A Country Environmental Analysis Publication ENVIRONMENT STRATEGY PAPERS NO. 8 Country-Level Environmental Analysis A Review of International Experience Lisa Segnestam Åsa Persson Måns Nilsson Andres Arvidsson Ede Ijjasz July 2003 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 July 2003 In 2001, the World Bank completed the comprehensive two-year process of preparing its Environment Strategy, Making Sustainable Commitments: An Environment Strategy for the World Bank. It was endorsed by the Bank's Board of Directors and published in October 2001. The Environment Strategy Paper series includes reports prepared to facilitate implementation of the Strategy. The Environment Strategy emphasizes the need to strengthen the analytical foundation of environmental work at the country level. Country Environmental Analysis (CEA) has been identified as one of the key environmental diagnostic tools for systematically evaluating the environmental priorities of development and poverty reduction strategies in client countries, the environmental implications of key policies, and countries' institutional capacity and performance to address their priorities. This report, together with other papers on various aspects of CEA, was prepared as part of the stocktaking exercise for developing guidance on CEA. The recommendations made in this paper represent the views of the authors and not those of the World Bank. Contents vii Acknowledgments ix Acronyms and Abbreviations 1 Chapter 1: Introduction 5 Chapter 2: Country Environmental Profiles and Analyses 6 2.1 State of the Environment Reports 7 2.2 National Sustainable Development Strategies 12 2.3 National Conservation Strategies 13 2.4 Country-Level Environmental Analyses--ADB 15 2.5 Country Environmental Profiles--EC DG Development 16 2.6 Environmental Threats and Opportunities Assessment (ETOA)--USAID 19 2.7 Strategic Environmental Analysis (SEAN)--Sida 20 2.8 Strategic Environmental Analysis (SEAN)--SNV 23 2.9 Other Country-Level Profiles and Reports by International Financial Institutions and Donor Agencies 27 Chapter 3: Strategic Environmental Assessment Tools 35 Chapter 4: Concluding Remarks 37 Notes 39 References 42 Internet Web Page Links Figures 2 1.1 CEA building blocks 29 3.1 SEA and the decisionmaking process iii Country Environment Analysis -- A Review of International Experience Boxes 3 1.1 World Bank experience with country-level environmental analysis 7 2.1 Common issues covered by SoE reports 8 2.2 State of the environment reports: An example from Uganda 9 2.3 Key steps in preparing SoE reports 10 2.4 Issues covered in the Resource Book for NSDSs 10 2.5 Components of an NSDS 11 2.6 Signals that an issue may be a priority in a NSDS 11 2.7 Mongolia's National Sustainable Development Strategy 13 2.8 Assessing Pakistan's National Conservation Strategy 14 2.9 Structure and contents of the ADB's Environments in Transition 15 2.10 General structure and contents of the ADB's CEPIS 17 2.11 Standard structure of EC country environmental profiles 18 2.12 USAID's regional environmental threats and opportunities assessment for Africa 18 2.13 Opportunities to strengthen environmental conservation in the strategic objectives of other program activities 19 2.14 Key indicators of environmental degradation 19 2.15 Key development themes in Sida's SEAN methodology 20 2.16 Strategic questions on economic policy and the environment: An example 20 2.17 Indicators and sources for the poverty and environment theme 22 2.18 Methodological steps in strategic environmental analysis (SEAN) 24 2.19 The sustainable livelihoods approach 25 2.20 Guiding questions on environmental issues for SDC country programs 28 3.1 SEA approaches and methodologies reviewed 29 3.2 Typical SEA process 31 3.3 A causal chain framework iv Environment Strategy Papers Abstract F or more than a decade, various interna- prepared and used by multilateral and bilat- tional development organizations eral donor organizations. The main purpose of including the World Bank, nongovern- this paper is to review and catalogue the key mental organizations, and client countries features of selected tools and help guide the have developed country-level environmental reader to databases and organizations that analytic tools to provide inputs to develop- provide further information. The paper ment policies regarding sustainable develop- illustrates the richness and variety in tools ment issues. This paper reviews international available for undertaking country-level experience with such tools, in particular those environmental analytic work. v Acknowledgments T his review was prepared as part of the Specialist at the World Bank, for peer review- work program of the Strategy Team of ing this paper, as well as to Hans-Olav Ibrekk the World Bank's Environment Depart- at ECON Centre for Economic Analysis, ment under the guidance of Magda Lovei, lead Anders Ekbom of the Environmental Economic environmental economist and team leader. It is Unit at Gothenburg University, Sweden, and part of a broader effort to learn from experience Priya Shyamsundar of the Environment and help develop guidance for applying country Department, World Bank for useful comments environmental analysis more systematically in and suggestions. An earlier version of this the World Bank's client countries. The work paper was presented at the Workshop on on this review was coordinated by Poonam Country Environmental Analysis, organized by Pillai, who also provided inputs and com- the World Bank in May, 2002. ments. The authors would also like to thank Nancy The report was prepared by Lisa Segnestam, Åsa Levine and Michiko Shima for editorial assis- Persson, Måns Nilsson, and Anders Arvidsson of tance, and Jim Cantrell for design and produc- the Stockholm Environment Institute, and Ede tion. Thanks due to the governments of Denmark Ijjasz of the World Bank. The authors are and Norway for their generous financial support grateful to Robert Crooks, Senior Environment to the preparation of this paper. vii Acronyms and Abbreviations ADB Asian Development Bank AfDB African Development Bank ANSEA Analytical Strategic Environmental Assessment Project CIDA Canadian International Development Agency CEA country environmental analysis CEP country environmental profile CEPIS country-level environmental policy integrative studies CPE country profiles on environment CSD Commission on Sustainable Development (United Nations) Danida Danish Agency for Development Assistance DEIA Division of Environment Information and Assessment, UNEP DfID Department for International Development (U.K.) EC European Commission EC DG Development EC Directorate-General for Development EC DG Trade EC Directorate-General for Trade EEA European Environment Agency EIA environmental impact assessment ETOA environmental threats and opportunities EU European Union IADB Inter-American Development Bank IAIA International Association for Impact Assessment IFI international financial institution IIED International Institute for Environment and Development IUCN World Conservation Union JICA Japan International Cooperation Agency MAA multiple attribute analysis MCA multicriteria analysis ix Country Environment Analysis -- A Review of International Experience MDGs Millennium Development Goals NCS national conservation strategy NEAP national environmental action plan NEDA Netherlands Development Aid NGO nongovernmental organization NSDS national sustainable development strategy OECD Organisation for Economic Co-operation and Development OECD/DAC OECD Development Assistance Committee RRC.AP Regional Resource Center for Asia and the Pacific, UNEP REDSO Regional Economic Development -Services Office, USAID SDC Swiss Agency for Development and Cooperation SEA strategic environmental assessment SEAN strategic environmental analysis SEI/fms Stockholm Environment Institute/ Environmental Strategies Research Group Sida Swedish International Development Cooperation Agency SNV SNV Netherlands Development Organisation SoE State of the environment UN United Nations UNCED United Nations Conference on Environment and Development UNDP United Nations Development Programme UNEP United Nations Environment Programme UNEP/GRID Arendal UNEP/Global Resource Information Database USAID U.S. Agency for International Development WRI World Resources Institute WSSD World Summit on Sustainable Development WWF World Wide Fund for Nature x Environment Strategy Papers Chapter 1 Introduction I n July 2001 the World Bank adopted a new accordingly calls for a more systematic ap- Environment Strategy, Making Sustainable proach to country-level diagnostic work on Commitments (World Bank 2001). The goal environmental issues in the Bank's client of the Environment Strategy is to promote countries. The proposed tool for this purpose, environmental improvement as a fundamental country environmental analysis (CEA), would element of development and poverty reduction build on experience with national environmen- strategies and actions. The Environment tal action plans (NEAPs) and other country-led Strategy emphasizes the importance of integrat- environmental work, as well as on analyses ing ("mainstreaming") environment into undertaken by the World Bank and develop- development programs, sector strategies, and ment partners. policy dialogue. Among the tools available to the World Bank in working toward its environ- The CEA is envisioned as a flexible tool mental objectives are its analytical and advi- composed of three broad analytical building sory activities. Analytical work is the founda- blocks (see Figure 1.1): assessment of environ- tion for defining strategic priorities and inte- mental trends and priorities, policy analysis, grating environmental concerns into projects and assessment of institutional capacity for and programs. A systematic approach that takes managing environmental resources and risks. a multisectoral, long-term view of development These analyses would inform the World Bank is essential to ensure that environmental dialogue with countries, as well as poverty considerations enter the development planning reduction strategies and country assistance process at an early stage. strategies. CEAs would also be essential in connection with the enhanced role of program- The commitment by the Bank and the develop- matic lending in some client countries. ment community to the Millennium Develop- ment Goals (MDGs), the increased focus on The CEA has three main objectives: development outcomes, and the growing sensitivity to ownership and participation all ! To facilitate mainstreaming by providing point to the crucial role of good policy based systematic guidance for integrating informa- on sound analysis. The Environment Strategy tion on and analysis of key environment, 1 Country Environment Analysis -- A Review of International Experience development, and poverty links into the ments, nongovernmental organizations country policy dialogue (NGOs), and other institutions shared their ! To guide environmental assistance and experiences with and views on country-level capacity-building supported by the Bank or environmental analytical work. It was clear other development partners through that the objectives, the tools applied, and the assessment of capacity issues, especially in processes supported by development partners relation to specific environmental priorities are often similar, but they are frequently less ! To facilitate a strategic approach to the well coordinated than they could be, placing management of environmental issues by pressure on developing countries' scarce providing information and analysis about institutional capacity. The initiative to apply environment-development links at the country-level diagnostic analysis more system- earliest stages of decisionmaking, thus atically was therefore generally supported and shaping key lending and programmatic welcomed. decisions at the country and sectoral levels. The work program on the CEA at the World Bank is designed to provide guidance and a The CEA is expected to become an important consistent approach for the implementation of source of information for other organizations CEAs by (a) building on World Bank and within the donor and development commu- international experience and on lessons nity. At a CEA workshop in May 2002, learned in preparing environmental diagnostic representatives of multilateral and bilateral tools; (b) coordinating work undertaken by development agencies, client country govern- World Bank regional offices and development Figure 1.1 CEA building blocks Country Environmental Analysis Environmental Priorities Capacity/Performance for Development Policy Analysis Assessment · Key environmental and · Identification of key · Institutional and sustainability indicators macroeconomic or organizational capacity with focus on priority sector policies and assessment issues identified by NEAPs reforms that may have · Methodology and processes national strategies, orother significant environmental for priority setting and cross- previous documents implications (e.g., energy sectoral coordination · and water pricing issues, Environmental trends in privatization, trade · EA capacity assessment priority areas and sectors liberalization) · · Environmental public Links of environmental · Lessons from strategic expenditure review issues with economic environmental growth and poverty · Indicators for measuring assessments reduction (key public sector capacity environmental and · Suggested measures or · Data gaps poverty indicators areas for strategic · environmental · Areas for intervention Data gaps assessments Source: World Bank 2002. 