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                                                                                                                                                                                                         Editorial Board
                                                                                                                                                                                                         SWAMINATHAN S. AIYAR
                                                                                                                                                                                                         ECONOMICTIMES OF INDIA, NEWDELHI, INDIA

                                                                                                                                                                                                         MICHAEL COHEN
                                                                                                                                                                                                         NEW SCHOOL          NEWYORK, USA
                                                                                                                                                                                                                   UNIVERSITY,

                                                                                                                                                                                                         PAUL COLLIER
                                                                                                                                                                                                         THE WORLDBANK, WASHINGTON, DC. USA

                                                                                                                                                                                                         JOHN GAGE
                                                                                                                                                                                                         SUN MICROSYSTEMS, PALOALTO,CALIFORNIA, USA

                                                                                                                                                                                                         JOSEPH K. INGRAM
                                                                                                                                                                                                                                 BOSNIA
                                                                                                                                                                                                         THE WORLD BANK, SARAJEVO,

                                                                                                                                                                                                         KWAME KARIKARI
                                                                                                                                                                                                                OF
                                                                                                                                                                                                         SCHOOL JOURNALISM AND COMMUNICATIONS,
                                                                                                                                                                                                         THE UNIVERSITY OFGHANA, LEGON,GHANA

                                                                                                                                                                                                         VIRA NANIVSKA
                                                                                                                                                                                                         INTERNATIONAL CENTERFOR POLICYSTUDIES, KIEV UKRAINE

                                                                                                                                                                                                         PEPI PATRON
                                                                                                                                                                                                         CATHOLICUNIVERSITY, LIMA, PERU

                                                                                                                                                                                                         J. ROBERT S. PRICHARD
                                                                                                                                                                                                                              CANADA
                                                                                                                                                                                                         UNIVERSITY OF TORONTO,

                                                                                                                                                                                                         RAFAEL RANGEL SOSTMANN
                                                                                                                                                                                                                 TECH UNIVERSITY SYSTEM,
                                                                                                                                                                                                         MONTERREY                              MEXICO
                                                                                                                                                                                                                                       MONTERREY,

                                                                                                                                                                                                         ADELE SIMMONS
                                                                                                                                                                                                                                   IL,
                                                                                                                                                                                                         CHICAGOMETROPOLIS, CHICAGO, USA

                                                                                                                                                                                                         VIVIENNE WEE
                                                                                                                                                                                                         CENTREFOR ENVIRONMENT, GENDER              SINGAPORE
                                                                                                                                                                                                                                      AND DEVELOPMENT,

                                                                                                                                                                                                         Development OUTREACH is published three times a year by the World
                                                                                                                                                                                                         Bank Institute and reflects issues arising from the World Bank's many
                                                                                                                                                                                                         learning programs Articles are solicited that offer a range of
                                                                                                                                                                                                         viewpoints from a variety of authors worldwide and do not represent
                                                                                                                                                   !I\             1                                     official positions of the World Bank or the views of its management

                                                                                                                                                                                                         MARY MCNEIL
                                                                                                                                                                                                                 EDITOR
                                                                                                                                                                                                         EXECUTIVE

                                                                                                                                                                                                         ANNA LAWTON
                                                                                                                                                                                                         MANAGING EDITOR

                                                                                                                                                                                                         MOIRA RATCHFORD
                                                                                                                                                                                                         PUBLICATION DESIGN

                                                                                                                                                                                i           ,        r   PHOTO CREDITS   Cover Photonica/CSA Plastock, Page 3 AFP
                                                                                                                                                                                                         Graphics Service, Page 4 Agence France PresseN/oav Lemmer, Page
                                                                                                                                                                                                         5 Photomontage   Terraced Agriculture, Kenyan boy in garden, and
                                                                                                                                                                                                         Nigeran sunset The World Bank/Curt Carnemark, Wind Turbines
                                                                                  I MElX S v                    rf*i °hiA                          fli.                w        sDavid                         Wasserman/ Brand X Pictures/ PictureQuest, Solar panels
                                                                                                                                                                                                          igitaI Vision/PictureQuest, Page 7 Reuters/Mike Hutchings, Page 8
                                                                                                                                                                                                         Zuma Press/Christiaan Kotze, Page 12 The World Bank/James Fitz,
     K,      U     4f                  4s;;tZ8,s7 ,                                       5             ~                         +                    ia          , 9      ^ s                          Page 13 The World Bank, Page 15 The World Bank/Francis Dobbs,
                                                                  4',K/\
                                                                       Xs> > ,*
                                                                            /                                                     1                >           * s          3                            Page 16 The World Bank/Curt Carnemark, Page 19 AFP Spanish
                                        ><;7s2,6ir                                -       ,>       ^'           ><9       °99             |    ~~~~~~~~'t                                   ^        ~Graphics      Service, Page 20 The World Bank/Yosef Hadar, Page 22
                                                    X                                                                         t                                                                          Thierry / it / *- Ondeo Services, Page 23 Suez, Page 24 (c) Darryl
                                                                                                                                                                                                           .:'   Duvivier,
                                                        \    >.                   .                         ~                     \                    1               i-               .                Evans, Ondeo Services, Pages 26-27, 29 The World Bank Group,
                                                             /4/'
                                                              %           -
                                                                          _       ;>                            X                     'Pages                                                                     31-32 The World Bank/Curt Carnemark, Page 34 Getty/Ami
                                               SO       'V
                                                         >                        /                                                                                         ,                            Vitale, Page 36 Cafe Productions, Page 37 The World Bank, Curt
                                                                                                                                      7A
                                                                                                                                      i>9/                              1                                Carnemark
                                                                                                                                                                                                            0, >

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                                       o n9                                           0                                                            v           z                    ,                    This magazine is printed on recycled paper, with vegetable-based inks of

0   .o                             )           /                              l                ~>           t             ~           t        ~calile                                                   ISSN 1020-797X       © 2002 The World Bank Institute

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                        *                                             "           o                                                            -                                _                        World Bank Institute                         www worldbank org/wbi
                                       -   6,,, '
                                           b                      /       q,I'                                                                                                          I                Frannie L6autier, Vice President             www worldbank org/devoutreach
         4                                                                                     0   e0                                                                                                    The World Bank                               devoutreach@worldbank.org
                                                                                                                                                                                                         1818 H Street NW
                            --+'
                              _
                              ,            .        /                                                                                                                                       2            Washington, DC 20433, USA



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2    What Our Readers Think                                                  22   Bridging the W atcr Divide
                                                                                  GERARD MESTRALLET
                                                                                  The universal right of access to water must be recognized
                                                                                  and turned into an every-day reality The real challenge is
SPECIAL REPORT: SUSTAINING THE EARTH                                              to manage water inan efficient manner
                                                                             26 A Public-P'rivate Partnership to RcdLicc
4    Sustainable Development: Lessons                                             Global Gas Flaring
     Learned and Clhallenges Ahead                                                BENT SVENSSON AND SASCHA DJUMENA
     FRANNIE LEAUTIER                                                             Flaring of natural gas wastes valuable resources A voluntary
                                                                                  partnership of the private and public sector will lead to the
     The World Bank is committed to sustainable development                       sustainable development of this source of energy
     through learning and capacity building

6    Linking Conservation with Developmnent:                                  3o0The     Drvland Predicament: Natural Capital,
                                                                                  Global Forces
     NEPAD Sets Goals at WSSD                                                     RAMI ZURAYK AND MONA HAIDAR
     EMMANUEL KORO                                                                Are sustainable livelihoods possible in the drylands today7
     NEPAD is committed to further Africa's economic growth                       Collective research in the MENA region addresses this question
     through sustainable exploitation of natural resources, while                 and provides some answers
     protecting the environment
9    Johannesburg and Beyond: An Agenda for                                  34 VOICES FROM THE FIELD
     Collective Action                                                          Africa's 13rain Drain Impacts Health Sector
     IAN JOHNSON                                                                  HOBBS GAMA
     The main elements of implementing a sustainable development                  Thousands of skilled young Africans leave their country, as the
     agenda are to be found in the Millennium Development Goals                   developed nations court away human resources The health
     platform                                                                     care sector has been particularly depleted

12   Development at a Crossroads: Highlights                                 36 KNOWLEDGE RESOURCES
     from the Wllorld
                    IDevelopmnent Report 2003                                     Battle for the Planet: Mlssion Impossiblc?
     ZMARAK SHALIZI                                                               CHRIS HAWS

     Highlights from World Development Report 2003, which                         The mission of producing a TV documentary on sustainable
     illustrates the scale of the development challenge ahead                     development turned out to be possible It aired on National
     over the next 50 years                                                       Geographic Television

IS The Global Economy: A Flawed
     Ecosystem                                                               39 BOOKSHELF
     LOUIS MICHON                                                            40 CALENDAR OF EVENTS
     The global economy may be the human species' ecosystem
     We must manage the economy in synchronicity with the other
     ecosystems of our planet


i8 The Private Sector and Sustainability
     PETER WOICKE
     Performance on environmental, social, and corporate
     governance issues may help companies inemerging markets
     Sustainability may create business opportunities.
    \VI-IA'TI"' O UR R BAD E RS TIH-INK


    Dear Editor:                                                     negative factors of a liberal economy, all available econom-
                                                                     ic incentives must be used to increase employment
        I am writing this letter, one day after taking part in the   Civilization is a sophisticated and fragile organism, which
    Video Conference organized by the World Bank, focused on         cannot survive in the absolutely liberal environment
    important issues that were included in the Spring 20oo               Even the University. within its academic debate, did not
    issue of Development OUTREACH                                    pay much attention to the key issue of employment "In
        I must say that what particularly called my attention was    order to confront the challenges of the 2ist century, the
    "Developing Young Voices" and the presentation of Mr.            university must redefine its objectives in order to achieve
    Djordjija Petkoski Being a 22-year old student and con-          professional training for increased social production, a
    sidering myself part of the Macedonian youth, I greet the        better quality of life, and the redemption of what is public"
    idea of developing new forms of organization to pool             (Xabler Gorostiaga)
    togetherthe ideasthat emerge fromyoungpeople, andfind               Another issue Is "continuous restructuring" (Carl J
    ways to make sure that these ideas are heard I am very           Dahlman) so positive a factor for economies and societies?
    interested in finding specific ways to give credibility to the   Or should it not be rational to distinguish between the
    voice of young people all over the world This is particular-     freedom of individual decisions, on the one hand, and the
    ly important in developing countries that are undergoing         relative stability of society. on the other? Continuous, con-
    serious changes, and where unique ideas for accelerating         stant restructuring, except for speculative elements, is not
    progress may help refresh past experience and adjust it to       a value of itself but an instrument to reaching better con-
    the rapid changes that are required by the process of fast       figurations In fact, stability is the real foundation of
    development                                                      healthy economy
        The topic about the fight against HIV/AIDS made me               About the "knowledge economy " "Throughout history,
    think about what I consider the most important tool in           the success of economies has been based on knowledge
    today's world-information In my opinion, the worst               What is different today is that knowledge is becoming the
    enemy to people all over the world is ignorance Ignorance        most important factor for competitiveness and social wel-
    is one of the main factors why HPV/AIDS have been and are        fare" (Shengman Zhang) And "Education is a proven
    spreading rapidly I am in favor of developing interaction        reducer of poverty and a key to a nation's economic
    between ICT and young people, or developing the use of           growth" (Afshin Molavi) The case of Russia's transition
    ICT in our daily lives, but it is pretty hard for me to imag-    contradicts the above theses in the turmoil of chaotic lib-
    me the value a computer has for a child in a rural area.         eralization, the social status of educated people worsened.
    where the problems of electricity and clean drinking water       and many institutions and wvhole sectors lost economic sig-
    have not yet been solved We should try to go step by step        nificance in spite of their scientific and technological lead
    and provide the basic necessities along with information in          There is a positive answer to another challenge "The
    a simpler form, and after that move on to more complex           end users oftechnical assistance are usually hidden away in
    forms of information                                             the middle levels of developing country organizations and
        Thank you for the opportunity to speak up my mind            are rarely consulted Many do not even think of TA as
                                                                     something they can mold to fit their own needs" (Eveline
    Sincerely,                                                       Herfkens) In fact, there are good examples of TA brought
    Marija Mokrova, Macedonia                                        by the European Union to Russia in the frame of the TACIS
                                                                     program. i e CRUS 9504 "Advice on Conversion Policies
                                                                     and Implementation" (1997-2ooo), where good collabo-
    Dear Editor:                                                     ration was established between Russian and Western part-
                                                                     ners and positive results achieved by introducing Russian
        In the wide range of issues, extensively discussed in        specialists to best Western practices
    Development OUTREACH (Vol 3, No 3,
    Fall 2ooi), employment appears as the                                                Sincerely,
    last one But what is the main remedy              Send your views and                Dmitri Birukov
    against poverty 7 It is. certainly,            comments on Development               International Center of Conversion
    employment Employment is not sole-                   OUTREACH to:                    Technologies. Moscow
    ly a means of life support, but a value in    devoutreach@worldbank.org
    itself It gives occupation and provides
    a basis for inclusion To outbalance the




2     DevelopmlentOutreach   WORiL BANK INSlIrUIE
                                                                                              EVELO PNI EN'T' NEF-VS
                                                                                            Dl;



News highlights on development issues from around the world


JohannesburgSummit 2002: Targets and Commitmnents

Efforts to promote sustainable development received a                            Sustainable development
major boost as the World Summit on Sustainable                          .        .   - ..            .

Development concluded on September 4 wlth significant                                          to   meet thefro    n           UN,aport 1987
commitments to improve the lives of people living in                                            _k
poverty and to reverse the continuing degradation of the               Economy                  Social                  Environment
global environment Following is a partial list of targets          [.JIMillisT   .          lIntegraeion )Preserving                 the
and commitments                                                        developing              of vulnerable             Earth's resources
                                                                       countries             groups                      (air, water, land)

Water & Sanitation                                                                            f,-jori South
                                                                                                  h            '       Regeneration
Commitmcnt to halve the proportion of people without                                         solidarity   /A            .mIiumlrI-rloY1.,
access to sanitation by 2oi5, this matches the goal of halv-
ing the proportion of people without access to safe drink-
ing water by 2015                                                      04'

Energy                                                             2004  to implement the Global Program of Action for the
Commitment to increase access to modern energy servic-             Protection of the Marine Environment from Land Based
es, increase energy efficiency, and increase the use of            Sources of Pollution
renewable energy, to phase out . where appropriate, ener-
gy subsidies, to support the NEPAD ob]ective of ensuring           Cross-Cutting Issues
access to energy for at least 35 percent of the African pop-       Commitment to recognition that opening up access to
ulation within 2o years                                            markets is a key to development for many countiies, to
                                                                   support the phase out of all forms of export subsidies, to
Health                                                             establish a io-year framework of programs on sustainiable
Commitment that by 2o2o, chemicals should be used and              consumption and production, to act ively promote coi po-
pioduced in ways that do not harm human health and the             rate responsibility and accountability, to develop and
environment, to enhance cooperation to reduce air pollu-           strengthen a range of activities to improve natulal disaster
tion, to improve developing countries' access to environ-          preparedness and response
mentally sound alternatives to ozone depleting chemicals
by7 2oio.                                                               "This Summit will put us on a path that ieduces poverty
                                                                   while protecting the environment, a path that works for al I
Agriculture                                                        peoples. rich and poor, today and tomorrow," concluded
The GEF will consider inclusion of the Convention to               UN Secretary General KofiAnnan at the final press confer-
Combat Desertification as a focal area for funding In              ence However, several NGO's characterized the Summit as
Africa, development of food security strategies by 2oo5            a failure, and a "victory of big business. " "This is the worst
                                                                   political sellout in decades," said Charles Secrett. director
Blodiversity and Ecosystem Management                              of Friends of the Earth Ian Johnson. vice president of the
Commitment to reduce biodiversity loss by zoio, to                 World Bank for Environmentally and Socially Sustainable
reverse the current trend in natural resource degradation,         Development, cautioned that it will take a sustainable col-
to restore fisheries to their maximum sustainable yield by         lective action in order to produce results "UN summits
2oi5, to establish a representative network of marine pro-         like the WSSD, are part of a process of consensus building
tected areas by 2012, to improve developing countries'             that generate the enabling environment for action Now it
access to environmentally-sound alternatives to ozone              is time for action We will see the real results of the Summit
depleting chemicals by 2010; to undertake initiatives by       ,   in the next few years




                                                                                                                              F Xi 1    2}
                                                                                                                                         0     2   3
Lessons LearnedandCa                                                               g Ahead


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DeelopentOutreach
4                   WtORI D       BANK   INh   I LIT!
         "More than ever today, a new wind is blowing through the world of
      development, transforming our potential to make development happen."
                                     -James D.Wolfensohn, President of the World Bank


