PAPER NO. 102 Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits Jan Bojö Kenneth Green Sunanda Kishore Sumith Pilapitiya Rama Chandra Reddy November 2004 THE WORLD BANK ENVIRONMENT DEPARTMENT Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits Jan Bojö Kenneth Green Sunanda Kishore Sumith Pilapitiya Rama Chandra Reddy November 2004 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 November 2004 Contents ABSTRACT v ACKNOWLEDGMENTS vii ABBREVIATIONS AND ACRONYMS ix EXECUTIVE SUMMARY xi Chapter 1 The Context 1 Building on Previous Reviews 2 Purpose and Organization of the Report 3 Chapter 2 What the Review Covers 5 Interim PRSPs and Full PRSPs 5 Millennium Development Goal 7 5 PRSP Progress Reports 5 Joint Staff Assessments 6 Poverty Reduction Support Credits 7 Chapter 3 Methods of Assessment 9 Components of Mainstreaming Considered 9 MDG 7 12 PRPS Progress Reports 12 Joint Staff Assessments 12 Poverty Reduction Support Credits 13 Scoring 13 Chapter 4 Results 15 Average Country Scores 15 iii Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits Disaggregated View of Environment Scores 16 Evolution of Environmental Priorities from Interim to Full PRSPs 17 Alignment with MDG7 18 The Implementation of Environmental Priorities 18 JSA Comments on Environmental Mainstreaming in PRSPs 20 Poverty Reduction Support Credits 21 Chapter 5 Good Practice Case Studies 25 Sri Lanka -- Beyond Mainstreaming in the PRSP 25 Using the Strategic Environmental Assessment Process for the Ghana PRSP/PRSC 30 Chapter 6 Conclusions and Recommendations 33 Appendix A Countries in the PRSP Preparation and Implementation Process 35 AppendixB Scoring Format of the PRSP Assessment 37 NOTES 39 REFERENCES 41 BOX 1 Environmental Priorities of PRSPs with Reference to MDG7 19 FIGURE 1 Environment scores in the context of PRSP implementation 20 TABLES 1 Regional distribution of PRSPs 5 2 Targets and indicators of Millennium Development Goal 7 6 3 PRSP implementation progress reports 6 4 PRSCs -- Credit amount and category 8 5 Average country environmental mainstreaming score 16 6 Coverage of the MDG environmental indicators in full PRSPs 18 7 Implementation progress on the PRSP proposals 19 8 PRSCs by World Bank sector codes 22 9 PRSC scores 23 10 Environmental mainstreaming in PRSCs 24 iv Environment Department Papers Abstract More than 60 countries are in various stages of insignificant positive correlation between the preparation and implementation of Poverty degree of mainstreaming in the PRSP itself and Reduction Strategies. This report examines the the mainstreaming in the Progress Report(s). extent to which countries and the World Bank have integrated environmental considerations With respect to the Joint Staff Assessments of into such strategies and their associated PRSPs and PRSP Progress Reports, the review documents. shows that the attention to environmental aspects is highly variable. The focus is The assessment is based on the 53 PRSPs, 21 primarily on water and sanitation and disaster PRSP Progress Reports and their associated management. The JSAs that include more Joint Staff Assessments, and 21 PRSCs attention to the environment are mostly available as of June 30, 2004. Of the 53 PRSPs, associated with PRSPs that are already 39 are full, while the rest are interim. This relatively well mainstreamed, and vice-versa. report uses an ordinal scoring scale applied to 17 variables related to environment. The The PRSC review shows significant variance selection of variables is adjusted to focus on across countries and a low average degree of implementation in the Progress Reports and mainstreaming. Some contextual factors that the PRSCs. An unweighted average for each can explain that are discussed in the main text. country is reported. Throughout the report, we It is too early to discuss any trend among highlight good practice examples. PRSCs. The results for the PRSPs show (a) considerable In addition to the results, this report contains variation across countries; (b) an average level two case studies that go beyond the text of mainstreaming that is low, and (c) a strong analysis and review the implementation record tendency for full PRSPs to better integrate in Sri Lanka and the additional environmental environmental considerations than interim analysis done in Ghana that was based on the PRSPs. PRSP. According to our findings, the Progress Reports The paper concludes by proposing a set of also vary considerably in their degree of recommendations. mainstreaming. Interestingly, there is only an v Acknowledgments Thanks are due to the Norwegian Government seminars inside and outside the World Bank for financial contributions to this work have commented on the previous editions of through the Trust Fund for Environmentally this review. Many of those comments have and Socially Sustainable Development. been integrated into this report. The authors wish to acknowledge constructive We thank Robert Livernash for editorial comments from our peer reviewers, Sergio support and Jim Cantrell for handling the Margulis and Grzegorsz Peszko. They have production of the report. significantly influenced the final version of the paper. The authors are solely responsible for the views expressed here, which do not necessarily This report is the fourth in an ongoing review represent the opinion of the World Bank, its of environmental considerations in PRSPs. A executive directors, or the countries they large number of colleagues and participants at represent. vii AbbreviationsandAcronyms ADB Asian Development Bank AFR Africa CAS Country Assistance Strategy CEPOMS Committees on Environmental Policy and Management CERSGIS Center for Remote Sensing and GIS CIDA Canadian International Development Agency CIEDP Committee for Integrating Environment into Development and Planning DFID Department for International Development, United Kingdom EAP East Asia and Pacific EC European Commission ECA Eastern Europe and Central Asia EDP Environment Department Paper EIA Environmental Impact Assessment ENR Environment and Natural Resources EPA Environmental Protection Agency GPRS Ghana Poverty Reduction Strategy GTZ German Technical Cooperation HIPC Heavily Indebted Poor Countries IDA International Development Association IMF International Monetary Fund IPRSP Interim Poverty Reduction Strategy Paper JBIC Japan Bank for International Cooperation JSA Joint Staff Assessment LAC Latin America and Caribbean MDAs Ministries, Departments, and Agencies MDG Millennium Development Goals MNA Middle East and North Africa MoE Ministry of Environment MTEF Medium Term Expenditure Framework ix Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits NCS National Conservation Strategy NDPC National Planning and Development Commission NEAP National Environmental Action Plan NESC National Environmental Steering Committee NGO Nongovernmental Organization PPPs Policies, Plans, and Programs PREM Poverty Reduction and Economic Management PRSC Poverty Reduction Support Credit PRSP Poverty Reduction Strategy Paper PRSP-PR Poverty Reduction Strategy Paper Progress Report SA South Asia SAC Structural Adjustment Credit SEA Strategic Environmental Assessment SECAC Sectoral Adjustment Credit UNDP United Nations Development Programme UNEP United Nations Environment Programme WDI World Development Indicators WHO World Health Organization Note: All dollars are U.S. dollars. x Environment Department Papers ExecutiveSummary Poverty Reduction Strategy Papers (PRSPs), links; (3) environmentally relevant actions; which are prepared by developing countries, and (4) the extent to which participation and are comprehensive, results-oriented consultation processes have allowed frameworks for reducing poverty. environmental concerns to be heard. The PRSPs are assessed on each of the 17 criteria, This paper (a) assesses the degree to which using an integer scoring range of 0 (no integration (mainstreaming) of environmental mention), 1 (mention, but no elaboration), 2 factors occurs in PRSPs, Joint Staff (elaboration), to 3 (good practice). The country Assessments (JSAs), PRSP Progress Reports scores are unweighted averages. (PRSP-PRs), and Poverty Reduction Support Credits (PRSCs); and (b) provides case studies The MDG7 assessment of the PRSPs is based on that go beyond the desk review of documents. a review of the inclusion of the three targets and five of the eight indicators internationally agreed to underpin the general goal of This assessment builds on several previously promoting environmental sustainability. published reviews (Bojö and Reddy 2002, Bojö However, this particular assessment registers and Reddy, 2003a, Bojö and Reddy, 2003b), but the inclusion without applying a rating scale. goes beyond those reports in several ways. First, it expands the coverage of the review to The JSAs are assessed using qualitative 53 PRSPs ( JSAs), of which 39 are now full judgment only, as they are very brief PRSPs. Second, it significantly expands the documents providing prioritized comment on number of Progress Reports reviewed to 21. the PRSPs. Third, it integrates the previously separate review of the integration of Millennium Goal 7 The Progress Reports for PRSPs are assessed on Environmental Sustainability (MDG7). using a reduced version of the 17 variables Finally, for the first time, a review of 21 PRSCs described above. As the emphasis is on is included. The population reviewed is the implementation and monitoring rather than total number of such documents publicly diagnosis and analysis, only the five aspects available as of June 30, 2004. related to implementation, monitoring, and evaluation are included. However, attention is We have assigned ratings across 17 variables also given to process, as this continues to be under four major areas of environmental important for successful implementation. This mainstreaming: (1) diagnosis of environmental provides a total of six variables to rate for each issues; (2) analysis of poverty-environment Progress Report. xi Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits A similar approach is taken with respect to Honduras, Mozambique, Nicaragua, Sri Poverty Reduction Support Credits (PRSCs), Lanka, Yemen, and Zambia, which are rated for the first time in this series · Environmental priorities. As expected, of reports. However, in addition to the six environmental priorities differ across variables rated for PRSP-PRs, an additional countries. PRSPs devote more attention to rating is given for a "context variable." This is issues such as water supply, sanitation, intended to cover the fact that some PRSCs vulnerability to natural hazards, land make explicit in what context they will operate tenure, and institutional capacity. They with respect to environmental mainstreaming. devote less attention to indoor air A PRSC that consciously allocates the pollution, biodiversity, gender and responsibility for environment to other environmental relationships, urban instruments receives a higher score than one environment, and the impacts of which simply omits any reasoning for its lack macroeconomic policies on the environment. Few PRSPs present of inclusion of environment. quantified, time-bound, and costed targets and indicators relating to environment. The main findings for the PRSPs are: Environmental health issues generally get more attention than natural resources · High variance. There is considerable management issues. However, among variation in environmental mainstream- environmental health issues, indoor air ing, ranging from marginal attention (0.3) pollution is often neglected in spite of to consistent mainstreaming of heavy reliance on traditional solid fuel, environment across the aspects considered particularly in Sub-Saharan Africa. here (2.4). · The MDG perspective. A few PRSPs · Low but improving average. The average explicitly introduce a long-term score across the sample shows a slight perspective and make reference to MDGs improvement at 1.5 on the 0­3 scale. It is for 2015, but most do not. Only 14 of the 53 not reasonable to expect all countries to reviewed PRSPs have targets and score a "3" across the board, as priorities indicators aligned with MDG7. The differ across countries. The average is an attention is almost entirely focused on the improvement over the 2002 assessment, water and sanitation target. which averaged 0.9, and the 2003 assessment, which averaged 1.3. The JSAs are quite varied in their attention to · Full PRSPs are better mainstreamed. In environmental issues. To the extent that such comparison to interim PRSPs, there is a issues are dealt with, the discussion is often stronger tendency for full PRSPs to better focused on water and sanitation, and in a few integrate environmental factors. As the cases, on disaster mitigation. The opportunity sample matures even further, we expect to encourage enhanced integration of mainstreaming to improve. environment is often missed, even in cases · High-scoring countries. Countries in the where the relevance to poverty would seem high-scoring cluster remain diversified obvious. However, there are PRSPs with much across regions: Azerbaijan, Bolivia, Bosnia attention given to environment that have JSAs and Herzegovina, Cambodia, Ghana, urging further improvements. xii Environment Department Papers Executive Summary PRSP Implementation Progress Reports. On the basis of our findings, we recommend Implementation progress reports are generally that: not satisfactory in their discussions of the environmental proposals outlined in the · PRSPs should draw more effectively on PRSPs. However, good practice is emerging; existing National Environmental Action examples include Albania and Nicaragua. The Plans and similar resources. variance across PRs is considerable, ranging · Data pertaining to MDG7 should be from 0.6 to 2.4. Interestingly enough, there is utilized, baselines established, and targets only an insignificant positive correlation set in line with MDG7. between a well-mainstreamed PRSP and a · The PRSP in many countries could more well-mainstreamed PR. Hence, a well- effectively engage the environmental mainstreamed PRSP does not necessarily lead constituency. On their part, it is important to a similar treatment in the Progress Report, that environmentalists in developing and vice-versa. The three Burkina Faso countries take an active interest in the Progress Reports show consistent progress poverty reduction strategy process. with respect to mainstreaming efforts and are · Progress Reports should systematically examples of good practice. revisit environmental issues raised in the PRSP to ensure follow-up. The results show that PRSCs also vary · JSAs should be written by teams that considerably in their degree of environmental