. The treatment of prioritized invest- ments, their time bound costing, and monitorable indicators are better integrated for infrastructure- 5.1 Mainstreaming Environment in the PRS related investments geared toward water supply, Process electricity, and energy access. · The degree to which environment is mainstreamed is improving. There is a general tendency of environ- 5.2 Mainstreaming Climate Change in the mental mainstreaming improving over time, which PRS Process is more evident in the countries with the most · There is increasing information on climate change. mature PRS processes. Climate change is increasingly mentioned in · The degree to which environment is mainstreamed is PRS policies and strategies. This is particularly highly variable. As in previous reviews, we found noteworthy as there are numerous independent a high variability in mainstreaming scores among parallel initiatives addressing climate change that documents, with PRSCs having the most variable are not necessarily supported by the PRSPs or their results. corresponding PRSCs. · PRSPs and APRs are better mainstreamed than · Most focus is on short-term climate variability. PRS PRSCs. The degree of environmental mainstream- documents place a greater focus on short-term ing in PRSCs does not always correspond to that climatic variability than on longer-term climate seen in a country's PRSPs and APRs. It is possible, change. Climate change policies are not always however, that this is due to environmental issues explicitly stated in the PRS documents or in the being addressed using other instruments. While policy matrix, exposing an uneven process of the PRSCs were instruments geared and tailored climate change mainstreaming. toward supporting the PRS process, their varied Environmental Economics Series 43 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies · Country priorities vary. The review was useful to de- 5.3 Evaluating Environmental DPLs termine countries' priorities and needs with respect · Decentralization is an important focus. Promoting to climate change and their main development the efficient decentralization of environmental requirements as presented in their PRSPs. While responsibilities from the central government to Bangladesh and Vietnam present a climate change regional and local levels is one of the main objec- adaptation agenda, Albania's agenda is dominated tives of several of the DPLs evaluated. by mitigation. In contrast, Ghana's policies related · Climate change is unevenly addressed. While Mexico to climate change are a combination of both has a DPL dedicated to addressing climate change mitigation and adaptation. (the first such DPL anywhere), the environmental · PRSCs are not always well aligned with country DPLs in Brazil and Gabon do not include climate climate change priorities. Except in the case of change. Bangladesh, PRSCs have tended to focus on · Follow-up is uneven. While Mexico has had a mitigation, with limited references to adaptation. sequence of environmental DPLs, neither the As such, they are not always well aligned with Brazil nor the Gabon environmental DPLs are PRSPs, which tend to place greater emphasis on likely to continue with a second phase. adaptation policies. 44 Environment Department Papers References Abramovitz, J. 2001. Unnatural Disasters. Worldwatch Paper Dale, V. 1997. "The Relationship between Land Use Change 158. Washington, DC: Worldwatch Institute. and Climate Change." Ecological Applications 77(3): 753­69. Adger, N. 1999. "Social Vulnerability to Climate Change and Extremes in Coastal Vietnam." World Development DFID (Department for International Development). 2004a. 27(2):249­69. "The Impact of Climate Change on the Vulnerability of the Poor." Key Sheets on Climate Change and Poverty 3, Agrawala, S., T. Ota, A.U. Ahmed, J. Smith, and M. van DFID, London. Aalst. 2003. Development and Climate Change in Bangladesh: Focus on Coastal Flooding and the Sundarbans. DFID. 2004b. "Climate Change Deepens Poverty and Environment Directorate and Development Co-operation Challenges Poverty Reduction Strategies." Key Sheets on Directorate. Paris: OECD. Climate Change and Poverty 1, DFID, London. Bojö, J., and R.C. Reddy. 