BY FRANNIE LEAUTIER                                              .   reaches over 48,000 participants in 150 countries through
                                                                     collaborationwith more than i6o partner institlutions
THE WORLD BANK HAS TAKEN AN ACTIVE ROLE in the                          Throughthesepartnerships,whichincludelocalinstituLtes.
World Summit for Sustainable Development, which was just             as well as donor countries and the private sector, the World
concluded in Johannesburg As Ian Johnson, the Bank's vice            Bank and partner institutions are using technology to help
president of the Environmentally and Socially Sustainable            bring knowledge to the most remote and inaccessible corners
Development (ESSD) Network, said "The World Bank                     of the earth Our learning approaches often combine face-to-
approach to sustainable development has changed consider-            face and distance learning through new and traditionial m edia.
ably since the Rio Earth Summit in i992. We have                              including the Internet and videoconferencing
sharpened the poverty focus of ourwork, expand-                                    We are making strides in closing the digital
ed support for social services, equitable broad-                                   divide, for example, through the development
based growth, good governance, and social                                            and wide use of global electronic knowledge
inclusion, and are integrating gender and                                              nctworks and distance learning initiatives
environmental considerations into our                                                     such as Global Development Learning
development efforts                                                                          Network (GDLN) These kinds of inno-
The World Bank is fully committed to                                                          vations will greatly extend the r each ol
learnsng and capacity budldvngt asf                                                               knowledgeaandbeadnlng o irostahn-
        n the drive for povebtya
essential                                                                                          nable developmenit to fmprove the
reduction and sustainable                                                                             quality of life and to r educe
development Much of our                  ]                            _____                             poveity worldwide
work focuses on promoting
learning,   sharing     of                                                                                     Fttire
                                                                                                                 i
knowledge and experi-                                                                                          challenges
ences, and building the
capacity of people and                                                                                         WExF. ACE        ENORMOUS
institutions                                     7                                                        CHALLENGES in reducing
    Our process of learning                                                                             global poverty and improv-
has meant benefiting from the                                                                          ing the quality of lile for peo-
lessons of our successes and                                                                         ple worldwide We need to con-
failuies as well as from the les-                                                                  tinLe in our efforts to scale up
sons of others Knowledge builds                                                                successful development efforts based
capacity, and capacity building leads to growth, security, and       on lessons learned We also need to share knowledge and
empowerment of the poor We have found that the best way to           experiences about what has sworked in ways that will have a
build capacity is by creating an enabling environment in             greatet impact on a much larger scale The nature and magnii-
which local knowledge is allowed to flourish and contribute to       tude of the challenges will vaty depending on the regional.
global knowledge, where people learn from one another as             country. and local context
they also innovate on their own, and where global and local             At the global level, the World Bank will continue to work
knowledge inform action and influence change The ability of          with governments. civil society, multilateral organizations.
a society to problem-solve and innovate is key to sustainable        and the private sector As Ian Johnson has said. "In moving
development That is vhat a process of learning ensures.              forward. we have to aim to increase our impact in terms of
                                                                     outcomes, working on a scale that is commensurate with the
The role of the World Bank Institute                                 development challenge And to be tmuly effectlive, we need to
                                                                     work together
   The World Bank Institute suppor-ts the Bank's learning and
knowledge agenda through capacity building, and by provid-           Frannie Leautier is The World Bank Institute vice president.
ing learning programs and policy advice that address issues          A longer version of this article appeared in the electronic journal of
central to poverty reduction and sustainable development             the U.S State Department, Global Issues (April 2002)
WBI currently delivers nearly 6oo learning programs and


                                                                                                                           I A I 1,   '   'I   5
 Linking Conservation
  with Development
                             NEPAD Sets Goals at WSSD
BY EMMANUEL KORO                                                  * "The African leaders have come up with a plan We are here at
                                                                    WSSD so that we can work in partnerships for development
THE    NEW     AFRICA    PARTNERSHIP        FOR     DEVELOPMENT      NEPADisnotdonordriven Itishomegrownandwewantour
(NEPAD) was prommnent at the recently concluded World                partners to participate "
Summit for Sustainable Development (WSSD), which was held               James Bond, World Bank Africa Region Director of
in Africa for the first time At the summit in Johannesburg, the      Environmentally and Socially Sustainable Development.
World Conservation Union (IUCN) held a special workshop.             reintorcedtheconcept "ForustheNewAfricaPartnershipfor
called "NEPADandtheEnvironmentalActionPlan," topromote               Economic Development is a very positive phenomenon
NEPAD's goals of sustainable development.                            Essentially. what we are seeing now is that Africa is putting
    NEPAD's major challenge is to end the continent's long-          together its own development plan Foryears development for
standing contradiction of being rich in natural resources but        Africa has been designed by the donor community. by people
economically poor One of NEPAD's goals is to further eco-            from rich countries, by consultants, by the bilateral donor
nomic growth through large-scale exploitation of Africa's nat-       agencies, and by the World Bank . Now, experts from the con-
ural resources by foreign investors, while protecting the envi-      tinent are designing the process "Bond noted that the African
ronment NEPAD expects foreign companies to spend                     countries are increasingly regulating production. For exam-
approximately 64 billion dollars on inveslment projects in           ple, the new mining law in the Democratic Republic of Congo
Africa annually. However, NEPAD does not have a clear strat-         encourages the mining companies to invest in ways that are
egy on how it intends to address this issue.                         environmentally sound and transparent, in order to eliminate
    NEPAD was established as a result of the extraordinary           corruption He said "The new mining law in DRC is going to
summit of the Organization of African Unity (OAU), which             be state-of-the-art, as good as that of Austrahia and Canada,
took place in Syrte, Libya. in March 2ooi. At the time, a num-       whose economies are also built on natural resources "
ber of development plans had been put forward by several             Another key issue that Bond addressed was the elimination of
heads of state-"Renaissance Initative" by Thabo Mbeka of             the agricultural subsidies, which amount to 35o billion dollars
South Africa, "Millenium Plan" jointly by Olusegun Obasanjo          annually "These subsidies are preventing developing coun-
of Nigeria and Abdelaziz Boutflika of Algeria, and "Omega            tries in general, and African countries in particular, from
Plan" by Adoulaye Wade of Senegal OAU recommended the                accessing the higher value markets that they need for develop -
merger of these plans, under the umbrella of the New Africa          ment." he said "I am confident that access to the agricultural
Partnership for Development (NEPAD) The African heads of             markets of rich countries is going to be the central issue in the
state officially accepted NEPAD at the subsequent OAU meet-          Doha Trade Round under the World Trade Organization "
ing in July !ooi, in Lusaka. Zambia                                      African civil society representatives complained bitterly
   Although largely criticized by civil society as ]ust another      that African governments had not engaged them to participate
disguised western concept being imposed on Africa, NEPAD             meaningfully in the NEPAD process They said African leaders
is an indigenous creation aimed at reducing poverty by bring-        needed to share with civil society their vision of extricating
ingAfrica into the mainstream of the world economy "I don't          Africa from the poverty trap, in order to make NEPAD suc-
understand why our fellow Africans would not trust their             ceed They demanded to know how civil society could mean-
presidents, who have come up with an initiative meant to lift        ingfully engage in the implementation of NEPAD They said
the people out of poverty," said Uganda's Minister of                there was a need to educate people on the NEPAD process
Environment. Kezimbira Miyongo, at the WSSD workshop.                through dissemination of relevant information. and bring


6     Development Outreach   WORLD BANK INSTITUTI
                                                                                               N                  --                                               4




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everyone on board Muawia Hamid, director of the Sudanese                           NEPAD environmental action plan could become more effec-
Environment Conservation Society, said "lt is high time that                       tive if lit considered the conservation and development initia-
we addressed NEPAD's practice of limited participation.                            lives that had actually worked or failed in Africa, and estab-
which is not only at the level of civil society but also at govern-                lished specific targets and monitoring mechanisms "'I'The
ment level "                                                                       NEPAD environment action plan should also focus on liveli-
    Some government representatives defended their posi-                           hoods and the empowerment of communities," said Dengu
tion The Senegalese Minister of Environment and Public                             "The people who are mostly affected are the men and women
Hygiene. Modou Diagne Fada, said "Limited participation of                         ol Africa. who woi k the land "
NGOs in the NEPAD process stems from the fact that they are                            Fatima Dia Toure, Director of the Senegalese
disorganized, failing to send representatives to participate in                    Government's Department of Environment and Public Health
African governments' high level NEPAD discussions " Diagne                         highlighted the paramount importance of environment issues
said NEPAD was officially endorsed by all African heads of                         and she, too. called for coordinated action "Oui NEPAD
states at the OAU meeting of July 2ooi "AllAfrican countries                       action has to have a framework of coordination One of the
are therefore involved in the NEPAD process," he said                              aims of NEPAD is building capacity to achieve sustainable
    But the Director of Intermediate Technology Group,                             development Farmers, governments and NGOs are all part-
Southern Africa, Ebbey Dengu, reiterated' "In its present                          ners in NEPAD Envii'onmental issues are not a government
form, the NEPAD environmental action plan clearly misses                           problem but everyone's problem," she said Toure added that
out the people The document uses a language that reinforces                        African governments should set aside money for environ-
the disconnection between the governors and the governed It                        mental management and not just seek external funds "lf we
talks about African leaders a lot, without mentioning African                      don't address conservation and development simultaneously,
people Perhaps we could revise the language to show that                           itwillbedifficulttoalleviatepovertyinAfrica       Whatisneed-
NEPAD is an African initiative and should involve the African                      ed right now is to exchange ideas on how to make NEPAD wo rk
people " Dengu said the question of agrarian reforms, trade                        forAfricans, fighting environmental problems such as deser-
and the subsidies in the north, and the whole area of science                      tification Our NEPAD environmental action plans must be
and technology, had not been adequately tackled He said the                     *, people centered


                                                                                                                                       I A     [ I       U12       7
                                                                                                                                        He said that Africa needs to establish a good
                                                                                                  4 i-i-       . -t t .
                                                                                                                  ;                     minter-country communication network that is
                                                                         m                    l            -     --                qers-        :*--
                                                                                                                                        conducive to economic growth As things stand,
                                                                                                                         -.        ,fzrbusiness    trips in Africa are being affected by lack
                                                                                                                                        of direct and daily flights from Southern Africa to
                                                                                                                                       West Africa He said, "In their struggle to take
                                                                                                                                       Africa out of the poverty trap, I hope the African
                                                                                                                                        leaders will take seriously their commitment to
                                                                                                                                        the development of infrastructure, intra-African
                                                                                                                                        trade, and intra-African financial banking. He
                       -    - 1!    _          s                                                                   -_                   also expressed the hope that African leaders
L                  S           -         AGJ D L--             ]iK                    --      - - w 4- -=                              would take seriously the peer review process that
                                                                                                                                       they are undertaking to influence one another in
                                                                                                                                       the area of good governance, "because without
                                                                                                                                        stability you really can't have development " The
                                                                              ,<        I
                                                                        'n " *# / w~fU b.                          _                    conflicts in some parts of Africa have stood in the
                                                                                                           /

                                                                                  (A
                                                                                                               1    _
                                                                                                                   i1         u   bi way of stable economic development. for exam-
           -7                       1                                   _,                               _                                 ,/F Ji _ple in Liberia, Sierra Leone and the
                                                                                                                                             the conflicts
                                                   '; F1|\.j            jDemocratic                                                                   Republic of Congo
                                                                                                                    -t              ]          § 8 Millenium
                                                                                                                                              | the"When             Development Goals
                                                                                                                                        (MDGs), which largely focus on poverty reduc-
                                                                                                                                        tion by 2015, were launched at the UN in
           j=
            ]>-7                                                                                                                        September 2ooo, the African heads of state
                                                                                                                                        sought UNEP's help in the development of the
                                                                                                                                        NEPAD environmental initiative, looking at early
                                                                                                                                        warning systems. forests and plant genetic
                                                                                                     tCI:
                                                                                                        '          _ _                  issues, health and environment and environ-
                                           -Pt'                 :            t            ;   ~~~~~~~~~mentally sound technologies Consultations are
                                                                                                                                        continuing, in order to have a comprehensive
                                                                    -    _ _,;>tJ                                  ,.                   NEPAD environmental action plan One such
                                                                                 -,                             a,process                        of consultation was the 2oo2 WSSD
                   ^ _
              >,-/~ tAy-                                                                                                                "NEPAD and Environment Action Plan
                   LI |-|               WI (            n           >                 <                        f                        Workshop," which brought together African gov-
                       11I |       |)'Um                    V                                        _              .                   ernment officials, civil society and international
                       IJ                                                                                  A                            development experts to discuss the UNEP draft
                                                                                                     l,A                                action plan
                                                                                 _qflifflowaamn                190I             Conservation and development experts inter-
                                                                                                                             viewed at the workshop expressed the view that
                                                                                                                             NEPAD could take Africa out of the poverty trap
                                                                                                                             only through an integrated approach involving all
    Under NEPAD, African heads of state have recognized the *                                                  stakeholders The participants also agreed that environmental
fact that economic recovery and growth as well as poverty                                                      degradation undermines NEPAD's prospects for fighting
reduction cannot be achieved without investments in envi-                                                      poverty They recognized that the environment in general,
ronmental management Commenting on the need for the                                                            and the ecosystems in particular, are important sources of
investments to benefit all African countries. Chief Emeka                                                      goods and services for poverty reduction and economic
Anyaoku, former Secretary General of the Commonwealth and                                                      growth. and highlighted the need to ensure that economic
President of WWF International, said "You have an imple-                                                       investments are carried out in a sustainable way They noted
mentation Committee which at the moment has to be restrict-                                                    that there is an urgent need to comprehensively address the
ed to a few countries-these are South Africa, Nigeria, Algeria,                                                vicious cycle that exists between poverty and the environment
Egypt and Senegal They are like a Steering Committee, but it                                                   inAfrica In his Millenium Report, UN Secretary General Kofi
will clearly be in the interest of NEPAD if the benefits of                                                    Annan said, "Only Africans can break out of these vicious
NEPAD are spread throughout the continent I don't think it                                                     cycles."                                                   c0
would be helpful to encourage the development of a group of
countries that benefit from NEPAD, while the others do not "                                                   Emmanuel Koro is president of Sub-Saharan Africa Forum for
Anyaoku hopes that African leaders will seriously commit                                                       Environment Communicators (SAFE)
themselves towards advancing the NEPAD goals and partner-
ships that they have sought to establish with the G8 countries.



8   Development Outreach       WORLD    BANK INS I I I U I L
                    and ieyond:
             Afn Agendafor Collective Action
BY IAN JOHNSON                                                      * food and clothing could be met and more Even pessimistic
                                                                       estimates wvould place life expectancy in poor countries at 72
OUR PLANET is under increasing stress At plausible and rel-            years (compared with 64 today in low and middle incomc
atively conservative rates of growth, by 2050 the world's pop-         countries) and under-5 mortality at 17 deaths per thousanid
ulation is projected to reach 9 3 billion and according to cur-        live births (compared with 85 today) All children-boys and
rent trends world product will total $140 trillion If this             girls alike-could complete 5 to 6 years of a quality primaiy
growth is reasonably equitably distributed. absolute poverty           education Gender disparities in educational opportunities
will be largely elirunated, at least as we know it today But this
amount of growth poses potentially enormous risks to the nat-
ural environment and these risks are greatest in developing
countries Investment decisions we take in the near future
must factor in these risks and provide some insurance against                  The Millennium Development Goals
negative outcomes Some of the hardest issues will involve                      (MDG's), a Platform for Collective Action
tradeoffs between preserving natural systems and pressing
development needs For the truly global issues, collective
action will be required on an unprecedented scale                              The Millennium Development Goals, agreed
                                                                               at the Millennium Summit in September 2000
'TFhe Challenge of SuLstainable                                                reaffirm the commitment of UN member states
Development                                                                    to sustaining development and eliminating
                                                                               poverty. The Millennium Development Goals
INCREASED GROWTH          WILL BE KEY low income countries                     seek to:
need to grow at per capita rates of at least 3 6 percent per year
if' the 29 percent of the world population living on less than $i              . Eradicate extreme poverty and hunger
a day in i990 is to be halved by 2015 (Millennium                              . Achieve universal primary education
Development Goal-MDG. see box at right) The payoff will be                       Promote gender equality and empower women             I
great increased growth means decreases in extreme poverty,                       R
declines in child malnutrition and progress on many of the                     . Reduce child mortality
other targets established by the Millenium Summit But                          . Improve maternal health
growth is not enough. For this growth to be long lasting and                   . Combat HIWAIDS, malaria, and other diseases
have momentum that carries beyond 20o5, the benefits must                      a Ensure environmental sustainability
be widely spread, and the growth must be environmentally                       . Develop a global partnership for development
and socially responsible.
      If per capita incomes in low and middle-income countries
rise al 3 3 percent per year. this would yield $63oo per capita
by 2o5o This would imply that basic human needs for shelter,           __-=_                        _J_                   _