2 Environment Strategy Papers Introduction BOX 1.1 World Bank experience with country-level environmental analysis The Environment Department of the World Bank undertook a desk review of Bank experience with country-level environmental analysis in order to identify the strengths of the existing tools and their applicability to the CEA. The review showed that although the World Bank has conducted valuable country-level environmental analytical work for over a decade, there has been no systematic, institutionwide approach. The World Bank's regional environmental departments have developed a variety of environmental diagnostic tools, as shown in the figure below. In addition, since the late 1980s the Bank and other donors have supported client countries in the preparation of their own national environmental action plans (NEAPs). Country-level environmental analytical tools in use by World Bank Regions AFR EAP ECA SAR MNA LCR National Envi nmental Action Plans NaNational onal Environm Environmental Action Plans Act Pl - Madagascar - Laos - Albania - India - Morocco - Guyana Regional Environmental Strategies Regional Environmental Strategies Environment Strategy Studies/ Papers (ESPs) Environment Issues Papers - Indonesia es - Belar elarus - Pakistan - Iran (EIPs) Country - Peru Environment Environment - Uruguay Monitors Strategy (EMs) Papers Policy Notes (CESPs) --Thailand Thailand (PNs) - Niger --Philippines Philippines - Mexico - Mali - Colombia Note: The country lists for each tool are examples and are not exhaustive. Regional abbreviations used here are AFR, Sub- Saharan Africa; EAP, East Asia and Pacific; ECA, Europe and Central Asia; SAR, South Asia; MNA, Middle East and North Africa; LCR, Latin America and the Caribbean. The study highlights several issues: ! Many of the tools reviewed have similar objectives; what has varied is the way in which those objectives have been met in the analytical work. ! The content shows general similarities. Policy analysis is usually embedded in the review of the state of the environment and in the discussion of sectoral issues, but coverage of important links and policy issues varies. For example, many studies suggest important actions that need to be taken to redress environmental problems but without clearly outlining the specific role of the Bank in terms of its lending and nonlending operations. ! There has been no systematic process for preparing country-level environmental analytical work. For example, a participatory approach may or may not be used in the preparation of different tools, and client country representatives may be involved to different degrees and at different stages. Source: Pillai 2002. Segnestam, Persson, Nilsson, Arvidsson, and Ijjasz 3 Country Environment Analysis -- A Review of International Experience partners in phasing in CEAs; and (c) develop- ! Applied examples of the reviewed tools ing and refining the CEA methodology. An ! Background papers and literature on a important part of the CEA work program is to specific tool or approach review experience with the environmental ! General literature on a type of tool or diagnostic and strategic tools now used by approach. client countries, the World Bank, and other development partners. A review of World Although it is recognized that tools intended Bank experience with country-level environ- for use at the project level (for example, mental analytical tools has been completed environmental impact assessments) might and is summarized in Box 1.1. provide important lessons for the CEA method- ology and process, such tools were not The purpose of the present report is to review included in the review to keep the scope of international experience with country-level the review manageable. Nevertheless, given environmental analytical tools. The main the close relationship of CEAs to strategic objective is not to conduct a complete and environmental assessment (SEA) of policies, critical analysis of the various tools but, rather, programs, or regions, a review of recent to review and catalogue the main features of guidance documents for SEA is included in the selected tools, identify good practices, and scope of this analysis. guide the reader to databases and organiza- tions that provide further information. Following this introduction, Chapter 2 focuses on country-level assessment tools, grouped in The review reported on here was carried out nine categories, including state of the environ- as a desk study of relevant documents from ment reports, national sustainable develop- various organizations. It relies mainly on ment strategies, and selected tools used by publicly available information about the development agencies. Chapter 3 reviews various tools but also draws on consultations recent guidance documents for strategic with the organizations. The documents environmental assessment. Chapter 4 presents studied can be categorized as: some concluding remarks. ! Guidelines, procedures, and manuals 4 Environment Strategy Papers Chapter 2 Country Environmental Profiles and Analyses T his chapter presents a review of (WWF), and the United Nations Environ- environmental profiles and analyses at ment Programme (UNEP) the country level currently being ! Country-level environmental analyses by the undertaken by international financial institu- Asian Development Bank (ADB) tions (IFIs) and donor-country agencies. The ! Country environmental profiles by the approaches reviewed vary from the traditional European Commission's Directorate-General state of the environment reports that have been for Development (EC DG Development) prepared for more than two decades to more ! Environmental threats and opportunities recent methodologies that propose to analyze assessments by the U.S. Agency for Interna- environment as part of the development tional Development (USAID) agenda. ! Strategic environmental analyses by the Swedish International Development Coop- Each of the following sections covers a differ- eration Agency (Sida) ent approach or tool. Rather than describe ! Strategic environmental analyses by the SNV each tool in detail, the discussion focuses on Netherlands Development Organisation structure, approaches, and methodologies and (SNV) highlights interesting or innovative features of ! Country-level profiles and reports by other the tools. Each section includes references to organizations such as the United Nations the most useful guidance documents consulted Development Programme (UNDP), the Inter- during the review. American Development Bank, the African Development Bank, the Danish Agency for The tools and methodologies reviewed in the Development Assistance (Danida), the U.K. following sections are: Department for International Development (DfID), the Japan International Cooperation ! State of the environment reports Agency (JICA), and the Swiss Agency for ! National sustainable development strategies Development and Cooperation (SDC). ! National conservation strategies, originally proposed by the World Conservation Union The review of these tools indicates three main (IUCN), the World Wide Fund for Nature changes in the focus and approach to country- 5 Country Environment Analysis -- A Review of International Experience level reviews of environmental issues. First, Among the key guidance documents for SoEs there has been a shift from cataloging environ- are the checklists recently prepared by the mental and natural resources stocks and EEA with the objective of harmonizing problems to undertaking a more substantive national approaches to SoE in the European analysis of the causes of environmental Union (EEA 1998, 2000). These documents problems, in particular in the overall context include comprehensive checklists on 14 key of economic development and poverty environmental issues, from climate change to reduction. Second, there is greater interest in biodiversity, organized around the four and understanding of the importance of policy questions - What is happening? Why is it and institutional analysis in environment -- happening? Are the changes significant? How although experience with such analyses and effective are the responses? UNEP/GRID- methodologies for conducting them are still Arendal has prepared a brief guidance book very limited. Third, a greater level of participa- on how to structure a SoE, how to present the tion by national stakeholders is noticeable in data, and how to place the report on the some of the reports. Internet. UNEP's RRC.AP has developed an Environmental Information Database to 2.1 STATE support SoEs in the Asia and Pacific region by OF THE ENVIRONMENT REPORTS making available a standard format for data collection on biophysical and socioeconomic State of the environment (SoE) reports have conditions and trends. UNEP's Division of been prepared for more than two decades. Environment Information and Assessment They were among the first tools designed to (DEIA) has commissioned a sourcebook on provide environmental information accessible methods and approaches for SoEs (Rump to decisionmakers. In the 1970s and 1980s 1996). SoEs generally presented a purely descriptive approach to the state of environmental media As part of this report, seven examples of SoE and the depletion of natural resources. reports were reviewed: national reports for Currently, SoEs tend to have a broader Australia, China, Jamaica, Uganda, and sustainable development perspective and to Ukraine; a regional report for Africa; and the examine the relations between the environ- UNEP's Global Environmental Outlook (GEO) ment and economic policies. 2000. UNEP/GRID-Arendal{{W2-1}}, the UNEP Regional Resource Centre for Asia and the The general objectives of SoE reports are to Pacific (RRC.AP){{W2-2}}, the European present information on environmental condi- Environment Agency (EEA){{W2-3}}, and the tions and trends; to identify and analyze World Resources Institute (WRI) Sustainable causes, linkages, and constraints; and to Development Information Service{{W2-4}} indicate emerging issues and problems and maintain databases of SoEs around the world.1 their relevance to policies (WRI, IIED, and More than 70 country and regional SoEs have IUCN 1996). A major impetus for preparing been completed, and most of them can be SoE reports as a basis for decisionmaking was found in the databases maintained by these the chapter on environmental information in organizations. Agenda 21, the primary document adopted at 6 Environment Strategy Papers Country Environmental Profiles and Analyses the United Nations Conference on Environ- ers. The change in audience is reflected in the ment and Development (UNCED) held in Rio scope and nature of SoE reports, as well as in de Janeiro in 1992 (UNEP/GRID-Arendal the preparation process. Box 2.3 summarizes 1998). Another objective of SoEs is to fulfill the EEA guidance on SoE preparation. national legal requirements for environmental reporting and public information (Parker and Despite the common difficulties with environ- Hope 1992). All the reports reviewed here mental data quality and reliability, SoE reports were prepared by official government bodies, tend to be good sources of information, and but NGOs have also prepared SoEs. all the reports reviewed are rich in data. Data collection for these reports ranges from simple Box 2.1 presents typical issues reviewed in use of existing sources to initiation of larger SoEs. The SoEs examined for this report are schemes for collecting primary data. The SoE comprehensive in scope and include most of reports have also pushed forward the use of the components presented in the box. (The indicators and have promoted the harmonized exception is the report for China, which use of these indicators to make information focuses on the environmental status of media from different countries comparable. Several and ecosystems.) The Uganda report has a SoE reports use the "driving force­pressure­ broader notion of environment and also state­impact­response" (DPSIR) framework, or discusses some social and demographic issues variants on it, for the presentation of indica- (see Box 2.2). tors.2 The use of graphics, maps, and indica- tors as a means of structuring and presenting The EEA and UNEP/GRID-Arendal guidance information is a key feature of SoE reports. The documents for SoE discuss the issue of the SoE for Ukraine provides a good example of a target audience. Whereas early reports were comprehensive set of indicators based on the targeted at environmentalists and technical country's existing statistical system and the experts, more recent versions of SoEs present internationally used indicators of the the information in a way that is understood Organisation for Economic Co-operation and and used by policymakers, the media, the Development (OECD). general public, and environmental stakehold- Overall, SoE reports are a key source of information for country-level policy analyses, BOX 2.1 as they are comprehensive in scope and Common issues covered by SoE reports generally present environmental information ! Media and resources--for example, air in a processed and organized structure that quality, climate change, forest resources facilitates policy analysis. ! Cross-cutting concerns--acidification, health ! Spatial systems--coastal areas, urban settlements 2.2 NATIONAL SUSTAINABLE ! Economic sectors DEVELOPMENT STRATEGIES ! Other drivers--economy, population ! Instruments--technology, policies, informa- Agenda 21, adopted at the 1992 UNCED (the tion "Earth Summit"), called on all countries to Source: UNEP/GRID Arendal 1998. develop national sustainable development Segnestam, Persson, Nilsson, Arvidsson, and Ijjasz 7 Country Environment Analysis -- A Review of International Experience BOX 2.2 State of the environment reports: An example from Uganda One of the core functions of Uganda's National Environmental Management Authority (NEMA) is to prepare and disseminate a national SoE report every two years. In 1996 the second State of the Envi- ronment Report for Uganda was published in line with this requirement. The 1996 report uses an "issue-pressure-state-response" framework (rather than the sector approach employed in Uganda's first SoE report). In this framework, human beings exert pressure on the environ- ment; these pressures induce changes in the state or condition of the environment; and society re- sponds with policies and programs to prevent, mitigate, or repair environmental damage. The report has the following structure of contents: 1. Introduction: Uganda's natural