include environmental staff. This will mainstreaming. The average score across the provide for better inclusion of sample of PRSCs is 1.4. The data show a high environmental feedback to developing level of variance--from 0.7 to 2.7. This is to be countries. expected, as they operate within a country · PRSCs should give explicit recognition to context determined by, among other things, the the relevance of environment in a poverty PRSP, the focus of other donors, other Bank reduction context. They may not always operations in the country, and the time profile address environmental issues directly, but of the PRSCs. For example, it is common need (a) to assess how significant negative among the PRSCs to start out with a strong impacts can be avoided, and (b) to search emphasis on health and education. Later on in for cost-effective synergies between the sequence of PRSCs, they may turn to other poverty reduction measures and measures priorities, including environment. to enhance the environment. xiii 1 The Context Over the course of the last decade, the World First, if PRSPs are country-owned, what justifies Bank has strengthened its emphasis on the their assessment by the World Bank? We critical importance of poverty reduction in undertake this assessment with a clear developing countries. In parallel, in documents recognition of the country ownership of PRSPs. such as the 2001 World Bank Environment This perspective is captured in the following Strategy, it has identified many critical linkages statement of the IDA 13 Deputies: "Early between poverty reduction, environmental experience shows that countries' strategies have often degradation, and natural resources given insufficient weight to issues that are important management. for sustainable development, such as the role of women, environmental management, fiduciary At the national level, a key point at which the controls, and analysis of the social impacts of policy poverty and environment agendas can intersect reforms. While recognizing that the PRSP is a is in the preparation of Poverty Reduction country-owned document, Deputies reaffirmed that Strategy Papers (PRSPs). PRSPs provide a IDA should continue to advocate good policies" 2 framework for domestic policies and programs, (IDA, 2002, p. 11). In fact, the World Bank and as well as for foreign assistance, with the overall other donors have undertaken several aim of reducing poverty. Written by the assessments of PRSPs, although environment countries, PRSPs are comprehensive and has not been an important consideration.3 results-oriented documents.1 Second, why should poor countries be concerned To encourage attention to the inclusion of with environmental issues? Why not have growth environmental issues, since June 2002 (as noted first and clean up later? It is generally agreed below) the Bank has prepared several that poverty reduction and environmental assessments of environmental issues in the management are closely linked--primarily PRSPs. through livelihoods based on natural resources, environmental factors impacting health, and In the course of preparing the earlier reports in vulnerability to natural hazards.4 If we define this series, we have discussed--and "environment" in this way,5 it becomes clear understand--the reservations that many people that the environment is not a "luxury" that hold with respect to this type of review. Three concerns only a rich elite in industrialized of the most common questions are discussed countries. It is an integral part of the well-being below. 1 Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits of poor people, and "the environment cannot Underpinning this is the enhanced participation wait."6 In short, economic growth matters a encouraged in the development of PRSPs, great deal, but so does the quality of that which will gradually build greater growth. The World Bank's Environment accountability for results. As the PRSP process Strategy (World Bank 2001a) specifically states matures, we will increasingly be able to that "..integrating environmental considerations compare the text of the PRSP with the into the new Poverty Reduction Strategy Papers is implementation record through Progress an urgent task." Reports and PRSCs. Further, country-specific work is needed to more profoundly understand We are not implying that there are never any what determines success in implementation. In tradeoffs between environmental objectives and fact, several such case studies are under way poverty reduction. There are many, and rational with the support of development agency cost-benefits analysis coupled with transparent partners. and inclusive information-sharing and debate should be used to address those issues. For example, establishing a Protected Area for Building on Previous Reviews biodiversity conservation will have to be A first assessment of environmental issues in the weighed against the value of its use for poor PRSPs of 40 countries was published as World people. Limiting local resource use will have to be compensated by alternative employment and Bank Environment Department Paper (EDP) 86 resources. Nor is environmental management in June 2002. A second EDP (Bojö and Reddy always the most cost-effective answer to achieve 2003a) devoted full attention to the integration poverty reduction. For example, hand-washing of the targets and indicators related to and hygiene education is probably the most Millennium Development Goal 7 on cost-effective measure to lower the incidence of environmental sustainability. There is no need waterborne disease. But we do argue, in line to repeat the discussion on MDG7, its poverty with the World Bank's Environment Strategy, relevance, the availability and quality of data, that the poor are often the first to carry the and track record of performance so far. Instead, burden of environmental degradation. we simply update the results for our extended Therefore, measures to limit environmental review.8 The third report (Bojö and Reddy degradation will generally disproportionately 2003b) in this series was published in November benefit poor people.7 2003, and extended the review of PRSPs to include also progress reports and Joint Staff Third, does it really matter what is written in the Assessments (JSAs). This report builds on those PRSP document? It is certainly possible that a assessments, but goes beyond them in several well-articulated strategy may not be respects. implemented well. However, PRSPs are public documents that are widely available and often First, all additional countries that progressed translated into local languages. Annual from an interim PRSP to a full PRSP, and progress reports and built-in systems for countries that joined the PRSP process by monitoring and evaluation--including targets preparing interim PRSPs until the end of June and indicators, timetables, and explicit costs-- 2004, were considered in this report. Coverage force an increasing level of transparency. of Progress Reports also has been extended. 2 Environment Department Papers The Context Second, we have added a review of PRSCs. environmental issues in PRSPs, JSAs, PRSP-PRs, This begins to take us closer to implementation and PRSCs; and (b) to provide a few examples of the PRSPs, although the PRSC must be of good practice and case studies of interpreted in a wider context. We will return to implementation. this below. What we mean by "mainstreaming" of the Because of resource constraints, this report environment is summarized here and discussed focuses on the text of the PRSPs, JSAs, and in detail in the methods section below. It is not progress reports.9 It would be useful--but is not the existence of a stand-alone section or chapter currently feasible--to undertake an in-depth in the PRSP, nor is it the frequent reference to country study for each of the 53 cases we have the "environment" in a document. The term reviewed. This assessment thus should be seen "mainstreaming" is used to denote (a) the as an overview that supplements country-level description of environmental issues and analyses. opportunities; (b) the analysis of links between poverty and environment; (c) the design of We have tried to develop a transparent responses to meet the identified challenges; and framework to maximize consistency in the (d) the inclusion of the environmental assessment across countries. However, constituency in the processes leading to the subjectivity cannot be eliminated. Our aim is design and implementation of the PRSP.10 not scientific precision--only for transparent and consistent reporting on the approximate This report is organized into six sections. levels and trends of environmental Section 2 describes the coverage of our review. mainstreaming in PRSPs. Section 3 presents the methods used. Section 4 presents the results of the assessment. Section 5 presents two interesting case studies that go Purpose and Organization of the Report beyond the text analysis. Finally, Section 6 The objectives of this paper are (a) to assess the concludes with some recommendations. status and evolution of mainstreaming of 3 2 What the Review Covers The report is based on an assessment of 53 developmental needs. They include eight goals Interim and full PRSPs, their Joint Staff monitored through 18 targets and 48 indicators. Assessments, and 21 Implementation Progress Through its strong links to poverty, Reports. The countries included in this environment relates to many MDGs, but it is assessment--and their stage in the PRSP prominently emphasized in MDG 7: Ensuring process--are presented in Appendix A. Environmental Sustainability. It is important to examine the extent to which Interim PRSPs and Full PRSPs PRSPs articulate environmental priorities that Of the 53 PRSPs considered for this assessment, fall within the MDG7 context. The overall goal 39 are full PRSPs and the rest are interim PRSPs. is specified in three targets that are further The regional breakdown in Table 1 illustrates divided into eight indicators (Table 2). A the dominance of the Africa region. detailed analysis of the coverage of MDG7 indicators in PRSPs is presented in a previous review (Bojö and Reddy 2003a). Without Millennium Development Goal 7 repeating the background information provided Building on a series of previous international there, this report updates the coverage of MDG7 conferences, the United Nations General indicators in all PRSPs that are currently Assembly adopted the Millennium available. Development Goals (MDGs) as a part of the Road Map Towards Implementation of the United PRSP Progress Reports Nations Millennium Declaration in 2001. These goals provide a strong focus toward addressing Annual reports on the implementation of PRSPs highlight efforts to convert identified priorities into actions.11 Of the 39 countries Table 1. Regional distribution of PRSPs that are in the full PRSP stage, 21 Region Interim PRSPs Full PRSPs Total have submitted implementation Sub-Saharan Africa 10 19 29 Progress Reports. Table 3 presents Eastern Europe and Central Asia 1 8 9 the list of countries and their East Asia 1 3 4 implementation progress reports. South Asia 1 3 4 The World Bank and IMF guidelines Latin America and Caribbean 1 4 5 on implementation progress reports Middle East and North Africa 0 2 2 recommend consistency between Total 14 39 53 national decisionmaking and 5 Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits Table 2. Targets and indicators of Millennium Development Goal 7 Targets Indicators Integrate the principles of sustainable · Proportion of land area covered by forests development into country policies and programs · Area protected to maintain biological diversity and reverse the loss of environmental resources. · Energy use per unit of GDP · Per capita CO2 emissions and consumption of ozone-depleting substances · Proportion of population using solid fuels Halve by 2015, the proportion of people · Proportion of population with sustainable access without sustainable access to safe drinking water to an improved water source and basic sanitation. · Proportion of population with sustainable access to adequate sanitation Have achieved, by 2020,a significant · Proportion of households with access to secure improvement in the lives of at least 100 million tenure slum dwellers Source: United Nations (2001, 2002). Table 3. PRSP implementation progress evident, Africa constitutes the largest sample for reports the Progress Reports. Region Country and year AFR (15) Burkina Faso 2000-01 Burkina Faso 2001-02 Joint Staff Assessments Burkina Faso 2002-03 Joint Staff Assessments are prepared by the Ethiopia 2002-03 Malawi 2002-03 staffs of the World Bank and IMF. They provide Mauritania 2001-02 feedback on the core elements of a PRSP, such as Mauritania 2002-03 poverty diagnosis, priority public actions, Mozambique 2001-02 participatory process, targets, indicators, and Mozambique 2002-03 monitoring systems. The JSAs provide an Niger 2002-03 important opportunity for the Bank and the IMF Tanzania 2000-01, to advise countries on their poverty reduction Tanzania 2001-02, Uganda 2000-01, agendas. All PRSPs reviewed here also have an Uganda 2001-02, associated JSA. Uganda 2002-03 EAP (1) Vietnam 2002-03 World Bank staff guidelines recommend that ECA (2) Albania 2002-03, JSAs also comment on cross-sectoral issues such Kyrgyz Republic 2002-03 as environment and on the scope of PRSP LAC (3) Nicaragua 2001-02, proposals in addressing environmental Nicaragua 2002-03, sustainability. The guidelines recommend that Honduras 2002-03 these assessments should focus "on the extent of income/consumption and other dimensions of reporting processes and their integration into poverty (health including environmental diseases, annual budget and national development natural resource degradation, vulnerability, reports (World Bank and IMF 2002a). As is disempowerment) and their evolution over time" 6 Environment Department Papers What the Review Covers (World Bank 2000). Against that background, Prior to September 1, 2004, PRSCs were this report includes a review of JSAs. classified as either structural adjustment credits (SAC) or sectoral adjustment credits (SECAC). The former were at the time reviewed under Poverty Reduction Support Credits Operational Directive (OD 8.60) on Structural The first Poverty Reduction Support Credits Adjustment, which recommends as good (PRSCs) were finalized and presented to the practice that the environmental policies and World Bank Board in mid-2001. Overall practices of the country are reviewed as an instructions for Bank staff were issued under integral part of loan preparation. The linkages the Interim Guidelines for PRSCs in May 2001.12 between the reforms and the environment PRSCs focus on