                                                                                                                    I A I 1   2   12   9
                                                                              growth and environmental impacts, and radically change the
             Historical and potential world product,                          composition of the world's output toward high input efficien-
             1960 - 2050 (Trillion USD)                                       cy and environmental responsibility. Future global patterns of
     140-                                                                     consumption and production must be scrutinized and become
     120-                                          z-           High Income   a part of the global public policy dialogue
     100 -                                         *-           Countries
                                            *-c-                              Connecting the dots for global
                                                    n
     80 -
     60 -                                   c                   Low &Middle   collective actlon
     40-                         a         a        a           Income
      20-               |        *         *        |           Countries     THE MDGS PROVIDE A CLEAR and internationally agreed
       o                                           11                         framework for achieving a set of minimum standards.
                                                                                W- 1- *
              1960     2000    2015        2030    2050                       ReachingtheMDGswill createaplatformforfurtheradvance-
                                                                              ment beyond 2o15, aiming towards a prosperous and sustain-
                                                                              able world by the middle of this century. If the vision of a
                                                                              world without poverty is to be realized by mid-century, sus-
could be eliminated Adult illiteracy rates could be below 5                   tamable growth is the key. What will fuel this growth, and what
percent, compared with 25 percent in low and middle income                    will support it?
countries today                                                                  The starting point for most developing countries must be
    However, we should not underestimate the challenge                        rural development and growth in sustainable agricultural pro-
of achieving this amount of growth After the robust growth of                 duction Three out of every four poor people in developing
the i96os and ig7os, growth rates in poor countries from i981                 countries-a total of goo million-live in rural areas
to 2OOO averaged only il 6 percent a year. Meeting the other                  Agriculture is their main occupation, accounting for a quarter
MDG's will require sustained efforts on health, education,                    to half of gross domestic product Each dollar earned by a
energy, water, sanitation and environmental stewardship as                    farmer increases incomes in other economic sectors by as
well Moreover, this is not simply a question of growth and                    much as US$2 6o New agricultural technologies are needed
financial resources-sustained improvements in policies.                       to boost crop productivity, produce hardier and more nutri-
institutions and social capital across many sectors are really a              tious crops, and address new emerging challenges including
pre-condition for reaching the desired outcomes                               soil and water management, and climatic fluctuations
    The world of 2o5 o will be more densely populated and                      Research is the basis of innovation that can create the
heavily urbanized. with over 65 percent of population in urban                required new technologies
areas at current trends. The infrastructure and housing needs,
if city dwellers are to enjoy healthy and productive lives, will
be huge. However, this fact also presents a significant oppor-
tunity As much of these investments are still to be designed,                       Two measures of global inequality, 2000
they could contribute to environmentally sustainable urban
environments                                                                        As this Figure shows, both incomes and pressures on the
  The world of 2050 will also be much less biologically                             global environment are currently very unequally distributed
                                                                                    In addition, poor countries suffer four times the incidence
dilverse Arrestng and reversing the current reseoftiodve                            of environmental disease observed in rich countries-
sity' loss must be a priority if options for future generations are                 dealing with indoor air pollution and improving hygienic
to be preserved Part of the challenge is to permit poor com-                        practices could have a major impact on the global burden
munities to benefit directly from f'ragile ecosystems                               of disease Poor people have little voice in the decisions
Particularly important is finding the finance to preserve blo-                      that affect them Poor households are highly dependent on
diversity. both through expenditures on protection and con-                         the quality of local natural resources for their livelihood
servation and to compensate communities who may have to                             Poor countries and poor households are inordinately at risk
restricttheir exploitationof natural areas forthe benefit ofthe                     from natural disasters Small island states are vulnerable
world as a whole                                                                    to global climate change
    The nature of the growth in the rich world is also an issue
Today, 8o percent of the global GDP is shared by only 20 per-                       40-                                                High
cent of the world's population Consumption patterns on                              35                                                 Income
                                                                                    3 0 --                                             Countries
energy, water, food, manufactured goods and services are                            25-

highly skewed and will remain so for the near future Are these                      20 -
patterns sustainable7 As incomes in developing countries                            15-Low
grow, consumption there will increase to meet legitimate                            lo -                                               Income
aspirations                                                                         05-                                                Countries
      A $140 trillion world simply cannot rely on the current                        o GNI/capita,   PPP $    C02 emission/capita
production and consumption patterns-a major transforma-
tion starting in the rich world will be needed to de-couple


Io    Development OLutreach          WORLD BANK INSTI ru I P.
    For all countries investments in        nershlps between the public and the pri -
human capital, including health, will be    vate sectors and with civil society. sti ong              KEY DEVELOPMENT
essential But this growth and develop-      and stable policies and transparent and                   CHALLENGES
ment is in turn dependent on critical       well governed institutions, and a vibrant
inputs, particularly waler and energy       private sector to play a pivotal role in
New technology must also play a role,       socially responsible technological trans-                 a   Building sustainable agriculture
certainly to feed a growing world, but      formation Enlightened public policy                           in low income countries, with
also to ensure that this growth is sus-     must provide the enabling and regulato-                       a particular focus on Africa;
tainable                                    ry environment For the private sector
                                            corporate responsibility together with                    * Building human and social
Key development                             profits should represent the guiding                          capital;
clhaallenges                                principle
                                               Tiacking progress toward sustainable                   . Delivering water for agriculture,
THE MONTERREY SUMMIT on Finance             development becomes a central tool in                       industry and households;
for Development laid the basis for a new    order to implement successful develop-
development partnership based on            ment strategies. This will require strong                 . Providing clean energy for
mutual accountability between devel-        political will from both the North and the                    the poor;
oped and developing countries               Southin orderto adopt agreed indicators
Developing countries acknowledged           for transparent tracking of development                   * Strengthening global, regional
that they must take responsibility for      progress in both the rich and poor                            and national multi-stakeholder
good governance and sound policies, as      nations of the world                                          coalitions for the implementa-
African leaders are doing under NEPAD                                                                     tion of the sustainability
Developed countries committed to            Ian Johnson is vice president of The World                    agenda.
ensuring that aid resources match           Bank, Environmentally and Socially
progress on policy reforms, to tearing      Sustainable Development (ESSD).
down trade barriers that harm the poor-
est, to implementing debt reduction,        Visit:
and to building capacity using the power    www worldbank.org/sustainabledeveloDment
of the knowledge economy Funding
actions to achieve and measure the
Millennium Development Goals is the
startingpoint.andtheextrao 2percent                 2015: MEETING THE MILLENNIUM DEVELOPMENT GOALS IN AN
of rich country GDP per year that this                ENVIRONMENTALLY AND SOCIALLY SUSTAINABLE MANNER
will require is modest by any measure
    The Doha Round of trade negotia-                                  r
tions sponsored by the WTO must                                           SUSTAINABLE DIMENSIONS
become a Development Round This will
require developed countries to open up
their markets. to ensure that all coun-        GROWTH                         1                                         SOCIAL
tiies and especially the poorest, can                                                                                   SUSTAINABILITY
enjoy the benefits of trade                                                                                        I
    Public-private partnerships will be        Energy                                                                   Eliminating ill-targeted
increasingly important Tapping the             Agriculture                                                              energy subsidies and
                                               Humanaslngly          Tapplng
                                                             Important     the                                          increasing access to clean
financial resources of the private sector      Human capital                                                           fuel
is central to ensure the supply of many
goods and services, including water and                                   a           30 M                              More equltable access to
electricity, that have traditionally been                                         l                                     water supply
in the public sector But the private sec-                      D                                               i        Management of common
tor on its own cannot deliver public                                      %            f     a                          resources and establishment
goods Public and private sectors must                                                        H1   i                     of property rights
each play their particular roles in the
development process                                                       Mffftff00~M                                   Equitable access to
  The main elements of implementing
                         The mam
                               elements of zmplementmg                                       RDeducation                           and preventive
                                                                                                                       ~~~~~~~~~~~~~and
                                                                                                                            basic health services
a sustainable development agenda are                                                                                    a
part of an emerging consensus primacy
of country ownership and stewardship
for poverty reduction. long-lasting part-


                                                                                                                                     I A I   '   0   11   II
      I evelopment at a
         Crossroads
BY ZMARAK SHALIZI                                                               legacy of mistrust that undermines cooperation for future
                                                                                growth
DEVELOPMENT IS AT A CROSSROADS there have been sig-                                 Environmental conditions have also deteriorated across
nificant development gains in recent decades, but mounting                      the planet and will worsen if present trends continue
environmental and social strcsscs suggest that the current                      Agricultural lands are degrading A third of the world's popu-
development path cannot be repeated                                             lation live in water stressed areas and this could double in the
   The past 3o years have seen important gains in human                         next 3o years. Hundreds of developing country cities have
well-being The proportion of the world's population living in                   unhealthy air already, causing premature deaths that are pre-
poverty and even the absolute number of very poor people has                    ventable at a modest cost By 2025, three-quarteas of the
declined (by 2oo million) despite the addition of 2 billion                     world's people may live within ioo kilometers of the sea, put-
people to global population. Average per capita incomes in                      ting immense pressure on coastal ecosystems. Two-thirds of
developing countries have increased by a third, adult illitera-                 all fisheries are exploited at or beyond their sustainable lim-
cy and infant mortality have been cut in half, and life                         its, and half or more of the world's coral reefs may perish in
expectancy. access to clean water and better sanitation are all                 this century Every decade. another 5 percent of tropical
up Many of the world's people enjoy more freedoms and                           forests is cleared More than a third of terrestrial blodiversity
greater opportunities to participate in democratic processes,                   is squeezed into habitat fragments covering just 1 4 percent of
and there have also been success stories in reducing pressures                  the Earth's surface and could vanish if those fragments are lost
on the environment-for example, in cutting back on CFCs
and ozone depleting substances, phasing lead out of gasoline.                   Highlights from World Development
   But some social and environmental costs associated with                      Report2003
past development strategies in industrial and developing
countries are not sustainable. Incomes are diverging sharply-                   IN THIS CONTEXT. World Development Report 2003 takes a 50-
-the average income of the richest zo countries is 37 times                     year time horizon to highlight the scale of the development
                                             that in the poorest 2o,            challenge ahead In this period, 3 billion people will be added
                      WORLD         REPORT
                            DEVE[OPMEtIJ2DO3 double what it was 3o              to the world's population, virtually all in developing countries
                                             years ago-primarily                and virtually all in urban areas Providing for their well being
                                             because of lack of                 and improving the quality of life of 2-3 billion people today
  Sustainable Developmeiit ina Dynamic World growth in the poorest              living on less than $2 per day will require substantial increas-
      iiimfruuui   _        ';~,wth,
                              uidIit~OIiI           countries There are         es in growth and productivity in developing countries In the
                            -    '             3    7 - i z billion poor
                                                    still                       past 40 years the world economy grew at just over 3 percent
                                                    people living on less       per annum If this global growth rate is projected forward (the
                                     -_     > ;|-   than $1 a day In the        minimum needed for developing countries to meet the inter-



r                       .   -               _.8     1990S, 46 countries
                                                    were involved in
                                                    armed      conflict-
                                                    including more than
                                                    half of the poorest
                                                                                nationally agreed Millennium Development Goals is 3 6 per-
                                                                                cent p.a.), the world economy will grow to $140 trillion This
                                                                                population and income growth could generate greater envi-
                                                                                ronmental and social stresses, than the smaller population
                                                                                and economy of the world today, unless we are able to work
                                                    countries, destroying       together and shift to a more sustainable development path
                                                |   past    development            Indeed, anticipated transformations point to important
                                                    gains and leaving a     4   one-time windows of opportunity The demographic transi-



12   Development Outreach       WORLD BANK INS III UTE
hon to a stable population of less than
io billion by the end of the century
reflects the substantial slowing down
of population growth rates currently
underway This will change the age
distribution of the population. The
proportion of children and elderly
dependents to working age population
will drop for a couple of decades and
provide the potential for higher sav-
ings Benefiting from this opportunity
wll require employment and invest-
ment outlets
   Virtually all of the population
growth this century will be in cities as
rural populations migrate to cities or
are incorporated in expanding city
boundaries For the first time in
human history the majority of people
on earth will live in cities Cities can   BEFORE
be the engine for providing the non-             _
agricultural jobs and investment out-
lets r equired by the growing popula-
tion of working age, because cities are
potential tremendous centers of cre-                                                                                                            --
ative and productive activity, and                                                                                                              -_
because the incremental cost of                                                                                                                      .
extending basic services such as edu-       _                                 -                                                                          -

cation, health care, networks and
infrastructure, is much lower in cities  Lr        ,                      ;            -    L            t'

than in rural areas Most importantly. ;        / ,                        ---                                      '   Nt
much of the capital stock (with long           -                   i              _
lives-new homes, factories, transport                        *
                                                             -            "                        / r             7        r       r
and power networks) for the economy _
of 2o5o. and in particular. the new and
increasingly urban population, is not
                                              P-


                                              .
                                                     r        /
                                                                K
                                                                                ;j
                                                                                       .9
                                                                                          -

                                                                                               t
                                                                                                 * v c 4
                                                                                                    y
                                                                                                        f           -':7q     >



yet in place This means that a move to                                                                        i'         it
a more sustainable pattern of produc-                                                                               -_
tion and constumption is possible if                       -------           -       -
new investment is guided by criteria           AFTER
for socially and environmentally              A nationwide program to upgrade kampongs (slum settlements) in urban areas of Indonesia has
friendly technologies and decision-            provided basic infrastructural investments (water supply and sanitation, draining, access to roads
making processes. The importance of            and footpaths, lighting and other community service facilities) and security of tenure, dramatically
this becomes apparent when looking             improving living conditions for kampong residents and integrating their neighborhoods into cities. In the
at alternative CO2 emissions scenar-           kampong inBanjarmasin in Kalimantan province, storm drainage works corrected chronic flooding
ios A more climate friendly scenario
relymig on energy efficiency and renewable fuels (e g more                    social, and environmental resources We also have to take
energy efficient buildings, transport and power systems using                 more seriously the importance of institution building-rules
fewer fossil fuels) requires action today, since the time-frame               and organizations
for developing new technologies and replacing capital stock is                    The WDR describes many examples of water diversion (e g
very long                                                                     the Aral sea) and forest conversion (e g in Madagascar),
                                                                              where an environmental resource is run down without creat-
Challenges and opportunities                                                      ing sustained growth The standard response to such damag-
                                                                                  ing behavior is to recommend adoption of new policies Policy
IN ORDER TO ADDRESS EMERGINC STRESSES                       and seize             reforms are critical but not enough to meet these challenges
opportunities it is critical that we recognize the need to man-                   The World Development Report 1992 on the environment.
age a broader portfolio of assets-physical, financial, human.                     reviewed and sulimmarized good policy recommendations.


                                                                                                                                     I   AI I      ,.
                                                                                                                                                 012     13
including items described as win-win, which benefited both            awareness and strengthening monitoring Disclosure pro-
the economy and the environment Many of these remain pol-             grams in China and Indonesia have spurred efforts to control
icy reform recommendations appropriate today, but in prac-            air pollution. Transparency is central to increased accounta-
tice few have been adopted and fewer yet have been fully              bility and better development outcomes New and strength-
 implemented Why 9 Because of institutional weaknesses and            ened programs for forest auctions in Cameroon exemplify the
distributional problems                                               importance of transparency, dramatically improving the
    Environmental problems are at root social problems For            management and increasing the revenue streams from the
this reason, the current Report focuses on institutions that          exploitation of forest resources Partnerships between civil
facilitate the coordination of human aclion (more broadly             society, government and the private sector can also catalyze
defined to include formal rules and social norms, not just            change towards sustainable development Each set of actors
organizations, under this broader definition, marriage, mar-          has strengths and weaknesses They can combine so that the
kets, and treaties are institutions, not Just government agen-        strength in one offsets the weakness in the other, thereby
cies). Competent institutions for coordination pick up signals        improving broader social well being
about problems early and from the fringes, balance interests              We face a choice. Continue on the current path, in which
fairly and efficiently in formulating policies. and implement         case mounting social and environmental stresses could in
policies in an accountable fashion Such institutions enable           time undermine everyone's well-being and the growth need-
societies to negotiate paths to "win-win" opportumties-paths          ed to reduce poverty and meet the Millennium Development
that can be elusive when the costs to some groups go uncom-           Goals Or, we can act now to address environmental and social
pensated                                                              problems, and take advantage of emerging opportunities to
    Institutions such as property rights and the rule of law are      shift development to a more inclusive and sustainable path
essential for the creation and preservation of assets and the         World Development Report 2003 elaborates on these themes
efficient operation of markets as a coordinating institution          with examples from where people live and at different scales
Additional institutions are needed to coordinate and ensure an
adequate supply of the assets that are not spontaneously pro-         Zmarak Shalizi Is sr. manager, DECRG, The World Bank.
vided by markets environmental assets (clean water, clean air.        Visit: hftp://Dublications.worldbank.orglecommerce
fisheries, and forests) and social assets (mutual trust, ability to
network, and security of persons and property) ENRON and
Newfoundland Cod fisheries are examples of failures of pro-
tective institutions to restrain the tendency to take which are
discussed in the WDR This raises a deeper question How do
competent institutions evolve and wbat catalysts can help alter                    An nltroduction to
the process by which such institutions emerge?                                     Corporate SocWIa
   The distribution of assets is critical in determining whom                                            b
                                                                                                        .pn      t
institutions serve and how policies are formed Institutions                        Responsiblity
are often absent, or are flawed, when interests are dispersed,
or when some groups in society are poor or in other ways dis-                      a web-based course
enfranchised Groups that lack assets tend also to lack voice,
security, and a stake in the larger society. hampering the abil-                       This course focuses on the main concepts
ity of institutions to perform their necessary coordination                            and complexity of CSR in both theory and
functions This can result in vicious circles as biased institu-                        practice The course takes approximately
tions adopt policies leading to more unequal asset distribu-                           six hours to complete, and is offered
tion and greater polarization It is difficult, but possible, to                           on m omply
                                                                                           a          basis.
develop policies that increase voice and access to resources,
shifting development dynamics from vicious to virtuous cir-
cles and toward greater sustainability When more people are
heard, fewer assets are wasted The WDR discusses many such                             business leaders, NGOs, future leaders,
examples, from the empowerment of urban communities to                                 the media, academia, and international
access public services (water, sarntation. etc ), to that of rural                     organizations.
communities to protect natural resources (forests. water-
sheds, etc)                                                                            For more information, please contact
                                                                                       Djordiija Petkoski at dpetkoski@worldbank.org
Other catalysts
THE EMERGENCE OF BETTER INSTITUTIONS overtime will                               WORLD BANK INSTITUTE                .Corpont.soulRonob,lt
be helped by several other catalysts. including credible infor-                                                           and Su.tminabl C ompetW-enes

mation and monitoring, partnerships, and transparency                                                         the
                                                                                  For add,honal informohon obout cSR progrom, v,sit      csrwb6 org
Information can be a powerful agent of change, building