resources--location and size, physiography, geology and soils, climate, vegetation 2. Environment and development: sustainable development vision for Uganda, basic prerequisites for sustainable development, history of Uganda's economy, Uganda's economy, gross domestic product (GDP), green GDP, inflation, public finance, monetary indicators, the Human Development Index, etc. 3. Land resources and terrestrial ecosystems: land use, agricultural resources (crops), rangelands and livestock resources, forest resources, wildlife resources 4. Water resources and aquatic ecosystems: water resources, water hyacinth, fisheries resources, wetland resources 5. Biodiversity: what is biodiversity, biodiversity in Uganda, principal causes of loss of biodiversity, controlling the loss of biodiversity 6. Population, environment, and development: the population of Uganda, consequences and implications of the population situation, population policy, human settlements, provision of water and sanitation, education and literacy, environmental health, transport and communication systems 7. Trade, tourism, mining, and industry: sector characteristics and trends, environmental issues 8. Energy and climate change: includes energy trends and technologies 9. Legal, policy, and institutional framework and environmental information: legal and policy framework, institutional framework, environmental information (organization, roles, initiatives, gaps, needs for reform). The report is comprehensive and detailed and makes extensive use of data and maps. Rather than focus only on the environment, it discusses the overall economy and sectors such as tourism and industry, as well as the human dimension, environmental health, and the institutions and policies in place to protect the environment. Source: Uganda 1996. strategies (NSDSs) with the aim of building on special session to review the progress, and this and harmonizing the sectoral economic, session set a target date of 2002 for the social, and environmental policies and plans formulation and elaboration of NSDSs. The operating in each country. In 1993 govern- World Summit for Sustainable Development ments began preparing national reports for (WSSD) in 2002 urged the countries that submission to the UN Commission on Sustain- adopted Agenda 21 to make progress in the able Development (CSD). Five years after the formulation and elaboration of NSDSs and to Earth Summit, the United Nations held a begin their implementation by 2005. 8 Environment Strategy Papers Country Environmental Profiles and Analyses BOX 2.3 Key steps in preparing SoE reports 1. Examine and learn from previous SoE reports. 2. Determine the target groups and objectives. 3. Organize the compilation: establish an organizational structure, assign responsibilities, and develop a detailed project plan. 4. Define the structure: select an analytical framework and consistent approach (for example, the pressure-state-response model, the ecosystem approach, information hierarchy, policy cycle, or a combination) and identify the priority environmental issues. For each issue, answer the following questions: ! What is happening? ! Why is it happening? ! Are the changes significant? ! What is, or could be, the response? 5. Choose the content: establish the contents of each chapter and identify chapter dependencies. ! Design the organization for data delivery and verification ! Choose the datasets and indicators (diagrams, tables, and maps) for each chapter ! Frame outlooks (creation of socioeconomic scenarios). 6. Design the publication: prepare template; check diagrams. 7. Plan presentation of the report: identify the main messages to media and target groups; prepare educational material and Websites. 8. Evaluate the SoE report and the reporting process. Source: EEA 1998. The CSD maintains a database of NSDSs guidance document Strategies for Sustainable {{WP5}} prepared by member countries, as Development: Practical Guidance for Devel- well as annual reports outlining progress in opment Cooperation (OECD/DAC 2001) implementing Agenda 21. On the basis of {{W2-5}}; (b) the background document these reports, the CSD has prepared summa- prepared by a UN International Forum on rized versions of national reports as part of its NSDS held in Accra in preparation for the WSSD, Guidance in Preparing a National Country Profiles series. A first version was Sustainable Development Strategy: Managing published for the Special Session of the Sustainable Development in the New General Assembly to Review and Appraise the Millennium{{W2-6}}; and (c) the comprehen- Implementation of Agenda 21 and a second sive Resource Book prepared by the Interna- version for the WSSD. Each profile covers all tional Institute for Environment and Develop- 40 chapters of Agenda 21, as well as addi- ment (IIED) and published by the OECD and tional topics such as trade, energy, transport, the UNDP{{W2-7}} (see Box 2.4).4 The sustainable tourism, and industry. The CSD Resource Book is accompanied by a volume database contains more than 90 country summarizing lessons from eight country experiences in developing and implementing profiles and NSDS reports.3 NSDSs. Detailed guidance documents for the prepara- As part of this report, three examples of NSDS tion of sustainable development strategies at reports were reviewed: those for Mongolia, national level include (a) the OECD policy the Slovak Republic, and Syria. Segnestam, Persson, Nilsson, Arvidsson, and Ijjasz 9 Country Environment Analysis -- A Review of International Experience BOX 2.4 BOX 2.5 Issues covered in the Resource Book for Components of an NSDS NSDSs Depending on the circumstances, a sustainable ! What sustainable development is development strategy may be viewed as a system ! What NSDSs achieve that comprises the following components: ! How to start an NSDS or improve one ! Regular multistakeholder fora and means for ! How to generate the knowledge needed for negotiation at national and decentralized an NSDS levels, with links between them ! How to get the right people involved ! A shared vision and set of broad strategic ! How to ensure good communication objectives ! How to get a secure financial basis ! A set of mechanisms to pursue those ! How to keep knowledge up to date through objectives in ways that can adapt to monitoring and evaluation change--notably, an information system, ! How to make decisions about strategy, communication capabilities, analytical objectives, plans, and instruments. processes, international engagement, and Source: OECD and UNDP 2002. coordinated means for policy integration, budgeting, monitoring and accountability ! Principles and standards to be adopted by The recent guidance on NSDS calls for the sectors and stakeholders through legislation, reports to move beyond the traditional voluntary action, market-based instruments, approach of a single master plan document for etc. sustainable development. The goal is for these ! Pilot activities to generate learning and ownership reports to become a coordinated set of ! A secretariat or other facility with authority participatory processes of analysis, debate, to coordinate these mechanisms capacity-strengthening, planning, and invest- ! A mandate for all the above from a high-level ment that integrates the economic, social and central authority such as the prime environmental objectives of society, seeking minister's office and, to the extent possible, from citizens' and business organizations. trade-offs where the integration of objectives is not possible (OECD/DAC 2001). NSDSs are Source: OECD/DAC 2001. defined as nationally owned strategies, and ! Stakeholder analysis: identification of they focus more on the process than on a stakeholders and their interests, power, and single report (see Box 2.5). The scope of a relations NSDS is much broader than a traditional ! Sustainability analysis: review of human country-level environmental analysis or and environmental conditions, and key strategy, and, because of their long-term relationships between human and ecosys- perspective, they can be visionary in defining tem elements objectives. ! Strategy process/mechanism analysis: analysis of possible component systems and The Resource Book (OECD and UNDP 2002) processes that could be used in an NSDS, presents a detailed review of analytical tools including a review of the systems' effective- and processes recommended for the prepara- ness, reliability, equitability, and perfor- tion and assessment of a NSDS, including: mance to date 10 Environment Strategy Papers Country Environmental Profiles and Analyses ! Scenario development, as a means of BOX 2.7 exploring strategic options Mongolia's National Sustainable ! Analysis and ratings of options, by compar- Development Strategy ing the costs, benefits, and risks of optional The Mongolian Action Programme for the 21st instruments or programs for implementing Century (MAP 21), adopted in 1998, has four the NSDS (see Box 2.6) parts: ! Review of achievements under the strategy, ! Sustainable social development linked to the monitoring and evaluation ! Sustainable economic development efforts of the NSDS. ! Proper use of natural resources and protec- tion of the environment ! Means of implementation. Participatory analysis tools are also identified and described in the Resource Book. They MAP 21 was prepared between 1996 and 1998 include community-based analysis, participa- under the leadership of Mongolia's National Council for Sustainable Development (NCSD). tory appraisal, market research, focus groups, As part of the process of preparing MAP 21 and and key informant interviews. related aimag (province) action programmes, the NCSD appointed sustainable development The NSDSs reviewed for this report are advisers to the local governors. These advisers, relatively comprehensive in their listing of together with local branches of the NCSD (the environmental priorities. For example, the economic, social, and environmental commit- tees), coordinated and prepared the aimag action NSDS for Mongolia seems to have identified a programmess. The main points of the aimag nearly exhaustive set of environmental issues action programmes were used in the preparation (see Box 2.7). The NSDS for Syria sets nine of the national MAP 21. overall goals for sustainable development In the environmental section of the MAP 21 document, 12 priorities are identified: 1. Protection of the atmosphere BOX 2.6 2. Use and protection of land resources Signals that an issue may be a priority in a 3. Use and conservation of forest resources NSDS 4. Mitigation of desertification and drought The issue is a priority if it: 5. Management of mountain ecosystems ! Is an opportunity for or threat to poor 6. Protection of biodiversity people's livelihoods 7. Biotechnological development ! Is an opportunity for or threat to key 8. Use and conservation of water resources 9. Natural disaster management economic sectors 10. Ecologically sound management of toxic ! Is an opportunity for or threat to key chemicals ecosystem assets and processes, especially 11. Waste disposal management where these are critical to livelihoods and 12. Radioactive waste management. sectors ! Can be acted on without extra financing Most of these general points are subdivided into ! Presents a major learning opportunity more specific priorities: for example, protection of the atmosphere is to involve development of ! Is visible to the public science and technology, reduction of atmo- ! Has an extension or multiplier effect spheric pollution, protection of the atmospheric ! Is an international obligation ozone layer, and reduction of transboundary air ! Is timely in relation to a pending decision pollution. All these are dealt with by explaining ! Is linked to current political concerns, other the basis for action, setting objectives, and initiatives, and skills. outlining activities. Source: OECD and UNDP 2002. Source: Mongolia 1999. Segnestam, Persson, Nilsson, Arvidsson, and Ijjasz 11 Country Environment Analysis -- A Review of International Experience (poverty eradication, population growth, trade, analyses of environmental issues and for cross- and so on) over a 12-year horizon and then linkages with various sectors. breaks them down into more specific goals at the national, regional, and subregional levels. 