poverty reduction as the central should be identified. However, this was not a objective of development assistance, while strict requirement. About half of the PRSCs aiming to enhance country ownership, were SECACs, which did require additional facilitating partnerships with other institutions, environment-related information in the form of and building on rigorous analytical a separate appendix. Hence, the nature of the underpinnings for fiduciary, social, structural, operation will to some extent determine the and sectoral reforms. The development of a level of attention that is devoted to PRSC starts with the country's own PRSP and environmental issues. It is important to note, involves extensive consultations and donor however, that this review is not focused on the coordination. PRSCs provide customized safeguard aspects of operations, but on support to country development and country- mainstreaming aspects, as defined in the first owned reform programs. They have focused on section of this report. building government capacity and institutions, particularly those that serve the poor. It should be added that the World Bank in August 2004 passed a new OP8.60 on This current study includes a review of 21 PRSCs Development Policy Lending (DPL) that that went to the World Bank Board by June 30, supersedes the old OD8.60 on Structural 2004 (see Table 4). In all, there were eleven Adjustment. Hence, the old division of lending PRSCs in Africa, three in East Asia and the instruments in SECACs and SACs is no longer Pacific, three in Latin America, and two each in valid. All new DPL is subject to the same South Asia as well as Europe and Central Asia. requirements, including the determination of any significant effects on the country's The rollout of PRSCs has been slow, but has environment, forestry, or other natural now gained momentum, and half of the resources. The PRSCs reviewed here, however, operations have been approved in the past fiscal were processed using the previous OD. year (ending June 30, 2004). The amount of the credit ranges from $18 million (Albania) to $250 Through PRSCs, the World Bank supports key million (Vietnam), with an average of $90 reforms that ensure transparency, budget million. Several of these PRSCs are continuum discipline, and improved financial management credits; that is, they are provided in annual and procurement, together with expansion of sequential tranches (Albania, Burkina Faso, health, education, and water and sanitation Uganda, and Vietnam). This puts the PRSC at services for the poor. Depending on the country, the core of many country lending programs. other sector activities may include agriculture, 7 Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits Table 4. PRSCs -- Credit amount and category rural roads, energy, power, manufacturing Amount SAC/ privatization, and trade. As a result, the PRSC Project ($m) SECAC* preparation team involves specialists in all the Albania 1 20 SAC themes covered, with environmental specialists Albania 2 18 SAC engaged with all SECACs but only for some Benin 20 SECAC Burkina Faso 1 45 SECAC SACs. Burkina Faso 2 35 SECAC Burkina Faso 3 50 SECAC Burkina Faso 4 50 SECAC Ethiopia 120 SAC Ghana 125 SAC Guyana 12 SECAC Honduras 58.8 SECAC Nepal 70 SAC Nicaragua 70 SAC Sri Lanka 125 SAC Tanzania 132 SAC Uganda 1 150 SECAC Uganda 2 150 SECAC Uganda 3 150 SECAC Vietnam 1 250 SAC Vietnam 2 100 SAC Vietnam 3 100 SAC * Note: SAC denotes a Structural Adjustment Credit, while SECAC is a Sectoral Adjustment Credit. 8 Environment Department Papers 3 Methods of Assessment The assessment framework used in this report is · Causal links. An analysis of multiple built on the previous work on mainstreaming poverty-environment linkages. the environment in PRSPs (Bojö and Reddy · Responses. An outline of proposals relating 2002, 2003b); aligning the environmental to environmental management, investments priorities of poverty reduction strategies with in natural and human-made capital, the Millennium Development Goal on monitoring, and evaluation. Environmental Sustainability (Bojö and Reddy · Process. Approaches used to promote the 2003a); mainstreaming the environment in the inclusion of environmental constituencies Country Assistance Strategies (Ekbom & Bojö and the environmental agenda. 1997; Shyamsundar and Hamilton 2000); and on Issues the Guidelines for the Joint Staff Assessment of PRSPs (World Bank 2000). Priority environmental issues in developing countries vary significantly based on their In this context, we define the term resource base, problems, and opportunities. Not "mainstreaming" of environment to include (a) all countries are expected to devote the same a description of environmental issues; (b) an level of attention to all issues. There are four analysis of links between poverty and sub-themes considered: environment; (c) policy and program responses to meet those challenges; and (d) the process Land use. Issues relating to soil and sub-soil underpinning the strategy. Each of these resources, including mining, erosion, components is further broken down into specific desertification, waterlogging, salinization, items under 17 variables. A brief description of nutrient depletion, and overgrazing; and these variables is provided below. aboveground resources, including deforestation and the degradation of forests and woodlands. Components of Mainstreaming Considered Water. Issues relating to the quantity and The format for assessing environmental quality of water supply for human priorities in interim and full PRSPs is grouped consumption, irrigation and other uses; into four major categories: water pollution; coastal zone and marine aspects; and droughts and floods. · Issues. A description of specific concerns and opportunities relating to the Air and climate. Issues relating to indoor and environment. outdoor pollution--including lead, 9 Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits particulate matter, sulfur, nitrogen oxides, disease can be valuable in preparing cost- and emissions of greenhouse gases--from effective interventions. domestic energy use, industrial processes, and transport systems. Climate variance Vulnerability. Globally, natural hazards claim and change are also considered. about 100,000 lives per year, most of them in developing countries (DFID and others Biodiversity. Issues relating to the 2002). Analysis of how climate variability degradation of ecosystems, threats to and natural disasters such as droughts, species or genetic resources, and floods, earthquakes, and hurricanes impact opportunities for sustainable use. the poor is valuable for implementing mitigation and adaptation strategies. Causal links Property rights. An analysis of how natural Diagnosing a country's environmental issues resources are "owned" and how tenure provides the foundation for a causal analysis. In regimes impact their utilization can be of such an analysis, two important questions need significant value. Unequal land ownership to be answered. First, is poverty contributing to and insecure tenure can force the poor to environmental degradation. Second, is cultivate marginal environments, and may environmental degradation hurting the poor? In deter long-term investments (Feder 1987; this context, we look at seven key linkages to Heath & Binswanger 1996). assess the performance of PRSPs: Incentives. Policies relating to pricing, Natural resource degradation and poverty. subsidies, taxes, restrictive trade practices, Most poverty is still rural (World Bank, and the exchange rate can significantly 2002b), and most rural people are directly influence the use of natural resources and dependent on the use of natural resources to the emission of pollutants into the secure a livelihood. Many derive a environment. Gasoline and diesel fuel sales significant part of their income directly from benefited from about $18 billion in subsidies non-cultivated resources (Vedeld and others in 1999, and irrigation from $10­$15 billion 2004). The linkage between poverty and the (IMF, UNEP, and World Bank 2002). quality of soils, vegetation, and water resources is critical. Empowerment. "Empowerment is the expansion of assets and capabilities of poor Environmental health. Up to one-fifth of the people to participate in, negotiate with, total burden of disease in the developing influence, control, and hold accountable world, and close to a third in Sub-Saharan institutions that affect their lives" (World Africa, may be associated with Bank 2002a, p. vi). In this context, environmental risk factors (Lvovsky 2001). empowerment concerns the degree to which PRSP analysis of how indoor and outdoor the poor control decisionmaking regarding pollution, provision of water supply and a country's resources and environment. sanitation, and the housing environment are While this point is closely related to linked to health outcomes and the burden of property rights, it is more concerned with 10 Environment Department Papers Methods of Assessment the level of participation and rules of Investment in human-made capital. Programs collective decisionmaking about the relating to slum improvement, water environment than about legal title. supply, sanitation, energy efficiency, waste management, air and water pollution, and Gender and environment. This link draws urban and rural infrastructure investments attention to gender-related policies such as aimed at environmental improvements the extent to which women have a voice in indicate the government's commitment in the management of communal resources, these areas. and whether they have the right to secure tenure. Women and girls are particularly Monitoring natural resource outcomes. burdened by the degradation of the Indicators are important components of the environment; for example, shortages of PRSP monitoring process. In this context, fuelwood and water often mean that targets and indicators for natural resource women must travel longer distances and management--including land use and soil spend more time searching for these conservation, such as trends in productivity resources (OECD 2001). or the rate of rehabilitation of degraded lands; forest resources, such as the annual Response systems rate of deforestation; area protected, such as To be meaningful, the discussion on issues and the percent of land or sea area protected; an analysis of causal links must be followed by water stress or scarcity, such as per capita availability in cubic meters; and energy, a set of actions. These are grouped into five such as dependence on traditional energy categories: and the shift to renewable energy--provide Environmental management capacity. the relevant information.13 Environmental management capacity is assessed in terms of actions concerning Monitoring human resource outcomes. legislation, regulation, environmental Indicators that measure human resource standards, data and information systems, outcomes such as health are important. institutional capacity, enforcement Examples include infant mortality and capability, and the use of economic morbidity, such as the infectious and instruments such as user fees, effluent/ respiratory disease burden attributable to emission charges, and green taxes. indoor pollution; access to safe water, such as the percent of the population with access Investment in natural capital. The proposed to safe water in rural/urban areas; sanita- programs for natural resource management tion, such as the percent of population and indicate the government's priorities and its poor households covered; and housing commitment to improve natural resource standards, such as crowding (floor area/ productivity. Examples include programs person). supporting the sustainable management or Process restoration of soils, forests, woodlands, wetlands, coral reefs, fisheries, and The description of the process employed in the management of protected areas. preparation and implementation of a PRSP is 11 Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits part of the assessment. Process issues are considerations, out of the eight indicators relevant for all aspects of the PRSP, but they are outlined in Table 2, five indicators that have the considered in this assessment because an most direct relevance to PRSPs priorities are inclusive and participatory process is required considered here:14 for identifying and addressing the concerns of environmental health, natural resource · Area under forests and changes in forest degradation, vulnerability to natural disasters, cover and for undertaking environmental investments · Traditional/solid energy use and access to and monitoring their progress. modern energy sources · Access to safe drinking water It is not possible here to evaluate the quality of · Access to adequate sanitation consultation other than through its expression in · Urban poor with secure tenure. the PRSP. Critics have argued that "participatory" events are sometimes designed The MDG7 targets relating to water supply, as top-down events, leaving little room for sanitation, and secure tenure are time bound, upward feedback. It has also been argued that whereas the target of reversing environmental consultations often result in the focus of degradation lacks a specific end point. immediate priorities to the detriment of long- term ones, such as those relating to the PRPS Progress Reports environment. This may be true in some cases, but the lack of inclusion of environmental Progress Reports are assessed with respect to concerns or actions is then reflected in low the response systems and actions identified in ratings under those categories. It should also be the reports. As in the previous review, this recognized that even good faith consultations assessment includes also the process variable. sometimes fail to produce a consensus. This variable is included to reflect a transparent participatory mechanism through which environmental constituents are able to voice and MDG 7 include their priorities and concerns. Although The relative significance of MDG7 targets and it may be difficult to assess the extent of indicators differ from country to country. implementation from the report without a more Indicators such as the use of traditional fuels, thorough country-specific study, the report water supply, sanitation, and secure tenure are provides insights into the level of commitment relevant to most countries and are also strongly on the part of the government and other poverty relevant. They are therefore expected to agencies, and reflects the progress that has been receive attention in most PRSPs. Countries with made to date. high rates of deforestation--and many poor people dependent on this resource--would be Joint Staff Assessments expected to focus on the forested area indicator. However, some forest clearing may contribute JSAs are brief documents, often in the range of to reducing poverty. The other MDG7 10 to 15 pages. They focus mostly on indicators are even more ambiguous in their macroeconomics and poverty diagnosis, with relationship to poverty. Based on these varying degrees of sectoral attention. 