14   Development Outreach   WORI D BANK   INS 111 U I i
        The Global Economy:
        A Flawed Ecosystem
BY LOUIS MICHON                                                                  agree on a new paradigm that will restore the balance and syn-
                                                                                 chronicity between the global economy and the other ecosys-
Earth Sunimit 2oo0 brought some 22.ooo participants from                         tems on the planet Humankind will soon reallie that sustain-
all parts of the world to Johannesburg to discuss sustainable                    able development is the only long tei n and profitable choice
development, a cryptic buzz word which most people can only
vaguely decipher as environmental protection In fact, sus-                       Economy and ecosystems: commiiiion
tamnable development implies much more than correctingthe                        foundations
environmental errors of the twentieth cenlury It directly
involves the future of the global population and of world trade                  IN I11S WORK entitled Liv'g Systems (6978).researcher James
It relies much more on economic agents than on environmen-                       Grier Miller of the University of California establishcs a hier-
tal advocates                                                                    archy of the planet's living systems From living cells to
    Supportedbysocialandtechnologicalinnovations,sustain-                        human groups to supranational systems. Miller shows the
able development will be the great economic achievement of                       structural continuity between living organisms. ecosystems
the coming centuries The nations of the world will hopefully                     and human society Humanity, its infrastructuies and its




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activities, in short the global economy, form a vast system                tions or stored and transmitted in other forms
fuelled by a measurable quantity of energy. matter, time and               Communication is crucial within ecosystems. the i3o species
information, just as ecosystems                                            of coral of Australia's Great Barrier Reef, for example, wait for
    Natural systems are wonders of balance and stability                   a signal to spawn on the same day and at the same time each
resulting from millions of years of evolution The global econ-             year Egg maturation is controlled bywater temperature. while
omy, which is barely 500 years old. has not achieved this level            spawning is determined by the phase of the moon. This dou-
of refinement Our economic system is embryonic and unre-                   ble signal allows for a perfect synchronization and a maximum
alistic, with a goal to achieve continual growth rather than bal-          gene exchange within the ecosystem
ance Growth creates wealth. but it can also result in major                    The global economy also relies on interchangeability The
social and ecological imbalance                                            purpose of industry and trade is to make energy, matter, time
    The world's economy will become much more sustainable                  and information interact, and derive benefits from these
if we integrate ecological principles in our management pri-               operations Multinationals, financial groups, exporters and
orities This is all the more feasible that the economy and eco-            carriers drive the "global economic ecosystem" by transform-
logical systems are structurally sinular The components of                 ing matter through energy, by increasing the speed of
economic and ecological processes-energy, matter, time and                 processes and transportation, by applying acquired knowl-
information-are all interchangeable This interchangeability                edge or innovations, by rationalizing procedures and by rein-
is the very essence of life, but it is also the basis of value added       vesting profits into the system
and economic gain.                                                             As is the case within other ecosystems, the nature of eco-
    In ecosystems. energy and matter follow balanced cycles or             nomic profits is often different from that of investments In
rhythms, moving from one level to another, plant matter                    his best seller Connections (1995), British historian James
becoming a source of energy for the animal kingdom, carni-                 Burke explains how the plough is at the origin of cities, by way
vores surviving at the expense of their prey. and decomposers              of successive re-investments of various forms. In ancient
transforming organic matter back into humus that will nour-                Egypt, the plough (a technological innovation, and thus part of
ish plants                                                                 the realm of knowledge and information) led to large agricul-
    In these systems, information can be genetically coded,                tural surpluses (of grains, i e matter), which provided nour-
expressedchemically,communicatedbytemperaturefluctua-                      i
                                                                           ishment (energy) for sufficient people to foster the emer-


i6   Development Outreach        WORLD BANK INSlITUFE
gence of an artisan class (due to the resulting free time) These    excessive growth is one of the causes of unsustainable devel-
artisans created new products, developed new knowledge and          opment, its main indicator is pollution Here again, greed is
designed new tools Through this series of transfers, a rural        the culprit To save on production costs, the private sector
tool was at the root of urban civilization                          often transfers waste and toxic materials into the environ-
                                                                    ment-where they become anonymous and collectively owned
Unsustainable growth                                               Obviously, it is more profitable for polluters to let the com-
                                                                   munity and future generations pay for the clean-up
NOT SO LONG AGO, greed motivated armed invasions, slavery             Quite the opposite occurs in natural systems, wheie all
and colonialism Appropriating other peoples' wealth and work       matter and all energy expenditures are accounted for These
was much more profitable than producing goods oneself In           systems recycle almost everything An ecosystem's net i esults
today's world, promoting uncontrolled economic growth is also      are therefore more balanced and more sustainable If ecosys-
amatterof greed Achievingwealthismucheasierinabooming              tem activities were coded in the form of economic equations,
econormesystemthaninastableone Butascapitalflowsinthe              the balance between time, matter and energy expenditures
same way as fluids, increased wealth entails loss somewhere        would be obvious
else in the system The impoverishment of the world's poorest          In the economic system, pollution and unsustainable
populations, national debt and the dev-                                                  activities relate to incomplete equations
astation of ecosystems are the direct con-                                               Truncated equations allow producers to
sequences of unsustainable development                                           -       hide costs, which they otherwise wouldl
and unrestrained growth                                                                  have to transfer to consumers or pay
    Ecosystems are more sustainable                       THE CURRENT                    themselves For many decades, internal
than the economy because their growth                GLOBALIZATION OF THE                combustion engines were only judged on
potential is finite No ecological system              ECONOMY CULTURES                   their energy output Engines weie
has developed to the point of swallowing              E         C                        expected to produce a maximum amount
up all others The limited lifespan of liv-              INFORMATION AND                  ot horsepower per iter ol gas, and noth-
ing beings, adaptation to a specific                POLITICAL STRUCTURES                 ing else mattered The industrialized
environment (water, desert or other),                IS A NORMAL PROCESS.                world held this course for almost ioo
dependence on light, and geographical                                                    years before, unwillingly even then, tak-
distance are all factors that limit the            BUT GLOBALIZATION MUST                ing into account the billions of tons of
expansion of ecological systems                   INTEGRATE THE PRINCIPLES               exhaust gas that had polluted the earth's
Constant growth is by definition unsus-                  OF SUSTAINABLE                  atmosphere during the twentieth centu-
tamnable Ecosystems maintain their                                                       ry The same situation applies to numer-
stability by recycling most of the energy                 DEVELOPMENT,                   ous industrlial, commercial and agricul-
and matter they use, allowing only                    OTHERWISE MANKIND                  tural activities of the past and present
diversity and complexity to grow                      IS HEADED STRAIGHT                     In a sustainable development context,
    Uncontrolled economic growth ben-                                                    all inputs and outputs. whelher matter,
efits mostly the rich By upholding                     FOR ECONOMIC AND                  energy, time or knowledge, must be cal-
major differences between the energy                 ECOLOGICAL DISASTER.                culated Sustainable development also
use, material consumption, infrastruc-                                                   requires that the entire biosphere and
tures and population density of rich and                                                 several generations to come be taken
poor regions of the world. growth                                                        into account when calculatingthe socie-
breeds inequality This gap will be nar-                                                  tal cost-benefit ratio of both private and
rowed as the standard of living in southern countries              public economic decisions In 192o. in The Economies of
improves and needless spending in northern countries is vol-       Welfare. British economist A C Pigou formulated an economic
untarily restricted, freeing up capital for development assis-     model by which all social costs were included in the market
tance Sustainable development in no way means bringing the         prices More recently, in his acclaimed essay The Ecology of
entire planet up to the excessive production and consumption       Commerce. American author Paul Hawken demonstrates how
levels of the North, but rather achieving a happy medium for       toxic and non-sustainable our present economy is He propos-
all the hemispheres                                                es a form of industrial ecology, based on the market economy
                                                                   and on the private sector, to foster sustainable development
Pollution, the negative indicator
                                                                    Evolution of the           global    economy
GROWTH ALSO LEADS to the concentration of economic
activities in time and space. resulting in agriculture. industri-   OVER THE COURSE OF HISTORY, the agricultural economy-
alization and urbanization that are intensive and polluting         based on matter-has given way to the Industrial Revolution,
Rich nations have consumed a disproportionate quantity of           based on energy and time management The industrial era is now
matter and energy over the past few centuries They have also
polluted a large portion of the earth's land, air and oceans If                                          CO T I N
                                                                                                           N         F 11 0 N I' A G E 2 1
                                                                                                                          OJ




                                                                                                                    I A I 1   2 02
                                                                                                                                (    .   17
The Private Sector
and Sustainability
BY PETER WOICKE                                                       Sustainability at IFC
IN RECENT YEARS, private sector companies have begun to               SUSTAINABILITY IS NOT a new concept for IFC It builds on
discover that addressing environmental and social sustain-            our original mission of promoting long-term economic
ability at the corporate and operational levels is a necessary,       growth in developing nations. We have accelerated and
useful, and even profitable way to help manage risks, capital-        widened our efforts over the past two years. however, and are
ize on opportunities, create competitive advantages, and              integrating sustainability more broadly into our operations
strengthen their standing in communities.                             We have markedly increased our capabilities and expertise to
    Manufacturing and retail companies such as Ford, Levi             help our clients meet existing environmental and social stan-
Strauss, BP, Shell, Dupont. Nike, and ABB-to cite just a few-         dards. and we are providing ever more information on going
have made sustainability an explicit part of their broad corpo-       beyond minimal standards by giving advice on the best prac-
rate strategies More recently, financial institutions such as         tices in areas ranging from corporate governance to commu-
Bank of America, Barclays. Credit Suisse, Deutsche Bank,              nity development In addition, we created a sustainability
Sumitomo, and UBS have also adopted sustainability.                   framework to provide guidance on what constitutes environ-
    Early adopters of sustainability often focused on the             mental, social, or corporate governance "higher impact" in an
"downstream" aspects of sustainability, such as ways to reduce        investment, and we have developed an IFC database to provide
or eliminate negative environmental impacts and cut costs             examples of how firms have benefited from delivering such
One example is the 3M Corporation's "Three P" program                 added value We have also brought in speakers from several
("Pollution Prevention Pays") Decades ago, 3M embarked on             leading-edge firms to discuss how they handle these issues.
a systematic effort to reduce the volume of hazardous materi-         Sustainability is being integrated into the career development
als in its production processes. From 1975 to i999, the 3P            trainingfor IFC investment officers and in the revised depart-
program prevented the creation of 807.ooo tons of pollutants          mental performance measures, which track "high impact"
and saved the company $827 million                                    transactions
    Sustainability is increasingly moving "upstream," howev-
er, and affecting decisions at the corporate and financial lev-       Challenges and Myths
els-a trend that was accelerated earlier this year by several
high-profile corporate governance scandals Transparency,              SUSTAINABILITY IS A CONTROVERSIAL            CONCEPT. and we
disclosure, and protection of minority shareholders have              have found that several powerful myths stand in the way of its
evolved from being solely insider issues lo public concerns           adoption The first myth is that sustainability is a luxury good
that, when handled poorly, can destroy a company or, when             or a public relations gimmick for rich companies in rich
handled well, can create value. Through IFC board represen-           countries Skeptics in the NGO community and the media ask
tation, for example, we urged the Bank of Shanghai to adopt           Are companies that put sustainability on the agenda for real9
international accounting standards and create auditing and            Or are such initiatives a whitewash? Is there really "a business
compensation committees under its board of directors The              case" for sustainability?
enhanced transparency and linking of management pay scales               We put the question to ourselves first Since IFC's founding
to the bank's performance have made the bank more attractive          in 1956, we have invested in about 140 countries with more
to overseas investors.                                                than 2.5oo companies in a wide array of sectors-financial,
                                                                  .   infrastructure, manufacturing, extractive industries, health,



iS   Development Outreach   WORLD   BANK INSTITUTE
and education, among others We have a wealth of experience             In July, we released this evidence in a niew study called
When we started looking at our experience with sustainability          Developiag Value The Busbness Case for Sustainabilnty in
in mind, we found that going beyond the "do no harm"                   Emerging Markets
approach-where we focused just on compliance with envi-                   We found that some of the most striking examples in this
ronmental and social standards-represented a business                  report were not the cases where companies had simply adopt -
opportunity So we set a higher goal using sustainabilhty as a          ed a "do no harm" approach Standards. of course, are impor-
way to differentiate IFC and help grow our portfolio                   tant But the most impressive examples were the companies
    Next, we looked at the business case for our clients Earlier       that viewed sustainability as a market opportunity
this year, a team of IFC researchers began examining this                 The second big myth about sustainability is the idea that it
issue They came up with more than 24o examples of how per-             is usually a downstream cost, one that is incurred after the
formance on environmental, social, and corporate gover-                "real" business is done and revenues have started to flow We
nance issues could help companies in emerging markets                  are learning, particularly in nations that have weaker institu-
These examples came from more than 6o countries, every                 tions, infrastructure, and governance, that communities
developing region, and virtually every sector and type of firm         expect businesses to create public goods, such as clean ailr,



                          The green dream: an eco-friendly day
       \<-                           -                             He' takes ashower \
                                                                        /
      <F                                    )                       which uses less'
                   The eco-friendly consumer
       f'
       F          gets up. He switches on an
    /1       \       energy-saving light                                      ___



                                                    t        U         s~               ~~~~~~~~~euss
                                                                                             public

                                     E;         _                         >    /       ~~~~~~~to
                                                                                         get to work
     Rather than use the car
     he walks his children
                 to school                                                                                                      .....




                                           CvP0~kheiA                wk            ,       from         =        i    ___



 He shops at telocal,, S
 groery
      shops there
              wt loc.                                                his cup not from
                                                                 disposable plastic goblets
 grocery shop were he t--_g
 can buy single items _g(

                                          Su_   i                      c




                                                                                                  he
                                                                                       Afe dinn_err throws
                                                                                            hsrbih in separate
                                                                                         ~reyclngbins                ___



                          atFthe sup&market
                       packagingth-a-n                                                                      a.              040902        Aff


                                                                                                                     IA I   1   2   2 1   9
                              SUSTAINABILITY WORKS BEST WHEN IT IS USED TO CREATE
                                             MORE OPTIONS FOR ALL BUSINESSES


clean water, biodiversity, and public health, and rather than I             What works in Africa may not work in Brazil. What works in
simply pay taxes so governments can try to buy them. Many                   India may not work in China To put it another way, the new
times, this actually represents a business opportunity if it is             thinking on sustainability is the old thinking about real estate.
recognized beforehand Businesses find themselves in a posi-                 location, location, location
tion to use their comparative advantages ctnd improve prof-                 The third myth is the powerful myth of the early adopter
itability And they can generate additional profits by creating           This is the myth that sustainabldity is smart business for com-
public goods-even global public goods-as part of normal                  panies that need to play defense but that there is nothing to
operations In fact, the simple act of making that process                gain by being the first to experiment We believe that one of
transparent and engaging local commun]ties can help gener-               the biggest values to be captured by a pioneer or early adopter
ate even more opportunities and change the calculation of risk           is simply managing expectations Local communities have
and return                                                               very strong-and sometimes very detailed-expectations of a
    For example. several years ago we invested in Mozal-a                business, particularly if it is an entirely new or "greenfield"
world-class aluminum smelter in Mozambique The business                  project If businesses address those expectations early, they
opportunity was very pronmsing because of the nearby loca-               are in a much better position to find solutions that represent
tion of natural resources But workers in the region had high             mutually beneficial gains If they work with stakeholders to
rates of malaria and AIDS By identifying these issues early              define the issues, they are much more effective than if they
and working with the company to address them, we improved                wait until something goes wrong Once a problem occurs,
both profitability and public health                                     sometimes the debate is about survival rather than the best
    Is that type of synergy and contribution to sustainability           solution.
going to happen everywhere? Of course not This is another                    Earlier this year. I attended a Global Mining Initiative con-
lesson of the Developing Value report the scale and nature of            ference In listening to the CEOs of some of the large mining
the public goods created by businesses are highly dependent              companies, I was struck by how much time they were spend-
on location and sector. In fact, there may be more variation by          ing on issues such as the environment and commumty devel-
location than by sector, because the local needs of the com-             opment One executive went so far as to say "If we don't get
mumty and local definitions of sustainability vary so much *             sustainability right, it's going to be the end of our business "
                                                                                                          He said the companies that get
                                                                                                          sustainability right will be prof-
                                                                                                          itable, and those who don't will
                                                                                                          fail For his industry, sustain-
                                                                    yr1n nrr--s                >            I ...........        l., .ability
                                                                                                                  has evolved from public
                                                                                                                       relations to a matter of survival
                                                                                                                          Our challenge. however, is to
                                                                                n.t,,,    mS as
                               __




                                     / - '   ,     /
                                                         j   j
                                                             .
                                                                      ?-        I , -nz
                                                                           i 'J r ,
                                                                                  '!:n            S
                                                                                                                       demonstrate that sustainability
                                                                                                                       is about more than risk manage-
                                                                                                                       ment. Why not use sustainabili-
                                                                                                                       ty as a business opportunity?
                                                                                                                       -Whynot look at it as an opportu-
                                                                                                                       nity to make you stronger? At
                                                                                                                       IFC, our philosophy and mes-
                                                                                                          -lit       * sage to our clients is. sustain-
                                                                                                                       ability works best when it is
                                                                                                                      used to create more options for
                                                                                                                      all businesses, rather than
                                                                                                      -
                                                                                                      e          >     ^*-
                                                                                                                      reducing them. Sustainability
                  ' 4                                                        .                                   -        __ -7
                                                                                                                      works best when it adds, not
                                                                                                                       t ta,
                                                                                                                      subtracts                           ck



                                                   _ _
                                                   -             - r., ,3 %
                                                                   -                      -               <            Peter Woicke is executive vice
                                                                             -u               <           -l           president of IFC.