2.3 NATIONAL CONSERVATION The NSDS for Syria lists five priority problems in environment, examines their effects and STRATEGIES causes and the institutional issues involved, The national conservation strategy (NCS), a and identifies strategic priorities for short- and tool that preceded the NSDS, was originally medium-term actions. proposed and devised by the IUCN, the WWF, and the UNEP in 1980 to provide a All of the NSDSs reviewed are relatively clear comprehensive, cross-sectoral analysis of and explicit in their identification of objectives conservation and natural resource manage- and priorities. There is some variation in the ment. It was conceived as a nationally owned type of objective identified in the NSDSs, from process aimed at ensuring the integration of the improvement of an environmental condi- environmental protection into the national tion to the establishment of institutions or development agenda, bringing attention to the strategies. relevant priority requirements for conserva- tion, stimulating appropriate action, raising Despite the inherent difficulties in preparing a public consciousness, and overcoming apathy broad sustainable development strategy and or possible resistance to taking the actions the slow progress in their completion, the needed (IUCN and others 1980). NSDSs are important frameworks for coordi- nating sectoral and thematic national strategies More than 100 countries prepared NCSs in the and for addressing critical choices and 1980s and early 1990s. The IUCN keeps tradeoffs. Two important features of NSDS copies of many of these reports{{W2-8}}, as emphasized by the Resource Book are public well as related review documents, such as participation in the development of the three studies commissioned by the IUCN in strategy and priority-setting for more rational 1997 to review experience with the NCS in and transparent policymaking. The Resource Asia, Africa, and Latin America, and a guid- Book goes into great detail on alternative ance note (IUCN 1984).5 The NCSs for approaches and good practices in strategic Ethiopia and Pakistan were reviewed for this decisionmaking, from the emerging universal report. normative framework (human rights, MDGs, the 1992 Rio Principles, and so on) to risk- NCSs entail a process of initial coordination based priority setting, to multistakeholder between NGOs, national governments, and mechanisms for building consensus. donors in identifying priority issues and strategies for implementation. They are The analysis and priority actions in NSDS adopted by the national government. The NCS would be of particular importance in the progression envisions a process-oriented preparation of country-level environmental approach to intersectoral implementation of analyses. The broader perspective of a NSDS programs. The description of steps for the NCS can provide the basis for more detailed in IUCN and others (1980) makes it clear that 12 Environment Strategy Papers Country Environmental Profiles and Analyses the process focuses to a large extent on the BOX 2.8 reduction of disturbances in the ecological Assessing Pakistan's National Conservation setting. The initial approach is similar to that Strategy of an environmental impact assessment, but at Pakistan's NCS, one of the earliest and most a more strategic level, with a greater emphasis comprehensive of its kind, was adopted in 1992 and was followed up by the 1993­98 Plan of on conservation objectives. Action, which outlined the implementation strategy for the NCS. In 2000 an extensive In the NCS for Pakistan, 14 priority program midterm review was undertaken by independent areas are identified and are further subdivided reviewers to assess the success of the NCS and provide input for future NCSs. into 60 detailed programs with specific outputs and implementation strategies (Paki- The report notes some key findings: stan 1994). In the Pakistan NCS and in other ! The primary achievements under the NCS cases, the strategies can have complex have been awareness-raising and institution- building rather than actual improvements in strategic goals and implementation structures. the quality and productivity of the environ- For example, Ethiopia's NCS envisions ment and natural resources. coordinated action plans and investment ! The NCS was not designed to be and is not programs at the regional, national, sectoral, adequately focused as a national sustainable development strategy. and cross-sectoral levels (Ethiopia 1990). The ! The NCS process has strengthened civil Ethiopia NCS led to the adoption of a national society institutions and their influence, and it environmental policy and follow-up environ- has enhanced the capacity of public institu- mental measures. Overall, it has become a tions. ! NCS implementation capacity requires much policy framework for guiding later interven- improvement. tions. ! The NCS continues to have a major catalytic role in furthering Pakistan's sustainable An SoE analysis is usually included in the NCS development agenda, but it needs refocusing and closer links with achievable develop- and is often the basis on which objectives are ment outcomes. defined. NCSs assess development objectives Source: Pakistan 1994. in relation to conservation priorities identified in the SoE. They then develop strategies for conservation, focusing on priority programs, 2.4 COUNTRY-LEVEL ENVIRONMENTAL institutions, and implementation plans. ANALYSES -- ADB Finally, they review options for securing the required financial resources. A review of The Asian Development Bank (ADB) country- Pakistan's NCS notes that although the report level environmental analyses include three main products: country environmental profiles aims at strategies for sustainable development, in the Environments in Transition series, there is a tendency to focus only on environ- country-level environmental policy integrative mental objectives without adequately address- studies (CEPIS), and country environmental ing other important sustainability parameters analyses. These country-level reviews are such as poverty alleviation. designed to serve as the basis for planning the Segnestam, Persson, Nilsson, Arvidsson, and Ijjasz 13 Country Environment Analysis -- A Review of International Experience ADB's environmental projects and technical selection of areas for ADB support: it defines assistance, and they provide a comprehensive building blocks of strategic support, identifies overview of environmental issues at the specific areas of support within that frame- country level. work, and summarizes the plan of action in a strategic implementation plan. For this paper, three examples of environmen- tal profiles in the Environments in Transition Box 2.9 presents the typical structure and series and three examples of CEPIS (including contents of the Environments in Transition a comprehensive report for the region) were reports. reviewed. The reports are available at the ADB Website{{W2-9}}.6 At the time of As a basis for the ADB's 2001 Asian Environ- preparation of this paper, no final versions of ment Outlook (AEO), a series of CEPIS was the country environmental analyses were prepared for China, India, Indonesia, Pakistan, available. No specific guidance or terms of the Philippines, Sri Lanka, Thailand, and reference are available in the ADB public Vietnam. It is expected that the AEO will database for the three types of country-level become a biennial publication. Its target analysis. groups are government decisionmakers and planners, and environmental executives and The ADB has prepared environmental profiles of Afghanistan, Mongolia, Tajikistan, and the BOX 2.9 Mekong River countries of Cambodia, the Lao Structure and contents of the ADB's Environments in Transition People's Democratic Republic, Thailand, and Vietnam (ADB 2000). The profiles were 1. Introduction: basic economic, cultural, human prepared for internal use in drawing up resource, and physical geography character- operational programs and policies and as a istics 2. Environmental setting and priority areas for reference to sharpen the ADB's environmental environmental action: transboundary issues strategy, and they are also useful for develop- and regional assistance, forests, biodiversity, ment practitioners. water resources, management of coastal and marine resources, urban and industrial The environmental profiles were based on pollution, energy consultations with and assistance from na- 3. Environmental policies and institutional tional governments and NGOs. They are framework: political and socioeconomic context, institutional structures, environ- comprehensive in scope, going beyond the ment and development plans, environmental description of environmental issues and trends policy legislation, legal issues, human to analyze underlying causes, the institutional resource development, environmental framework, policy and legislation, environ- impact assessment, implementation, limita- mental governance (including public participa- tions, environmental governance, govern- tion and NGOs), and donor activities. They ment structures, public participation, NGOs, data conclude with concrete ADB strategies for 4. Development framework for environmental improving the environment in the specific action: short strategies for the sectors in countries. The Mekong regional report is each country, summarized in a strategic particularly interesting in its approach to the implementation plan. 14 Environment Strategy Papers Country Environmental Profiles and Analyses specialists from international assistance to describe policy linkages. Box 2.10 presents agencies. the CEPIS structure and approach. The CEPIS were prepared by the ADB with 2.5 COUNTRY ENVIRONMENTAL inputs from national governments, other PROFILES -- EC DG DEVELOPMENT assistance agencies, NGOs, research institu- tions, and the private sector. The preparation The European Commission's comprehensive process for some of the studies was conducted strategy, Integrating Environment and Sustain- by consultants from various institutions, able Development into Economic and Devel- including NGOs, private companies, and a opment Co-operation Policy, issued in 1999, university. calls for increased integration of environmen- tal issues into all EC aid and into the The CEPIS have two main features that organization's programming and project distinguish them from traditional country-level cycles. In an effort to improve the coherence environmental analyses. First, they are short (usually about 20 pages long). Second, they do BOX 2.10 not contain expanded descriptions of the state General structure and contents of the ADB's CEPIS of the environment and trends; rather, they focus on development policies and cross- 1. Development policies: a description of general sectoral linkages with environment. Their development policies and strategies cur- rently under implementation by the country; main emphasis is on presenting policy recom- brief analysis of linkages to environment mendations at the sectoral and cross-sectoral 2. Environmental priorities (as defined by the levels to deal with key environmental issues. authors): soil degradation, water pollution, Their short length precludes a detailed degradation of coastal zones, solid waste analysis, prioritization, or elaboration of the pollution, and so on, with brief descriptions of their relevance and severity country policies or of the recommendations, 3. Environmental capabilities: existing environ- particularly for large countries such as China, mental management framework--policies, India, and Pakistan with multiple and complex legislation, institutions environmental issues. Nevertheless, the 4. Policy analysis: review of sectoral policies for document presents very clearly key policy the key sectors (e.g., agriculture, water resources, energy) and cross-sectoral issues issues and their linkage to environment. such as environmental impact assessment procedures and environmental monitoring Most CEPIS attempt to discuss all the key 5. Policy and program recommendations: con- development policies of the country, but crete recommendations for sectoral policies some--for example, the one for India--focus and cross-sectoral policy issues, but defined at a general level of specificity. In some on key sectors such as energy and transport. CEPIS there is an incipient analysis of the All CEPIS present policy recommendations at implications of the recommended policies the general level, but in some cases, such as and programs (e.g., feasibility of implementa- the Pakistan study, the report links these tion, linkage with other policies, impacts on recommendations to proposed ADB actions. the poor, and role of donors and interna- tional financial institutions). Some of the CEPIS use cause-and-effect trees Segnestam, Persson, Nilsson, Arvidsson, and Ijjasz 15 Country Environment Analysis -- A Review of International Experience of EC development cooperation policies, the country; summarize the major environmental programming exercise is being harmonized to trends and pressures; analyze their linkages to use the same environmental integration poverty; and describe the government and procedures for all regions. civil response to these issues, including the status of the regulatory reforms and institutions The recently revised guidelines call for a involved. Box 2.11 summarizes the structure three-step approach to environmental integra- of the expected content of a CEP. tion. First, a country environmental profile and relevant indicators serve as inputs to the The CEP reports are useful because they country strategy document. Second, an contain information on the environmental environmental profile of the risks and opportu- conditions of a country, national environmen- nities of the proposed program is conducted. tal policy, and the institutional framework and Finally, the overall quality of the integration of thus provide decisionmakers in the EC and environmental aspects of the program is partner countries with sufficient information to improved through quality support groups. identify opportunities for cooperation. The examples reviewed for this paper were The EC has developed a comprehensive commissioned reports prepared by external Environmental Integration Manual{{W2-10}} consultants. The five CEPs reviewed largely with a structure based on tools such as country follow the outline presented in Box 2.11 environmental profiles (CEPs), strategic except that none of them include recommen- environmental assessments (SEAs) at the dations for action; rather, they focus on the policy and sector program levels, and environ- discussion of environmental issues. Only one mental impact assessments (EIAs). The manual of the CEPs reviewed actually assessed includes procedures for policy, programming, environmental institutions, as opposed to and projects and sector notes linked to giving a general description. Finally, no potential environmental impacts and mitiga- information was found in these reports on the tion measures. It also contains standard terms methodology for analyzing or structuring the of references and review checklists for SEAs data and information. and CEPs. The guidance notes for CEPs are very brief. EC DG Development maintains a 2.6 ENVIRONMENTAL THREATS AND database of CEP reports and related informa- OPPORTUNITIES ASSESSMENT (ETOA) tion for most developing countries{{W2-11}}.7 -- USAID For this report, five examples of CEPs were The U.S. Foreign Assistance Act of 1961 reviewed for the Arab Republic of Egypt, contains conservation provisions relating to Jordan, Lebanon, the Syrian Arab Republic, tropical forests and biodiversity. Under the and West Bank­Gaza. These CEPs were act, all USAID strategic plans must include an prepared before the final version of the EC analysis of the actions needed in the host manual was completed. country to achieve conservation and sustain- able management of tropical forests and CEPs are to outline the major environmental biodiversity and the extent to which the characteristics and the important issues in a actions proposed for support by USAID meet 16 Environment Strategy Papers Country Environmental Profiles and Analyses BOX 2.11 biodiversity and tropical forest resources. The Standard structure of EC country USAID procedures also recommend a more environmental profiles comprehensive environmental analysis. 