2002. "Poverty Reduction DFID. 2004c. "Adaptation to Climate Change: Making Strategies and Environment: A Review of 40 Interim and Development Disaster-proof." Key Sheets on Climate Full Poverty Reduction Strategy Papers." Environment Change and Poverty 6, DFID, London. Department Paper 86, World Bank, Washington, DC. DFID. 2004d. "Adaptation to Climate Change: Can Bojö, J., and R.C. Reddy. 2003a. "Poverty Reduction Insurance Reduce the Vulnerability of the Poor?" Key Strategies and Millennium Development Goal on Sheets on Climate Change and Poverty 8, DFID, Environmental Sustainability: Opportunities for London. Alignment." Environment Department Paper 92, World Bank, Washington, DC. ESMAP (Energy Sector Management Assistance Program). 2007. "Millennium Development Goals: Ghana's Strategy Bojö, J., and R.C. Reddy. 2003b. "Status and Evolution for Poverty Reduction." http://www.esmap.org. of Environmental Priorities in the Poverty Reduction Strategies: An Assessment of Fifty Poverty Reduction Esty, D.C., M.A. Levy, C.H. Kim, A. de Sherbinin, T. Strategy Papers." Environment Department Paper 93, Srebotnjak, and V. Mara. 2008. 2008 Environmental World Bank, Washington, DC. Performance Index. New Haven: Yale Center for Environmental Law and Policy. Bojö, J., K. Green, S. Kishore, S. Pilapitiya, and R.C. Reddy. 2004. "Environment in Poverty Reduction Strategies Githeko, A., S.W. Lindsay, U.E. Confalonieri, J.A. Patz. and Poverty Reduction Support Credits." Environment 2000. "Climate Change and Vector-borne Diseases: Department Paper 102, World Bank, Washington, DC. A Regional Analysis." Bulletin of the World Health Organization 78(9): 1136­47. Bradley, R.S., M. Vuille, H.F. Diaz, and W. Vergara. 2006. "Threats to Water Supplies in the Tropical Andes." Science Gornitz, V. 1995. "Sea-level Rise: A Review of Recent Past 312: 1755­56. and Near-future Trends." Earth Surface Processes and Landforms 20(1): 7­20. Bruci, D. 2004. "Assessment of the Expected Climate Change Vulnerabilities in Albania." European Meteorological Griebenow, G. 2006. "Conflicts in the Human­Elephant Society Annual Meeting Abstracts 1. Border: Studying the Possible Causes in the Bia Conservation Area in Ghana." Tropical Resources Bulletin Buchmann, S.L., and G.P. Nabhan. 1996. The Forgotten 25: 45­49. Pollinators. Washington, DC: Island Press. Environmental Economics Series 45 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies Hannah, L., and G.F. Midgley. 2002. "Conservation of Nelson, V., K. Meadows, T. Cannon, J. Morton, and A. Biodiversity on a Changing Climate." Conservation Martin. 2002. "Uncertain Predictions, Invisible Impacts, Biology 16(1): 264­68. and the Need to Mainstream Gender in Climate Change Adaptations." Gender and Development 10(2): pp.51­59. Hill, J.K., Thomas, C.D., Fox, R., Telfer, M.G., Willis, S.G., Asher, J. et al. 2002. "Responses of Butterflies to Ninno, C, del, P. Dorosh, L. Smith, and D. Roy. 2001. The Twentieth Century Climate Warming: Implications for 1998 Floods in Bangladesh: Disaster Impacts, Household Future Ranges." Proceedings of the Royal Society B 269: Coping Strategies, and Response. Research Report 122. 2163­71. Washington, DC: IFPRI. INEGI (Instituto Nacional de Estadistica Geografica Pagiola, S., and G. Platais. 2007. Payments for Environmental e Informatica). 2008. http://www.inegi. Services: From Theory to Practice. Washington, DC: World org.mx/est/contenidos/espanol/rutinas/ept. Bank. asp?t=cuna59&s=est&c=6143. Parry, M., C. Rosenzweig, A. Iglesias, G. Fischer, and M. IPCC (Intergovernmental Panel on Climate Change). 2001. Livermore. 1999. "Climate Change and World Food Climate Change 2001: The Scientific Basis. Cambridge: Security: A New Assessment." Global Environmental Cambridge University Press. Change 9, Suppl.1: S51­S67. IPCC. 2007. Climate Change 2007: The Physical Science Basis. Sen, A.K. 1988. "Family and Food: Sex Bias in Poverty." In Cambridge: Cambridge University Press. T.N. Srinivasan and P.K. Bardhan (eds), Rural Poverty in South Asia. New York: Columbia University Press. Kishore, S. 2007. "Mainstreaming Environment in the Implementation of PRSPs in Sub-Saharan Africa." Stern, N. 2006a. The Economics of Climate Change: The Stern Environment Department Paper 112, World Bank, Review. Cambridge: Cambridge University Press. Washington, DC. Stern, N. 2006b. "What is the Economics of Climate Kurukulasuriya, P., and R. Mendelsohn. 