                                                                                                                      Visit: www.ifc.orgesustainability




20   Development Outreach   WORLD BANK INiTITUTE
The Global Economy: A Flawed Ecosystem                                   The path to sustainable development may alieady be
                                                                     mapped out in our planet's ecosystems If we acknowledge
                                                                     that the global economy, encompassing all human activities, is
                                                                     in fact the human species' ecosystem, we will learn to manage
challenged by the information economy Alvin Toffler describes        the economy in synchronicity with the other ecosystems of our
this evolution of the global economy in The 7Thrd Wave (i99i)        planet Consumerism and the waste of energy will no longer
This economic progression towards more complex structures is         be the main growth vectors of our society As nature does, we
similar to biological evolution, and includes advantages that will   will learn to toster diversity and complex processes In other
allowthe sustainable economyto avoid stagnation                      words. we will aim even more towards a knowledge-based
   The current globalization of the economy, cultures, infor-        economic growth
mation and political structures is a normal process But glob-            Humankind has the economic resources. the know-how
alization must integrate the principles of sustainable develop-      and the tools to set the bases of sustainable development We
ment, otherwise mankind is headed straight for economic and          must now make it happen together
ecological disaster Sustainable development will favor global
stability over the excessive growth of one hemisphere With           Louis Michon is a professional communicator working for the
greater balance and long-term viability, the global economy          Canadian Space Agency. The views expressed tn this article are
will thus become a true planetary ecosystem                          strictly personal and do not necessarily reflect the views and policies
    Sustainable development should not lead to economic              of the CSA, nor those of the Government of Canada.
recession A green society, desirable from an ethical and
social viewpoint, will be highly cost-effective and profitable if    References
all economic operations are integrated into complete equa-           Burke, James Connections, Little Brown &Co (Revised Edition, 1995)
tions, along with all the inputs and outputs of industrial pro -     Hawken, Paul The Ecology of Commerce, Harper Business (1993)
duction and international trade Sustainable development will         Miller, J G Livlngsystems, McGraw-Hill (1978)
be a different and new way of managing global resources and          Pigou, A C "Collected Economic Writings (The Economics of Welfare),"
the world's economy The private sector will still drive the          Groves Dictionaries (1999)
economy, but manufacturers and consumers will bear the real          Toffler, Alvin The Third Wave, Bantam Books (1991)
costs of the goods and services they produce or buy This will
funnel private capital into sustainable development and cre-                      s   .
ate ]obs in this sector

Towards a knowledge-based economic
growth
THE ECONOMIC WAVES         referred to by Toffler describe a
                                                                         CAPACITY
process already imbedded in ecosystems- progress towards                FOR DEVELOPMENT
complex structures and diversity In the economy. this means
evolution towards knowledge                                              a bimonthly electronic newsletter for sharing
    Despite the speculative blips experienced by telecommu-              news and resources on capacity building,
nications companies in the early 2ooos, communications (the              including information about:
commerce of information) as well as culture (the knowledge               *trainingevents
trade), are sectors of great potential They will become the              *online leaming
                                                                         *distance learning and technology
sustainable economy's main growth sectors when the                       *instructional approaches
exploitation of raw materials, the construction of infrastruc-           *publications
ture and industrial manufacturing level off, once the econom-            *and more.
ic gap between rich and poor countries is narrowed                       To read a recent issue, visit the
    The knowledge era will be more inclusive than the infor-             World Bank Instituteweb site, at
mation age. It will offer unique opportunities for sustainable           www.worldbank.org/wbi/
development and economic prosperity Basically, knowledge                 To subscribe (at no cost) send an email from
is the understanding a system acquires of how another system             the address you would like to subscribe with to-        /
works Knowledge is obtained by the gathering and interpre-               subscribe-wbi-5-5@send-for-info.com
tation of information, which is generally energy coded in DNA
chains, sound and light waves, electric impulses or synapsese
The knowledge economy spans over many fields artistic cre-
ation, fundamental research, technological innovation, social            w   o R LD B A N K        I N 5 T I T UT E
organization, education, the multiple facets of culture, or the                           .                           .                     l
entertainment industry All these sectors have an unlimited
potential for sustainable growth


                                                                                                                            IA   I 1   2   12   21
                                        0          ~~0




               SA-WdSSLg tWtW




22   Development Outreach   WORLD BANK INSTITUTE
BY GERARD MESTRALLET

T'HE DECADE FOR SUSTAINABLE DEVELOPMENT,
launched in Rio in i 992 was given a new impetus at
the World Summit on Sustainable Development in                                           -
Johannesburg, which served not just as a forum but



                                                                             I
as a place of commitment The summit underlined               V
the need for international financial institutions to
become more imaginative in order to improve the
efficiency of their funding and actions Innovative
terms of financing must be developed, notably by
creating greater links between public funds (for
leverage) and private funds (for legal and temporal                                                                      i                I
security) Corporations must face up to all aspects
of their responsibilities (economic, social and
environmental) given their crucial part in meeting
the challenges of sustainable development. As for
NGOs, I am confident they will make extra efforts to                     -
provide concrete, on-the-ground solutiol in the
response to the growing concerns of civil society       -                                         /
   Immedeate action -s    needed     paiticularin thein
                                          o
water sector if we want to reach the Millennium tar-
get of halving by 2015 the number of people without
access to safe water, and if we want to expand access
to sanitation services as dramatically needed                                                4,
Solving the world's water problems is much more                              .              /
than a technical or financial undertaking Before
the technical and financial aspects can even be
addressed, we must reconcile a range of widely
divergent economic and ideological viewpolnts We                                        -             -   -

must find new answers and new forms of solidarity
by stimulating and maintaining active global dia-                                                                  j
logue at all levels
   Why don't people have water? Why do we allow              |-
water-related diseases to kill 3o,ooo children               I
every day? Why does the proportion of city-
dwellers who benefit from drinkingwater diminish
every day? Why does the development of networks for drink-               I think we should be able to agree that
ing water and wastewater systems not keep pace with demo-             . Water is a common good. one of the basic public goods At
graphic growth and urban sprawl9                                         SUEZ, we are opposed to the private ownership ot water
   I am horrified by the very sobering reality that underlies the        resources precisely because, in our eyes, water is not a
answers to these questions The money, the resources, the                 commodity We do not trade in water We do not sell a
know-how that we should be applying to this task are stymied             product We provide a service The service of making clean
by dogmatic discussion We need to enter into real dialogue to            water continuously available to all, and returning water to
clear up widespread misconceptions We need to clear the air              the natural habitat once it has been treated It is the price
about the fears of privatizingwater andwe need to face the con-          of that service that is billed, not the price of water as a raw
cerns that exist about what some call the globalization of the           material
water industry The word "globalization" has no meaning when
applied to water services A company like SUEZ is certainly an         . In any case the public sector must retain ownership of water
international company, but we provide services right there              resources In addition, the transfer of water infrastructure
where we manage local resources that cannot be transported              from public to private ownership is unnecessary in most
far We work under contract with local authorities, using fixed          developing countries Avery good model is that of a public-
infrastructure Moving water out of the service area, or moving          private partnership in which the operation of the assets is
the infrastructure, is qulte simply not possible.                 *     entrusted to a private operator for the term of the contract


                                                                                                                       I' R I N G   2{i   2   23
                                                                                                                          required each year for the developing countries alone
                    ,.
                    *                                           .       .                                                 Leveraging such resources requires a combination of pri-
                                 *-                                                                                       vate finance and national or multilateral funds That is the
              'k
               -
                   _ ,,
                      ^                -
                                           =
                                                         s
                                                         -
                                                                                   ,.public
                                                                                              f
                                                                                              t
                                                                               us . _ |management
                                                                                                               official's role Initiative and control are the respon-
                                                                                                      sibility of the public authorities, implementation and
                                                                                                                       are that of the private sector this is the true
                                                                             0 c-a    e    =-         meaning of a public-private partnership Private groups
                                                                         -11     wt¢ sJa __ .         are trained to intervene quickly, and to achieve tangible,
                                      >11/if                                                         ~~~~~~~~~~~~verifiable to pursue their effort by
                                                                                                                    results They are ready
K
                                                                    .

                                                    I'        'i*        i.                            t minventing technical, contractual and financial solutions
                                                                                                          s ^-
                                  -   ~-,v.
                                      \ -       '        J    ~ E~ ;                          t       suited to the reality of local conditions, under the supervi-
                                                                                                      sion of public authorities in each country.
                                                                                                      We share the view that has been growing for the past io
         n-              r        9             S                   a   ~ /           jyears.              and is supported by some governments and interna-
k sC.                                      v.                                ,     ~              ntional institutions, liLke the World Bank, that public-private
                                                                                                  partnerships are a very good way to renew water infrastruc-
                                                                                    * - - :1^ > w ture, to leverage new sources of funds, and to apply more effi-
                                                                                           ; *,
                                                                             S3A|"    Y w
                                                                                        F'        - t                  cient management methods As illustrated in the examples
                                                                                                                       below, outcomes achieved to date are encouraging, but they
                                                                                                                       are far from meeting today's needs, and progress is being
                                                                                                         .
                                                                                                        iL   _         stalled by inappropriate debates
                                                                                                                           Fighting against poverty is not an option. it is an obligation
                         in-..                                                                                         and even more, a number of obligations We must fight for
                                                                                                                       education, health, and food How can we do this if we do not
                                                                                                                       first tackle the water issue, which remains the essential con-

it
                                                                                                                                                                               7
                                                                                                                       dition for finding sustainable alternatives to poverty
         -- ^,f;                 >>   ,     g                       . .;>          3.b;           ,'Of                         course, protecting water resources in the long-term
              i
              _ ,. $ " '4 ; >                                . .!it     t      1,,                 -                    perspective of sustainable development must also be one of
                                                                                          3                        ;    our $                                 scarce resource, water
                                                                                                                       jpe- top preorti es But, although pt anS
                                                                                                                          @1l
                                              X                                f                                       itself is not at stake, the real challenge is to manage it in a
                                                                                                                       proper and efficient manner This is true in many areas,
                                                                                                                       including in large cities (see example on Casablanca in box on
                                                                                                                       page 25), and especially in agriculture, which accounts for 70
                                                                                                                       percent of total water consumption and where tremendous
                                                                                                                       efficiency gains can still be made (only 5o percent of water
                                                                                                                       diverted to irrigation systems actually reaches the crops) This
     It is up to the operator to maintain and improve the infra-                                                       is also true when aiming at supplying safe water to low income
     structure                                                                                                         populations
                                                                                                                           We all have an interest in finding solutions now Opposing
· The universal nght of access to water must be recognized and                                                         economic and ideological standpoints need to be reconciled
  we should get down to work now to turn that right into a                                                             so that they cease to be so very detrimental to the interest of
  reality every day. In many places. the poorer you are, the                                                           the underprivileged around the world This will be possible
  more you pay for water, and the less you get in terms of                                                             only if the political authorities in every country take immedi-
  quality Connecting underprivileged districts to the public                                                           ate action to lay the groundwork for a more ambitious, effi-
  water system is a basic tenet of social justice. Solutions                                                           cient water agenda. This is the appeal that, in the name of
  exist and have been successfully implemented in many                                                                 SUEZ, and as a concerned citizen, I launched to all govern-
  countries including under various forms of long-term                                                                 ments, to major international institutions, numerous leading
  public-private partnerships Of course there are problem                                                              personalities, as well as to leaders in the water sector, asking
  areas. there always are, and we need to continue to search                                                           them to recognize how little was being done and to renew mi-
  for solutions. Still, the public-private partnership model                                                           tiatives to ensure water for everyone With efficient manage-
  has unquestionably produced tangible results by providing                                                            ment, we will bridge the water divide
  safe water and sanitation services to millions of people
                                                                                                                       Gerard Mestrallet, chairman and CEO of SUEZ
* The water sector desperately needs more Lnvestment and the                                                           SUEZ is a global services group, active in promoting
  form of investment chosen should be adapted to reality                                                               sustainable development.
  There is not enough money in national treasuries to make
  the investment needed happen US$ 180 billion are                                                               <*, Visit: www.suez.com


24      DevelopmenrOutreach                '501D BANK INNSIIIUIK
  SOME RESULTS ACHIEVED BY SUEZ UNDER PUBLIC-PRIVATE PARTNERSHIP CONTRACTS




THIRTY-YEAR WATER AND SANITATION CONCESSION,         WATER SUPPLY FOR RURAL AND PERI-URBAN COMMUNITIES.

                                                      In 1996, 14 million people in South Africa, liv-
In La Paz, 45 percent of the population lives         ing mostly in rural areas, had no regular or safe
below the poverty line, and 73 percent in El Alto.   access to drinking water. To achieve the objec-
A program of new connections in favor of low-        tive of giving access to drinking water to the
income communities was implemented by the            entire population, the government launched in
concession company at the beginning of the con-       1997 an innovative type of partnership with the
tract, with support from the IFC; 4 years later,     private sector, the B.O.T.T. (Build, Operate,
40,000 more people have been connected and           Train, Transfer).
the global coverage for drinking water supply had          The program largely relies on community and
been raised to 100 percent of the population liv-    local authority participation in including training
ing in the project area.                             and capacity building, empowerment of commu-
                                                     nities to run the systems on a financially viable
                                                     basis, and operation and maintenance of the sys-
                11     I                             tem until the community structures have been
                                                     adequately trained to take over the system.
THIRTY-YEAR MULTI-SERVICE WATER-SANITATION-          WSSA, Suez local company, manages two of the
ELECTRICITY CONCESSION, STARTED IN1997.              four consortia dedicated to this project, in the
                                                     Eastern Cape province and in the Northern
Thanks to improved management practices, the                    province. o r          is a partners
drawing down of water resources in the area had      proving ach Afrium            NGO.
been decreased by 22 million cubic meters in         including a South African NGO.
              2001-noug to upplya ciy of
                 wate                                      Beyond the substantial number of people
2001-enough water to supply a city of                (2.5 million) who have been connected or for
700,000. It is expected that in 2002, the vol-              mtqlity       o wate servcestha dramti
ume of water saved will reach the equivalent to      cally improved since 1997, the program Is also
the consumption of a city of 800,000 people,         stimulating the development of the water indus-
which is crucial for such a dry country as             try    aingbthprvinc en p c th rougt
Morocco.                                             try m both provfnces, in particular through the
   A "blue connection" program, designed to          emp owerment sche       is a good example of
facilitate access to drinking water for very low-    large-scale involvement of the private sector in
income individuals, was also success-fully           the water supply and sanitation of rural areas in
launched. Customer satisfaction rose from 50         dever su ndis.
percent in 1997 to 85 percent in 2001 with the       developing countries.
concession company LYDEC.