1. Summary 2. Background: physical conditions, economic A guidance document, Guidelines for Strate- trends and social conditions, environmental gic Plans (USAID 1995), has been developed awareness and politics, overall administrative to assist USAID missions in formulating and legal context for environmental protec- strategies. As part of this report, six examples tion 3. State of the environment: physical environ- of environmental threats and opportunities ment; biological conditions, biodiversity, reports were reviewed. Five were country- ecology and nature conservation; socioeco- level reports for Bulgaria, Kenya, Mongolia, nomic conditions, sociocultural conditions, Nigeria, and Uganda. The sixth example was a human health; reference to internationally regional strategic analysis by USAID's Re- recognized indicators gional Economic Development Services Office 4. Environmental policy, legislative, and institu- (REDSO) for Eastern and Southern Africa. All tional framework · Environmental policy and legislation: these reports and guidance documents can be policy and action plans, including effective- obtained at the USAID Website{{W2-12}}.8 ness of enforcement; legislation, including The longer reports include their respective EIA/SEA and public participation; approach terms of reference as an appendix. to international environmental conventions; efforts to harmonize national and European According to the guidelines, country strategic legislation plans submitted in and after fiscal 1995 are to · Environmental institutional framework: institutional structure; formal structures and be based on a comprehensive assessment of procedures for public participation; capacity environmental threats and opportunities. and financial resources of authorities There is great variation in the level of detail · Sectoral integration: agriculture, fisheries, and analysis of the assessment reports, from a and forestry; mineral resources; utilities; short appendix in the country strategic plan to industry; transport; other relevant sectors 150-page reports containing a detailed review · EC and other international development assistance: EC experience with environmen- of the state of the environment with respect to tal interventions and integration; other a variety of environmental issues. The most agencies' involvement and experience; lists noticeable feature of the assessment reports is of recent and planned projects the strong emphasis on cross-sectoral linkages 5. Recommended priority actions with non-environmental USAID programs and 6. Technical appendices: (a) map, (b) reference list of environmental policy documents. strategic objectives in the country. The 7. Administrative appendices. linkages are based not only on cautions and impacts but also, and more significantly, on Source: EC DG Development 2000. ways of improving synergies across activities. the needs identified. In response to this The regional strategic analysis for REDSO is a requirement, each USAID country mission particularly interesting example of this cross- conducts an environment sector analysis prior sectoral view (see Box 2.12). A draft proposal to strategy-related decisionmaking. At a for a guidance document to incorporate minimum, such analysis covers the country's strategic environmental planning into the Segnestam, Persson, Nilsson, Arvidsson, and Ijjasz 17 Country Environment Analysis -- A Review of International Experience BOX 2.12 BOX 2.13 USAID's regional environmental threats Opportunities to strengthen environmental and opportunities assessment for Africa conservation in the strategic objectives of other USAID program activities As part of the process for preparing a strategic plan, in May 2000 USAID's Regional Economic ! Adding environmental education to basic Development Services Office (REDSO) for education programs Eastern and Southern Africa conducted a ! Conducting environmental awareness comprehensive environmental threats and programs that cut across sectors, strategic opportunities assessment (ETOA). The assess- objectives, and customer groups ment included three interrelated activities: ! Including environmental resource valuation ! Review of information on environmental in development planning for economic threats and opportunities relevant to growth countries in the region of study ! Combining environmental conservation ! Environmental review of proposed strategy work with civil society development through components to identify critical factors and community-based natural resource programs linkages with other sectors, transboundary ! Developing conflict prevention or mitigation issues, and areas of opportunity in environ- activities for resource access issues between mental and other programmatic areas communities or tribes ! Identification of environmental strategic ! Adding environmental health issues to objectives and opportunities for addressing preventive health programs environmental issues under strategic ! Identifying environmentally friendly tech- objectives and activities in other sectors. nologies for energy sector programs ! Adding natural resource management and Source: Freeman and Vondal 2000. conservation practices to commercial export agriculture programs development of country strategic plans ! Addressing environmental resource issues in (Freeman and Vondal 2000) presents a food security programs methodology to support this cross-sectoral Source: Freeman and Vondal 2000. linkage analysis (see Box 2.13). reports. (The guidance document suggests Most assessments are focused on biodiversity expert judgment as an alternative.) The longer issues to comply with agency requirements. reports are prepared by outside consultants The analysis follows the threats and opportuni- and take about two months, including desk ties methodology, with varying details on the reviews and in-country interviews. state of the environment. The analysis and linkage of issues to the USAID program is In general, there is a strong emphasis on usually strong, as is the integrated review of indicators for all strategic objectives. The national, donor, and NGO efforts, in which guidance document includes a list of indica- activities are classified in categories as a way tors that can be used to determine whether of facilitating presentation and review (as in environmental degradation is severe (see Box the assessments for Bulgaria and Uganda). The 2.14). As part of the prioritization process, the institutional and policy analysis tends to be guidance document calls for consideration of descriptive, and on some occasions a linkage the full range of environmental and natural between environment and poverty is made. resource threats identified and its linkage to No new data collection is undertaken for the the three USAID environmental objectives: 18 Environment Strategy Papers Country Environmental Profiles and Analyses BOX 2.14 that are central to a country's development Key indicators of environmental from a poverty and sustainability perspective. degradation 1. Quantifiable losses in gross domestic Guidance documents in English are not yet product (GDP) of 5 percent or more due to available on Sida's Website{{W2-13}}, but an natural resource depletion (deforestation, external consultant runs a help-desk function depletion of fisheries, soil erosion, overgraz- to support and advise the people conducting ing of rangeland), pollution (work time lost SEANs. To date, only a few SEANs have been from disease and death, environmental restrictions on industrial activity and trans- carried out.9 For this report, SEANs for China, port, costs of mitigation and remediation), Tanzania, and the Balkan region were re- or both viewed. All of these reports were prepared by 2. Rapid rate of degradation (for example, 1 Sida staff supported by external consultants. percent a year) of key ecosystems through, for example, deforestation, conversion of The SEAN objectives are defined in the wetlands, loss of coral reefs, or conversion guidance document as follows: (a) to under- of savannah 3. Unacceptable environmental health risks, for stand how environment and sustainability are example: related to other aspects of development; (b) to ! Annual mean concentration of fecal map the environmental and sustainability coliforms in highly used water bodies aspects that should be considered when the exceeding 1,000 per milliliter sample general scope of development cooperation is ! Annual mean concentrations of sus- decided; and (c) to develop a basis for deci- pended particulate matter and sulfur dioxide sions on environmental interventions. in major urban areas exceeding 300 and 100 micrograms per cubic meter, respectively. The guidance document does not outline a specific process or procedural requirements; safeguarding the environmental underpinnings of broad-based economic growth, protecting BOX 2.15 the integrity of critical ecosystems, and Key development themes in Sida's SEAN ameliorating and preventing environmental methodology threats to public health. ! Poverty and environment ! Economic policy and environment ! Health and environment 2.7 STRATEGIC ENVIRONMENTAL ! Population and environment ANALYSIS (SEAN) -- SIDA ! Capacity development ! Institutions Sida had prior to 2000, prepared environmen- ! Legislation and environment tal profiles for some of its cooperation coun- ! Human rights tries. After evaluating the integration of ! Equity and environment environment in its country strategies, the ! Conflict risk ! Vulnerability and environment agency decided to issue new guidance on ! State of environment and sustainable strategic environmental analysis, or SEAN development (Sida 2000, 2002). The main objective of ! Country's work for sustainable develop- SEAN is to analyze the environmental issues ment. Segnestam, Persson, Nilsson, Arvidsson, and Ijjasz 19 Country Environment Analysis -- A Review of International Experience instead, it focuses on analytical methods and, BOX 2.17 in particular, on the linkages between environ- Indicators and sources for the poverty and mental and other development issues rather environment theme than on environment per se. The guidance ! Poverty: percentage poor of the total contains sets of 5 to 10 strategic questions on population and of the urban and rural the key themes listed in Box 2.15. Box 2.16 populations (World Bank) presents an example for the theme, economic ! Poverty: income of less than US$1 per day policy and environment. In addition, 5 to 10 (World Bank) indicators for each theme--mainly, existing ! Poverty: Human Development Index (United Nations Development Programme) indicators monitored by international organi- ! Child mortality: children age 0­1 and 1­5 zations--are suggested in the guidance (World Bank) document. Box 2.17 gives an example for the ! Access to safe water: percentage of total poverty and environment theme. population (World Bank) ! Deforestation: square kilometers per year. SEANs can vary extensively in scope and level Source: of detail, provided that their findings are integrated with the country analysis and that BOX 2.16 the main conclusions are part of the country Strategic questions on economic policy and strategy document. The contents of a typical the environment: An example SEAN (based on the review of three examples) Strategic question: What are the connections include environmental state and driving between the country's economic policies and the forces, national initiatives, framework and environment? capacity, existing and planned Swedish cooperation, and strategic recommendations Underlying questions to support the analysis: for the future. ! Is the country's economy based on unsus- tainable resource consumption? ! Are there "critical" sectors or actors that 2.8 STRATEGIC ENVIRONMENTAL contribute particularly to environmental ANALYSIS (SEAN) -- SNV degradation? ! Are there subsidies that cause significant Strategic environmental analysis (SEAN) is a emissions or overexploitation of resources? methodological framework developed in 1996 ! Are policy instruments (regulations, taxes) by the Netherlands Development used to contribute to sustainable resource Organisation (SNV) and AIDEnvironment.10 use? SEAN is used to develop concrete inputs for a ! Do quotas, concessions, and permits contribute to unsustainable resource use? policy or a strategic plan for a specific region, ! Is the country financing its debt service sector, or target group. Although the original through unsustainable exploitation and intention was to apply SEAN primarily for export of natural resources? SNV country policy plans, the methodology ! How have structural adjustment and has mainly been used at sub-national levels by economic reforms affected the local governments and NGOs. environment? ! Are there existing initiatives in the country Netherlands Development Aid (NEDA) to analyze and understand these issues? maintains an active Web-based platform{{W2- 20 Environment Strategy Papers Country Environmental Profiles and Analyses 14}} that contains guidance materials (SNV III are the steps when a positive opportunity 1999), a toolbox, newsletters, and brief arises. For each step, the guidance materials descriptions of case studies in which the SEAN suggest specific analytical tools and outputs. methodology has been applied.11 SEAN is a generic process tool, and therefore the In addition to the 10 methodological steps, the guidance materials are generic in character. guidance documents identify five process So far, the methodology has been applied in phases: 14 countries of Africa, Central