12 Environment Department Papers Methods of Assessment Guidelines for the Joint Staff Assessment (JSA) some other operation by the Bank or even of full Poverty Reduction Strategy Papers another donor. This is important, as the PRSCs (World Bank 2000) recommend that the JSA operates within the context of a country examine the trends in key poverty determinants program. In some countries, a specialized and outcomes presented, specifically, the extent of operation dealing with environmental issues is income/consumption and other dimensions of better equipped to deliver improvements. poverty, including environmental diseases, natural resource degradation, vulnerability, The review proceeded with extracting key disempowerment, and their evolution over time. appropriate information from the PRSC Feedback from the JSA could serve to improve documentation and assimilating this the focus on environmental sustainability information in a standard summary PRSC table. aspects during implementation. JSAs are Documentation reviewed included key assessed according to the extent and nature of components of the PRSC Program Document, their comments relating to environment in the including (a) the main section discussing the PRSPs. The JSAs of all full PRSPs, interim country poverty reduction targets and the PRSPs, and PRSP Progress Reports included in country's specific reform and program goals; (b) this assessment are considered in this report. the policy matrix; and (c) any appropriate appendixes devoted to environmental issues. Poverty Reduction Support Credits Scoring Environmental mainstreaming in PRSCs was evaluated by slightly modifying the approach Assessing 53 PRSPs across 17 variables, and 21 for PRSP-PRs. In brief, only the variables PRSP-PRs and 21 PRSCs across 6­7 variables is associated with specific actions (response not practical unless qualitative judgments are system) and process were included. The formalized and simplified. The 17 variables response systems criteria assessed included discussed below are scored with respect to each environmental management capacity, country's PRSP. A score in the range of 0 to 3 is investment in natural capital, investment in used depending on the treatment of relevant human capital, monitoring natural resource issues: outcomes, and monitoring human resource outcomes. The process variable paid specific 0 = no mention attention to donor participation, participation 1 = mentioned but not elaborated by government environment and natural 2 = elaborated resources agencies, and NGO involvement. In 3 = good practice addition, a particular "context" variable was included. This reflects the degree to which the The first three scores are related directly to the PRSC consciously assigns a role for level of attention given, while the top score environment either inside or outside of the implies a judgment of the quality of the text. PRSC. For example, a PRSC scores higher on This is obviously a subjective interpretation, this variable if it explicitly allocates and one that we have tried to illustrate in the responsibility for environmental mainstreaming, sequel by quoting and referring to such "good even though the implementation may fall onto practice" cases. Conceptually, it involves a 13 Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits treatment that is (a) substantive, containing present quantitative information to complement hard data of significance; and (b) displays a the qualitative analyses undertaken by the reasoning that is compelling. The interpretation Country Teams and the PREM Network within of these concepts will vary somewhat the Bank, as well as by external donors and depending on what area of scoring we are NGOs. An overview of the aspects incorporated concerned with. In the case of an issue, a good in the scoring format is presented in the practice case needs to exhibit such data and following sections; the scoring format used is reasoning as to place the issue solidly on the summarized in Appendix B. poverty reduction agenda for that country. In a links-analysis case, the relationship between the With regard to MDGs, the response systems variables (e.g. lack of safe drinking water and component of the PRSP scoring method may various health indicators) needs to be presented include MDG7 indicators under monitoring convincingly. In a good practice case of a natural resource outcomes and human resource response, the specific measures need to be outcomes. To complement attention given to defined, the costs estimated, the institutional MDG7 in the scoring of PRSPs, this assessment responsibility defined, and a timeline given. uses the following criteria to examine the extent For the process variable, one would look for a of coverage of MDG7 targets in PRSPs. full description of what stakeholder groups · Explicit focus of environment sector were involved, the format and frequency of priorities that align with the MDG7 targets meetings, the main issues raised, and their · Baseline information on MDG7 indicators follow-up in the PRSP. · Specificity of proposals on the progress Though not intended to be scientifically precise, towards MDG7 targets this scoring method is a practical way to · Capacity, monitoring, and financial condense considerable information into arrangements for reaching the targets. numbers that have a clear interpretation. The unweighted average scores are presented in the For each criterion, only the presence of absence results section (Table 5). We considered apply- of data will be noted, and no attempt is made to ing explicit weights to different variables, but further characterize the quality of the data. this would have made the scoring process less transparent.15 Instead, we assigned scores PRSP Progress Reports are scored in the same manner as PRSPs. In contrast to the use of a according to our valuation of the significance of structured scoring format used for the PRSPs, each set of variables. the JSAs are assessed qualitatively on the Any assessment, including scoring, involves coverage of environmental issues and the subjective judgments. In this format, feedback provided on the PRSP. Finally, the subjectivity is transparent and consistent across PRSCs are scored in the same format as for the countries. We do not encourage attention to PRSP Progress Reports, with the addition of the small differentials in scores between countries. context variable, as explained above. The assessment process enables us to succinctly 14 Environment Department Papers 4 Results This section presents scores by country with particular case, but offer these scores for more respect to environmental mainstreaming in detailed country-specific scrutiny to our PRSPs, PRSP-PRs, JSAs, and PRSCs. Given the readers. Third, the full PRSPs generally rank large number of documents reviewed, the focus much higher than the interim PRSPs. The is kept on major results only. The interested average as a sub-group, at 1.7, is slightly less reader is referred to the World Bank's internal than the previous review, which averaged 1.8. or external websites, which both contain a full But this decline in score is not significant. text of the documents reviewed. Where are the good examples? Rather than picking a specific PRSP, we would point to a top Average Country Scores cluster of PRSPs with scores greater than or equal to 2.0 to reflect the coverage of Table 5 reports results from 53 PRSPs reviewed. environmental priorities. This includes the It must be noted that in five cases, a country has geographically diverse PRSPs of Azerbaijan, produced both an interim and a full PRSP Bolivia, Bosnia and Herzegovina, Cambodia, within the review period. We focus here on the Ghana, Honduras, Mozambique, Nicaragua, Sri most mature expression of the PRSP process. Lanka, Yemen, and Zambia. It is interesting to However, results from the five superseded note the spread across regions of the world in interim PRSPs are used in our comparison this cluster. It is also apparent that some very below on the evolution of scores from interim to poor countries have made it to the top of this full PRSPs. ranking. From the scores in Table 5, three observations What explains the high scores? We can only stand out. First, it is clear that there is a hypothesize about that, in the absence of significant variation in the integration of profound country-level studies.16 One environmental priorities into PRSPs, with the reasonable assumption is that it is related to the average country score ranging from 0.3 to 2.4. quality of the process, and particularly the Second, the average score shows a slight degree to which the environmental constituency improvement--from 1.3 to 1.5 on the 0-3 point is mobilized and allowed to contribute. The scale. This is a broad indicator of the level of average score on the process variable is 2.5 for attention paid to environmental aspects. There the top cluster, as compared to 1.7 for the entire may be more-or-less good reasons for not sample. This provides credibility to the mentioning or elaborating on such issues. We assumption that a higher level of stakeholder are not in a position to pass judgment on each involvement and participation can have a 15 Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits Table 5. Average country environmental mainstreaming score Overall Overall S. No. Country Region PRSP score S. No. Country Region PRSP score 1 Zambia AFR F 2.4 28 Benin AFR F 1.5 2 Ghana AFR F 2.2 29 Chad AFR F 1.5 3 Mozambique AFR F 2.2 30 Niger AFR F 1.5 4 Cambodia EAP F 2.2 31 Guyana LAC F 1.5 5 Azerbaijan ECA F 2.1 32 Burundi AFR I 1.4 6 Bosnia and Herzegovina ECA F 2.1 33 Mauritania AFR F 1.4 7 Honduras LAC F 2.1 34 Armenia ECA F 1.4 8 Yemen MNA F 2.1 35 Georgia ECA F 1.4 9 Sri Lanka SA F 2.1 36 Bangladesh SA I 1.4 10 Bolivia LAC F 2.0 37 Pakistan SA F 1.4 11 Nicaragua LAC F 2.0 38 Gambia AFR F 1.2 12 Kenya AFR I 1.9 39 Kyrgyz Republic ECA F 1.2 13 Vietnam EAP F 1.9 40 Tajikistan ECA F 1.2 14 Cameroon AFR F 1.8 41 Uganda AFR F 1.1 15 Madagascar AFR F 1.8 42 Nepal SA F 1.1 16 Mongolia EAP F 1.8 43 Cape Verde AFR I 1.0 17 Djibouti MNA F 1.8 44 Tanzania AFR F 0.9 18 Burkina Faso AFR F 1.7 45 Cote d'Ivoire AFR I 0.8 19 Malawi AFR F 1.7 46 Moldova ECA I 0.8 20 Mali AFR F 1.7 47 Dem Rep. of Congo AFR I 0.6 21 Rwanda AFR F 1.7 48 Lesotho AFR I 0.6 22 Senegal AFR F 1.7 49 Sierra Leone AFR I 0.6 23 Ethiopia AFR F 1.6 50 Guinea-Bissau AFR I 0.5 24 Guinea AFR F 1.6 51 Dominica LAC I 0.5 25 Lao PDR EAP I 1.6 52 Central African Rep. AFR I 0.3 26 Albania ECA F 1.6 53 Sao Tome Principe AFR I 0.3 27 Serbia and Montenegro ECA F 1.6 Average 1.5 greater impact on environmental their livelihood; high levels of traditional fuel mainstreaming. Another hypothesis is that usage; low levels of access to safe water and several of the top cluster countries have adequate sanitation; and high infant mortality. suffered through recent natural disasters that Low ratings on these variables indicate that have sharpened the political awareness of there is considerable scope for improvement in environmental vulnerability and the need for focusing on such issues. mitigation. Countries like Mozambique, Nicaragua, and Honduras would fall into that Disaggregated View of Environment category. Scores The cluster of PRSPs with very low scores is The country averages reported in Table 5 mask made up entirely of interim PRSPs.17 Readily the differences in scoring among the 17 available data from World Development Indicators variables considered. Disaggregated analysis of 2003 (World Bank 2003b) show that several of the overall environment score into component these countries have a high level of rural scores provides additional insights. We refrain population dependent on natural resources for from commenting separately on all variables, 16 Environment Department Papers Methods of Assessment but consolidate the scores--in accordance with Responses. On this theme, the average score the methods section--into (a) diagnosis of across five rated aspects is 2.1 as compared to issues and opportunities; (b) analysis of 1.8 from the previous review. Most PRSPs poverty-environment links; (c) proposed present a generic outline of proposals relating to responses; and (d) process. legislation, institutions, and regulation to strengthen environmental management. Though Issues. There is strong heterogeneity in the issues programs relating to natural resources covered in PRSPs, with land and water management, water supply, and sanitation are generally receiving most attention, while air often described, information on the cost of pollution, energy use, and biodiversity receive interventions and schedule for the interventions limited attention. The environmental issues that is often missing. Inadequate information on PRSPs often highlight in rural areas are land degradation and deforestation; in the urban targets and indicators makes it difficult to assess context, water pollution, lack of proper performance of actions of the PRSP countries. sanitation, and growth of slum environments Process. The averages score across countries for are often mentioned. Poor air quality--indoor or this single item is about 1.8 as compared to 1.6 outdoor--is seldom mentioned and rarely from the previous review. Though PRSPs discussed at length. Biodiversity receives describe the processes undertaken to promote limited attention, although a few countries see consultation, it is difficult to assess the extent to this as an important asset that can generate income to poor people. Short-term climatic which environmental constituencies have been variability is sometimes discussed, and is consulted and the extent to which extensively discussed in countries facing environmental concerns of the poor are frequent drought and severe flooding. The considered in developing the implementation average score of this component (covering four priorities. The attention devoted to process aspects) has improved from 1.0 to 1.2 on a scale issues is generally improving as interim PRSPs of 0 to 3 (see Appendix B for a summary are turned into full PRSPs. format). The low score indicates that many countries have not utilized the diagnostic basis Evolution of Environmental Priorities laid down in their National Environmental Action Plans or similar initiatives.18 from Interim to Full PRSPs The revision from the interim into the full PRSP Links. Poverty-environment