2006. "Crop Change?" World Economics 7(2): 1­10. Selection: Adapting to Climate Change in Africa." CEEPA Discussion Paper 26. Pretoria: Centre for Thomas, C.D., A. Cameron, R.E. Green, M. Bakkenes, LJ. Environmental Economics and Policy in Africa, Beaumont, Y.C. Collingham, B.F.N. Erasmus, M.F. de University of Pretoria. Siqueira, A. Grainger, L. Hannah, L. Hughes, B. Huntley, A.S. van Jaarsveld, G.F. Midgley, L. Miles, M.A. Ortega- Mani, M., and A. Sears. 2006. "Implementation of Huerta, A.T. Peterson, O.L. Phillips, and S.E. Williams. Environment and Natural Resources Aspects in 2004. "Extinction Risk from Climate Change." Nature Development Policy Lending: First Year Review." 427: 145­48. Environment Department Paper 111, World Bank, Washington, DC. UNDP (United Nations Development Programme). 2008. Human Development Report 2007/2008: Fighting Climate Margulis, S. 2004. "Causes of Deforestation of the Brazilian Change: Human Solidarity in a Divided World. New York: Amazon." World Bank Working Paper 22, Washington, UNDP. DC. Vellinga, P., and W.J. van Verseveld. 2000. "Climate Change McGeehin, M.A., and M. Mirabelli. 2001. "The Potential and Extreme Weather Events." World Wildlife Fund, Impacts of Climate Variability and Change on Health Gland. Impacts of Extreme Weather Events in the United States." Environmental Health Perspectives 109, Suppl.2: 185­89. WHO (World Health Organization). 2008. "Climate Change and Health: Report by the Secretariat." Executive Board Ministry of Environment of Albania. 2002. "The First EB122/4, WHO, Geneva. National Communication of Albania to the United Nations Framework Convention on Climate Change World Bank. 2001. "Interim Guidelines for Poverty (UNFCCC)." Tirana: UNDP. Reduction Support Credits." World Bank, Washington, DC. Moutinho, P., M. Santilli, S. Schwartzman, and L. Rodrigues. 2005. "Why Ignore Tropical Deforestation? A Proposal World Bank. 2007. "International Development Association for Including Forest Conservation in the Kyoto Protocol." and climate change: Making climate action work for Unasylva 56: .27­30. development." Sustainable Development Network (SDN) Working Paper, World Bank, Washington, DC. 46 Environment Department Papers References PRSP and DPL Documentation Reviewed 2003. "Albania: Joint IDA/IMF Staff Assessment of the Poverty Reduction Strategy Paper: Annual Progress Report." Report No. 26139-ALB. Ghana 2004. "Albania: Joint IDA/IMF Staff Assessment of the 2000. "Republic of Ghana: Assessment of the Interim Poverty Poverty Reduction Strategy Paper: Second Annual Reduction Strategy Paper." Report No. 21034-GH. Progress Report." Report No. 29285-ALB. 2003. "Republic of Ghana: Joint IDA/IMF Staff Assessment 2004. "Program Document for a Third Poverty Reduction of the Poverty Reduction Strategy Paper." Report No. Support Credit to Albania." Report No. 29507-ALB. 25495-GH. 2006. "Albania: Joint IDA/IMF Staff Advisory Note on the 2003. "Program Document for a Proposed Credit and Poverty Reduction Strategy Paper: Third Annual Progress Proposed Grant to the Republic of Ghana for a Poverty Report." Report No. 34930-ALB. Reduction Support Credit and Grant." Report No. 25995-GH. Bangladesh 2004. "Program Document for a Proposed Credit to the Republic of Ghana for a Second Poverty Reduction 2003. "Bangladesh: Joint Staff Assessment of the Interim Support Credit and Grant." Report No. 29177-GH. Poverty Reduction Strategy Paper." Report No. 25888- BD. 2004. "Republic of Ghana: Joint IDA/IMF Staff Assessment of the Poverty Reduction Strategy Paper: Annual Progress 2003. "Program Document for a Proposed Poverty Reduction Report." Report No. 29181-GH. Support Credit to the People's Republic of Bangladesh." Report No. 25676-BD. 2005. "Program Document for a Proposed Credit to the Republic of Ghana for a Third Poverty Reduction 2004. "Program Document for a Proposed Poverty Support Credit." Report No. 33096-GH. Reduction Support Credit II to the People's Republic of Bangladesh." Report No. 29369-BD. 2006. "Republic of Ghana: Joint IDA/IMF