Europe, East Asia, and Latin America. The applications 1. Initiation and preparation: awareness have ranged from integration of environmental raising, exploration of the conditions for protection into development policies at the SEAN, identification of the owner of the district level in Zimbabwe, to development of process, agreement on terms of reference a strategy for Benin's National Committee on and objectives, training, data collection Sustainable Development. The guidance 2. Introduction and scoping workshop: SEAN materials and several summarized case studies methodology, networking, agreement on were reviewed for this report. key issues and gaps in knowledge, terms of reference for subsequent phases SEAN has four main objectives: (a) to analyze 3. Fieldwork on identified key issues: meet- the environmental context of human develop- ings, studies, and so on ment, its potentials, and constraints; (b) to 4. Planning phase: feedback of results, integrate key environmental issues with other networking, workshop, vision and priori- issues of sustainable development; (c) to ties, strategic plans provide inputs for sustainable development 5. Follow-up and monitoring: legal support, policies and strategic plans at early stages of design of monitoring system, definition of decision-making; and (d) to raise awareness responsibilities, institutionalization of SEAN and generate commitment through the active process. involvement of a variety of participants. The SEAN methodology strongly emphasizes the The SEAN process can take from 4 to 18 fourth objective. A significant secondary output of SEAN is the initiation and support of months and can cost between US$20,000 and a participatory process aimed at increasing US$100,000, depending on the availability of understanding and awareness of the relations data, training needs, and the level of owner- between socioeconomic development and ship, among other factors. sustainable environmental management. It is important to distinguish SEAN from The SEAN process consists of 10 steps strategic environmental assessment (SEA), as grouped in four clusters (see Box 2.18). there are similarities in the approaches. The Depending on the information provided by guidance documents indicate that whereas the cluster I, the next step may include one of the SEA evaluates the environmental impacts of a two clusters, II or III. Cluster II represents the proposed policy, plan, or program, SEAN aims steps to be taken when negative situation to contribute to its formulation or reformula- arises from the cluster I analysis while cluster tion. Generally, the SEA has a well-defined Segnestam, Persson, Nilsson, Arvidsson, and Ijjasz 21 Country Environment Analysis -- A Review of International Experience BOX 2.18 Methodological steps in Strategic Environmental Analysis (SEAN) Cluster I: Analysis of ecological and human context 1. Identification of main stakeholders and environmental functions, priority -setting Tools : environmental profiles, resource use surveys, rapid rural assessments (RRAs). Output: lists of environmental functions and stakeholders, insights into resource use systems of stakeholders 2. Analysis of trends of environmental functions and cause-effect chains Tools : RRA, historical mapping, geographic information system (GIS), environmental impact chain Output: baseline environmental data, trends in relevant environmental functions, relevant indicators 3. Assessment of impacts of current environmental trends on society Tools : trend-impact matrix, with final goals and criteria of sustainable development Output: impacts of trends on final goals of present and absent stakeholders, priorities among trends 4. Definition of norms, standards and thresholds involved Tools : inventories, interviews, carrying capacity, safety perceptions, development goals Output: list of accepted and debatable norms and thresholds for relevant environmental functions Cluster II: Problem analysis Cluster III: Opportunity analysis 5. Problem definition, based on insights 7. Inventory of opportunities, long list and from steps 1-4 short list Tools : risk analysis, economic valuation tools, Tools : land evaluation, market analysis, inventory precautionary principle of indigenous knowledge systems, Output: ranking and description of environmental historical trends problems, assessment of risks and costs Output: environmental, institutional, and economic opportunities, win-win opportunities 6. Problem analysis, finding root causes and 8. Opportunity analysis, defining potentials actors involved for realisation Tools : poverty analysis, gender analysis, Tools : impact assessment of main opportunities institutional analysis, sectoral analysis, Output: negative and positive impacts, favourable problem-in-context analysis and unfavourable factors Output: actors' options and motivations, root causes Cluster IV: Strategic planning and follow -up activities 9. Synthesis, defining inputs for a policy and strategic plan for sustainable development Tools : priority setting, sectoral analyses, policy and institutional checklists, institutional/internal capacity analysis (SWOT--strengths, weaknesses, opportunities, threats) Output: strategic inputs to environmental policy 10. Set-up of environmental monitoring system and other follow-up activities Tools : project and program cycle procedures, evaluation, monitoring Output: implementation of strategy, environmental monitoring, information sharing, communication strategy Source: SNV 1999. end product, while SEAN is viewed as a more approach, can work with qualitative informa- open-ended process that is part of the plan- tion. Finally, SEAN can provide useful general ning cycle. The SEA requires detailed informa- insights for the scoping phase of a SEA that tion; SEAN, given its process and participatory can later provide more detailed insights. 22 Environment Strategy Papers Country Environmental Profiles and Analyses 2.9 OTHER COUNTRY-LEVEL participation of various sectors of government PROFILES AND REPORTS BY and civil society. INTERNATIONAL FINANCIAL Between 1994 and 1997, the African Devel- INSTITUTIONS AND DONOR AGENCIES opment Bank (AfDB) prepared 12 country Many other international financial institutions environmental profiles (CEPs) of African (IFIs) and donor agencies prepare country- countries as part of its Working Paper Series level profiles and reports of varying complex- on Environment and Development. The ity. The World Resources Institute maintains a objective was to promote systematic exchange of information that is critical to policy dia- database of abstracts of country-level environ- logue and to support the identification of mental strategies, action plans, and assess- opportunities to fund projects with environ- ments dating from the 1980s to the mid- mental components. The examples reviewed 1990s{{W2-4}}.12 The most important features were mainly devoted to a description of of some of these reports are highlighted in this environmental issues and institutions; the final section. chapter of each profile discusses priorities for action as defined by the national government. UNDP's Environmental Overviews are brief documents (fewer than seven pages) used as As a follow-up to the Earth Summit resolutions inputs and attachments to the advisory note. and the establishment in 1993 of the Danish The advisory note presents views on what Environment and Disaster Relief Fund, a should be included in country programs. The strategy for Danish environmental assistance guidance document (UNDP Environment and was prepared in 1996. The strategy argued for Natural Resources Group 1992) calls for the a regional perspective in order to focus on overviews to include a short synopsis of holistic and cohesive initiatives in high- environmental issues, a review of economic priority regions. Accordingly, two regional development and the environment, a descrip- strategies for Danish environmental assistance tion of the country's capacity to manage the were prepared: for southern Africa (1996) and environment, and the likely impacts associ- for Southeast Asia (1997). In the strategy for ated with the UNDP country program. Southeast Asia, the analysis of environmental problems is structured according to problem The Inter-American Development Bank (IADB) complexes. A problem complex is defined as prepares country environmental strategies to "a broader development issue which manifests analyze key environmental issues as an input itself significantly as one or more environmen- to potential operations to be included in the tal problems." For example, the unsustainable country program. The guidance document use of coastal and marine resources (an example of a broader development issue) is calls for review of the situation of social analyzed using a framework of environmental groups or communities that are particularly problems such as pollution from cities, vulnerable to alterations in their environment. industry, and tourism; threats to the marine The IADB Environment Strategy calls for environment from oil- and gas-related activi- assistance to countries in drawing up their ties; destruction of mangrove forests; and own environmental and natural resource overexploitation of marine fish resources, management strategies and in fostering the including by-catch of other vertebrates. Segnestam, Persson, Nilsson, Arvidsson, and Ijjasz 23 Country Environment Analysis -- A Review of International Experience BOX 2.19 The sustainable livelihoods approach The Sustainable Livelihoods approach is used by the U.K. Department for International Development (DfID) to increase the effectiveness of development assistance at the project and policy levels by putting people at the center of development. Although the approach treats environment as only one among several elements of analysis, it has an interesting focus on livelihoods. Key features of the approach are that: ! It is people-centered. The process begins by analyzing the vulnerability, assets, and livelihood strategies of poor people and identifying factors that can be changed to improve their livelihoods. ! It is holistic. The approach takes a nonsectoral view of the constraints on improving the livelihoods of the poor, building on the perceptions of the people themselves. !· It is integrating. It links the micro and macro levels by understanding the relationships between individual and local livelihood conditions and macro-level policies and institutions. In the Sustainable Livelihoods framework, the livelihood strategies of poor people and the subsequent livelihood outcomes depend on several factors. The vulnerability context is the external environment in which people exist--trends, shocks, and seasonality related to economic, environmental, health, and other issues. As a result of changes in the vulnerability context, people's livelihood assets--their human, social, physical, financial, and natural capital--are created or destroyed. A third component is the transformation of structures and processes that constrain or facilitate people's livelihood choices. Struc- tures refers to public and private organizations, and processes refers to the way in which structures operate and interact (for example, through policies, legislation, institutions, culture, and power). There are many links and feedback loops between these components of the analytical framework. The following is a generic outline of questions to be asked in the application of the Sustainable Liveli- hoods approach: 1. Who and where are the poor? 2. What are their livelihood priorities (assets and strategies)? 3. What policies and institutions are relevant to these priorities? 4. In what way are existing institutions and policies enabling or disabling to poor people? 5. What policies and environment would be most conducive to assisting people to achieve sustainable livelihoods? 6. What key constraints need to be removed or mitigated? 7. What procedures and mechanisms are appropriate for securing the best chance for reform? Source: DfID 2001. Another approach to the analysis and presen- provide a guidebook and repository of general tation of information is the Sustainable information concerning the planning of Livelihoods approach used by the U.K. international cooperation on environmental Department for International Development issues. It is expected that the reports will be (DfID), as outlined in Box 2.19. used to examine the potential environmental impact of development projects, provide input In 1999 the Japanese International Coopera- for JICA's country development strategy, and tion Agency (JICA) prepared 20 country determine which institute or agency is respon- profiles on environment (CPE). The sible for a certain issue and who should be overarching objective of the profiles was to contacted. Since the CPEs are factual docu- 24 Environment Strategy Papers Country Environmental Profiles and Analyses ments, they do not analyze underlying causes guideline document, Integrating Environmen- and potential cross-linkages in depth. tal Issues in Planning, Evaluation and Moni- toring (SDC 2000), that is organized around a The Swiss Agency for Development and set of eight key questions (see Box 2.20). Cooperation (SDC) treats integration of the These questions can be used when planning a environment as a cross-sectoral theme in process for formulating programs, preparing international development activities. To terms of reference for preliminary studies, facilitate this integration at all levels of identifying people and institutions for partici- decisionmaking, the SDC has prepared a pation, and planning workshops. BOX 2.20 Guiding questions on environmental issues for SDC country programs 1. Which environmental problems impede sustainable development in the country concerned, from both a national and global perspective (e.g., degradation of natural resources such as soil, vegeta- tion and water; pollution; loss of biodiversity; climate change)? 2. How do environmental problems affect the population (mortality, life expectancy, environmentally induced diseases, poverty, quality of life)? 