links--in terms of stage improved the treatment of environment natural resources degradation, environmental significantly. The average interim scores for the health, and climate vulnerability--received 17 criteria stand at 0.8, as compared to the full more attention than aspects of property rights, PRSPs at 1.7. The full PRSPs illustrate a more empowerment, incentives, and gender. The average score for the seven items listed under comprehensive and integrated consideration of this theme is 1.3 as compared to the previous environmental aspects. These range over the review of 1.2. It shows that even with a weak diagnosis of issues, linkages between poverty description of environmental issues, several and environment, response systems, and the PRSPs highlight links between poverty and process. Although the mainstreaming efforts in environment. the interim reports are weak, they do show 17 Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits some improvement over our previous The PRSPs that highlight the MDG time frame assessment. may be grouped into two categories: those with explicit targets in the MDG horizon, and those that indicate general commitment to the MDG Alignment with MDG7 framework without reference to targets. Specific Although the focus on MDG7 indicators examples are given in Box 1. improved in recent PRSPs, there is still Most PRSPs do not explicitly align their plans significant variation, and no clear tendency with the MDG7 targets and indicators. Few toward improvement. Out of 11 full PRSPs that present baseline data and measurable targets. were upgraded from interim to full stage since Lack of data, vaguely defined indicators, and the latest MDG7 review, most lack information weak monitoring and institutional capacity are on baseline and target data. Among PRSPs that major constraints in assessing progress on present these data, attention is almost always MDGs. focused on water supply and to some extent to sanitation. Table 6 presents an overview of Explicit attention to MDG indicators within coverage of MDG7 indicators in full PRSPs. sectoral targets--along with financial Interim PRSPs generally lack any explicit commitments and improvements in monitoring alignment with MDG7. processes of the annual implementation progress reports--could improve the alignment Countries that refer to the MDG horizon of PRSP priorities. highlight legal, institutional, and sector-specific interventions to be implemented as part of PRSPs. The legal interventions highlighted The Implementation of Environmental include reform of laws relating to forestry, water Priorities supply, biodiversity, and land tenure. The What ultimately matters is how a PRSP is institutional development proposals focus on implemented. The PRSP Progress Reports and national environment action plans, the PRSCs are beginning to tell us a story in that decentralization, and disaster management. regard. It is therefore of particular interest to Sector programs often emphasize interventions see if there is a correlation between the ratings relating to water and sanitation. of a PRSP and subsequent documents. Table 6. Coverage of the MDG environmental indicators in full PRSPs Solid fuels/ Access to Area under traditional Access to adequate Secure Variable forests energy safe water sanitation tenure Baseline 11 8 32 24 Targets for 2015-MDG horizon 1 14 6 Targets for 2004-06 - PRSP horizon 3 2 21 15 2 Capacity, finance & monitoring 10 8 12 9 6 18 Environment Department Papers Methods of Assessment In the case of Mozambique, the first implemen- Box 1 tation report was assessed to be particularly Environmental Priorities of PRSPs weak in view of the high score for the with Reference to MDG7 environment proposals in the full PRSP. Also Cameroon presents targets and indicators relat- Mauritania, Tanzania, and Uganda are weak in ing to water supply. It presents baseline informa- comparison to their full PRSPs. There can be tion on protected areas and sanitation and progress over time--Burkina Faso shows a emphasizes improvements in housing. steady increase in mainstreaming efforts in its Chad commits to the long-term protection of en- Progress Reports. vironment in the MDG horizon, keeping in view the serious ecological challenge of low rainfall in In undertaking a correlation analysis from the most parts of the country. scatter plot (Figure 1) between the PRSP Georgia presents a general commitment to con- responses and the PRSP-PRs scores, we find a sidering the MDG indicators in the planning pro- positive but not statistically significant cess. The State Department of Statistics proposes correlation (0.15). This highlights the fact that a to track the annual progress on forestry, protected area, water supply, and fuelwood. Pakistan presents access targets on water supply Table 7. Implementation progress on the PRSP for 2015 and sanitation for 2011, as well as base- proposals line information on secure tenure. PRSP-response PRSP-PR Madagascar indicates the country's commitment Country Region score* overall score to the MDGs. The PRSP proposes to monitor the Albania 2002-03 ECA 2.5 2.4 percent of households with access to drinking Honduras 2002-03 LAC 2.3 2 water supply and sanitation, and the number of Nicaragua 2001-02 LAC 2.3 2 villages with access to electricity. Burkina Faso 2002-03 AFR 2.5 1.7 Mozambique 2003-04 AFR 3 1.7 Mongolia presents baseline data for the indica- Mauritania 2002 AFR 2 1.6 tors of forests, protected areas, water supply, and Ethiopia 2002-03 AFR 2 1.5 sanitation. The PRSP seeks to annually monitor Uganda 2002-03 AFR 1.6 1.5 the progress on MDG indicators. Vietnam 2002-03 EAP 2.3 1.5 Uganda 2001-02 AFR 1.6 1.4 Nepal proposes to annually monitor the indica- tors relating to proportion of area under forests, Nicaragua 2002-03 LAC 2.3 1.3 protected areas, water supply, and sanitation. Burkina Faso 2001-02 AFR 2.5 1.2 Kyrgyz Republic 2002-03 ECA 1.5 1.2 Mauritania 2003 AFR 2 1.2 Niger 2002-03 AFR 1.6 1.2 In Table 7, the average score for the progress Tanzania 2001-02 AFR 1.5 1.2 reports is 1.4 and very close to the average score Uganda 2000-01 AFR 1.6 1.2 of the entire set of PRSPs. However, when Burkina Faso 2000-01 AFR 2.5 0.8 Malawi 2002-03 AFR 2.3 0.8 comparing the progress reports with the PRSPS, Tanzania 2000-01 AFR 1.5 0.8 we find that the mainstreaming efforts in the Mozambique 2002-03 AFR 3 0.6 implementation of the progress reports remain Average 2.1 1.4 weak, with the exception of Albania. The * Note: To make it more comparable to the focus of the Progress progress report for Albania discusses priorities Report, this score considers only the "responses" part of the overall PRSP score. Hence, it varies from the overall score presented in outlined in the PRSP, along with information on Table 5. The dates in the country column refer to the Progress indicators used and the gaps in implementation. Reports only. 19 Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits Figure 1. Environment scores in the context of PRSP implementation PRSP and Overall Score of Progress Reports 3 2.5 Albania ) Nicaragua 02 PR 2 Honduras 03 PSRP( Burkina Faso 03 Mozambique 03 Uganda 03 Mauritania 02 erocsllarev 1.5 Uganda 02 Ethiopia Vietnam Tanzania 02 Uganda 01 Nicaragua 03 Kyrgyz Republic 03 Niger 02 Mauritania 03 Burkina Faso 02 1 O Tanzania 01 Malawi Burkina Faso 01 Mozambique 02 0.5 0 1 1.5 2 2.5 3 3.5 PRSP well-mainstreamed PRSP is not a guarantee for environment initiatives. Second, the JSA a well-mainstreamed follow-up, and vice-versa. discusses the low level of integration of environmental considerations into the strategic plans of ministries and line agencies as a cross- JSA Comments on Environmental Mainstreaming in PRSPs cutting theme requiring action. Although there are examples of forest crime monitoring and An overview of JSAs and their feedback on ecotourism development, very few line agencies environmental priorities indicates a highly have defined objectives in their planning. Third, uneven level of attention. Scant feedback on the the JSA-- in the context of protected area environment is strongly associated with the management--points to conflicting institutional countries having low attention to the roles of agencies in wildlife development, environment. In several JSAs, environmental community development, and land tenure issues received either no or passing reference. administration. With respect to forestry, the JSA However, certain JSAs give explicit attention to notes the slow progress on governance and the environment, holding the PRSPs to high standards. Interestingly, some of the best- monitoring, while it appreciates progress made mainstreamed PRSPs (such as Zambia) still with respect to a new forestry law, and the receive JSA comments on the need for extension of land titling benefits to women. improvements. Some examples are given below. For Guinea, the JSA highlights the overly The JSA for the Cambodia PRSP expresses ambitious nature of long-term targets coinciding concern about three environmental issues. First, with the MDG time frame. The JSA notes that it notes the resource and capacity constraints of the target for access to safe water supply (to the Ministry of Environment to lead national increase from 49 percent in 1999 to 100 percent 20 Environment Department Papers Methods of Assessment in 2010) is unrealistic, given past progress and countries, the PRSC discussions provide anticipated budget allocations. information about already existing environment initiatives that are part of Bank investment For the Zambia PRSP, the JSA highlights the projects in the country portfolio, without importance of consistent coverage of clarifying if the PRSC is adding new actions. environment across sectors, the need for a review of the extent of current coverage, the The sectors most closely aligned with development of a cross-cutting agenda, and the environmental mainstreaming--(a) agriculture, need for better environment indicators. fishing, and forestry, and (b) water, sanitation, and flood protection--were included in PRSCs, For Sri Lanka, the JSA calls for improvements in generally in the context of expanding the monitoring framework, with a focus on production and services, but not generally in environment appraisal, data collection, analysis, terms of sustainable natural resource linkages with policy, and monitoring of inputs, outputs, and outcomes. management. In addition to sectors, the Bank tracks projects Poverty Reduction Support Credits by primary or secondary themes, with environment and natural resources one of Some PRSCs focus mainly on economy-wide eleven categories. A project can have only five policy or institutional issues, such as broad themes listed as primary or secondary. Only public sector reform and governance. Other four PRSCs had environment listed at all, and in PRSCs cover policy or institutional issues in key each case as a secondary theme. sectors such as health, education, and rural development. Operations in the World Bank are The results show that environmental tracked, from project approval, according to mainstreaming in PRSCs is highly variable both sectors and themes. Table 8 shows the (Table 9). The scores have a wide range, 0.7 to percentage of sectors for each PRSC. PRSCs are 2.7, with an average score of 1.3. In general, overwhelmingly focused on public sector higher scores (1.3­2.7) are associated with management and social issues such as health, SECACs, although with several exceptions. education, and water and sanitation. When including the context variable in the The PRSC format is based on a collection of average score, the sample shows a slight pillars, closely aligned with the country PRSP, increase to 1.4. On reviewing the overall context and a detailed Policy Matrix consisting of a score, the sample shows a high variability in the multitude of benchmarks and actions. Even in attention that environment receives in the higher scoring PRSCs, the Policy Matrix has PRSCs. only one or two "environmental" benchmarks. Those PRSCs that provide more comprehensive In the case of Burkina Faso, the team elaborated environmental discussions (Benin, Burkina on national environmental management issues Faso, Honduras, Nicaragua, Uganda) are still because it knew it was going to shift to SECAC difficult to rate from an environmental status with PRSC2. The Nicaragua team, based perspective. The difficulty lies in associating on recommendations from the regional the PRSC basket funding directly with safeguard unit, invested more resources in environmental actions. In a number of linking the adjustment activities in the PRSC to 21 Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits CU 0 25 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 SS 20 0 0 0 0 0 0 0 10 0 20 0 0 20 0 0 20 0 0 0 0 4 A CG 40 15 25 46 0 0 0 0 0 0 0 0 0 20 0 0 0 0 32 0 0 8 tionc ote Pr oni tn 0 0 WSS 15 0 0 0 0 0 0 20 0 15 0 0 0 21 20 15 0 0 0 5 dna rat me st nii ploy TR 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8 0 0 0 0 20 1 tationin md A men Sa gni nte U d 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5 0 0 0 an EM Min dna tro pply mnrevo dna s n G Su sation gyre sp r icevreS ral IT 0 10 0 0 0 0 15 20 20 0 20 0 15 20 0 0 0 0 26 20 0 8 nte En Tran Wate C cialoS Compe S H EM TR WS CGA SS CU 20 25 25 21 20 20 20 5 20 20 0 15 15 0 0 21 20 15 0 15 0 14 HT n FI 0 0 0 0 0 0 0 5 0 0 0 15 0 20 0 0 0 0 32 20 20 5 y stratioi stre For icationn Admin ED 20 25 25 25 20 20 15 0 20 20 20 15 15 0 0 21 20 15 0 15 20 16 dna (percentage) g inh blicuP mmu Co ader T codes IC 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5 0 0 0 Fis,er dna dna d ltu stice ation no an Ju ry ati st sector P LJ 0 0 0 8 40 45 35 45 30 20 20 40 40 0 0 29 20 40 0 cuir ecna alth 30 20 22 form du Ag Law, In Educ Fin He In Bank F orldW 0 0 AFF LJP IC Ed Fin Hth IT AF 10 0 20 15 15 25 0 20 20 0 15 20 0 0 0 15 0 0 20 10 by 1 2 3 4 PRSCs so so so so 8. 