                                                      SUEZ is a world leader in energy, water and
                                                      waste services, with total revenues of EUR
                                                      42.4 billion in 2001. The group supplies water
THIRTY-YEAR WATER AND SANITATION CONCESSION,          services every day to 125 million people, of
STARTEO IN 1993.                                      which 9 million live under the poverty line.
 In eight years, the concession company, Aguas
Argentinas, has invested $1.6 billion in infra-
structure development and connected 1.6 mil-
lion people to the drinking water system, half of
which live under the poverty line.
   A Public-Private
 Partnership to Reduce
  Global Gas Flaring
BY BENT SVENSSON                                                    _f.f             -                               F                           l


THE      WORLD      SUMMIT        ON                                                                             -           -

SUSTAINABLE        DEVELOPMENT
(WSSD)   in Johannesburg dis-
cussed many important develop-                         .
ment issues One, around which                                                                                                    --..

in the past there has been less                    i       -.
public attention is natural gas - .
flaring. Flaring and venting of                                                                              -
natural gas-the associated gas                                             -
that accompanies the extraction
of crude oil-wastes valuable
resources and is a significant
                                                                -                          -




                                                                                                   _
                                                                                                       i                                             I
anthropogenic source of green-                 r

house gas (GHG) emissions
Every year, roughly io8 billion
cubic meters of natural gas are
flared around the world and                                                                -
global carbon dioxide (CO2)
emissions from flaring amount to nearly to percent of the                          efforts already under way by mobilizing all stakeholders in
emissions that countries have committed to reduce under the                        joint actions
Kyoto Protocol for the target period 2oo8-2zo2 (see Table i)                           But is there a need for an Initiative and can the Initiative
The flaring of gas in Africa alone. for instance, could produce                    really make a difference7 Despite commitments by govern-
approximately 50 percent of the current power consumption                          ments and companies and many successes in reducing flaring
of the African continent In addition to being increasingly                         (e g. in Canada and Saudi Arabia), global flaring levels have
recognized as a large environmental problem, flaring can in                        remained virtually constant since i983 (see Figure i) It is
some cases cause harmful effects on human health and                               possible that new reduction projects, for example, in Nigeria
ecosystems, especially in areas close to flaring sites (see                        will bring down the level of flaring, but it is also possible that
References)                                                                        these reductions wil be neutralized by increases from new oil
    The World Bank. in collaboration with the government of                        production (see Figure 3) Global oil production capacity is
Norway, created the idea of a Global Gas Flaring Reduction                         forecast to increase by 6o percent from 2ooo to 202o and a
Initiative to support the petroleum industry and national gov-                     similar trend can be expected for associated gas production
ernments in their efforts to reduce the flai ing of gas world-                     unless strenuous efforts to reduce gas flaring are undertaken
wide The Initiative aims to supplemeni and strengthen                          I   Much of the incremental oil production will come from coun-



z6    Developmenit Outreach   WORLD   BANK   INS I 11 U1 L
                                                                                                                                                                                demonstrate howN, this gdS
      FIGURE 1: TRENDS IN WORLD GAS FLARING AND VENTING (1980-2000)(a)                                                                                                          can be usedl on a small-
                                                                                                                                                                                scale, local basis
                                                                                                                                                                 3,400
                                                                                                                                                                 180 -                In addition. building on
                                                                                                                                                                                the curr-ent work being              car-
       160-      \                                                                                                                                               3,300          ried out by stakeholders.
       140 -         \                                                                                                                  tZ         W             3,200          ihe Initiative has identified

       120                                                                                                                                                       3,100   °      numbei           of   projects        ar-e
                                                                                                                                                                                identified as viable proj-
       Cloo- '-§                                         _                     f            f         -              *    -                   -    _             3,000 :        ects, 1 e . financially viable
                                                    >                                                                                                                    u~~~          ~ ~~~~~~~~~~~~~~~~
                                                                                                                                                                                to prvteetitles Lundei
  Oa 80-                                                                                                                                                         2,900                p    vatee      ..
                                                          ba                                                                                                                    ~~~~~~~~~~~~~~existing
                                                                                                                                                                                      reuaoyicn
  C                                                                                                                                                                      C
  .     60 -                                                                                                                                                     2,800          tive frameworks                Since it
  U_ 40 -                                                                                                                                                         /      o      can be assumed that such
       40 -                                ;                                                                                                                     2,700          projects will be carried out

       20 -                                                                             1111-   Flaring &venting           -          Oil production             2,600          in any case, the lInitiative is
                                                                                                                                                                                not targeting these type of
                 ZO_ N       IV                t,        11> ~o     A        00     05      (~    N   ~v       fl>               (O    _1\   00   91       5z~   2,500          projects. but concenltr-ates
             S
                     N   N
                         N
                             p
                                  N
                                      b'
                                           N            N11: NO   N11   N~        N11    N(1
                                                                                                  o
                                                                                                 N10 N10   N
                                                                                                                                             og'# c?
                                                                                                                                                       i
                                                                                                                                                                                on those projects that arc
                                                                                                                                                                                termed "Win-win" These
                                                                                                                                                                                projects become econonIi-
                                                                                                                                                                                cally attiactive when mar-
  Source Cedigaz Note The spike in global gas flaring in 1991 is primarily related to the events surrounding the Gulf                                                           ket       barri-ers        and       con-
  War, when oil output was increased in a number of countries to compensate for the loss of Kuwaiti and Iraqi oil                                                               straints are removed and
  production This new production capacity included associated gas for which there was little or no infrastructure and                                                           domestic, social. and loca
  which consequently was flared or vented                                                                                                                                       environimlental externali-
  (a) Excluding China and Russia                                                                                                                                                ties are interinalized I n
                                                                                                                                                                    addition. the Initiative is
                                                                                                                                                                    also targeting global public
tries and regions that currently have large flaring problems                                                                   goods projects which are economically attractive when global
Therefore, companies and countries face a major challenge in                                                                   externalities al e inlernalized on top of the barriers menitioned
finding outlets for this gas that otherwise will be flared                                                                     above (see Figure 2)
                                                                                                                                  As can be seen from Figure 3 the reductlori ol gas llaring
What has been achieved so far?                                                                                                 will depend critically on three broad factors-international

SINCE TH E OFFICIAL LAUNCH of the Initiative in Marrakech
inNovember ~4ooi, the Initiative has conducted a numiber of                                                                       TABLE 1: "BEST ESTIMATE" ON REGIONAL BREAKDOWN OF GAS
activities. including holding international consultations with
key stakeholders. data quality improvement. and dissemina-                                                                        FLARING (2000)
tion of international best regulatory practices The design of                                                                     Region                         Flared gas (bcm)         Share of world total
financing mechanisms for gas flaring reduction projects,                                                                                                                                  (%) I
including through carbon credit trading, has also been exam-
ined The Initiative has been working on specific gas flaring                                                                     Africa                          37                       34
reduction demonstration projects in Russia, Indonesia, and                                                                       Asia-Oceania                    I1                       10
Nigeria to show how carbon credit trading can improve the                                                                        Europe                          3                        3
viability of gas flaring reduction projects This has culminated                                                                  FSU                             19                       18
ina comprehensive stakeholder report                                                                                             Central and
    Poverty reduction aspects are also an integral part of the                                                                   South America                   10                       9
Gas Flaring Reduction Initiative The Initiative is   developing                                                                  Middle East                     16                       15
concepts for how natural gas that would otherwise be flared                                                                      North America                   12                       11
can be used by the local communities close to the flaring sites
Small-scale use includes liquefied petroleum gas (LPC) and                                                                       WORLD                           108                      100%
natural gas for local power generation, since these communi-
ties are often situated in areas without access to electricity or
other modern fuels In that regard, the Initiative has carried                                                                     Source Cedigaz, OP'EC, World Bank.
out preliminary fact-finding missions in Chad and Ecuador to                                                             *1


                                                                                                                                                                                                 I AI I    2   '21     27
                                                                           now to target the barriers impeding substantial reductions in
     FIGURE 2: CONTRIBUTION FROM THE INITIATIVE                            flaring at the early stage of the proposed public-private part-
                                                                           nership. which was announced at WSSD on August 3o So far,
                                                                           apart from the Bank and Norway, Shell, BP, the Algerian State
                                                                           Oil Company, Ecuador and Nigeria have officially signed up to
          Identified as                           Company lead             join the Partnership, but other donors and client countries are
         viable projects                                                   seriously considering to participate. To create ownership it is
                                                                           essential to convince client country governments and other
                                                                           stakeholders of the merits of reducing flaring, and that is the
                                                                           reason why at least two targeted regional workshops will be
                                                                           held to create in-country capacity to enable the affected coun-
                                                                           tries to tackle the issue of gas flaring on a continuous basis
            Win-win                              Collectve action          Also, the Global Gas Flaring Reduction Initiative is currently
                               __ *               Contribution from        actively seeking more partners to help in its efforts to reduce
                   - --                             Ito~~~~~~~~~~~~~~
                                                        initiativo
           Global public                                             global gas flaring
              goods                                                           The Partnership intends to identify ways to overcome those
                                                                           barriers to investments through practicable and economic
                                                                           solutions, such as by
                                                                              improving the legal and regulatory framework for invest-
                                                                              i
                                                                              ments in flaring reductions,
markets, domestic markets, and reinjection-in addition to                  . improving international market access for gas,
the availability of financing mechanisms The Partnership                   * providing technical assistance to develop domestic mar-
launched atWSSD addresses these factors in the form of a pub -                kets for flared gas
lic-private partnership, thereby establishing an arena for dia-            * developing financing mechanism for gas flaring reduction
logue on flaring reductions, the emphasis being on identifying                projects,
areas where common approaches and collective action can lead               . disseminating information, including on international
to the sustainable development of resources                                   best practices, and
    Having realized the importance of such an Initiative, the              . promoting the local small-scale use of gas (including LPG
Bank has provided support through its Global Public Goods                     schemes) in areas where gas is now flared
Fund to the Initiative, and the Norwegians have contributed a                 The Partnership is also in the process of identifying a
large amount through a special Trust Fund Resulting directly               nuynber of specific countries where gas-flaring reduction is
from the GPG funding, the Initiative has managed to identify               possible through a coordinated effort with industry, and plans
in this initial phase a number of global, as well as local bene-           to ensure the cooperation from governments and national oil
fits that can arise from the reduction of gas
flaring That has led to country specific work
in Nigeria, Chad, Ecuador, and Russia
While this first phase has been fully suc-
cessful, the Norwegian Minister for                   FIGURE 3: FUTURE TRENDS IN WORLD GAS FLARING: OPTIMISTIC AND
International Development Hdlde Frafjord              "NO ACTION" SCENARIO
Johnson has suggested to move forward and
to continue the work of the Initiative in the
shape of a Public-Private Partnership She             Flanng                                  action scenano
noted that, "Oil-producing developing                                                    -110

countries, really stand to benefit from
reduced flaring However, the success of
projects under this Initiative will depend on                                           International markets
them feeling they have ownership in the
process Ideally, this Initiative should grad                 -
ually become part of poverty reduction                                                       -
strategies, the framework of development                                                    Domestic markets
co-operation in each country
                                                                                               Site-use and re-injecton

Next steps                                                                                          Opt'msc scenano

HAVING NOW ESTABLISHED that flaring                                 2000
                                                                           2000                                    ~~~~~~~~~2020
does indeed constitute a problem that cuts
across continents and countries, the aim is


28     Development Outreach   WORI 1) IsANK IN5 111 U 1
                                                                                          Box 1: Ecuador
                                                                                              Ecuador in particular constitutes an interesting
                                                                  _~                 .      ,
                                                                                          case of awareness raising. A Vice-Minister from the
                                                          t   n            [
                                                                  .. ,l,.t.4,             Ministry of Energy and Mines attended the conference
                         -                         M   '; A.           <        '-jjm,<   in Oslo in April 2002 and realized that flaring consti-
                                                                                          tuted a vast problem This led to a Bank mission to the
                                                                                          country,   also to the    oil producing regions of
                             44-     _             _          _Sucumbios                             and Orellana The mission found that flar-
                                         -|   -_                i      \                  ing in Ecuador is limited on a global scale but is sig-
                                                                                          n ificant when compared to the country's energy
                                                                                          requirements. As the oil production facilities are
                                                                                          remote and need dedicated and reliable power gener-
                                                                                          ation for their operations, flared gas has a very high
                                                              ,:>,,.       __             value as it can substitute diesel for power generation.
                     -       Ss:; --7-                            ,                       Diesel currently has to be bought and transported to
                                                                                          site for a price of up to $34 per barrel In addition,
                                                                                          limited regulatory constraints inhibit gas utilization,
                                                                                          amongst which the sale of electricity into local grids
companies Initially, the aim is to focus on ten countries over                            and the sale of LPG are key to eliminating flaring but
a three year period, spotlighting approximately six countries                             also in providing clean energy locally where it is most
in the first two years of the partnership Countries range from                            needed Overall, excluding regulatory constraints,
large gas flaring countries (Algeria, Angola, Brazil. Nigeria.                            there seems to be sufficient demand in the country
Mexico, and Russia) to small gas flaring countries (Chad,                                 (and the region) to absorb most of the power and LPG
Cameroon, Ecuador, and Equatorial Guinea), and may also                                   (Ecuador currently imports large amounts of LPG) that
include Indonesia and the Republic of Congo To increase the                               could be produced from the flared gas. Therefore,
Partnership's transparency, it will be governed by a Steering                             there seems to be a wide range of profitable opportu-
Group consisting of the major financial contributors and                                  nities in Ecuador for the utilization of flared gas in
stakeholders from governments, national oil companies and                                 power generation and production of LPG, which will
civil society, most likely from the selected countries that the                           now be further evaluated
Partnership will focus on
    It is clear that, without a committed buy in from the private
as well as Ihe public sector, the issue of gas flaring will not be
addressed adequately A voluntary Partnership, will enable
collective actions, leading to the sustainable development of
this valuable resource, thus benefiting the local and global
environment, and not least further enhancing the countries'
and the local populations' economic development                 i.

Bent Svensson is lead energy economist in the joint World Bank/IFC
Oil, Gas, Mining and Chemicals Department. Sascha Djumena is an
operations officer in the joint World BanklIFC Oil, Gas, Mining and
Chemicals Department. Together they constitute the core task team of
the Global Gas Flaring Reduction Initiative.


Visit: www ifc.org/ozc/alobal gas.htm

References
Management of Routine Solution Gas Flaring in Alberta, Clean Air Strategic
Alliance, June 17, 1998 (a detailed study on the effects of flaring on human
health)


                                                                                                                           42




                                                                                                                                         lL,   1,,   ~29
         -'Mi'




 The Dryland Predicament:
     Natural Capital,
      Global Forces
BY RAMI ZURAYK AND MONA HAIDAR                                        .   annum). Besides the erratic, limited rainfall, constraints to
                                                                          agriculture include
DRYLANDS ARE APTLY NAMED,           for they lack water, the basis        *   rains that fall mostly as heavy showers and are lost to run-
of life This in itself limits the choices available for people to             off.
construct livelihoods that satisfy their basic needs and aspira-          *   a high rate of potential evapotranspiration further reduc-
tions Moreover, resilience (the ability to recover from                       ing yields;
shocks) in these environments is low It is therefore not sur-             .   weeds, growing more vigorously than cultivated crops and
prising that the term "drylands" is often associated with "cat-               competing for scarce reserves of moisture;
aclysmic events" such as famine (Ethiopia, Sudan), desertifi-             .   low organic matter levels, except for short periods after
cation (the Sahel) or interminable wars (Sudan) In these                      harvesting or manure applications; and
fragile environments, over ilo countries, including more                  a   poor pastures, often chronically overgrazed.
than 8o developing countries, are affected by land degrada-
tion More than i billion people live in these areas and are at            The man-made predicament
risk from the effects of this loss of productivity on their liveli-
hoods                                                                     BESIDE THEIR POOR ENDOWMENT in natural resources,
     This article addresses the issue of sustainable livelihoods          drylands bear the brunt of disabling economic. political,
in drylands It is not a theoretical review, rather a reflection           social. and cultural structures that shape the world today
on the current thinking of practitioners about a frequently               These include
asked question are sustainable livelihoods possible in the                * demographic change that places increased pressure on the
drylands today? The article draws on the collective experience               scarce and fragile resources.
of a number of researchers/practitioners who have been                    a inequality and poverty that limit the opportunities for fair,
addressing the issue, one way or another, since early i98o's,                balanced development,
mostly in the MENA region However, most of the examples                   . public policies, markets, and politics associated with the
used to illustrate the discussion originate from the Bekaa area              chronic lack of transparency and democracy, and the dom-
of Lebanon. where the authors are currently working                          inance of laissez-faire economic systems,
                                                                          . macroeconomic policies and structures, which impose
The natural predicament                                                      absurd situations in which agricultural subsidies in the
                                                                             North cost poor countries of the South more money in lost
DRYLANDS ARE CONVENTIONALLY DEFINED in terms of                              agricultural exports than the total development aid,
water stress, as areas where the mean annual ratio of precipi-            * social change and development biases, as a response to
tation (P) to potential evapotranspiration (PET = potential                  global driving forces and to the desire to join the Northern
evaporation from soil plus transpiration by plants) is signifi-              development model
cantlylessthanone Drylandsubcategoriesincludehyperarid.                      The natural and man-made predicaments are tremendous
arid, semi -arid, dry sub-humid distinguished on the basis of             driving forces Under their pressures, significant changes
defined P/PET limits It is not only the lack of water that                have swept dryland communities faster than they could adapt.
makes drylands a difficult environment it is also its erratic             This has led to the breakdown of the traditional livelihood sys-
distribution Interannual rainfall can vary from 2o-ioo per-               tems, which have not been replaced with a viable alternative.
cent, and periodic droughts are common.                                   As a result, the livelihood of millions of rural people living in
    Rural livelihoods systems in the diylands are traditionally           the drylands is today in serious danger
based on a combination of pastoralism and cropping                           There are hundreds of examples to illustrate the sequence
Pastoralism dominates in the dry regions (below 35omm per             5   of events leading to the collapse of livelihoods In the moun-



30     Developinent Outreach   WORI   n BANK   INSTi I U I E
   I~~~~~~~~~~~~~ 1
         /
    /~~~~~~~~~~~~~~~~                 {C




               ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
                -         y




z~
 ~~~~~~~~~~~~~~~~~~~    -
                                     z,,'
tains of Yemen, for instance, farming takes place predomi-          o     culty of unraveling and acting on its various components
nantly on narrow bench terraces, crafted over thousands of                    The result is development projects in which only one
years The appearance of cheap grain originating from the                  aspect of the problem of rural communities is addressed at a
Northern surpluses has led to the abandonment of farming,                 time Moreover, there is also significant donor bias towards
mass migration to the cities, the creation of urban poverty, the          what is perceived to be a problem through Northern eyes. but
irreversible degradation of the terraced lands and the shrink-            not by local people. This includes issues such as governance,
age of the area of arable lands in the country (Vogel, i987). A           gender or environmental conservation, often addressed in a
similar process has taken place in rural Lebanon (Zurayk,                 manner that is divorced from the socio-economic realities of
i993)                                                                     the rural poor
                                                                              In the Lebanese dryland village of Yammouneh, in the
Development aid in the drylands                                           highlands of the central Bekaa, cannabis growing was a major
                                                                          source of income duringthe Lebanese war (i975-1i99). In the
CURRENT     DEVELOPMENT AID recognizes the dryland                        early i99o's cannabis growing was prohibited, and people
predicament A multitude of development agencies and NGOs                  slowly sank into poverty. A number of development projects
have been channeling aid funds aimed at improving the lot of              emerged in the area, each addressing part of the problem
the rural poor in the drylands. Their approach has largely                Some were concerned with the introduction of substitute
been piece-meal. and has lacked contextual and broad vision-              crops Others meant to enhance the role of women in income
ing Most agencies, under the banner of sustainable develop-               generation, while some projects studied blodiversity in the
ment, have predominantly addressed issues relating to the                 hope of generating global interest that would trickle down as
natural predicament Their approach often focuses on the                   cash to the local people None of those projects has left signif-
technologies that can be used to improve production within                icant impact after its completion A participatory assessment
the constraints imposed by the natural environment While all              of the projects revealed that they did not address people's
recognize the man-made predicament, dealing with it is often              main concern. their livelihoods This was attributed to the
relegated to a latter stage This is principally due to the diffi-         reductionist project approach and its short cycle There is




         N_~~~~~~~~~~~                               -I                   _-1=    -&                      -
                                                                                       .. _^,.,1,' ,i:oc.--




                                                          '~~~~~~~~'




                                                                    13,          4id



32   D               0   h WOuLD       INSTITA
                                    BANK




32   Developmzent Outreach   WORI.D BANK INSTITUTE
clearly a need for an integrative, comprehensive framework           from dealing with most of the man-made predicaments
for aclion that places people at the center                          Markets, policies, development models, political systems are
                                                                     all products ot the global climate, dominated by the North
The sustainable livelihoods framework
                                                                     Conclulsion: The wzay forward
THIE SUSTAINABLE RURAL LIVELIHOODS (SRL) framework.
popularized in the late i990S provide a good. integrative            DRYLAND COMMUNITIES are faced with two massive obsta-
framework that can be built upon and adapted A generally             cles their natural capital endowment. as well as the dominant
accepted definition for SRL is A livelihood comprises the            political and economic paiadigms Against this backgiound, is
capabilities, assets (including both material and social             there a way forward 7 Some would argue that one nust create
resources) and activities required for a means of living A           an alternative system based on ecocommunalism character-
livelihood is sustainable when it can cope with and recover          ized by localism, face-to-face democracy. small-scale otgami-
from stresses and shocks and maintain or enhance its capa-           zation of production. and regional economic autonomy It is
bilities and assets both now and in the future, while not            true that malor adlustments are needed in agricultural. envi-
undermining the natural resource base (Carney, i997)                 ronmental and macroeconomic policy, at both national and
    At the heart of the SRL lies an analysis of the five different   international levels, in developed as well as developing coun-
types of capital assets upon which individuals draw to build         tries, to create the conditions for sustainable dryland commut-
their livelihoods. These are natural capital, human capital.         nity development However, these changes Will be slow to
financial capital, physical capital and social capital The           come, and there are grave concerns to be addressed in the
approach also relies on an analysis of the vulnerability context     present
in which assets exist (the trends, shocks and local cultural             Our approach is to catalyze positive change in livelihoods
practices that affect livelihoods) It also aims to develop an        by learning from each other We aim to create linkages
understanding of the strictures (organizations, from layers of       between practitioners in various geographic locations in the
government through the private sector in all its guises) and         drylands. in order to share know-how and influencc policy It
processes (policies, laws, rules of the game and incentives),        is for this purpose that the Environment and Sustainable
which define people's livelihood options The livelihood              Development Unit at the American University of Beirut
approach suggests a longer-term commitment to target                 (Lebanon) has launched a Community Development
groups/areas                                                         Initiative InJune 2oo2. ESDU was awarded a small grant l'rom
    Throughout the drylands, especially in sub-saharanAfrica,        the World Bank for founding a Community ot Practice (CoP)
development agencies are starting to adopt the SRF as their          centered on sustainable livelihoods in drylands This CoP will
operatlional framework Although there has not been enough            bringtogether professionals from around the MENAregion to
time to establish a track record, initial reports indicate that      exchange views. build capacities and guidc polieytowards SRL
the approach is promising                                            in drylands
    There are, however, major issues that remain unresolved              A number of initiatives of the same kind are being set off
by the SRL framework One of those is that the sustainability         elsewhere in the Drylands These will create synergism and
of rural ltvelihoods is not necessarily synonymous with the          will capitalize on knowledge gained so far in order to pave the
sustainability of all the ecological systems that make up this       way towards sustainable development However, as long as
livelihood This is due to the substitutions that can take place      theytake place against the background of global injustice, they
bet-ween the different assets during the adaptation process          a.e bound to remain as fragile as the Drylands environment
For example, in the dryland village of Aarsal (3oomm mean
annual rainfall), in the North East of Lebanon, socio-eco-           Rami Zuryak is professor of Land and Water Resources at
nomic changes over the past 6o years have brought about the          the American University of Beirut, Lebanon.
decline of the traditional livelihood system, agro-pastoralism       Mona Haidar is research associate with the Environment and
The community has adopted a diversified livelihood, wvhich           Sustainable Development Unit (ESDU), American University of
integrates fruit trees farming (previously unknown), employ-         Beirut, Lebanon.
ment, and quarrying There is serious concern about the
impacts of these changes. especially the rapid increase in           Visit: www.aub.edu.lb/-webeco
quarrying activity, on the natural capital (Hamadeh et al,
i999) However, a livelihood analysis wvill rapidly show that         References
without quarrying. livelihoods will breakdown. Over the past 8       Carney, D Sustainable Rural Llvelihoods, what contribution can we make?
years,   the   community and our research team have tried to         Department of International Development, DFID, 1998
identify and facilitate softer" alternative livelihoods to no        Hamadeh, S , Zurayk, R , Awar, F Talhouk, S,Abi Ghanem, D and Abi Said,
avail The natural and economic environment in which this             M "Farming Systems Analysis of Dryland Agriculture in Lebanon An Analysis
avamunithexina   sturalmndeonolylimicsenvironmntions whichth         of Sustainability," Journal of Sustainable Agriculture, Vol 15 2/3, 1999
community exists tremendously lmits the options                      Vogel, H "Terrace farmming inYemen,' Journal of Soil and Water Conservation,
   This brings us to the other problem of SRL, which is that it      42 (1), 1987 18-21
acts on the dryland predicament largely at the micro level           Zurayk, R 'Rehabilitating the Terraced Lands of Lebanon," Journal of Soil
However, in the current globalization mood, this falls short         and Water Conservation, 49 (2), 1994 106-112




                                                                                                                             I   A I I   2'   I   12   33
                                 '
     V O0ICE S I'RON]M THE ElxlF E,li)




     Africa's Brain Drain Impacts
     Health Sector
                                                                                               -
                                                                                               7s   -         f       ~   -    stantly to English speaking
                                                                                                                               countries-especially
                                                                                                                      ' @ = , : t
                                                                                                                               Australia,  New Zealand,
                                                           *_}
                                                           -                                        =;                ) ,<,,,j Canada, the US, and the
                                                                                                                                        United Kingdom in search of
                                                                                                                                        a better life One hundred
                                                                                                                          A-LI          thousand people, the survey
                                                          'Arz                                                                          indicates, left South Africa
                                                                                                                                          t]
                                                                                                     F
                                                                                                    -4*       /'       5L ,Jr           during the past three years.
                                                                     L4        f'       - -    /'                                       and 70 percent of the skilled
                                                                                                                                        ones were contemplating
                                                                                                                                        leavmg UNISA research also
         S~~~~- W
          J s
                                 -/ ,
                             .t2-l      -   s.    sh.Z>     s      -_
                                                                                                          ~                             reveals that 39,ooo South
                                                                                                                                        Africans left the country in
                                                                                                                                          1999 to join the i 6 million
          .. s~         '~                                                                                                              living abroad Those leaving
                                                                                                                                        en masse were found to be
                         'K44                                                  4                                                        engineers, accountants and
                            - --             i_                                         ?                         C           ,         ~~~~~~~~~~~~~~bankers
                   1n   tL                                                                                                 , Sixty percent left because
                                                                        Jirk        .   .*_
                                                                                        m,_         *     ZK.           of rising crime, as murder
                                                                                                                        rates are ten times higher
                                                                                                                        than in the US The HRV/AIDS
     BY HOBBS GAMA                                                                        epidemic was another culprit prompting the drift, together
                                                                                          with increasing unemployment now at thirty percent On
     Blantyre, Malawi                                                                     the political side. President Mandela's election in 1994,
     Since independence forty years ago, many African coun-                               when power was transferred to the black majority. is said to
     tries made enormous investments in young people educa-                               have contributed to uncertainties among the white minor-
     tion and training, which were supposed to spur develop-                              ity, who feared that the policy of affirmative action would
     ment in the region But, as it turned out. thousands of                               favor black South Africans
     skilled young Africans drifted to western nations for                                    The health sector is heavily impacted by the situation
     greener pastures, leaving the motherland helpless as the                              Records show that at least five qualified and experienced
     rich nations courted away human                                                                             doctors leave the public health sector
     resources                                                                                                   in Malawi every year, as life
         The current figures are quite                                                                           expectancy dropped from fifty-two
     alarming Reports indicate that. out                         "Voices from the Field" provides                                 in i998 to forty-six in 2oi The
     of i,ooo young people who go abroad                         first-hand insight into issues of                                department of human resources in
     to study annually. only thirty-five                               current concern to the                                     the Ministry of Health and
     return home The University of South                            development community. To                                     Population, said that Malawi. whose
     Africa (UNISA) has released its                             participate, send your stories to:                               medical colleges produce twenty
     report painting a gloomy picture                              devoutreach@worldbank.org.                                     doctors every year, loses about five
     Skilled young people from the conti-                             Make your voice heard.                                      experienced doctors during thc same
     nent's economic giant migrate con-                                                                                           period, who join either international



34     Development Outreach     WORLD BANK INS rt I IJI E
 or local organizations.                                          where the African Union idea was endorsed, Africa pro-
    Lilian Ng'oma. Malawi's controller of nursing services,       posed financial support in the amount of US$6 4 bn to
 was worried that about five percent of the total number of       revamp the economic situation, but only US$6bn was
 nurses working in government hospitals were leaving,             pledged-notwvithstanding the fact that the continent is
 either for the UK or the private sector. On the positive side,   losing US$2oo million a day. There was a general feeling
the government is taking action. The shortage of nurses           that as long as the brain drain remains unchecked, debt
 will be eased in the near future, promised Ng'oma, saying        relief is not forthcoming, and trade imnbalance with the
that the government has embarked on a program using               developing world is not removed, no financial or material
 German Technical Corporation (GTZ) assistance and                support will be able to revive Africa.
funds, accruing from the Highly Indebted Poor Countries               This, of course. goes hand in hand with the challenge for
 (HIPC) initiative. Last year the government recruited 245        African leaders to drum up political will and achieve a sta-
nurses on a two-year general nursing training program             ble political and business environment to retain their edu-
after obtaining GTZ help: it is about to recruit another 250.     cated sons and daughters. The checking of the brain drain
 "Should the training scheme continue to get support, it will     is one of many challenges Africa and the Western world are
mitigate the shortage of nurses. At least government is not       facing to correct the deep-rooted imbalance.
sitting idle," says Ng'oma.
    The health ministry announced that it will establish a        Hobbs Gama is a journalist from Malawi.
special health service commission to solve problems cre-
ated by the exodus of doctors and paramedics from public
institutions. The exodus and frequent industrial actions
among the health personnel in government hospitals
seem to have given an impetus to renewed efforts on the
government's part.
    The country's health minister, Yusufu Mwawa explained
that his ministry has formulated a national human
resource development plan, financing proposals. and a six
year emergency training program to produce i,ooo health
professionals each year. The ministry has already received
                                                                                                  *     ,         t
the green light from the cabinet committee on HPV/AIDS                 The World Bank Group is pleased to sponsor a conference on
for the initiative and is to present to parliament documents
outlining functions and regulations of the commission for               New Technologies for Small- and
a Draft Act. "Once the special commission for the health                        i                                     Finance
sector is established, it will enable the ministry to respond           M
to a wide array of personal matters including more com-                December 4-6, 2002 * Washington, DC
petitive salaries," said Mwawa.
    Is there anything promising from the international cir-            This global conference aims to help financial institu-
cles to curb the brain drain from the African continent?
    Following a consultative meeting in Ethiopia with the              tions seize market opportunities in SME financing,
World Bank and the World Health Organization CWHO).                    and to overcome the obstacles that have hindered
later joined by UNESCO, the Rockefeller Foundation and                 SME growth. The conference will convene financial
USAID. a task force was launched to tackle Africa's brain              institutions from emerging and developed economies,
drain. The initial meeting was attended by delegates from              financial policymakers, and technology providers to
seventeen African countries and participants included                  explore new-and profitable-approaches for extend-
deans of medical and nursing schools, representatives of               ing financial services to the SME sector.
professional associations, representatives from the min-
istries of health. education, planning, and finance, local
governments and labor, as well as service commissions.                                      Formore information, please contact:
Among the resolutions was the urgent need for African                                          Cotleen Mascenik
                                                                                               +1-202-473-7734
governments to improve the environment in which health-                                        rax +1-202-522-7105
care providers work-that is remuneration, deployment.                                          cmascenik@worldbank.org
and skilled human resource planning.
   But analysts point out that unless Africans themselves
take up the challenge. the task force might end up just as
another public relations body. At the G8 Canada meeting




                                                                                                                        F A 1. 1,   2 0 0 2   35
     KNO                        I_
                        EI,IF.DGE, RESOURCES




     Battle for the Planet:
     Mission Impossible?
     BY CHRIS HAWS                                                                                          international television channels of National Geographic
                                                                                                            Television Overthe next fewweeks, it was seen in over lio
     IT WAS A TALL ORDER IN ANYONE'S BOOK-to                                       produce a                millionhouseholds, ini35countries,in23languages.
     one-hourTVdocumentary and fifteenshort "TVvignettes"                                                       That triumphant achievement was hard won, however
      about the progress that the world has made towards sus-                                               The sad fact is that, while audience research consistently
     tamnable development over the last two decades, in undei                                               shows that most people around the world are keen to learn
     three months But that was the proposal which World Bank                                                about the health-or otherwise-of the tiny lump of rock we
      Creative Industries Consultant Chris Haws and External                                                all live on. television executives resolutely shy away from
     Affairs Video Unit boss Francis Dobbs were putting to sea-                                             commissioning programs which they fear might be per-
      soned British TV Producer Andre Singer over his pommes                                                ceived to be worthy, preachy, pessimistic. or in some vague
     fntes at the Cannes television market in April of this year.                                           way accusatory. Not "must-see-TV." they confidently pro-
     They explained that the ideal transmission dates for such a                                            claim Or at least most of them do After a couple of time
     programwouldbeduringtheWorldSunimitonSustainable                                                       wasting false starts with a major international broadcaster
     DevelopmenttobeheldinJohannesburginAugust Singer                                                       who was probably betting that Haws, Dobbs and Singer
     gazed thoughtfully across the glittering Mediterranean                                                 could not pull off the impossible, the trio turned to the
      "You're both mad," he observed                                                                        other obvious home for the documentary-National
         At the end of August, those vignettes and that program.                                            Geographic A decision came within days The news was
      called Battle for the Planet, began airing on the worldwide                                           good ("We'll take the documentary and the vignettes for all
                                                                                                                                      our territories worldwide") and
                                                                                                                                      bad ("In order to customize the
                                                       ,-1      r_                     '        ,            Sf                       show into our 23 languages, we'll
                    L..v..ir.r-                                                                                    -9                 need it by the middle of July") It
                                  7
                                  '¢~~-.t        .2.                      >                                                             -t |L
                                                                                                                                     *was already May Time was run-
                         -ha .J
                                            2
                                            llt*wa/                                                         '~                        ning out and not all of the finance
                                                                                                                                      was yet in place There was one last
                                                                                                                                      chance, however
                                                                                                                                        Every year in early June, one of
                                                       S
                                                       ^:        >                 =       =,       i                 =lb            the International Television com-
                                                                U                                       \                               ^ Jil, premier events is held
                                                                                                                                     munity's - _ -Bk !
          rve                                                                 ..                                                     amid the breathtaking scenery of
                                                                                                                                         ..
                                                                              -T H E
                                                                               *-L!                                                  the Canadian Rockies at Banff,
                                                                                                                                     Alberta. This year, for the first
                      ,Ba
                    .-;_,-
                     ,X                                         _                                                                    time, the World Bank was present