3. What is the status of environmental policy (e.g., legislation, enforcement, institutional capacities, training, significance of the topic for development partners)? 4. What socio-economic processes constitute the driving forces behind the environmental problems that have been observed (e.g., urbanization, marginalization of resource users, migration)? 5. What eco-regional (sub-national) aspects are important and need to be included when setting priorities for planning (e.g., special conditions in arid and mountain regions that have an influence on aims at the regional level)? 6. What experience with environmental questions can be garnered from the partners' own projects and programs? 7. Is the country program adapted, on the whole, to the environmental conditions in the country concerned? Does the significance accorded to environmental issues in the country program correlate with the results obtained frorm previous analyses (strategic aim, cross-sectoral theme, focus on a special sector or special strategy)? What new aims need to be added? 8. Is there a plan for dealing with the environmental issues identified in the country program? Segnestam, Persson, Nilsson, Arvidsson, and Ijjasz 25 Chapter 3 Strategic Environmental Assessment Tools S trategic environmental assessment (SEA) opment cooperation context. When OECD/ is commonly defined as a systematic DAC examined the status of SEAs in develop- process for evaluating the environmental ment agencies in 1997, it found that most of consequences of proposed policies, plans, or the agencies surveyed had undertaken some program initiatives to ensure that these conse- form of SEA, but in most cases this had been quences are fully included and properly done in an ad hoc manner. Few agencies based addressed at the earliest appropriate stage of their SEAs on procedural guidelines. Since decisionmaking, on par with economic and then, progress in this area has been rapid, and social considerations (Sadler and Verheem some donors and national agencies have 1996). Applications include sustainability developed their own guidelines and proce- assessments, strategic environmental planning dures for SEAs. A selection of SEA guidance frameworks, sector assessments, regional methodologies prepared by various develop- assessments, and policy assessments. SEAs are ment agencies was reviewed for this paper (see expected to be useful in the development of Box 3.1).13 sector programs, privatization schemes, structural adjustment programs, and national In practice, there are two approaches to the budgets. The information, analysis, and insights preparation process of a SEA: the impact- of SEAs in a given country are of great impor- centered approach, and the decision-centered tance for country-level environmental analysis. approach. The impact-centered approach has its roots in environmental impact assessment Over the past decade, SEAs have gained (EIA) methodology. The objectives in this case considerable ground in the policy arena, as are to predict the environmental impacts of a well as in the international donor community program or policy that has already been (Lenschow 2002). The current trend in devel- defined, to inform decisionmakers about these opment cooperation of concentrating on impacts, and to suggest appropriate mitigation strategic-level activities such as sector pro- measures. In the more recent guidance docu- grams and budget support, as opposed to a ments this approach has been challenged project-driven approach, has led to a wide because of its limited success in influencing recognition of the need for SEAs in the devel- decisions at an upstream level (Rees 1999). 27 Country Environment Analysis -- A Review of International Experience BOX 3.1 SEA approaches and methodologies reviewed ! Environmental assessment for sustainable development (Danida) ! Guidelines for dialogue on SEA in sector programs (Sida){{W3-1}} ! Environmental assessment guidance (DfID){{W3-2}} ! Environmental assessment (CIDA){{W3-3}} ! Strategic environmental assessment (South Africa){{W3-4}} ! Environmental Assessment Sourcebook (World Bank){{W3-5}} ! Strategic environmental framework (ADB){{W3-6}} ! Sustainability impact assessment (EC DG Trade){{W3-7}} ! SEA directive (European Parliament){{W3-8}} ! Environmental Integration Manual (EC DG Development){{W3-9}} ! Systems approach to SEA (SEI/fms) ! Decision-centered framework for SEA (ANSEA){{W3-10}} (ANSEA Project 2002) ! Environmental impact assessment for macroeconomic reform (WWF){{W3-11}} ! Strategic environmental planning: proposal (USAID) (Freeman and Vondal 2000){{W3-12}} ! International Association for Impact Assessment (IAIA){{W3-13}} (IAIA 2002). Note: Names of organizations are listed in the Abbreviations and Acronyms section. In response to the limitations of the impact- used to the upstream shift in focus (ICON centered approach, a more upstream, deci- 2001). The institutional barriers against this sion-centered approach has evolved. It change in perspective are difficult to over- expands the scope of the SEA beyond impact come. prediction to include integration of environ- ment into the early stages of the Very rarely is the SEA a legal or a strict decisionmaking process, such as the formula- procedural requirement, although there have tion of problems, objectives, and alternatives. been some recent developments in this The decision-centered approach often empha- direction. For example, the EC directive on sizes the institutional context. Its methodologi- environmental assessment of certain plans and cal basis is derived from policy analysis rather programs will be implemented in all European than from EIA traditions (Nilsson and Union countries. Dalkmann 2001). Closely related to, or subsets of, the decision-centered approach are The SEA process, as outlined in all the re- objective-led and sustainability-led SEA viewed applications, resembles a conventional approaches that emphasize environmental EIA process using both the impact-centered objectives as central to the entire and the decision-centered approaches (see decisionmaking process (Germany 2001). Box 3.2). In principle, and in particular for the decision-centered approach, the ideal situation Although recent SEA guidelines promote a would be for the SEA process to run in parallel decision-centered approach, evaluations show with the decisionmaking process and be that current SEA practice continues to be integrated with it at strategic points in time dominated by the impact-centered approach. (see Figure 3.1). Neither practitioners nor decisionmakers are 28 Environment Strategy Papers Strategic Environmental Assessment Tools BOX 3.2 Typical SEA process ! Screening: determination of the need for the SEA (its environmental relevance) and its feasibility in the light of availability of experts, resources, and data ! Objectives: establishment of environmental and sustainability goals, based on national or interna- tional policy objectives, that should guide the decision ! Scoping: determination of what should be part of the SEA; includes establishment of area and systems boundaries, analysis units, key sustainability parameters, and criteria for the assessment ! Alternatives: definition and elaboration of the alternatives that should be examined ! Impact prediction: assessment of relevant baseline conditions and trends, some type of systems description of each alternative, and prediction of impacts in the resulting systems based on tools such as checklists, risk assessments, and other means; identification of environmental enhancement and mitigation measures ! Valuation and synthesis: identification of evaluation standards and criteria; often some kind of aggregation procedure; comparison of alternatives ! Monitoring and mitigation: implementation of a plan of environmental enhancement and mitigation measures, including institutional measures and follow-up of performance indicators. Many of the guidance documents reviewed, environmental issues, SEAs often address especially those based on the decision- these institutional issues, including the policy centered approach, acknowledge that analysis and legal context, political will, and institu- of the institutional context is a key element in tional capacity. The assessments are meant to the ability of the assessment to influence the lead to recommendations about measures for decisionmaking process. In the context of building institutional capacity for environmen- Figure 3.1 SEA and the decisionmaking process Framing of decision SEA Process Problem formulation Evaluation Scoping Monitoring Setting Implementation objectives Documentation Decisionmaking Alternatives Decision Process Information Mitigation collection Selection of Scenario and alternative Information systems analysis processing Valuation Environmental analysis Segnestam, Persson, Nilsson, Arvidsson, and Ijjasz 29 Country Environment Analysis -- A Review of International Experience tal management, to be included in the pro- economic sectors, are determined through gram or strategy. scenario workshops with experts and stakeholders that may involve small project SEAs employ a wide range of methods and teams or larger groups. These two ap- tools. Some of these methods, which can be of proaches are not necessarily mutually great interest for country-level environmental exclusive. For instance, macroeconomic analysis, include scenario and systems analy- models and commodity forecasts can be sis, environmental impact prediction, and used as inputs into the SEI/fms deliberative valuation and weighted data. A brief summary approach. of their main features is presented below. ! Quantitative systems models and causal chains. These frameworks are set up to Scenario and systems analysis. Most of the trace the suggested intervention or reform guidelines reviewed say very little about how through the social, economic, and political to analyze the system under review, often systems and to track the resulting changes jumping straight to impact prediction. How- in the production and consumption sys- ever, before the possible impacts or risks can tems. Quantitative systems modeling be described, there needs to be an under- includes macroeconomic models like those standing of how the system affects the pro- being used by EC DG Trade, which bases gram or strategy. In recent years this method- its impact predictions on changes in ological gap has been addressed in some of economic conditions and production the guidance documents, including those of systems. Causal chain frameworks, used, the Stockholm Economic Institute/Environ- for example, by the WWF and by EC DG mental Strategies Research Group (SEI/fms), Trade, emphasize the causal relationships USAID, and the EC's Directorate-General for between variables rather than the statistical Trade (EC DG Trade). The main approaches relationship (see Box 3.3). This shift in presented in these guidance documents are focus is useful when data are limited, as it described below: allows the assessor to incorporate qualita- tive information into the analysis, including ! Policy scenarios, The scenario approach variables that are important but hard to has been applied in other SEA contexts measure or to express quantitatively. (see, for example, Therivel and Partidario 1996), but it is relatively unexplored Prediction of environmental impacts. SEAs are territory in SEAs for development assistance intended to predict how alternative strategies activities. EC DG Trade uses scenarios may affect the environment. The extent to based on quantitative macroeconomic and which the prediction of environmental trade models for its sustainability assess- impacts is the focal point of a SEA depends on ments. These are expert-generated and are whether an upstream or a downstream based on mainstream economic assump- approach is taken. For the downstream tions and conditions. The SEI/fms approach approach, the prediction of environmental suggests a more open and deliberative impacts has its roots in the traditional EIA, but process whereby one or several future at the methodological level it can be quite scenarios, which are not restricted to different. Certain types of environmental 30 Environment Strategy Papers Strategic Environmental Assessment Tools BOX 3.3 A causal chain framework A program or strategy affects sustainability through a variety of complex interactions and linkages. Often it is not possible to identify quantitative or generalized relationships because of data gaps or inadequate analytical methods. A causal chain framework organizes the information and enhances understanding of the generic cause-effect relationships as the analysis proceeds from the proposed strategy to its sustainability impacts. The framework deploys a transparent narrative of a key set of issues and linkages and how they fit together in each case. The analysis is normally based on expert interpretation of existing country and sector studies from various sources, supported by empirical data and modeling results to the extent that they are available. Changes in: Tariff structures Changes in: Relative prices Production volumes Terms of trade Production technology Business opportunity Crop mix Transportation Resource allocation ECONOMIC STRUCTURE Changes in: Tariffs PRODUCTION SYSTEM Export subsidies Domestic support Market access TRADE REFORM Outcome and scenario SUSTAINABILITY IMPACTS Changes in: Domestic agricultural policy Water quality/quantity International support activities Land conversion Land management POLICY OPTIONS Soil degradation Conservation measures Exogenous domestic and National income Technology transfer flanking measures in WTO Employment Rural education Rural poverty/livelihoods Taxes and incentives Equality The framework shown in the figure is generally applicable to the analysis of trade reform in the agricul- tural sector of a country. The baseline conditions and scenarios are accounted for throughout all modules of the conceptual framework: current economic structures, production systems, trade conditions, policy