1 2 Fa Fa Fa Fa s au 1 2 3 1 2 3 t e a ura da da da ableT ecjo aina aina iapoi al an anay ndo arag nkaaL ainaz nam an an an namt nam erag Pr Alb Alb Benin Burkina Burkina Burkina Burkina Eth Gh Gu H Nep Nic Sri Tan Ug Ug Ug Viet Vie Viet Av 22 Environment Department Papers Methods of Assessment Table 9. PRSC scores Average Overall env score attention including Average score (context context Project Amount SAC/SECAC (6 variables) variable) variable Benin 20 SECAC 2.7 3 2.7 Uganda 3 150 SECAC 1.8 3 2.0 Burkina Faso 4 50 SECAC 1.8 3 2.0 Honduras 58.8 SECAC 1.7 3 1.9 Burkina Faso 1 45 SAC 2 1 1.9 Burkina Faso 2 35 SECAC 1.8 2 1.8 Uganda 2 150 SECAC 1.5 3 1.7 Nicaragua 70 SAC 1.5 3 1.7 Vietnam 3 100 SAC 1.3 2 1.4 Uganda 1 150 SECAC 1.3 2 1.4 Guyana 12 SECAC 1.3 2 1.4 Burkina Faso 3 50 SECAC 1.3 2 1.4 Albania 2 18 SAC 1.5 1 1.4 Vietnam 2 100 SAC 1 1 1.0 Tanzania 132 SAC 0.8 2 1.0 Sri Lanka 125 SAC 1 1 1.0 Ghana 125 SAC 1 1 1.0 Nepal 70 SAC 0.8 1 0.8 Ethiopia 120 SAC 0.8 1 0.8 Vietnam 1 250 SAC 0.7 1 0.7 Albania 1 20 SAC 0.7 1 0.7 Average 1.3 1.4 numerous Bank investment activities with safeguards polices, which require a separate overlapping themes. Environmental Assessment appendix for SECACs, while the SAC is only required to Several PRSCs contain useful information discuss environmental issues when there is a regarding ENR; the topics and contents in the direct linkage to the PRSC policy and reform programs. However, there are several SACs that documents are considered good practice. These provided broader environmental information, in are elaborated below in Table 10. the form of document discussions or separate appendixes (examples include Nicaragua and It is clear that a SECAC PRSC contains more Tanzania). descriptive information regarding a country's environmental issues and programs than a SAC. Even in cases where the PRSC scores low, it This is partially correlated to the Bank should be recalled that: 23 Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits Table 10. Environmental mainstreaming in PRSCs Country Aspects of good practice Acceptance of team to include ENR in PRSC agenda; inclusion of environmental specialist; multi-donor support of environment; attempts to include environment in budget process; environmental management Benin programs identified; forestry targeted; specific monitoring activities identified; environmental stakeholders part of process; separate annexes on environmental management; forestry and adjacent land management; environmental analysis. PRSC used as leverage for implementing environmental regulation over series of PRSCs; linkages to other Bank investment projects; soil conservation as part of expanding modernization of agriculture; Burkina Faso environmental actions associated with cotton sector, including crop production and ginning processes; improvements for environmental management in water supply sector; hazardous medical waste targeted. Strategic Environmental Assessment (SEA) exercise in February 2003; SEA discussions reviewed and appraised sectoral policies (land, forestry, water, housing, health, and transport) using sustainability criteria related to three Ghana effects (economic growth, environment and natural resources, and social and cultural conditions); results of pilot SEA exercise will be considered by GoG. PRSC used as leverage to move agenda forward on sugar industry, mining and forestry; establish national water quality standards; protected area Guyana management; focus on on-going Indigenous areas and land demarcation and titling. Link PRSC to protected area management, where progress is lagging; land demarcation and titling; forestry budgeting, reform, and protection; EA Honduras annex shows environment links to specific Bank investment projects; key donor support is highlighted. Although a SAC, a separate annex provides details concerning Nicaragua environmental linkages to other Bank investment projects; several ENR sectors discussed and actions summarized. Used PRSC to push environmental management process forward; specific indicators associated with ENR; close collaboration with UNDP; ENR in Tanzania Policy matrix; environmental specialist sits in country office and regular participant in PRSC. Inclusion of environmental specialist in PRSC team; progressive tendency for team to accept environment as part of operation; donor support of ENR and persistence in pushing PRSC team; existing investment Uganda environmental management project provides parallel support to PRSC initiatives; inclusion of key environment indicators in several sectors; matrix increasing ENR with sequential operations. · The PRSC should not be expected to · There may be other World Bank activities respond across the board to all priorities in that more directly respond to the PRSP's a PRSP environmental priorities · Other donors may have a comparative · There is generally a sequence of PRSCs in advantage to respond to environmental any given country, and the thematic issues in a particular country attention tends to shift over time. 24 Environment Department Papers 5 Good Practice Case Studies The previous section has highlighted several solid waste management in the Jaffna peninsula good practice cases of PRSPs, Progress Reports, causing aquifer pollution; and (f) deterioration and PRSCs. However, we would like to go of urban air quality due to poor quality fuels, beyond this and look at the story behind the which disproportionately affect the poor. texts and the results in terms of implementation. This record is only beginning to emerge, and is Sri Lanka's PRSP in March 2003 was reasonably successful in mainstreaming key environmental time-consuming and difficult to capture. This issues, as stated above. The PRSP has section provides two examples: (1) the established poverty-environment links quite implementation record so far in Sri Lanka, one well, particularly in the areas of environmental of the best-mainstreamed PRSPs; and (2) Ghana, health, the importance of land tenure in which has prepared a Strategic Environmental property rights, and issues related to gender Assessment (SEA) of its PRSP. and environment. As a response to these problems, the country has identified the need to Sri Lanka -- Beyond Mainstreaming in strengthen environmental management capacity the PRSP and recommended a series of regulatory and legislative changes that would promote more Sri Lanka was the first country in Asia to effective environmental management. prepare a National Environmental Action Plan (NEAP) in 1992, with further updates published Community-driven development has a major in 1998 and 2003. A State of the Environment role in the implementation of the PRSP. The Report was prepared in 2001. Priority government is committed to support environmental issues, from a poverty community-led initiatives with the cooperation perspective, were identified as (a) deforestation of nongovernmental and community-based and degradation of biodiversity; (b) soil erosion; organizations to assist specific target groups of (c) water pollution due to a poor regulatory very poor communities. For instance, framework, weak enforcement, inadequate community participation is stressed in coastal sanitation, and lack of proper waste zone management, reef stabilization, fisheries, management systems; (d) livelihood impacts on and social infrastructure development. Local coastal communities due to widespread erosion community organizations established in the of the country's coastline; (e) adverse buffer zones of protected areas will be provided environmental impacts due to the armed a share of ecotourism earnings and trained to conflict, such as destruction of rainwater assist in wildlife conservation. The PRSP also harvesting and lagoon barrages, as well as poor proposes a system of transferable water use 25 Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits entitlements for large-scale water users and of the sector ministries (Energy, Transport, community-based organizations. Health, Water, etc.). Unlike the NESC, whose membership was restricted to government However, tracking the outcomes of PRSP officials, the membership of the CEPOMS also implementation requires a sound monitoring included representatives from academia, the and evaluation system. According to the JSA, private sector, and NGOs. The CEPOMS were improvements in the monitoring framework-- empowered to integrate environmental with a focus on environmental appraisal, data concerns into the sector plans and resolve intra- collection, analysis and linkages with policy, as sectoral environmental issues. However, the well as monitoring of inputs, outputs, and effectiveness of the CEPOMS was largely outcomes--are needed in Sri Lanka. dependent on the dynamism and commitment of the chairpersons, resulting in varied degrees Environmental mainstreaming-- a decade-long of success. In any event, the mere fact that process. Sri Lanka prepared its National environmental issues were discussed in the Conservation Strategy (NCS) in 1988 through a sectoral context contributed immensely to process led by a multi-disciplinary task force mainstreaming. coordinated by the Central Environmental Authority (CEA). With the creation of the The government also appointed a Committee Ministry of Environment (MoE) in 1990, the for Integrating Environment into Development NEAP was prepared by an inter-ministerial Planning (CIEDP) in 1997 to replace the NESC. committee led by MoE. Realizing the The CIEDP had similar membership to the importance of the impact of environmental NESC and was chaired by the Secretary to the issues in sectoral programs, a high-powered, Treasury. The CIEDP was mandated to deal inter-ministerial National Environmental with inter-sectoral environmental policies and Steering Committee (NESC) was established in programs, as well as resolve any development 1991. The committee was chaired by the vs. environment disputes. The success of Secretary to the Treasury. The NESC CIEDP depended on the interest and membership was comprised of secretaries of all commitment of the chairperson as well the development-oriented ministries. The mandate ability of the MoE, which served as the of NESC was to address inter-sectoral secretariat of the committee, to motivate the environmental and development issues. The membership by placing interesting policy issues advent of mainstreaming of environmental on the agenda. However, largely due to capacity issues commenced with the NESC. As the constraints, MoE failed to present policy issues integration of environment into the for discussion. Instead, the committee development planning process was a novel addressed routine housekeeping problems, concept to policymakers and planners in Sri which resulted in a lack of interest, ultimately Lanka, its progress was slow, but steady. leading to CIEDP's demise. With the change of government in 1994, the The lessons from these committees is that, given NESC ceased to function. Subsequently, ten Sri Lanka's present state of development, sectoral Committees on Environmental Policy mainstreaming environment is largely driven by and Management (CEPOMS) were established. committed personalities. While this may not be These were chaired by the respective secretaries ideal, it nevertheless has helped Sri Lanka to 26 Environment Department Papers Good Practice Case Studies elevate environment into the mainstream, as highlights ecotourism opportunities as a means evidenced in the PRSP. for rural poverty alleviation, the PRSP has virtually no mention of strategies to address The Ministry of Environment played a key role these important issues. in creating an enabling environment for mainstreaming by being the facilitator and The PRSP is strong in assessing the causal links encouraging the sector ministries to take the for problems related to property rights, leadership and ownership in integrating particularly with regard to the impact of environmental issues into their development insecure land tenure and natural resource plans. Even the NEAP updates in 1998 and utilization. In addition, the assessment of 2003 were prepared in consultation with sector poverty-environment linkages resulting from ministries and agencies as well as other incentives offered in Sri Lanka--such as prices, nongovernment stakeholders, with minimal subsidies, taxation, trade, debt, exchange rates, input from consultants (particularly in 2003). As income, and employment policies--has been a result, the plans were completely owned by effective. Sri Lanka has good-practice examples the government and civil society. During the where empowerment is assessed through preparation of the PRSP, mainstreaming decentralization and stakeholder partnerships; environment was more by default than by these aspects have been well addressed in the design, since sector agencies were familiar with PRSP. With regard to the important areas of integrating environmental concerns into their environmental health, vulnerability, and gender, poverty reduction plans. The role of the the PRSP acknowledges the importance of these Ministry of Environment in the PRSP process issues, but the analysis is weak. The analysis of was that of a facilitator bringing stakeholders poverty and natural resource degradation is together rather than an advocate for reasonable, but is not commensurate with its mainstreaming. importance. Mainstreaming Environment in the PRSP. The The Government of Sri Lanka's response to analysis of land use and water-related issues-- investments in natural capital--through its such as land degradation, deforestation, soil projects and programs related to land and water erosion, and overgrazing, as well as drinking resource management, air quality, and pollution water-related issues, irrigation, fisheries, and abatement--has been well addressed in the water pollution--have been well diagnosed in PRSP. Similar emphasis has been placed in the PRSP. Air quality, particularly urban air responding to investments in man-made capital, pollution and indoor air pollution, have been such as projects and programs in water supply identified as issues, but the diagnostic analysis and sanitation, urban infrastructure, and could have been better. Sri Lanka, having the housing for the poor. Environmental highest biodiversity per unit area in Asia, needs management in the country has been improving to have strong programs in place to conserve over the last two decades, and the regulatory, this valuable resource. This is critical, since legislative, and institutional systems are well- approximately 40 percent of the population developed. Yet the regulatory framework is still depends on natural resources for their largely enforcement-based, with virtually no livelihoods. Yet, while the PRSP mentions economic incentives to encourage compliance. threats to ecosystem stability as an issue and This can be a problem in a society where the 27 Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits implementation of regulations has been environmental protection licensing system; and traditionally weak. While these issues have (b) increasing the effectiveness of the been mentioned, no in-depth analysis has been environmental monitoring and enforcement undertaken in the PRSP. Response systems to system by supporting decentralization of the monitor human development outcomes in CEA. Action has already been taken to health, sanitation, life expectancy, and infant streamline the environmental assessment mortality have been discussed, but could have procedure, as well as improve the benefited from more