Staff Advisory Note of the Growth and Poverty Reduction Strategy and 2005. "Program Document for a Proposed Credit to the 2004 Annual Progress Report." Report No. 35767-GH. People's Republic of Bangladesh for a Development Support Credit III." Report No. 33758-BD. 2006. "Program Document for a Proposed Credit to the Republic of Ghana for a Fourth Poverty Reduction 2005. "Bangladesh: Joint IDA/IMF Staff Advisory Note Support Credit." Report No. 35975-GH. on the Poverty Reduction Strategy Paper." Report No. 34448-BD. 2007. "Program Document for a Proposed Credit to the Republic of Ghana for a Proposed Fifth Poverty Reduction Support Credit." Report No. 39657-GH. Vietnam 2001. "International Development Association: Poverty Albania Reduction Support Credit to the Socialist Republic of Vietnam." Report No. P-7446-VN. 2000. "Albania: Interim Poverty Reduction Strategy Paper-- Staff Assessment." Report No. 21178-ALB. 2002. "Vietnam: Poverty Reduction Strategy Paper and Joint IDA-IMF Staff Assessment." Report No. 24271-VN. 2002. "Albania: Joint IDA/IMF Staff Assessment of the Poverty Reduction Strategy Paper." Report No. 23469- 2003. "Program Document for a Proposed Credit to the ALB. Socialist Republic of Vietnam for a Second Poverty Reduction Support Operation." Report No. P-7584-VN. 2002. "Program Document for a Proposed Poverty Reduction Support Credit to Albania." Report No. 24175-ALB. 2004. "Program Document for a Proposed Credit to the Socialist Republic of Vietnam for a Third Poverty 2003. "Program Document for a Proposed Second Poverty Reduction Support Operation." Report No. 28916-VN. Reduction Support Credit to Albania." Report No. 25889-ALB. 2004. "Vietnam: Poverty Reduction Strategy Paper Progress Report and Joint Staff Assessment." Report No. 27672- VN. Environmental Economics Series 47 Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies 2005. "Program Document for a Proposed Credit to the Brazil Socialist Republic of Vietnam for a Fourth Poverty Reduction Support Operation" Report No. 32165-VN. 2004. "Program Document for a Proposed First Programmatic Reform Loan for Environmental 2005. "Socialist Republic of Vietnam: Poverty Reduction Sustainability to the Federative Republic of Brazil." Strategy Paper Progress Report--Joint Staff Advisory Report No. 28650-BR. Note." Report No. 33122-VN. 2004. "Project Information Document: Brazil: First 2006. "Program Document for a Proposed Credit to the Programmatic Reform Loan for Environmental Socialist Republic of Vietnam for a Fifth Poverty Sustainability Project." Report No. AB924-BR. Reduction Support Operation." Report No. 35793-VN. 2005. "Simplified Implementation Completion Report: 2006. "The Socialist Republic of Vietnam: Joint IDA­IMF Federative Republic of Brazil: First Programmatic Reform Staff Advisory Note on the Poverty Reduction Strategy Loan for Environmental Sustainability." Report No. Paper Annual Progress Report." Report No. 36369-VN. 32299-BR. 2006. "The Socialist Republic of Vietnam: Joint IDA­IMF 2005. "Project Appraisal Document: Federative Republic of Staff Advisory Note on the Poverty Reduction Strategy." Brazil--Environmental Sustainability Agenda Technical Report No. 37771-VN. Assistance Project in Support of the Programmatic Reform Loan for Environmental Sustainability." Report 2007. "Program Document for a Proposed Credit to the No. 30884-BR. Socialist Republic of Vietnam for a Sixth Poverty Reduction Support Operation." Report No. 39500-VN. 2005. "Project Information Document: Brazil--Technical Assistance Loan for Environmental Sustainability." Report No. AB1430-BR. Mexico 2005. "Integrated Safeguards Data Sheet: Brazil--Technical 2002. "Program Document for a Proposed Loan to the Assistance Loan for Environmental Sustainability United Mexican States for a Programmatic Environment Project." Report No. AC1458-BR. Structural Adjustment Loan." Report No. 24458-ME. 2008. "CAS Completion Report Review: Brazil--Country 2004. "Simplified Implementation Completion Report: Assistance Strategy FY04­FY07." Report No. 43392-BR. United Mexican States--First Programmatic Environment Structural Adjustment Loan." Report No. 29259. Gabon 2005. "Mexico: Second Programmatic Environment 1998. "Country Assistance Strategy for the Gabonese Development Policy Loan Project." Report No. 32248- Republic." Report No. 18415-GA. MX. 2005. "Country Assistance Strategy for the Gabonese 2005. "Project Performance Assessment Report: Republic for the Period FY05­FY09." Report No. 31882- Mexico: Northern Border Environment Project and GA. Environmental Structural Adjustment Loan Project." Report No. 32690. 