environment, and sustainability performance. The framework defines the analytical focus and information needs of the assessment and hence informs the choice of methods, measures, and indicators. Note: WTO, World Trade Organization. Source: Maltais and others 2002. impacts become more relevant at the strategic across national borders), and in these cases the level than at the project level (for example, prediction is generally more difficult. The indirect and systems effects, or cumulative or guidance documents reviewed mention combined effects in an entire sector and checklists, expert opinion, and risk assessment Segnestam, Persson, Nilsson, Arvidsson, and Ijjasz 31 Country Environment Analysis -- A Review of International Experience as possible techniques for environmental context-specific, and it should be applied with impact prediction in SEAs, but there is gener- care in many cases. Furthermore, doing it right ally little methodological support. is resource-demanding, and the value added of a formal valuation approach in a complex, Some of the upstream, decision-centered multiobjective decisionmaking process should approaches recognize that the traditional be carefully considered. emphasis on activities and outputs is not possible or meaningful in SEAs and that the Few of the guideline documents reviewed prediction of environmental impacts becomes provide explicit guidance on valuation and less relevant at strategic decision levels than at weighting, and use of these methods in the the project level. The emphasis in upstream SEA is discussed only summarily. Neverthe- assessments is usually not on impacts but on less, they are often applied implicitly. Two objectives and alternatives and on a general types of method generally described in the assessment of whether the program or strategy guidance documents are multicriteria analysis can be supported from an environmental (MCA)--also known as multiple attribute perspective, taking into account institutional analysis (MAA), or multiobjective analysis-- conditions and other factors. Information on and economic valuation. impacts is, however, still important for assess- ing the acceptability of a program or strategy ! Multicriteria analysis (MCA) aims to from an environmental point of view. improve decisionmaking by making the choices about conflicting or multiple Valuation and weighted data. Several ap- objectives explicit, rational, and efficient. proaches (for example, those of SEI/fms, The analysis involves assigning a position USAID, and the World Bank) use valuation or a value to a certain parameter relative to and weighting of data as a decision support another through the use of different criteria. system. When decisions are being made, the Decision research has led to the accumula- achievement of multiple objectives and the tion of a wide array of methods and con- tradeoffs between different objectives need to cepts for dealing with MCA. Some are be analyzed, processed, and interpreted. An intended for a single analyst or explicit valuation can help structure the decisionmaker; others entail group decision process, identify tradeoffs among decisionmaking (Patton and Sawicki 1993). criteria, help in applying value judgments Matrix display systems, which are impor- concerning tradeoffs, assist in making more tant for MCA problem statement and rational and consistent evaluations of risk and representation, are rather common. uncertainty, facilitate negotiation, and docu- ! Economic valuation can be classified as a ment how decisions are being made (Hobbs type of multicriteria analysis, but it has its and Meier 2000). own theoretical basis in welfare economics, and, given its prominence in A clear and explicit treatment of values in the decisionmaking, it is usually discussed decisionmaking process strengthens its separately. This approach is described in transparency and robustness. The usefulness of World Bank and Sida guidance documents. valuation is, however, highly culture- and Economic valuation is commonly used to 32 Environment Strategy Papers Strategic Environmental Assessment Tools allow the integration of cost-benefit analysis assumptions regarding markets and infor- into various economic information systems mation that underlie the valuation really such as the national accounts. It is, how- hold in developing country contexts. ever, important to consider whether the Segnestam, Persson, Nilsson, Arvidsson, and Ijjasz 33 Notes 1. UNEP/GRID Arendal is the UNEP/Global 5. For IUCN documents, see Resource Information Database, with . centers in Geneva and in Arendal, 6. The ADB Website is . Norway. Websites for the sources listed 7. The Environmental Integration Manual is here are as follows: UNEP/GRID-Arendal, available at ; RRC.AP, development/sector/environment/ ; EEA, env_integ/env_integration_manual/ ; WRI, . The EC DG Development org/wdces>. database is available at . wastewater loading; state--water quality 8. The USAID Website is in water bodies; impact--percentage of . water unsuitable for drinking; response-- 9. The Sida Website is . 10. AIDEnvironment, based in Amsterdam, is protected watersheds (UNEP/GRID- an independent, nonprofit research and Arendal 1998). management consultancy for nature and 3. The CSD Country Profiles are available at natural resources. < http://www.un.org/esa/sustdev/ 11. The SEAN Website is at . seanplatform.org>. 4. Websites for the resources listed in this 12. Available at . paragraph are as follows: for OECD/DAC 13. Many of the listed resources are available (2001), ; on the sponsors' Websites, as follows: for the WSSD document, Sida, ; DfID, ; CIDA, ; for the Resource Book ea>; South Africa, ; World Bank, . worldbank.org/environment>; ADB, 37 Country Environment Analysis -- A Review of International Experience ; EC DG Trade, sector/environment/env_integ/ ; ANSEA, global/sia/docs/siawto.pdf>; European ; WWF, Parliament, ; eia.pdf>; USAID, ; EC DG Development, . 38 Environment Strategy Papers References ADB (Asian Development Bank). 2000. Freeman, Peter, and Patricia J. Vondal. 2000. Environments in Transition: Cambodia, Lao "Strategic Environmental Planning in the PDR, Thailand, Vietnam. Manila. Development of Country Strategic Plans: A Proposal." Report for the U.S. Agency for ANSEA (Analytical Strategic Environmental International Development Africa Bureau. Assessment) Project. 2002. "Towards an Washington, D.C.: USAID. Analytical Strategic Environmental Assessment: The ANSEA Network." Working Paper 28. Germany. 2001. "Workshop on Strategic Fondazione Eni Enrico Mattei, Milan. Environmental Assessment (SEA) in the Coop- eration with Developing and Transition DfID (U.K Department for International Countries, Berlin, November 26­27, 2001." Development). 2001. "Sustainable Livelihoods Federal Ministry for the Environment, Nature Guidance Sheets." London. Conservation and Nuclear Safety, Berlin. EC DG Development (European Commission Directorate-General for Development). 2000 Hobbs, Benjamin F., and Peter Meier. 2000. (version 1). "Environmental Integration Manual: Energy Decisions and the Environment. Towards Sustainability in Economic and Dordrecht, the Netherlands: Kluwer Academic Development Cooperation." Brussels. Publishers. EEA (European Environment Agency). 1998. "A IAIA (International Association for Impact Checklist for State of the Environment Report- Assessment). 2002. "Strategic Environmental ing." Technical Report 15. Copenhagen. Assessment Performance Criteria." Special Publications Series 1. Fargo, N.Dak. Available ------. 2000. "Questions to Be Answered by a at . State-of-the-Environment Report: The First List." Technical Report 47. Copenhagen. ICON (Imperial College Consultants Ltd). 2001. SEA and Integration of the Environment into Ethiopia.1990. "Ethiopia: National Conserva- Strategic Decision-Making. Brussels: European tion Strategy--Phase I Report." Addis Ababa. Commission. 39 Country Environment Analysis -- A Review of International Experience IUCN (World Conservation Union). 1984. OECD (Organisation for Economic Co- National Conservation Strategies: A Frame- operation and Development) and UNDP work for Sustainable Development. Gland, (United Nations Development Programme). Switzerland. 2002. Taking Systematic and Strategic Ap- proach to Sustainability: A Resource Book for IUCN (World Conservation Union), UNEP Sustainable Development Strategies: Second (United Nations Environment Programme), Draft 1 March 2002. London: International WWF (World Wide Fund for Nature), FAO Institute for Environment and Development. (Food and Agriculture Organization of the United Nations), and UNESCO (United Pakistan. 1994. "Pakistan National Conserva- Nations Educational, Scientific, and Cultural tion Strategy : Where We Are, Where We Organization). 1980. World Conservation Should Be, and How to Get There." Environ- Strategy: Living Resource Conservation for ment and Urban Affairs Division, Karachi. Sustainable Development. Gland, Switzer- land: IUCN. Parker, J., and C. Hope. 1992. "The State of the Environment: A Survey of Reports from Lenschow, Andrea, ed. 2002. Environmental Around the World." Environment 34 (1):18­ Policy Integration: Greening Sectoral Policies 20, 39­44. in Europe. London: Earthscan. Patton, Carl V., and David S. Sawicki. 1993. Maltais, Aaron, Persson, Åsa, Måns Nilsson, Basic Methods of Policy Analysis and Plan- Måns, and Segnestam, Lisa. 2002. ning. Englewood Cliffs, N.J.: Prentice-Hall. "Sustainability Impact Assessment of WTO Negotiations in the Major Food Crops Sector: Pillai, Poonam. 2002. "World Bank Experi- Final Report to EC DG Trade." Stockholm ence with Country-Level Environmental Environment Institute. Diagnostic Tools: Review and Lessons Learned." Draft. World Bank, Environment Mongolia. 1999. Mongolian Action Department. Washington, D.C. Programme for the 21st Century. Ulan Baator: National Council for Sustainable Develop- Rees, Colin. 1999. "Improving the Effective- ment. ness of Environmental Assessment at the World Bank." Environmental Impact Assess- Nilsson, Måns, and Holger Dalkmann. 2001. ment Review 19 (3, May): 333­39. "Decision-Making and Strategic Environmental Assessment." Journal of Environmental Rump, P. 1996. "State of the Environment Assessment Planning and Management 3 (3): Reporting: Source Book of Methods and 305­27. Approaches." UNEP/DEIA. OECD/DAC (Organisation for Economic Co- Sadler, B., and R. Verheem. 1996. "Strategic operation and Development, Development Environmental Assessment: Status, Challenges, Assistance Committee). 2001. Strategies for and Future Directions." Netherlands Ministry Sustainable Development: Practical Guidance of Housing, Spatial Planning and the Environ- for Development Cooperation. Paris. ment, Amsterdam. 40 Environment Strategy Papers References SDC (Swiss Agency for Development and UNEP/GRID-Arendal (United Nations Environ- Cooperation). 2000. Integrating Environmen- ment Programme/Global Resource Information tal Issues in Planning, Evaluation and Moni- Database). 1998. "Cookbook: State of the toring. Bern. Environment Reporting on the Internet." Arendal, Norway. Sida (Swedish International Development Cooperation Agency). 2000. USAID (U.S. Agency for International Devel- Landstrategierna--handledning för strategisk opment). 1995. Guidelines for Strategic Plans. miljöanalys. Mars 2000. Stockholm. Washington, D.C. ------. 2002. Landstrategierna--strategisk ------. 2000. "USAID/Kenya Strategic Plan: miljö- och hållbarhetsanalys. Stockholm. Environmental Threats and Opportunities Assessment." Regional Economic Develop- SNV (Netherlands Development ment Support Office, Washington, D.C. Organisation). 1999. "A Presentation of Strategic Environmental Analysis (SEAN) and World Bank. 2001. Making Sustainable the SEAN Toolbox." The Hague. Commitments: An Environment Strategy for the World Bank. Washington, D.C. Therivel, Riki, and Maria Rosario Partidario. 1996. The Practice of Strategic Environmental ------. 2002. "Country Environmental Analy- Assessment. London: Earthscan. sis (CEA). Concept Note." June 5. Washington, D.C. Uganda. 1996. "State of the Environment Report for Uganda." Kampala, National WRI (World Resources Institute), IIED (Interna- Environmental Management Authority. tional Institute for Environment and Develop- ment), and IUCN (World Conservation UNDP (United Nations Development Union). 1996. World Directory of Country Programme) Environment and Natural Re- Environmental Studies. Washington, D.C.: sources Group. 1992. UNDP's Handbook and WRI. Guidelines for Environmental Management and Sustainable Development. New York. Segnestam, Persson, Nilsson, Arvidsson, and Ijjasz 41 Country Environment Analysis -- A Review of International Experience INTERNET WEB PAGE LINKS Chapter 2 W2-1 http://www.grida.no/soe W2-2 http://www.roap.unep.org/ W2-3 http://www.eea.eu.int/ W2-4 http://www.wri.org/wdces/ W2-5 http://www.nssd.net/pdf/gsuse.pdf W2-6 http://www.johannesburgsummit.org/html/documents/backgrounddocs/nsdsreport.pdf W2-7 http://www.nssd.net/res_book.html W2-8 http://www.iucn.org/ W2-9 http://www.adb.org/ W2-10 http://europa.eu.int/comm/development/sector/environment/env_integ/ env_integration_manual/index1.html W2-11 http://europa.eu.int/comm/development/sector/environment/geographical_info/index.htm W2-12 http://www.usaid.gov/ W2-13 http://www.sida.se/ W2-14 http://www.seanplatform.org/ WP5 http://www.un.org/esa/sustdev/natlinfo/cp2002.htm Chapter 3 W3-1 http://www.sei.se/policy/SEA-Sida.html W3-2 http://www.dfid.gov.uk/ W3-3 http://www.acdi-cida.gc.ca/ea W3-4 http://www.environment.gov.za/ W3-5 http://www.worldbank.org/environment W3-6 http://www.adb.org/Documents/Books/Environment_Impact/ W3-7 http://europa.eu.int/comm/trade/issues/global/sia/docs/siawto.pdf W3-8 http://europa.eu.int/comm/environment/eia/sea-legalcontext.htm W3-9 http://europa.eu.int/comm/development/development_old/sector/environment/env_integ/ env_integration_manual/ W3-10 http://www.taugroup.com/ansea/ W3-11 http://www.panda.org/downloads/policy/eia.pdf W3-12 http://www.usaid.gov/ W3-13 http://www.iaia.org/ 42 Environment Strategy Papers