analysis, especially since environmental protection licensing system. The reasonably good monitoring systems are in CEA established four regional and four sub- place in Sri Lanka. Monitoring of natural regional offices in strategic locations in the resource outcomes--particularly with regard to provinces, including the North and East, in deforestation, protected areas, soil and water 2003­04. Senior-level staff members have been conservation, and the use of renewable energy assigned to these offices, and enforcement resources--has been mentioned, but the PRSP functions have been delegated to the regions. has virtually no analysis of response systems. Since over 40 percent of the country's The process and planning of the PRSP has been population, particularly in rural areas, depend reasonably well undertaken, but not fully on natural resources for their livelihood, it is reflected. Since some aspects of mainstreaming imperative that natural resources are judiciously have been evolving for the last 10 years or so, managed. In order to strengthen the some of the participatory aspects occurred by government's ability to effectively manage such default rather than design. The PRSP would resources, a reform program has recently been have been richer if the process of mainstreaming initiated in the Department of Wildlife the environment was better reflected. However, Conservation, where more devolution is Sri Lanka has been proactive in incorporating planned for the field offices. This program some of the mainstreaming concepts, plans to delegate Protected Area (PA) particularly with regard to institutional reforms management responsibility to the respective into the first PRSC. protected area managers, with policy directives from the center. The field staff are encouraged Beyond mainstreaming. The PRSP identified poor to actively involve buffer-zone communities in environmental institutional capacity and participatory approaches to PA management. weaknesses in legislative and regulatory For instance, an Account for Protected Area frameworks as constraints to effective Conservation has already been established for environmental management. This will be an buffer-zone communities to share the rewards impediment to mainstreaming environment of ecotourism and wildlife conservation. during the implementation of the PRSP. To address this, the government initiated a Community-based environment and natural program of reforms in the Central resource management is being actively Environmental Authority (the environmental promoted by the government through various regulatory agency), under the first PRSC, which programs on rural poverty alleviation, with is aimed at achieving two environmental financial assistance from the World Bank, Asian outcomes: (a) improving and streamlining the Development Bank (ADB), Government of the environmental assessment procedures and Netherlands, and Japan Bank for International 28 Environment Department Papers Good Practice Case Studies Cooperation (JBIC). Several such programs settlement areas. Incomplete land records have been initiated in 2003 and 2004. The further exacerbate their disadvantages. No government has made a policy decision that progress has been achieved in rectifying this wherever feasible, community-driven anomaly. The government's objective to development will play a major role in the provide access to safe drinking water to the implementation of the PRSP. entire population by 2010 resulted in the introduction of a Water Sector Reforms To help improve environmental health program. Although legislation for outcomes, the Government of Sri Lanka in July comprehensive water resource management has 2002 banned the use of leaded gasoline and been prepared, implementation is lacking. reduced the sulfur content in diesel. This was a key resolution, since Sri Lanka had previously Impacts on the World Bank's country program in Sri planned to eliminate the use of leaded gasoline Lanka. As the World Bank's lending in Sri Lanka by 2010. There is evidence already that the air moves toward budgetary support in the form of quality situation in urban areas has improved PRSCs, there will be an increasing need to rely due to this decision (AIRMAC Weekly Air on country safeguard procedures. Sri Lanka's Quality Data, Ministry of Environment and attempt at harmonizing environmental and Natural Resources). social assessment procedures and policies with Based on an initiative by the World Bank, Sri the Bank will enhance confidence in future Lanka has decided to harmonize its national reliance on country systems. Even if the Bank environmental and social safeguard policies does not rely on country systems as a substitute with the main donor agencies, such as JBIC, for the Bank's safeguard policies, harmonization ADB, and the World Bank. As a first step, Sri of environmental safeguard policies will ensure Lanka has developed a National Involuntary that all development work in Sri Lanka will Resettlement Policy that is harmonized with the conform to the same safeguard standards. resettlement policies of all three donor agencies. The PRSP identified a significant role for the A gap analysis in environmental assessment private sector in the economic development of procedures of the government and the three Sri Lanka. The private sector is to be the engine donor agencies has been undertaken in 2004. This will form the basis for the discussion on of growth in the country. The PRSP envisions a harmonization of environmental assessment significant role for the private sector in procedures. infrastructure development and in reforms to state-owned enterprises. The Bank--through While there is progress evident in implementing the PRSC and other lending--has been the PRSP in certain areas, there is an equal lack supporting this role for the private sector in Sri of progress in addressing other strategic policy Lanka. Effective environmental management issues. For instance, land tenure and property institutions are a necessity under such a rights have been on the political agenda of scenario. The steps taken by the government to successive governments, but there has been enhance the effectiveness of environmental little or no progress in implementation. Under enforcement will have a positive impact in the Land Development Ordinance, women are creating an enabling environment for further not ensured the right to tenure and title in land private sector development. 29 Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits An uncertain future. The PRSP identified pillars of sustainable development. Many progressive institutional reforms in the natural developing country environmental trends are resource management sector. If implemented, adverse, with significant detrimental impacts on the proposed institutional reforms would have the health and livelihoods of the poor. In enabled strategic management of Sri Lanka's addition, a growing national constituency is natural resources. These reforms were in advocating for a greater focus on the underlying keeping with the wide-ranging economic reform causes of poverty, which are often program initiated by the government elected in environmental, rather than simply dealing with December 2001. The new government elected in the consequences of poverty. National strategies April 2004 is presently revising the PRSP to for sustainable development are processes that better reflect its poverty reduction policies. The link poverty reduction, economic growth, and "pro-poor" agenda of the new government environment and natural resource management. proposes to reverse some of the economic Donors are supporting systems of governance reforms of the previous regime. For example, that include mainstreaming environmental there is no longer support for private sector considerations into country policies and partnerships in wildlife and zoological garden programs with a range of multilateral management. Institutional reforms to address institutions. functional overlaps between the Department of Wildlife Conservation and the Forest The donor community and environment Department appear to have lost momentum. stakeholders who engage in the PRSP process are pressed to provide timely and well- The new government has stated its commitment developed discussions that have equal bearing to community-driven development and on the social and economic growth topics of decentralization. Implementation of many poverty reduction. This case study, using a tool important aspects of the PRSP, particularly with known as the Strategic Environmental regard to the role of communities in Assessment, illustrates how environmental and environmentally sustainable development, is poverty issues can be better identified across expected to continue and be strengthened. sectors and at different government levels to align with budget needs and donor funding. Using the Strategic Environmental With such information available in a timely Assessment Process for the Ghana PRSP/ manner to all stakeholders in the PRSP and PRSC19 PRSC planning process, we would expect better clarity and inclusiveness of environment while The desire to provide more meaningful addressing poverty. understanding of the poverty environment nexus in the context of specific country The objectives of the SEA are to: situations has been discussed by several donors and specific country stakeholders in Ghana.20 A · Assess the environmental issues, risks, and recurring theme is that development will not be opportunities presented by the sustainable without effective management of implementation of the policies of the environment, and that equal attention must government and other stakeholders at the be given to social, economic, and environmental national, regional, and local levels 30 Environment Department Papers Good Practice Case Studies · Mainstream environment within the five Policy evaluation has relied heavily on matrices thematic areas of 2003 GPRS to identify internal inconsistencies and · Identify appropriate mechanisms to ensure incompatibility between policies. Simple scoring that sound environmental management processes were used to identify negative, contributes to sustainable economic growth positive, and uncertain interactions. Concerns and lasting poverty reduction in Ghana. regarding the SEA methodology include the way in which the disparate criteria-- The SEA is being applied to sectoral studies at representing biophysical, social, cultural, and the national level and to the programs and local economic conditions--are integrated budgets contained within District Medium Term within the SEA. A composite matrix was used Development Plans. A key aim is to achieve grouping the criteria under the key components greater integration between national policy of livelihoods, vulnerability, institutional goals and practical delivery on the ground of context, social and cultural, and local economic sustainable development. This should also help conditions. to strengthen the process of decentralizing government and enhancing local The individual sectoral reviews were initially decisionmaking. To accomplish this goal all programmed to be completed by October 2003 policies, plans, and programs (PPPs) contained in time to influence revisions to the GPRS in the current GPRS were reviewed at the budget (scheduled to be complete by March originating ministries, departments, and 2004). Unfortunately, constraints on funding agencies (MDAs), supported by members of the delayed the program by three months, so this SEA team. The aim of each review was to element of the work was not completed until modify and improve PPPs so that they better January 2004. Other work at the national level address and incorporate environmental aims includes preparation of SEA guidelines, a and objectives. manual, training materials, and capacity building among staff in all relevant MDAs. The SEA team completed a review of the GPRS to identify policies with links to the The SEA is also being used to review and environment. This analysis revealed that the improve the sustainability of district nature of the links between poverty, sustainable development plans. District authorities produce development, and environment are reasonably these plans in accordance with guidelines well covered, but the GPRS was much weaker prepared by NDPC. A key output from the SEA in identifying solutions, or committing to will be a set of revised development plan specific remedies. The SEA team is now guidelines, which build on the experience of working with representatives of 25 MDAs to undertaking the SEA, and incorporate prioritize those policies and programs that have environmental considerations as a core element the greatest potential to reduce poverty while of the district development plan process. The enhancing (or at least, minimizing) SEA process has involved briefing district environmental effects. Policy analysis was planning officers (and other selected district completed in early 2004, and the results are staff) through a series of regional meetings on planned to be fed into the update of the GPRS, how to carry out sustainability appraisals of which is designed to cover the period 2005­09. their programs and budgets using SEA 31 Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits principles. Each review has been undertaken been engaged in detailed discussions on the within a period of 2­3 months. The results have need to take environmental considerations into subsequently been disseminated by members of account in revising policies and drawing up the core team through visits to individual budgets, and 18 senior officers have districts and at a series of regional review participated in a one-week SEA training course meetings for key district personnel. in Ghana. These officers are applying lessons learned through the SEA to their daily work, but The first target for the SEA was to influence the the opportunity to apply whole-scale revisions annual budget reviews of leading ministries in to the budgetary programs has been missed the light of revisions to policies contained in the through lack of project funding in the critical GPRS. The annual budget cycle to prepare development phase. medium-term expenditure frameworks (MTEFs) begins in June and involves progressive Currently, 90 of the 107 district appraisals have revisions within each sector until a final been analyzed. The standard varies, as might be statement for each ministry, department, or expected given the very different circumstances agency (MDA) is reached in October. Thereafter, existing across the country, but the individual financial adjustments are made to government appraisals provide valuable information about spending targets through the cabinet and the performance of the individual district plans, parliamentary processes, until an approved as seen through the eyes of the district officers budget is issued in March. themselves. Sections dealing with future refinement and development of PPPs are Early discussions with a number of key particularly interesting. The SEA team is now ministries were influential in modifying some incorporating the findings of the individual policy statements and related programs. For reports with the help of the Center for Remote example, a policy relating to the development of Sensing and GIS (CERSGIS) into a national map non-timber forestry products--harvesting and spatial database that can be used to better underutilized bamboo and rattan--was understand local and national conditions. identified as potentially damaging to the environment. These species grow mainly along In summary, several lessons have been learned watercourses, and their uncontrolled harvesting in this SEA process. First, the SEA is changing could increase soil erosion and damage aquatic people's attitudes toward the environment by habitats. The response of the Ministry for Lands recognizing that environmental issues are cross- and Forestry was to modify the policy to cutting throughout government, and are closely encourage replanting of bamboo and rattan and linked to economic growth and poverty issues. the establishment of plant nurseries. This Second, the SEA has provided a clear analysis of program has already been put into effect. the potential for improvement in the government's policymaking process, including Notwithstanding such successful policy revision aspects of integrating the GPRS with other interventions, it is difficult to quantify the policies, as well as coordination among GPRS, effectiveness of the SEA in changing programs MTEF, and donor funding. Finally, the SEA has and budgetary allocations in the short term. received broad support as a useful process for More than 30 senior government managers have enhancing government policymaking. 