                ,
                        U                                            a             _
                                                                                                            v                        as} a iiii - hosting a panel dis-
                                                                                                                                         isponsor,
                                                                                                                                     cussion on opportunities for
                                                                                                                                       '' u
                                                                                                                                     development       in     African
                                                                                                                                     Television Chris Haws was the
                                                                                                                                     panel chair Between sessions
                                                                                                                                     throughout the conference, he
                                                                                                                                     begged, bullied and badgered one
     36   Development   >i_ Lh                  WORLDij                                                                              of Canada's largest media con-
                            ,};                    .        F        __                                           '    '             glomerates, Alliance Atlantis, to




36        Development Outreach                  WORLD   BANK INSI IIlUTL
also become a partner in the            _
Battle for the Planet project
They agreed The green light,        h
which Andre Singer had been                                                          *                v

waiting for in London had
finally been lit in Canada But it
was now June
    Convinced that his original         *'w                                                  -.
diag-nosis of Haws' and Dobbs'                - 7
                                                -               -         ''-.

mental state was correct, Andre
Singer nevertheless scrambled
his Cafe Productions team and                             .                      ,
set them to work, hiring crews
around the planet, sifting                                                                                .
through the Wor]d Bank archive
and re-contacting expert con-                                                                                                           .
tributors from an earlier envi-                                                                   t

ronmental series which he had
made in the mid - i9 8os At that
time, one of the contributors            j,                                              .
had been the distinguished                          _ }             _t                   w
Ghanaian scientist and author,
Professor Eddie Ayensu He now chairs the Inspection                      current 24 Houls" heart throb, Kiefer Sutherland had an
Panel in the World Bank Group Prof Ayensu has demon-                     interest in the subject of environmental sustainabilty and
strable expertise in many disciplines, but it was on the                 might be prepared to participate But Kiefer was in
topic of food aid strategy in the developing world that he               California and the productionteamwas in the UK Time l'or
had been originally interviewed, and it was to that topic                some lateral thinking
that he returned for the new program in an interview with                    And so it was that laie on a wet Friday afte rnoon, in a
Chris Haws His vnews are a key component in the final                    sound studio in West London, inemnbers of an exhausted
program, as are those of other World Bank executives, Ian                Cafe Productions team found themselves wislhing Kiefer
Johnson. Dr Bob Watson and Dr Kristalina Georgieva                       Sutherland "Good morning in LA" and "How's the smog 7 "
Expert contributions were obtained from around the world                 as they prepared to record his Battle for the Planet narration
and they include environmentalists, poverty and popula-                  in another studio 7,000 miles away Although somewhat
tion advisors. HIV/AIDS commentators, politicians and                    unorthodox. the sessionwent well. and Kiefer and the team
scientists                                                               parted company as "new best friends" a few hours later.
    By early July, all these interviews, had been shipped to             never having met With this last key component now in
Cafes edit suites in West London, where producers were                   place, the program could finally bc completed 'I'he fin-
working 24 hours a day to pare down the growing mountain                 ished master tape was delivered to the National Geographlic
of material into an entertaining and informative television              offices in Washington DC on time, trwo days later
program Meanwhile. in an edit suite in Canada, ihe 15 TV                     The global coordination of resources and effort
vignettes, designed to accompany the documentary special                 required to achieve the impossible and make this program
and explain some of the terms and phrases used in discus -               happen has been a sharp reminder that we do indeed live in
sions of sustainability, were also receiving attention, some             a very small world, and that it's getting smaller, more
of it rather reluctant at first "Can't be done." the editor              stressed and more crowded by the minute
had announced on the Monday morning, when Chris Haws,                        But then, that's what Battlefo; the Planet is all about
who had arrived in Toronto with a suitcase full of World
Bank tapes, explained what was needed Ninety or so hours                 Chris Haws is Creative Industries consultant, EXTME,
later, that same editor was heard to mutter "I really didn't             The World Bank
think it could be done," as he staggered off, exhausted. into
the warm Canadian night The vignettes were delivered to                  Visit: www worldbank.org
Nal ional Geographic the next day
    By mid-July in London, with days to go before the deliv-
ery deadline. there was no narration script and no narrator
either. but there were strong hints that the movie star and         *




                                                                                                                           I   A L 12   0 0   2   37
     KNOWN'LEDGE RESOURCEIS


     Lookingfor development information, networking                      -u                      -     -     COMMANDING HEIGHTS:
                                                                2
     opportunittes, likeminded partners. a professionalexchange                     COMMANDING               THE BATTLE FOR THE
     Reaching those goals is as close as your computer screen                       HEIGHTS                  WORLD ECONOMY
     A network of development websites will take you to thefour                                        presents the television
     corners of the world and will put you In touch with a                                             documentary based on
     multicultural cornucopiaof knowledge                                                              the 1998 best-selling
                                                                                                       book, The CommandLng
                                                                                                       Heights The Battle Between
                                                                         Government and the Marketplace That Is Remaking the
                   i           =-               WBI'S SUSTAINABLE        Modern World. by Daniel Yergin The new PBS series is
                                                DEVELOPMENT              being narrated along three chapters. The Battle of Ideas,
                       .   ..                   PROGRAM WEBSITE          The Agony of Reform, and The New Rules of the Game.
                             _____   'provides      access to a wide     The purpose of this site is to promote better under-
                              ~Bi.        array of learning activities   standing of globalization. world trade and economic
                                . =-      and capacity building mi-      development, including the forces, values, events, and
                                          tiatives on sustainable        ideas that have shaped the present global economic sys-
                             L;         -- _ 1l-development, spe-
                                                         with a          tem It includes storyline, key events, countries, peo-
                             LIL. 1-- cial focus on environ-             pIe, ideas, discussion, educators' guide, and resources
               ,.     ^      E= t
                             :3           mental management, nat-        Visit: www.pbs.org/wgbh/commandingheights/Ilolindex.htmI
                                          ural resources manage-
                                          ment, and rural poverty
                                          and development
                                          Information is available        .                         SUSTAINABLE MANAGEMENT
     on courses and other    learning events, e-discussions,                                        OF THE USANGU WETLAND
     resources, contact people, and links to related websites                                       AND ITS CATCHMENT
     inside and outside the World Bank                                                              (SMUWC) PROJECT was creat-
     Visit: www.worldbank.org/wbi/sustainabledevelopment                                            ed to improve management of
                                                                                                    the Usangu basin's resources, to
                                                                                                    provide residents and water
                                                                                                    users a clear understanding of
                                                                                                   what was happening and why. to
                                              CHANGEMAKERS               create a vision of opportunities for the future. and to
       -           .-      -         _        LIBRARY:                   encourage people's commitment and involvement to pro-
                                    __
                                     -        TOOLS FOR SOCIAL           tect this resource
                                              CHANGE olfers selected     Visit: www.usangu.org
                   -- _ _____
                           '             '    Internet resources,
                              -- ~' .mincluding the
                         __ it.~ . ChangemakersJournal and
                             1------
                                  -     the Changemakers Review. It                                        STATE AND TERRITORIAL
                          _ _           also features the                                                  AIR POLLUTION PROGRAM
                                     J Changemakers Studio,                        -                       ADMINISTRATORS (STAPPA)
                                        which showcases multime-                                           AND THE ASSOCIATION OF
     dia features - using sound and images - to present the                   -. r-'                       LOCAL AIR POLLUTION
     work of social entrepreneurs; the Point of View, a timely                                             CONTROL OFFICIALS
     forum for readers' opinions and perspectives about pro-             represent air pollution control agencies in the states,
     grams and initiatives aimed at alleviating social problems,         territories and major metropolitan areas of the US Both
     and a link to Creative Resoureing                                   associations were formed to improve the effectiveness of
     Visit: www.changemakers.netIhbrary                                  these agencies in managing air pollution problems The
                                                                         site provides links and website addresses of similar agen-
                                                                         cies throughout the world
                                                                         Visit. www.cleanairworld.org/scripts/stappa asp




38     Development Outreach         WORLD BANK INS I I I U I L
                                                                                                                BOOKSHIS HL                    F




     The New                        THE NEW ECONOMY OF                     ECO-                   ECO-ECONOMY: BUILDING AN
ECONOMY                             NATURE, by Gretchen C Daily and       E GO -                  ECONOMY FOR THE EARTH
OF NATURE                                                               ECONOMY
           ......               "
                                    KatherineEllhson Island
                                    Press/ShearwaterBooks. 2002                  (                b,LesterR Brown W W Norton
                                                                                                  &Company 2001

   I s    -         \               The authors present a series of                      k        Lester Brown, head of the Earth
                                    stories illustrating projects                                 Policy Institute argues that
                                    around the world, from New York                               current economic theories failed
         reh-rl         ,   I       to Austraha and Costa Rica, which                             in assessing trie environmcntal
                         recognize ecosystems as capital                 LESTER R IBROWN        costs Corpoiations that profit
                         assets and pioneer new                                                 from resource extraction are
approaches to conservation. Daily and Ellison suggest                   supported by an economic system resulting in the
ways to make conservation profitable by turning the                     heedless destruction of the earth's ecosystems The
natural world into goods and services This book offers an               author provides many concrete examples of
alternative to the confrontational approach between                     environmental destriction, as well as specific ways of
environmentalists and corporations                                      changi ng the economic systcm

                                     THE FUTURE OF LIFE.                                          NATURAL CAPITALISM:
                                     by Edward Osborn Wilson Knopf!         Na   -Cap,ta.s.       CREATING THE NEXT
                                     2002                                                         INDUSTRIAL REVOLUTION,
                                                                                     -A
                                                                                 _
                                                                                 ^   ~ ,
                                                                                     _            bybPaul Hawken ArnioTy Loitins,
                           Pulitzer Prize winner Edward                                           and L Hu.nterLovins Back Ba-
                           Wilson calls out to ensure the                                         Books. 2000
                           future of life Wilson combines                                     I

                           lyrical descriptions with dire                                        This is the first book to explore
                           warnings and remarkable stories                  I                    the lucrative opportunities for
                           of tlora and fauna on the edge of                _         "-,,       businesses in an era of
                           extinction with hard economics                                        approaching environmental
Wilson has penned an eloquent plea for the need for a                   limits Three leading business visionaries explain how
global land ethic and offers the strategies necessary to                the world is on the verge of a new industrial revolution
ensure life on earth based on foresight, moral courage, and             The book describes a future in which business and
the best tools that science and technology can provide                  environmental interests increasingly overlap, and in
- Lesler Reed                                                           which businesses can bettei satisfy their customers'
                                                                        needs, increase profits, and help solve environmental
                                     STATE OF THE WORLD 2002.           problems all at the same time
                                     Worldwatch Institute. ed W W
 State            of                 Norton &Company. 2002              THE CHALLENGE OF SUSTAINABILITY: AN
 th. WrJd                                                               ACTION AGENDA FOR THE GLOBAL
                           In this book, the Worldwatch                 ENVIRONMENT, Global Environament Facilitt. 2002
                           Institutes award-winning
;wX             j          research team describes how to               This timely new book from the Global Environment
                           meet the complex challenges of               Facility (GEF) identilies key strategies for meeting the
                           restoring a sustainable balance              challenge of global sustainability. and makes a compelling
                           between the growing human                    case that the next decade offers a unique opportunity to
population, rising levels of consumption, and the threats               lift future generations from poverty and to eliminate the
to the natural systems that support all life on the Earth               threat of living on an irredeemably spoiled planet The
The book provides concerned citizens and national                       Challengeof Sutstainability is based in large part on a sei les
leaders with comprehensive analysis of the global                       of GEF Roundtables on sustainable energy. forests and
environmental problems we face, togetherwith detailed                   biodiversity, land and water degradation, and financing
descriptions of practical, innovative solutions                         To order visit www.gefweb.org




                                                                                                                         I A I I   2   I   2       39
   CALENDAR


   OCTOBER 2002                                                              27-29       Eastern and Southern African Symposium
                                                                                         OnYoung Women and IHV/AIDS
    16-18      Second Global Environmental Facility                                      Nalrobi, Klenya
               Assembly                                                                  Contact W Kaikai, Tel +254-2-245-3ii
               Beijing, China                                                            kola@todays co ke
               geonline@worldbank org                                                    strideve@hotmail com
                                                                                         vww cormmint com/events_cat/2oc2/ii83-event html
   28-29       Joint Workshop on Working for Development in
               Difficult Partnerships                                        DECEMBER 2002
               Paris, France
               Contact Barbry Keller, OPCS, Tel 202-45 8 -56 i0              3-5         International Conference on Adult Basic and
                                                                                         Literacy Education (ABLE)
   NOVEMBER 2002                                                                         KwaZufu-Natal, South Africa
                                                                                         Contact Wendy Smith, Tel 27-o33-26o-5592
    10-13      The Microcredit Summit +5                                                 smithwa@nu ac za
               New York, USA                                                             vww commimt com/events-cal/2oo2/1239-event html
               wwww microcreditsummit org                                    9-20        Committee on Energy and Natural Resources
    18-29      UNCCD, Committee for the review of the                                    for Development
                implementation of the Convention to Combat                               New York, USA
                Desertification                                                          www conf un org
               Catania, Italy                                                11-13       Children and the City Conference
               ,www conf un org                                                          Amman, Jordan
   26-29       Water for Human Survival                                                  Contact Arab Urban Development Institute
                International IWRA Regional Symposium                                    Tel +9661-4816-585
               New Delhi, India                                                          info@araburban org
               Contact Mr A R G Rao. Tel 9i-ii-6ii6347                                   www araburban org
                  cbiponda vsnl net In                                       15-17       EuroMarket Forum 2o0,
               ww,vw comminit com/events-cal/2002/1285-event htmil                       Private Sector Development and Investment in
                                                                                         Emerging Markets
                                                                                         Brussels, Belgium
                                                                                          wvw emrc be/conferences




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                           INSTITUTO DEL BANCO MUNDIAL



                CuTso de EmpodeTamiento
                                                                                           Knowledge
              Comunitario e Indusi6n Social                                                 °      Sharing
                  Programa photo de educad6n a distanca para
                          Argentina, Bolivia, Colombia, EcuadorT,
                        Guatemala, Honduras, Nicaragua y Peru                                                :rT,   _,
                   del 29 de octubre al 26 de noviembre de 2002                                 r                          -_-         -



     Los m6dulos induirln:
        * Introducci6n y Marco General                                                                  http:/lwww.worldbank.org/ks
        * Principios y estrateglas del desarrollo
          impulsado por la comunidad
        * Comunicaci6n, advocacy y construccifn
          de coaliciones                                                The Knowledge Sharing Portal is about the prominence of knowledge
                                                                        at the World Bank and how it creates, shares and appiies knowledge
             nacional                                                   The purpose of this website is to capture and organize information on
        * Partlcipaci6n dudadana en gobernabilidad                      all the Bank's knowledge sharing efforts in one place
          local                                                         The main componenrs of the KS Portal are below
_       * Reducci6n de la pobreza y politicas soclales
             inclusivas                                                          :Z Knowledge Bank Vision
             Monitoreo y evaluad6n participativa                                 :   Knowledge Management
        * Resumen del curso y presentaci6n de planes                             5 Initiatives
          de acci6n                                                              : Capacity Enhancement
     Este curso piloto estadingido arepresentantes de organiza-                      Communoiues
7    clones no gubemamentales, miembros de la sociedad cvil y                      Knowledge Services
     funcionanos publicos que tienen la capaddad de lnflulr Ia                   5 Knowledge Intern Program
-    agenda politicas Cada modulo contarA con representes de
     cada uno de los paises mencionados y trabajarAn intensa-           We invite you to visit the
     mente en equipos
                                                                                     Knowledge Sharing Portal
-       mayor
     Para   lirformad6n:                                                             http:l/www.worldbank.org/ks
     wwwwoTidbank org/bi/communityempowerment
-    wwwworldbank org/wbl/govemance
     +1-202-458-08555*
                    Fax+i-202-334-8350* ecrespoOworldbank org           E-mail your comments to: ksharing@worldbank.org




                                                                                              Protecting the Vulnerable
         itJ^ -'iiJ                   i9'                                             -.    The Design and Implementation
        1tI         me          C                                                                     of Effective
                                                                                                     6,i,can              Safety Nets
                                -
                            A! abran.AfrcnCte
                Air Initiative (SAl) advances innovative
                 ETh~Clean                                                           P                 December 2-13, 2002
      ways to imrove airqualilycitie b                                                                    Washington, D.C
                                              hs    ad
                                            ueknowedgeexprience
                                                   alThis      to                     two-week            course         aims    at    providing
                                                                         participants with an in-depth understanding of the
                                                       /            *      D^
                                                                         conceptual and practical issues involved in the
      By utilizing an interactive website,                               development of safety nets interventions to protect
      online discussion groups, a quat ery                               poor and vulnerable population groups from
      e-newsletter, and dstance leancelea              RI,               income risk and to ensure they have adequate
      courses, we bring together and                         '           access to essential services
      disseminate crosszcutting expertise .                                            in E
      in urban developient energy          -                               Conducted in Engish and French, the course
                     t i
           environ and healh _,.                                         incorporates formal lectures together with practical
                                                                         case studies and hands-on exercises enabling
                                                                         participants to apply what they have learned to
                                                                         concrete situations
                                                                                         Application and Contact
                                                                                         Shenna Ross
                                                                                         E-mail:srossl @worldbank org
                                                                                         Fax 1-202-676-0961
     quality events and hyowyucan:contribut_ theTel'
                                             to                                              1-202-458-7829
      nitiative adpaticipate inour ongoing a                                             Address 1818 H Street, NW
                                                                                         Washington, D C, 20433
    >tFlr,@             _k.     org       viLisgu,*w~teb,s! ,, ,,        Website http //www worldbank org/wbi/socialsafetynets

    iorlorIdbank.org.s/                            d*trt;<              WO R LD BAN K I N STITUTE
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