2005. "Program Document for a Proposed Natural Resource s Management Development Policy Loan to the Gabonese 2008. "Program Information Document: Mexico--Climate Republic." Report No. 33786-GA. Change Development Policy Loan." Report No. AB3676. 2005. "Program Information Document: Gabon--Natural 2008. "Program Document for a Proposed Climate Change Resources Management Development Policy Loan." Development Policy Loan to the United Mexican States." Report No. AB1662-GA. Report No. 42569-MX. 2007. "Country Assistance Strategy Progress Report for the 2008. "Program Concept Note: Mexico--Third Republic of Gabon for the Period FY05­FY09 CAS Programmatic Environment Development Policy Loan." Progress Report." Report No. 40890-GA. Draft. 2008. "Program Information Document: Mexico--Third Programmatic Environment Development Policy Loan." Draft. 48 Environment Department Papers References World Bank Staff Interviewed Country Contact Mexico Kulsum Ahmed Lead Environmental Specialist, Environment Department Ernesto Sanchez-Triana Lead Environmental Specialist, South Asia Sustainable Development Department Benoit Bosquet Senior Natural Resources Management Specialist, Latin American and Caribbean Region Sustainable Development Department Brazil Gabriel Azevedo Former TTL in Latin American and Caribbean Region Sustainable Development Department, World Bank (currently Vice President and Regional Director, WWFUS) Sergio Margulis Lead Environmental Economist, Climate Change Unit, Environment Department Gabon Carole Megevan Natural Resources Specialist, Africa Region Environmental Economics Series 49 Appendix -- Questionnaire for TTLs of Environmental DPL Case Studies 1. What are the main driver(s) that lead to the · Were the budget cycle and medium-term expen- development of an Environmental DPL in the country? diture framework (MTEF) taken into account to · Country demanded? coordinate implementation of the environmental · Pushed by the Bank? DPL? · Pushed by analytical work undertaken at the Bank? · Clarify if there is any budget increase or was accounted for in the MTEF. Check for explicit vs. 2. What have been the main achievements and implicit -letter of development policy, it will help challenges developing and implementing a DPL? to see the level of coordination. · Support from the country director? · Support from the Ministry of Finance? 5. Was climate change considered in the Environmental · What is the perception of the different ministries DPL? and what are the priorities of the Ministry of Finance? 6. To what extent did the Environmental DPL have · Was the Environmental DPL is a new lending tool? relevant targets and indicators for poverty reduction · Was the Ministry of Finance committed to the and environment and appropriate proposals for design and implementation? monitoring and evaluation? · Were the outcomes useful or not? Important issues 3. To what extent has the implementation of the DPL to take into account will be information on how been constrained/supported by external factors? the poverty-environment links are established in · Was the participation of donors, NGOs, and the Environmental DPL. CSOs well mainstreamed? (For instance, Colom- · Are the poverty-environment indicators relevant bia's CSOs were against the water DPL.) for the main environmental problems of the country previously identified in other documents 4. Have countries drawn on existing strategies and such as CEAs, NAPAs, or a Strategic Environmen- plans to integrate the preparation and implementation tal Analysis (SEA). of the DPLs? · Was there coordination between documents and budgets? Environmental Economics Series 51 Environment Department THE WORLD BANK 1818 H Street, NW Washington, D.C. 20433 Telephone: 202-473-3641 Facsimile: 202-477-0565 Printed on recycled paper stock, using soy inks.