32 Environment Department Papers 6 Conclusions and Recommendations We have found that PRSPs show uneven monitoring of implementation. It is important attention to environment, but that good practice that environmentalists in developing countries exists, and that full PRSPs tend to be much take an active interest in the poverty reduction better mainstreamed than interim ones. Good strategy process. practice does not require an unrealistic effort or formidable resources, as illustrated here. PRSPs We have found that PRSP Progress Reports have should draw more effectively on existing a positive but insignificant correlation with the National Environmental Action Plans and level of mainstreaming of the PRSPs. Therefore, similar resources. Just using internationally we recommend that Progress Reports should available statistics and local research better systematically revisit environmental issues would significantly strengthen the PRSPs. Some raised in the PRSP to ensure follow-up. links between poverty reduction and Another finding is that JSAs, while varied, often environment are obvious, and deserve to be give short shrift to the environment, while better highlighted. In particular, this concerns focusing on macroeconomics and poverty the neglected issue of indoor air pollution and assessments. Therefore, it is recommended that the health of women and children. Defining JSAs should be written by teams, including environmental measures more clearly in terms environmental staff. This will provide for better of cost, timing, responsibilities, and outcomes inclusion of environmental feedback to would go a long way. developing countries. Our study has also shown that alignment with the internationally endorsed MDG7 is patchy. We have found that PRSCs may or may not We therefore recommend that first, the explicitly involve environmental actions; much relevance of each of the MDG7 indicators be depends on their character and role within the assessed from a country perspective. Second, context of the country program. However, even data pertaining to MDG7 should be utilized, a PRSC focusing on pubic sector reform rather baselines established, and targets set in line than investment has environmental relevance with MDG7. and presents opportunities for mainstreaming. Therefore, we recommend that PRSCs should The data indicate that PRSPs with a good give explicit recognition to the relevance of process tend to be better mainstreamed. environment in a poverty reduction context. Therefore, we recommend that the process They may not always address environmental should engage the environmental constituency issues directly, but need to (a) assess how in designing policy reform, interventions, and significant negative impacts can be avoided, 33 Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits and (b) search for cost-effective synergies be perfect models, but they illustrate some of between poverty reduction measures and the reality behind the abstract scores that build measures to enhance the environment. the bulk of our report. We recommend that future assessments of PRSPs and their Finally, we have found that good practice in implementation focus more on documenting implementation does exist, and "told two such good practice through in-depth country stories" to illustrate that. They are not meant to studies. 34 Environment Department Papers Appendix A -- Countries in the PRSP Preparation and Implementation Process Implementation Country Region IPRSP PRSP progress report Albania ECA Dec 4, 2001 April 2002 May 2003 Armenia ECA Jan 11, 2001 Nov 2003 Azerbaijan ECA May 22, 2001 May 14, 2003 Bangladesh SA June 2003 Benin AFR July 13, 2000 Feb 23 2002 Bolivia LAC Jan 27, 2000 June 5, 2001 Bosnia & Herzegovina ECA Oct. 2, 2002 March 2004 Burkina Faso AFR June 30, 2000 Dec 6, 2001, Sept 2002, March 25, 2004 Burundi AFR November 2003 Chad AFR July 25, 2000 June 2003 Cameroon AFR Oct 10, 2000 April 2003 Cambodia EA Jan 18, 2001 Feb 2003 Cape Verde AFR April 8, 2002 Central African Rep. AFR Jan 18, 2001. Congo, DR AFR June 11, 2002 Cote D'Ivoire AFR March 28, 2002 Djibouti MNA Feb 27, 2001 March 2004 Ethiopia AFR Mar 20, 2001 Sept 17, 2002 December 2003 Gambia AFR Dec 14, 2000 July 16, 2002 Georgia ECA Dec 19, 2000 June 2003 Ghana AFR Aug. 24, 2000 March 4, 2003 Guinea AFR Dec. 22, 2000 July 25, 2002 Guinea Bissau AFR Dec. 14, 2000 Guyana LAC Nov 14, 2000 Sept 17, 2002 Honduras LAC July 6, 2000 Oct 11, 2001 December 2003 Kenya AFR Aug 1, 2000 Kyrgyz Rep. ECA July 5, 2001 Jan 23, 2003 April 2004 Lao PDR EA April 24, 2001 Lesotho AFR March 6, 2001 Mali AFR Sept 7, 2000 Feb 27, 2003 Malawi AFR Dec 21, 2000 Aug 29, 2002 October 2003 Madagascar AFR Dec 19, 2000 July 2003 Mauritania AFR Feb 6, 2001 Sept 25, 2001 June 18 2002, October 2003 Moldova ECA Dec 14, 2000 Mongolia EA Sept 27, 2001 July 2003 Mozambique AFR April 6, 2000 Oct 1, 2001 April 2003, March 2004 Nepal SA May 2003 (continued next page) 35 Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits (continued from previous page) Implementation Country Region IPRSP PRSP progress report Nepal SA May 2003 Nicaragua LAC Dec 21, 2000 Sept 25, 2001 March 2002, April 2004 Niger AFR Dec 20, 2000 Feb 7, 2002 August 2003 Pakistan SA Dec 4, 2001 Dec 2003 Rwanda AFR Dec 21, 2000 Aug 6, 2002 Sao Tome & Prin. AFR April 27, 2000 Serbia & Montenegro ECA June 20, 2002 Feb 18, 2004 Senegal AFR June 20, 2000 Nov 20, 2002 Sierra Leone AFR Sept 25, 2001 Sri Lanka SA March 7, 2003 Tajikistan ECA June 8, 2000. Oct 10, 2002 Tanzania AFR April 4, 2000 Nov. 30, 2000 Nov 27, 2001, March 2003 Uganda AFR Nov. 30, 2000 March 2001, 2002, Sept 2003 Vietnam EA April 12, 2001 July 2, 2002 April 13, 2004 Yemen MNA Nov 27, 2001 Aug 2002 Zambia AFR August 4, 2000 May 22, 2002 36 Environment Department Papers Appendix B -- Scoring Format of the PRSP Assessment 1. Issues in Focus 1. Land use: degradation, deforestation, erosion, overgrazing, etc. 2. Water: drinking water, irrigation, fisheries and water pollution, etc. 3. Air & climate: air quality, solid fuel usage, emissions, climate variability 4. Biodiversity: threats to ecosystems, species and genes, nature-based opportunities 2. Causal Link Assessment 1. Poverty and NR degradation: resource dependence and inequality 2. Environmental health: water and air pollution related to disease 3. Vulnerability: impacts of natural hazards 4. Property rights: tenure and user rights 5. Incentives: pricing interventions, taxation, subsidies, exchange rate, trade, etc. 6. Empowerment: community-based management, decentralization, and partnerships 7. Gender: role of women in environmental management 3. Response systems 1. Environmental management capacity: legislation, regulation, institutional reform, data systems, cross-sectoral coordination, , environmental standards, environmental economic instruments, etc 2. Investment in natural capital: investment in sustainable natural resource management, e.g. watershed management 3. Investment in human-made capital: investment in environmental infrastructure, e.g. sewage treatment plants 4. Monitoring natural resource outcomes: deforestation, afforestation, rehabilitated areas, protected areas, soil & water conservation measures, renewable energy use, etc. 5. Monitoring human resource outcomes: infant and child mortality, disease burden related to environmental risk factors, time spent collecting fuelwood and water 4. Process 1. Description of the participatory process and inclusion of environmental constituencies, particularly with respect to the identification of environmental issues, poverty links, and actions Score: 0 = not mentioned; 1 = mentioned but not elaborated; 2 = elaborated; 3 = good practice 37 Notes 1. For countries that have high external debt, 6. For an expansion of that argument in PRSPs form the basis for debt relief under economic terms, see "Can the Environment the enhanced Heavily Indebted Poor Wait" (World Bank 1997), which illustrates Countries Initiative. For a full treatment, see the significant cost of environmental World Bank (2002a). pollution to poor people today. 2. "IDA 13" signifies the 13th round of 7. We refer to DFID, EC, UNDP, and World replenishment to the International Bank (2002) for a full discussion of poverty- Development Association, also known as environment links. the "credit window" of the World Bank. 8. There is also a recent, detailed review of the 3. See World Bank (2001b, 2202b, 2002d, MDGs on the whole in the Global Monitoring 2003a, and 2004). The latter also builds on Report 2004 by the World Bank and IMF. country case studies. 9. The World Bank and IMF Reviews on PRSP 4. For a detailed discussion of poverty- preparation and implementation are also to environment links, see the World Bank's a large extent based on the PRSP documents Environmental Strategy (2001) Making (World Bank and IMF 2001b, 2002b, 2002c, Sustainable Commitments, and DFID, EC, 2003c). UNDP, and The World Bank (2002): Linking 10. In this paper, for the sake of simplicity we Poverty Reduction and Environmental use the term "PRSP" to also include interim Management: Policy Challenges and PRSPs when the distinction is not essential. Opportunities, paper prepared for the World 11. The World Bank Board may discuss PRSP Summit on Sustainable Development, Implementation Progress Reports and its Johannesburg. For environmental health JSA on its own or in association with the risks, see WHO (2002). IMF and IDA operational programs. The 5. More precisely, "environment" refers to annual progress report is also required for both the living and non-living components countries under the poverty reduction of the natural world. The environment is growth facility (PRGF) of the IMF (World (a) a source of raw material and energy, Bank and IMF 2002b). (b) a recipient and partial recycler of waste 12. See the Operational Memorandum Interim products from the economy; and (c) an Guidelines for Poverty Reduction Support important source of recreation, beauty, Credits, May 31, 2001, available at http:// spiritual values, and other amenities. (See wbln0011.worldbank.org/Institutional/ DFID and others, 2002, for further Manual/OpManual.nsf. discussion.) 39 Environment in Poverty Reduction Strategies and Poverty Reduction Support Credits 13. For a detailed discussion about 18. See World Development Indicators 2003 for a environmental indicators, see Shyamsundar listing of environmental action plans (2002). covering most PRSP countries. 14. However, the relevance of a particular 19. Based on information contained in SEA and indicator does not mean that its the Ghana Poverty Reduction Strategy, performance can always be related in a prepared for the 2004 IAIA conference by simple manner to poverty. See Bojö and Peter Nelson, and others, Institutional Reddy (2003a) for a discussion. Review for the Strategic Environmental 15. In our discussion with World Bank Country Assessment (SAEA) of the Ghana Poverty Teams and a list of donor agencies and Reduction Strategy (GPRS), by Synergy, 2004 NGO that subscribe to our reviews, we and the presentation on Introduction to SEA share our entire scoring sheet, not only the of Ghana Poverty Reduction Strategy, IAIA average score. meeting, Marrakech, 2003. 16. Case studies on PRSPs and environment in 20. See World Bank Poverty Reduction Strategy Ghana, Honduras, Uganda, and Vietnam Paper Sourcebook chapter on environment will be carried out in 2004 by a consortium and poverty : http://web.worldbank.org/ of donor agencies (DFID, GTZ, and CIDA). WBSITE/EXTERNAL/TOPICS/ Hopefully, case studies like that will EXTPOVERTY/EXTPRS/0,,contentMDK: provide further insight into how successful 20177457~pagePK:148956~piPK:216618~the mainstreaming comes about. See also the SitePK:384201,00.html, and DFID paper on case studies in section 6 of this report. poverty and the environment: Achieving 17. In the country with the lowest scoring full Sustainability; Poverty Elimination and the PRSP (Tanzania), the government is Environment: http://www.dfid.gov.uk/ currently active in shaping a mainstreaming pubs/files/tspenvironment.pdf. program together with a set of supportive donors. 40 Environment Department Papers References Bojö, Jan, and Rama Chandra Reddy. 2002. Strategies." Discussion Paper No.1. World "Poverty Reduction Strategies and Bank, Environment Group, Africa Region, Environment: A Review of 40 Interim and Washington D.C. Full Poverty Reduction Strategy Papers." Environment Department Paper No. 86. Feder, G. 1987. "Land Ownership, Productivity World Bank, Washington, D.C. and Farm Productivity: Evidence from Rural Thailand." Journal of Development Bojö, Jan, and Rama Chandra Reddy. 2003a. Studies 24(1): 16-30. 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